STAND. COM. REP. NO. 3417

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2255

       H.D. 2

       S.D. 2

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

 

Madam:

 

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 2255, H.D. 2, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to conform the Insurance Code with model acts and regulations of the National Association of Insurance Commissioners (NAIC) by amending existing statutes relating to employee group life insurance policies and the replacement of life insurance policies and annuities.

 

     Your Committee received testimony in support of this measure from the State Insurance Commissioner, American Council of Life Insurers, and the National Association of Insurance and Financial Advisors.

 

     This measure, among other things, clarifies that premiums for the policy may be paid entirely by the employer, or by funds paid entirely by the insured employees, or by funds contributed by both the employer and the insured employees, and deletes the requirement that at least seventy-five per cent of eligible employees elect participation in the employee group insurance policy.  This measure also allows employee group policies to cover less than ten employees at policy issuance by eliminating the ten employee requirement.

 

     Your Committee has amended this measure on the recommendation of the State Insurance Commissioner and the American Council of Life Insurers to restore the H.D. 2 version of this measure referencing precluding individual selection.  Your Committee has further amended this measure by changing the effective date to July 1, 2051, to continue the discussions on this matter.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2255, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2255, H.D. 2, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

 

 

 

____________________________

BRIAN T. TANIGUCHI, Chair