Honolulu, Hawaii



RE:    S.B. No. 53




Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii




     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 53 entitled:




begs leave to report as follows:


     The purpose of this measure is to amend the Life Settlements Act by repealing the requirement that the Insurance Commissioner report annually to the Legislature and making the Act permanent. 


     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, the American Council of Life Insurers and the National Association of Insurance and Financial Advisors.  Testimony with comments on this measure was received from Coventry.  Written testimony presented to the Committee may be reviewed on the Legislature's website.


     Your Committee finds that Hawaii is one of seven states that have enacted the National Conference of Insurance Legislators' Life Settlements Model Act and is one of thirteen states that regulate Stranger Oriented Life Insurance, a predatory practice by investors who purchase insurance policies on the lives of elderly persons for profit.  Your Committee finds that the need to regulate Stranger Oriented Life Insurance transactions persists beyond the Life Settlements Act's original sunset date.


     Your Committee further finds that the Insurance Commissioner's reporting requirement was originally enacted to assist with the initial implementation of the Life Settlements Act.  Now that the Act has been successfully implemented, there is no longer a need for the Insurance Commissioner to make annual reports to the Legislature.  Your Committee notes that future amendments to the Life Settlements Act may be made through the normal legislative process. 


     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection 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 placed on the calendar for Third Reading.


Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,