STAND. COM. REP. NO. 284

Honolulu, Hawaii

RE:    S.B. No. 1272

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1272 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend provisions of the Insurance Code governing certain providers of health care benefits in order to conform to the National Association of Insurance Commissioners' Risk-Based Capital for Health Organizations Model Act.

     Your Committee received testimony in support of this measure from the Insurance Commissioner of the Department of Commerce and Consumer Affairs and the Hawaii Medical Service Association.

     Your Committee finds that the amendments to the Insurance Code made by this measure are necessary to enable the Insurance Division of the Department of Commerce and Consumer Affairs to retain its accreditation by the National Association of Insurance Commissioners and to guarantee that the Insurance Code contains adequate solvency requirements for all providers of insurance to protect consumers.  Your Committee further finds that this measure creates consistency within the Insurance Code by applying standards that currently govern property and casualty insurers, life insurers, and accident and health or sickness insurers to mutual benefit societies, fraternal benefit societies, and health maintenance organizations.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1272, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1272, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

____________________________

ROSALYN H. BAKER, Chair