IC Memo I

LINDA LINGLE GOVERNOR JAMES R. AIONA, JR. LT. GOVERNOR TO: FROM: RE: STATE OF HAWAl'I INSl)RANCE DIVISION DEPARTMENT OF COMMERCE & CONSUMER AFFAIRS P.0.BOX3614 HONOLULU, HAWAl"I 96811-3614 335 MERCHANT STREET. ROOM 213 HONOLULU, HAWArt 96813 PHONE NO: (808) 588-2790 FAX NO: (809) 588-2800 www.hawall.govfdcca/lns June 17, 2010 RONALD BOYER DIRECTOR J, P. SCHMIDT INSURANCE COMMISSIONER MEMORANDUM IC-2010-2LIC/I All Life Settlement Contract Providers and Life Settlement Brokers J.P. Sclunidt ~ Insurance Commissioner Repeal of Act 177 (2008) The 2008 Legislature passed Act 177, Session Laws of Hawaii 2008 (House Bill No. 94, H.D. 1, S.D. 2, C.D. 1) ("Act 177"), governing life settlement transactions. Act 177 automatically sunsets on June 16, 2010. A. LIFE SETTLEMENT LICENSES Based on the above, the Hawaii Insurance Division has inactivated the licenses oflife settlement contract providers and life settlement brokers effective June 17, 2010. Life settlement brokers may request the inactivation of their insurance producer license by submitting a Voluntary Surrender of Insurance License (Form VS), which can be downloaded from the Insurance Division website at hUJJ://hawaii.gov/dcca/ins/producers/forms. To request a refund of the unused portions of your renewal or service fees for your life settlement or producer licenses, please notify this office in writing and specify the name and address of the payee of the refund check. Please be advised that the Legislature doubled insurance licensing fees effective July 1, 2010 through June 30, 2014, pursuant to Act 59, Session Laws of Hawaii 2010 (House Bill No. 1985, S.D. 1, C.D. 1) ("Act 59"). Therefore, the increased licensing fee will apply for reactivation of insurance licenses beginning July 1, 2010. The complete text of Act 59 may be viewed at http://www.capitol.hawaii.gov/session201 O/bills/GM522 .pdf. Please contact the Hawaii Insurance Division, Licensing Branch by telephone at (808) 586-2788 or by e-mail to InsLic@dcca.hawaii.gov if you have any questions. IC Memorandum 2010-2LIC/I June 17, 2010 Page2 B. APPLICATION OF OTHER HAW All LAWS Please be aware that other Hawaii laws outside of Act 177 still apply to life settlement transactions. These laws include, where applicable, HRS chapter 431, article 9 (Licensing of Adjusters), and HRS chapter 431, article 13 (Unfair Methods of Competition and Unfair and Deceptive Acts and Practices in the Business of Insurance). Your attention to these articles as well as other governing statutes in the Insurance Code is appreciated. Please contact the Hawaii Insurance Division, Compliance and Enforcement Branch by telephone at (808) 586-2790 or by e-mail to Insurance@dcca.hawaii.gov if you have any questions.