Bill Text: HI SB2767 | 2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance; Insurance Guaranty Association

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-07-10 - (S) Act 250, 7/6/2012 (Gov. Msg. No. 1353). [SB2767 Detail]

Download: Hawaii-2012-SB2767-Amended.html

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STAND. COM. REP. NO. 2625

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2767

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 2767, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to update the Insurance Code to conform with the National Association of Insurance Commissioners' model acts relating to guaranty associations.

 

     Written comments in support of this measure were submitted by the Insurance Commissioner, Department of Commerce and Consumer Affairs; Hawaii Insurance Guaranty Association; and Hawaii Life and Disability Insurance Guaranty Association.  Written comments on this measure were submitted by the American Insurance Association.

 

     Your Committee finds that this measure will provide greater uniformity and coordination among Hawaii's various guaranty associations.  Your Committee further finds that this measure will provide additional benefits to consumers and will assist the Hawaii Guaranty Association system in fulfilling its statutory mandate of protecting Hawaii policyholders and consumers.

 

     Your Committee has amended this measure by:

 

     (1)  Requiring approval by a court of the State, instead of a court of competent jurisdiction, prior to imposing permanent policy or contract liens in connection with any guarantee, assumption, or reinsurance agreement, or imposing temporary moratoriums or liens on payments of cash values and policy loans;

 

     (2)  Preserving the requirement in section 431:16-212(g), Hawaii Revised Statutes, that the Board of Directors of the Hawaii Life and Disability Insurance Guaranty Association prepare a report to the Insurance Commissioner regarding the history and causes of any insurer insolvency in which the guaranty association was obligated to pay covered claims; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2767, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2767, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

		____________________________ DAVID Y. IGE, Chair