HOUSE OF REPRESENTATIVES

H.C.R. NO.

183

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

REQUESTING AN AUDIT OF THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS, INSURANCE DIVISION.

 

 

WHEREAS, the Insurance Division (Division) of the Department of Commerce and Consumer Affairs provides oversight and regulates the State's insurance industry; and

WHEREAS, the Division currently regulates all lines of insurance and sets the rates for workers' compensation and motor vehicle insurance; and

WHEREAS, the Division is currently supporting the passage of a measure to regulate health insurance premiums; and

WHEREAS, numerous questions have been raised as to the ability of the Commissioner to properly determine the appropriate rates for the various lines of insurance; and

WHEREAS, specific questions have also been raised regarding the management of the Division, its failure to respond to inquiries in a timely manner, and the failure of the Division to take early corrective action to prevent the many health and dental plan insolvencies over the last several years; and

WHEREAS, the Insurance Code currently gives the Division broad examination, enforcement, and oversight over insurance entities; and

WHEREAS, currently, there are no checks and balances on the Division or the Commissioner; and

WHEREAS, there is a need to ensure that the Division has the operational capacity to engage in any additional regulatory oversight such as health plan premium rate regulation prior to legislating such authority to the Division; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, the Senate concurring, that the Auditor is requested to perform a management and financial audit of the Department of Commerce and Consumer Affairs, Insurance Division, for the biennium periods from July 1, 1998 to June 30, 2002; and

BE IT FURTHER RESOLVED that the Auditor is requested to address these and other related issues and report any findings to the Legislature not later than twenty days prior to the convening of the Regular Session of 2003; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, the Director of Commerce and Consumer Affairs, and the Insurance Commissioner.

 

 

 

OFFERED BY:

_____________________________

Report Title:

DCCA