Honolulu, Hawaii

, 2019


RE: H.B. No. 984

H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 984 entitled:




begs leave to report as follows:


The purpose of this measure is to:


(1) Enable the State to meet National Association of Insurance Commissioners ("NAIC") accreditation standards by adopting:


(A) The Corporate Governance Annual Disclosure Model Act; and


(B) The revisions to the NAIC Insurance Holding Company System Regulatory Act ("Accreditation Sections"); and


(2) Make numerous housekeeping and other changes to the Insurance Code (chapter 431, Hawaii Revised Statutes) to improve the regulation of insurance in the State of Hawaii ("Nonaccreditation Sections").

The Insurance Division of the Department of Commerce and Consumer Affairs, Board of Nursing, Board of Pharmacy, Hawaii Captive Insurance Council, and American Council of Life Insurers testified in support of this measure. The American Family Life Assurance Company of Columbus, Kaiser Permanente, and Hawaii Medical Service Association submitted comments.


Your Committee finds that the State must adopt the Accreditation Sections to ensure Hawaii meets NAIC accreditation standards by January 1, 2020. Passage of this measure is just the first step toward accreditation because the Insurance Commissioner must also adopt relevant rules to meet accreditation standards.


To ensure the State meets NAIC accreditation standards in a timely manner, your Committee has amended this bill by:


(1) Removing the Nonaccreditation Sections;


(2) Requiring the Insurance Commissioner to adopt rules effectuating the Accreditation Sections by January 1, 2020;


(3) Changing the effective date to July 1, 2050, to facilitate further discussion; and


(4) Making technical, nonsubstantive amendments for purposes of style and clarity.


As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 984, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 984, H.D. 1, and be referred to your Committee on Finance.



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