CONFERENCE COMMITTEE REPORT NO. 37

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 2476
                                  H.D. 1
                                  S.D. 2
                                  C.D. 1




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

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 2476, H.D. 1, S.D. 2, entitled:

    "A BILL FOR AN ACT RELATING TO INSURANCE,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to make several amendments to
the motor vehicle insurance law.  

     Specifically, the measure:

     (1) Establishes a process for selecting an independent
         medical examination (IME) physician that requires the
         parties' agreement to the selection, and lacking an
         agreement, mandates the Director of Labor and Industrial
         Relations to select a physician from a list maintained
         by the Department of Labor and Industrial Relations.  


 
 
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     (2) Establishes a cap of $400 on IMEs conducted in motor
         vehicle insurance cases;

     (3) Requires that the IME provider in motor vehicle
         insurance cases be selected by mutual agreement of the
         parties, and failing an agreement, be appointed by the
         Insurance Commissioner from a list of providers
         maintained by the Insurance Division; and 

     (4) Creates a uniform reference to the Workers' Compensation
         Supplemental Medical Fee Schedule.

     Your Committee on Conference received conflicting data
regarding the need for and amount of a maximum charge for IME's.
Accordingly, your Committee has amended this measure by deleting
references to any maximum charge to defer consideration of the
issue to future legislative or administrative action when there
is sufficient time to fully consider the matter.

     Your Committee has amended this measure to establish a fair
selection process that favors selection by agreement.  Where the
parties are unable to agree, a neutral forum (Department of
Commerce and Consumer Affairs, arbitration, or circuit court)
will make the selection.  It is emphasized that the selection
should not be a perfunctory matter, but that every effort should
be made to select a neutral examiner with a balanced approach
that favors neither insurer or claimant.  Those examiners who
have acquired reputations for favoring one side or the other
should not be selected.  Examiners who are primarily treating
doctors who are familiar with community treatment protocols,
injury patterns and cultural factors, that do not rely heavily on
IME income that may affect bias, are to be favored.

     The specialty provision in Section 2 of the bill insures
that IME doctors possess adequate knowledge necessary to properly
evaluate the treatment rendered by the treating doctor or medical
provider.

     It is not the intention of your Committee on Conference to
require multiple independent medical examiners in this ordinary
case, but rather that an independent medical examiner should be
selected that is most appropriate under the circumstances of the
treatment rendered.

     Your Committee on Conference notes that the changes proposed
to Section 431:10c-308.5 represent new law and are not a
restatement of prior law.


 
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     Your Committee has also amended this measure by deleting
application of this bill to workers' compensation insurance.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of H.B. No. 2476, H.D. 1, S.D. 2, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as H.B. No. 2476, H.D. 1, S.D. 2, C.D. 1.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE SENATE          ON THE PART OF THE HOUSE
                                   
                                   
                                   
                                   
______________________________     ______________________________
BOB NAKATA, Co-Chair               RON MENOR, Co-Chair
                                   
                                   
                                   
                                   
______________________________     ______________________________
BRIAN KANNO, Co-Chair              TERRY NUI YOSHINAGA, Co-Chair




______________________________
BRIAN T. TANIGUCHI, Co-Chair