Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 937 entitled:

begs leave to report as follows:

The purpose of this bill is to deny the benefits of the assigned claims insurance program to persons who sustain accidental harm to which liability or uninsured motorist coverage applies.

The Department of Commerce and Consumer Affairs, Insurance Division submitted testimony in support of this bill.

Your Committee finds that this bill is necessary to clarify the purpose of the assigned claims program, which is to provide minimum coverage to those who are injured by uninsured drivers and have no other available means of recovery.

This bill clarifies that a person, who has no applicable liability coverage because the driver was uninsured or coverage has been denied, does not qualify for an assigned claim if that person is entitled to uninsured motorist benefits under any applicable policy. This coverage limitation is consistent with the policy that assigned claims are provided as a measure of last resort.

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 S.B. No. 937 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.