STAND. COM. REP. NO. 517-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2983
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2983 entitled: 

     "A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to establish a new class of
captive insurance companies, class 5, that will consist of
reinsurance and excess insurance companies.

     Testimony in support of the bill was submitted by the
Insurance Division of the Department of Commerce and Consumer
Affairs, Hawaii Captive Insurance Council, Marsh Management
Services Inc., AON Insurance Managers (USA) Inc., and a private
attorney.  
     
     Testimony in support of the bill, with suggested amendments,
was provided by the Reinsurance Association of America.  

     After full and free discussion, your Committee has
incorporated the amendments suggested by the insurance
commissioner.  Technical, nonsubstantive amendments have been
made for style and clarity.

     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 H.B. No. 2983, as amended herein, and recommends that

 
 
 
                                 STAND. COM. REP. NO. 517-00
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it pass Second Reading in the form attached hereto as H.B. No.
2983, H.D. 1, and be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   RON MENOR, Chair