STAND. COM. REP. NO. 498

Honolulu, Hawaii

RE:    S.B. No. 1484

       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. 1484 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose and intent of this measure is to exempt from the Insurance Code associations organized before 1880 with membership consisting solely of active, retired, or honorably discharged members of the United States Armed Forces and their families and that provide specified benefits to members and their dependents or beneficiaries.

     Your Committee received testimony in support of this measure from the Insurance Commissioner of the Department of Commerce and Consumer Affairs and the Navy Mutual Aid Association.

     Your Committee finds that benefit societies that are the subject of this measure pre-date the enactment of fraternal benefit society laws and are organized for the narrow purpose of providing specified benefits to military members, veterans, and their families.  Your Committee further finds that these associations do not operate as commercial insurance providers and, therefore, should be exempted from the provisions of the Insurance Code.  Finally, your Committee finds that these societies are not included in the current statutory exemptions to the Insurance Code that apply to similar entities.

     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. 1484, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1484, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

ROSALYN H. BAKER, Chair