Bill Text: HI SB2768 | 2012 | Regular Session | Amended

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

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Bill Title: Insurance; Licensing Requirements

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-04-25 - (S) Act 066, 4/24/2012 (Gov. Msg. No. 1167). [SB2768 Detail]

Download: Hawaii-2012-SB2768-Amended.html

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STAND. COM. REP. NO. 2156

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2768

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2768 entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to eliminate the underlying producer license requirement for applying for and obtaining a surplus lines broker license; provide greater clarity and consistency in licensing insurance producers selling annuity products; and clarify reinsurance intermediary licensing requirements and remove unnecessary licensing conditions.

 

     Your Committee received testimony in support of this measure from the Insurance Division of the Department of Commerce and Consumer Affairs, National Association of Insurance and Financial Advisors Hawaii, and Asurion.  Your Committee received comments on this measure from the American Council of Life Insurers.

 

     Your Committee finds that the National Association of Insurance Commissioners has requested that all states issue stand-alone surplus lines broker licenses.  The amendments proposed by this measure comply with this request and eliminate the producer license prerequisite for an applicant who wishes to obtain a surplus lines broker license.

 

     Your Committee further finds that this measure streamlines the licensing requirements for reinsurance intermediaries.  Under this measure, licensed reinsurance intermediaries will no longer have to file proof of bond, the errors and omissions policy, and the contract with the insurer and will instead be required to produce these documents upon the Insurance Commissioner's request.

 

     Your Committee also finds that this measure provides clarity and consistency in the licensing of insurance producers selling annuity products in the State, and permits the Insurance Commissioner to order restitution for violations of the Insurance Code.

 

     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. 2768 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

 

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

 

		____________________________ ROSALYN H. BAKER, Chair