STAND. COM. REP. NO. 3110
RE: S.C.R. No. 44
Honorable Shan S. Tsutsui
President of the Senate
Twenty-Sixth State Legislature
Regular Session of 2012
State of Hawaii
Your Committees on Human Services and Commerce and Consumer Protection, to which was referred S.C.R. No. 44 entitled:
"SENATE CONCURRENT RESOLUTION ESTABLISHING THE LONG-TERM CARE FINANCING TASK FORCE TO CONDUCT A FEASIBILITY STUDY ON THE VIABILITY OF USING ACCELERATED DEATH BENEFITS AND VIATICAL SETTLEMENTS AS SOURCES OF FUNDING FOR LONG-TERM CARE NEEDS,"
beg leave to report as follows:
The purpose and intent of this measure is to request the Insurance Commissioner to convene a Long-term Care Financing Task Force to coordinate research and recommendations on the use of accelerated death benefits and viatical settlements to fund long-term care services and supports.
Your Committees received testimony in support of this measure from the Insurance Commissioner. Your Committees received testimony in opposition to this measure from the American Council of Life Insurers. Your Committees received comments on this measure from the National Association of Insurance and Financial Advisors Hawaii.
Your Committees find that as the cost of long-term care services increases, individuals without long-term care insurance seek other sources of funding for long-term care needs. Some have considered accelerated death benefits and viatical settlements as possible funding sources for long-term care services. Your Committees also find that existing provisions in the Hawaii Insurance Code and Hawaii Administrative Rules may impede the use of accelerated death benefits for long-term care, and viatical settlements are currently unregulated in Hawaii and could put policyholders at risk of being victimized by unscrupulous business practices.
Your Committees therefore have determined that this measure may be premature and find that more information must be gathered on viatical settlements and accelerated benefits in Hawaii to determine whether they may serve as feasible and safe funding sources for long-term care needs.
Accordingly, your Committees have amended this measure by deleting its contents and inserting language that:
(1) Requests the Insurance Commissioner to conduct a fact-finding and feasibility study on the viability of using accelerated death benefits and viatical settlements as a source of funding for long-term care needs;
(2) Requests the American Council of Life Insurers, the National Association of Insurance and Financial Advisors Hawaii, and life settlements brokers selling life settlement policies in Hawaii to assist the Insurance Commissioner in conducting necessary studies and completing the report;
(3) Requests the Insurance Commissioner to submit a report to the Legislature of its findings and recommendations, with the assistance of the Legislative Reference Bureau, no later than twenty days prior to the convening of the Regular Session of 2013; and
(4) Amends the title accordingly.
As affirmed by the records of votes of the members of your Committees on Human Services and Commerce and Consumer Protection that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 44, as amended herein, and recommend that it be referred to the Committee on Ways and Means, in the form attached hereto as S.C.R. No. 44, S.D. 1.
Respectfully submitted on behalf of the members of the Committees on Human Services and Commerce and Consumer Protection,
ROSALYN H. BAKER, Chair
SUZANNE CHUN OAKLAND, Chair