STAND. COM. REP. NO. 3315

                                   Honolulu, Hawaii
                                                     , 2000

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




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 2476, H.D. 1, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

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

     Specifically, the measure:

     (1)  Clarifies that disputes between provider and insurer
          over the correct fee or procedure code are governed by
          section 431:10C-308.5, Hawaii Revised Statutes (HRS),
          which provides requirements for payment by the insurer
          and a negotiated resolution of the dispute; and 

     (2)  Creates a uniform reference to the "workers'
          compensation supplemental medical fee schedule".

     Testimony on the measure was received from the Department of
Commerce and Consumer Affairs, State Farm Insurance Companies,
and the Consumer Lawyers of Hawaii.

     Your Committee has amended the measure by:

     (1)  Adding a section to the measure that amends section
          386-79, HRS.  The added section establishes a process

 
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                                   STAND. COM. REP. NO. 3315
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          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.  Your Committee
          believes that this amendment will promote judicial
          economy, conserve administrative resources, and
          streamline the resolution of workers' compensation
          disputes;

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

     (3)  Requiring 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.

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

 
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                                   STAND. COM. REP. NO. 3315
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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