CONFERENCE COMMITTEE REP. NO.76-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2733

S.D. 2

H.D. 1

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2733, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

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 clarify and make consistent the producer licensing laws and related insurance laws.

The Producer Licensing Act was enacted pursuant to Act 216, Session Laws of Hawaii (SLH) 2001, and goes into effect on July 1, 2002. This Act replaces the various regulatory schemes governing general agents, subagents, and solicitors with a single licensing scheme for insurance producers.

This measure reconciles inconsistencies in the insurance code and other insurance laws that resulted upon the adoption of the Act. This measure also reauthorizes the licensing of managing general agents as this authority was inadvertently repealed by Act 216, SLH 2001.

Your Committee has amended this measure by:

(1) Replacing its contents with the language of the S.D. 2 version of the measure;

(2) Repealing the bonding requirement for surplus lines brokers; and

(3) Making technical amendments to correct internal references, and to reflect current statutory language and preferred drafting style.

The differences between this measure, as received, and as amended herein, are primarily stylistic in nature. However, your Committee was informed by the Insurance Division that, as amended herein, this measure will make Hawaii's law more uniform with the laws of the other states and satisfy the requirements of the National Association of Insurance Commissioners for license reciprocity.

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. 2733, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2733, S.D. 2, 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

____________________________

KENNETH T. HIRAKI, Co-Chair

____________________________

RON MENOR, Chair

____________________________

BOB NAKASONE, Co-Chair

____________________________

BRIAN KANNO, Co-Chair