STAND. COM. REP. NO. 518-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2378
                                     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. 2378 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 the Hawaii Revised
Statutes section 431:10C-301 to mandate that the minimum bodily
injury liability insurance coverage (BI) in motor vehicle
insurance be increased.

     Testimony in support of this measure was submitted by the
Consumer Lawyers of Hawaii and a private attorney.

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

     Testimony commenting on this measure was submitted by the
Insurance Division of the Department of Commerce and Consumer
Affairs (DCCA) and Life of the Land.

     Your Committee finds that the issue of mandatory minimum
bodily injury liability insurance coverage is an important issue
that deserves further consideration.  However, any modification
of the mandatory minimum BI liability insurance coverage should
be postponed until an actuarial analysis has been conducted to
determines the impact that the modification will have on
insurance premiums.  The DCCA has agreed to provide your
Committee with an actuarial analysis regarding this issue.  

 
 
                                 STAND. COM. REP. NO. 518-00
                                 Page 2

 
     Your Committee has amended this measure by leaving the BI
mandatory minimum limits blank 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. 2378, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2378, 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