Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 939 entitled:

begs leave to report as follows:

The purpose of this measure is to allow an insurer providing underinsured motorist coverage to assert a subrogation right against a third-party tortfeasor.

Your Committee heard testimony in support of the measure from the State Insurance Commissioner, Consumer Lawyers of Hawaii, and the State Farm Insurance Companies.

Your Committee finds that the inconsistent policies of different insurers create unnecessary confusion and delay in the processing of underinsured motorist benefits. This measure benefits consumers by creating a consistent procedure that provides access to benefits in a timely manner while preserving insurers' subrogation rights. Your Committee is moving this measure along for the purpose of continuing discussion on this issue.

Your Committee has amended the measure by making the effective date July 1, 2050.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 939, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 939, S.D. 1, and be placed on the calendar for Third Reading.