Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1727, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide immunity from civil liability for persons providing information on insurance fraud.

The Department of Commerce and Consumer Affairs, State Farm Insurance Companies, and Hawaii Insurers Council testified in support of this measure. The American Council of Life Insurers submitted comments.

This measure provides that a person, acting without malice and without committing perjury, is not subject to civil liability for providing information on insurance fraud to the courts, the insurance commissioner, the insurance fraud investigations unit, the National Association of Insurance Commissioners, the National Insurance Crime Bureau, law enforcement or regulatory agencies, or another insurer. Your Committee finds that this measure will facilitate the reporting, investigation, and prosecution of insurance fraud.

In order to facilitate further review of this measure, your Committee has inserted a delayed effective date of July 1, 2030.

Additionally, your Committee has amended this measure:

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 H.B. No. 1727, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1727, H.D. 1, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.