STAND. COM. REP. NO. 1581_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1132
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 1132 entitled: 


begs leave to report as follows:

     The purpose of this bill is to change the frequency of
examinations by the Insurance Commission of captive insurance
companies from once a year to a minimum of once every three
years, as determined by the Insurance Commissioner.

     Testimony in support of the bill was received from the
Insurance Commissioner of the Department of Commerce and Consumer
Affairs and J&H Marsh & McLennan Management, Inc.  The Hawaii
Captive Insurance Council provided oral testimony only, in
support of the measure.

     To facilitate further discussion of this measure, your
Committee has amended this bill by replacing its contents with
that of H.B. 1070, H.D. 1, which was passed out earlier this
session by your Committee.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1132, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1132, H.D. 1, and be placed on the calendar for Third Reading.

                                 STAND. COM. REP. NO. 1581_______
                                 Page 2

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

                                   RON MENOR, Chair