Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 3278 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize motor vehicle insurers to reduce premium charges for insureds who complete a motor vehicle accident prevention course.

Testimony in support of the measure was submitted by the State Insurance Commissioner; Consumer Lawyers of Hawaii; and an individual. The Hawaii Insurers Council submitted comments.

Your Committee finds that drivers who complete and pass a motor vehicle accident prevention course are better equipped to recognize and avoid dangerous traffic situations, thereby positively affecting motor vehicle insurance premiums for all policyholders.

Your Committee has made technical, nonsubstantive amendments for clarity, style, and consistency with other statutory language.

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. 3278, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3278, S.D. 1, and be placed on the calendar for Third Reading.