STAND. COM. REP. NO. 890

Honolulu, Hawaii

RE: S.B. No. 1210

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 1210 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to update and improve existing provisions of the State's insurance laws under title 24, Hawaii Revised Statutes.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Board of Nursing, Board of Pharmacy, University of Hawai‘i System, Hawaii Medical Service Association, Hawaii Captive Insurance Council, and seven individuals. Your Committee received comments on this measure from the American Council of Life Insurers, American Family Life Assurance Company of Columbus, and one individual.

Your Committee finds that this measure is intended to update and improve various areas of the State's insurance laws. Furthermore, this measure is, in part, necessary for the State's continued accreditation with the National Association of Insurance Commissioners. This measure modernizes provisions, removes antiquated systems, and benefits insurers and consumers by removing redundancy, time, and cost barriers.

Your Committee has amended this measure by:

(1) Clarifying that the corporate governance annual disclosure shall be prepared consistent with rules adopted by the Insurance Commissioner, rather than the National Association of Insurance Commissioners' Corporate Governance Annual Disclosure Model Regulation;

(2) Clarifying that the short-term health insurance preexisting disclosure requirement does not apply to accident-only health insurance;

(3) Clarifying that a health care provider who performs a service is eligible for reimbursement to the extent that the health care provider is eligible for reimbursement under a policy, contract, plan, or agreement, and is acting within the scope of the provider's license or certification under state law;

(4) Inserting an effective date of October 1, 2019; relating to proposed name changes and use of a trade name or assumed name; and

(5) 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. 1210, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1210, 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