STAND. COM. REP. NO.823-02
RE: S.B. No. 3040
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 3040, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE,"
begs leave to report as follows:
The purpose of this bill is to require that all nonpublic information, not only nonpublic financial information of a captive insurance company, be treated as confidential by the Insurance Commissioner (Commissioner).
Testimony in support of this measure was submitted by the Insurance Division of the Department of Commerce and Consumer Affairs. The Office of Information Practices (OIP) provided testimony in opposition to this bill.
Your Committee finds that the design and structure of a captive insurance program is unique to each captive. In many cases the design and structure is proprietary information, which if disclosed, may result in competitive harm to the captive and its owner. Requiring the Commissioner to treat all nonpublic captive insurance company information as confidential will help ensure the fiscal viability of captive insurance programs.
Your Committee recognizes the concerns expressed by OIP, but believes that this measure does not constitute a true confidentiality statute. Under this bill, the Commissioner retains the discretion to disclose nonpublic information upon determining that the interest of policyholders, shareholders, or the public will be served.
Your Committee has amended this measure by making technical, nonsubstantive amendments for purposes of consistency, clarity, and style.
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. 3040, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3040, S.D. 2, H.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
KENNETH T. HIRAKI, Chair