STAND. COM. REP. NO.  1535-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2821

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2821, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to update various provisions in the Insurance Code based on recommendations by the National Association of Insurance Commissioners (NAIC) to ensure that the Department of Commerce and Consumer Affairs Insurance Division maintains its NAIC accreditation.

Specifically, this measure adopts revisions to the NAIC's model laws on Credit for Reinsurance Model Act, Standard Valuation Law, Standard Nonforfeiture Law for Life Insurance, and Insurance Holding Company System Regulatory Act and additional amendments aimed at clarifying those revisions in the context of Hawaii's Insurance Code.

USAA testified in support of this measure.  The American Council of Life Insurers provided comments.

     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. 2821, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair