STAND. COM. REP. NO.  1506

Honolulu, Hawaii

                , 2011

RE:   S.B. No. 1278

      S.D. 1

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1278, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to protect consumers, particularly seniors, from abusive financial service practices by adopting model regulations of the National Association of Insurance Commissioners in conformity with senior investor protection in the federal Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

     The Department of Commerce and Consumer Affairs and National Association of Insurance and Financial Advisors Hawaii testified in support of this bill.  The American Council of Life Insurers offered comments.

     Your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2030, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1278, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1278, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair