Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 2883, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to fill a gap in the insurance law that will be created upon the expiration of federal law relating to limited licensing, by authorizing the Insurance Commissioner (Commissioner) to issue rental car companies a limited license to sell insurance only in connection with and incidental to the rental of vehicles.

In addition to authorizing the selling of insurance by rental car companies, this bill:

The Hertz Corporation and Avis Rent a Car Systems, Inc. testified in support of this measure. Catrala testified in support and suggested amendments. The Commissioner on behalf of the Department of Commerce and Consumer Affairs (DCCA) submitted testimony supporting the intent of this measure and suggesting amendments. The Office of Consumer Protection of DCCA opposed the measure as currently drafted but concurred with the Commissioner's proposed amendments.

Your Committee finds that this bill would provide important consumer protections in connection with sales of insurance related to the rental of motor vehicles. However, your Committee is also aware that the Insurance Division, Office of Consumer Protection, and industry representatives have been unable to reach a consensus on the bill.

To allow the parties to continue their discussion, your Committee has amended this measure by changing its effective date to July 1, 2099. Technical, nonsubstantive amendments have also been made for purposes of clarity, consistency, and style.

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. 2883, S.D. 1, as amended herein, and recommends that it pass Second Reading and be referred to the Committee on Finance in the form attached hereto as S.B. No. 2885, S.D. 1, H.D. 1.