CONFERENCE COMMITTEE REP. NO. 80

Honolulu, Hawaii

, 2019

RE: S.B. No. 1212

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

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. 1212, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REGULATORY AUTHORITY OF THE INSURANCE COMMISSIONER,"

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 require third-party administrators to be licensed and regulated by the Insurance Commissioner.

Your Committee on Conference finds that third-party administrators collect charges or premiums from residents in the State in connection with insurance policies, or adjust or settle claims on those policies.  Hawaii is one of eight states and jurisdictions that do not regulate third-party administrators. This measure is based on the National Association of Insurance Commissioner's Registration and Regulation of Third-Party Administrators Guideline, which offers flexible, bright line rules to help states tailor and adopt measures particular to their own needs. This measure regulates third-party administrators, ensures adequate consumer protection, and promotes transparency of third-party administrators by requiring licensure, encouraging disclosure of contracts between insurers and third-party administrators, and promoting the financial responsibilities of third-party administrators.

Your Committee on Conference has amended this measure by:

(1) Changing the effective date to January 1, 2020; and

(2) 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. 1212, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1212, S.D. 1, 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
____________________________ NADINE K. NAKAMURA Co-Chair