STAND. COM. REP. NO.  1142


Honolulu, Hawaii

                , 2009


RE:   S.B. No. 53





Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii




     Your Committee on Health, to which was referred S.B. No. 53 entitled:




begs leave to report as follows:


     The purpose of this bill is to make permanent the protections in Act 177, Session Laws of Hawaii 2008 (Act 177), codified as Chapter 431E, Hawaii Revised Statutes, that ensure consumer protections in life settlement transactions where the owner of a life insurance policy transfers the death benefit or any portion of the policy for compensation that is less than the expected death benefit, but more than the surrender value of the policy.


     This bill also repeals the requirement that the Insurance Commissioner report annually to the Legislature on the implementation and effects of Act 177.


     The Department of Commerce and Consumer Affairs, National Association of Insurance and Financial Advisors, and American Councils of Life Insurers supported this bill.  The Coventry Group submitted comments.


     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 53 and recommends that it pass Second Reading and be referred to the Committees on Consumer Protection & Commerce and Judiciary.



Respectfully submitted on behalf of the members of the Committee on Health,