CONFERENCE COMMITTEE REP. NO. 88

Honolulu, Hawaii

                 , 2017

RE:    S.B. No. 953

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 953, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to make various updates to the State's insurance code relating to:  third-party claimants; insurance fraud penalties; certificates of authority; motor vehicle insurance self-insurers; nonresident adjusters; insurance producer licensing; and supervisory proceedings undertaken by the Insurance Commissioner.

     Your Committee on Conference finds that this measure will update and improve the State's insurance code in a number of areas.  Among other things, this measure proactively allows the Commissioner to trigger the arrival and assistance of nonresident adjusters in the State ahead of a declaration of emergency by the Governor.

     Your Committee on Conference further finds that this measure also conforms the State's producer licensing requirements to the National Association of Insurance Commissioners' Producer Licensing Model Act by eliminating producer-to-producer appointments.  In 2001, the Insurance Division deviated from the model law to conform with the then-current system, and as a result, Hawaii is now the only state that has a producer-to-producer appointment law.  This measure ensures Hawaii's insurance code is uniform with other states' statutes.

     Your Committee on Conference has amended this measure by:

     (1)  Deleting language that would have required certain actions by a producer and insurer upon initiation by the producer of termination of the producer's appointment with the insurer, as this language did not conform to the Producer Licensing Model Act;

     (2)  Changing its effective date to July 1, 2017; provided that the provisions relating to producer licensing shall take effect on January 1, 2019; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 953, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 953, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ ROY M. TAKUMI Co-Chair	____________________________ ROSALYN H. BAKER Chair
____________________________ TY J.K. CULLEN Co-Chair	____________________________ GILBERT S.C. KEITH-AGARAN Co-Chair
	____________________________ BRIAN T. TANIGUCHI Co-Chair