STAND. COM. REP. NO. 527-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2315
                                     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. 2315 entitled:

     "A BILL FOR AN ACT RELATING TO MOTOR VEHICLE INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to amend section 431:10C-
301.5, Hawaii Revised Statutes, to reduce damages recovered in
motor vehicle injury suits by 50% of the personal injury
protection (PIP) benefits rather than by the greater of $5,000 or
the total PIP benefits.

     Testimony opposing this measure was submitted by the Hawaii
Insurers Council and State Farm Insurance Companies.

     Testimony commenting on this measure was submitted by the
Department of Commerce and Consumer Affairs (DCCA), Consumer
Lawyers of Hawaii, and a concerned citizen.

     The DCCA testified that an actuary's analysis has determined
that reducing the covered loss deductible as mandated by this
measure would significantly impact insurance premiums savings.
However, the actuarial analysis does not include an estimate of
the impact because DCCA does not have the necessary data.  When
the necessary data becomes available, the DCCA will provide your
Committee with the estimated impact.


 
 
 
 
                                 STAND. COM. REP. NO. 527-00
                                 Page 2

 
     Accordingly, your Committee has amended the reduction by 50%
of PIP benefits by leaving a blank to ensure further discussion
pending the actuarial analysis.

     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. 2315, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2315, 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