Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 937 entitled:

begs leave to report as follows:

The purpose of this measure 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.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs. State Farm Insurance Company provided comments in support of a "no pay, no play" provision rather than regarding the measure at issue.

Your Committee finds that this measure will clarify the intent behind the assigned claims program, which is meant to be a remedy of last resort when there is no other insurance available to a person in an accident.

This amendment to the law will make clear that persons who have no liability coverage applicable to them because the driver was uninsured or coverage has been denied will not qualify for the assigned claims program, if that person is entitled to uninsured motorist benefits under any program.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations 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 referred to the Committee on Commerce, Consumer Protection and Housing.