RESOLUTION

WHEREAS, the State of Hawaii is interested in streamlining its regulation of businesses; and

WHEREAS, the Departments of Commerce and Consumer Affairs (DCCA)and Business, Economic Development, and Tourism (DBEDT) have focused on creating a business-friendly climate while protecting consumer interests; and

WHEREAS, the rates charged by the insurance industry have been subject to prior approval by the Insurance Commissioner; and

WHEREAS, the prior approval system of rate regulation is only one method of reviewing the propriety of insurance rates; and

WHEREAS, NCOIL proposed a Property-Casualty Insurance Modernization Act on July 13, 2001, which was amended on November 21, 2003; and

WHEREAS, the NCOIL model is aimed at creating a more competitive and less onerous regulatory environment for property-casualty insurance; and

WHEREAS, the State of Hawaii should be proactive in seeking out less and burdensome intrusive regulations; and

WHEREAS, the current prior approval system of rate regulation in Hawaii has not been reviewed since its inception; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, the Senate concurring, that the Legislature requests the DCCA Insurance Division to conduct a review of the NCOIL Property-Casualty Insurance Modernization Act as amended on November 21, 2003; and

BE IT FURTHER RESOLVED that the Insurance Commissioner shall convene a working group comprised of the Directors of DCCA and DBEDT, representatives of the Hawaii Insurers Council, State Farm Insurance Companies, and the Consumer Lawyers of Hawaii for this purpose; and

BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to submit a report to the Legislature of the working group's findings no later than 20 days before the convening of the Regular Session of 2006; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, Insurance Commissioner, the Director of DCCA, the Director of DBEDT, the Hawaii Insurers Council, State Farm Insurance Companies, and the Consumer Lawyers of Hawaii.

Report Title:

Requesting Insurance Division of Department of Commerce and Consumer Affairs to conduct a review of the insurance modernization act approved by the NCOIL Executive Committee.