STAND. COM. REP. NO. 511-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2474
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2474 entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to conform state insurance law
to federal law by:

     (1)  Requiring persons convicted of any felony who wish to
          engage in the business of insurance in Hawaii to first
          obtain the written consent of the Insurance
          Commissioner (Commissioner); and

     (2)  Giving the Commissioner the discretion to withhold
          consent.

     The Department of Commerce and Consumer Affairs (DCCA) and
the Hawaii State Association of Insurance and Financial Advisors
testified in support of this bill.

     Federal law prohibits persons convicted of a felony
involving dishonesty to engage in the business of insurance
unless the person first receives written consent from the
insurance regulatory official.  DCCA testified that when a person
requests consent under federal law, state law does not authorize
the Commissioner to deny consent.  This measure addresses the
discrepancy by conforming state law to federal law while making
state law more limiting than its federal counterpart.  This bill

 
 
                                 STAND. COM. REP. NO. 511-00
                                 Page 2

 
requires a person convicted of any felony, not just a felony
involving dishonesty, to obtain the written consent of the
Commissioner before engaging in the business of insurance.

     Technical, nonsubstantive amendments were made for clarity
and style.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2474, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2474, H.D. 1, and be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   RON MENOR, Chair