Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1129
                                        S.D. 2

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Ways and Means, to which was referred S.B.
No. 1129, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to require continuing education
for insurance agents as a condition of license renewal.

     The bill also creates an insurance licensing administration
special fund to pay for expenses relating to licensing and the
continuing education program.  Lastly, the bill increases
insurance licensing fees.

     Your Committee finds that a continuing education program for
the insurance industry will serve the public's interest by
requiring standards of competence to ensure a knowledgeable and
qualified insurance workforce.  A continuing education program
will also benefit local insurance agents by entitling them to
licensure reciprocity with other states.

     Your Committee has adopted the suggestions proposed by the
Insurance Commissioner and has therefore amended the bill by:

     (1)  Replacing the proposed subsection (f) on page 7 of the
          bill with a provision to prevent the funds in the

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          insurance licensing administration special fund from
          reverting to the general fund;

     (2)  Decreasing the proposed increases in fees in section 4
          of the bill by fifty per cent;

     (3)  Increasing the amount appropriated from the insurance
          licensing administration special fund by $500,000; and

     (4)  Adding a new section 7 of the bill on page 13 requiring
          a two year assessment of insurers, general agents,
          subagents, nonresident agents and brokers, solicitors,
          adjusters, limited licensees under section 431:9-
          214(c), Hawaii Revised Statutes, managing general
          agents, reinsurance intermediaries, surplus lines
          brokers and designated representatives.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1129, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 1129, S.D.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

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