RESOLUTION

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

WHEREAS, the Departments of Commerce and Consumer Affairs and Business, Economic Development and Tourism have focused on being business-friendly while protecting consumer interests; and

WHEREAS, the regulation of the rates charged by the insurance industry has been subject to prior approval by the Insurance Commissioner (Commissioner); and

WHEREAS, the State's current prior approval system has not been reviewed since its inception; and

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

WHEREAS, the National Conference of Insurance Legislators (NCOIL) proposed a Property/Casualty Insurance Modernization Act on November 21, 2003; and

WHEREAS, the NCOIL model is aimed at creating a more competitive and less onerous regulatory environment; and

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

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, the House of Representatives concurring, that the Commissioner is requested to convene a working group to review the NCOIL Property/Casualty Insurance Modernization Act as reviewed and amended by the NCOIL Executive Committee on November 21, 2003; and

BE IT FURTHER RESOLVED that the working group is requested to be comprised of the Directors of Commerce and Consumer Affairs and Business, Economic Development and Tourism, or their designees, and representatives of the Hawaii Insurers Council, State Farm Insurance Companies, and Consumer Lawyers of Hawaii; and

BE IT FURTHER RESOLVED that the Commissioner is requested to submit a report on the working group's review to the Legislature not later than twenty 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 Commerce and Consumer Affairs, the Director of Business, Economic Development and Tourism, the Hawaii Insurers Council, State Farm Insurance Companies, and the Consumer Lawyers of Hawaii.

Report Title:

NCOIL Property/Casualty Modernization Act Review