STAND. COM. REP. NO. 2501

Honolulu, Hawaii

RE:    S.B. No. 2852

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2852 entitled:

"A BILL FOR AN ACT RELATING TO THE INSURANCE HOLDING COMPANY SYSTEM,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend the Insurance Holding Company Regulatory Act to maintain compliance and accreditation with the National Association of Insurance Commissioners.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and American Council of Life Insurers.

     Your Committee finds that during the Insurance Division of the Department of Commerce and Consumer Affairs' accreditation review in August 2014, the National Association of Insurance Commissioners (NAIC) stated that Hawaii's Insurance Holding Company System Regulatory Act needed to be revised, as changes made to the Act during the Regular Session of 2014 had made Hawaii noncompliant with NAIC standards.  Accordingly, this measure amends Hawaii's Insurance Holding Company Regulatory Act to comply with the NAIC Insurance Holding Company System Regulatory Model Act and maintain the Insurance Division's accreditation with NAIC.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of upon approval; and

     (2)  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, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2852, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2852, S.D. 1, and be placed on the calendar for Third Reading.

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

________________________________

ROSALYN H. BAKER, Chair