STAND. COM. REP. NO. 2126

Honolulu, Hawaii

RE:    S.B. No. 2299

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Intergovernmental and Military Affairs, to which was referred S.B. No. 2299 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to require each of the counties to participate in the community rating system for purposes of the National Flood Insurance Program.

     Your Committee received testimony in support of this measure from the State Department of Defense and Property Casualty Insurers Association of America.

     Your Committee finds that the community rating system of the National Flood Insurance Program, administered by the Federal Emergency Management Agency, is a voluntary incentive program.  The goals of the community rating system are to reduce flood losses, facilitate accurate insurance rating, and promote awareness of flood insurance.  Participation in the community rating system may result in discounts in flood insurance premiums of up to forty-five per cent; presently, however, only the County of Maui is participating in the system.

     As affirmed by the record of votes of the members of your Committee on Intergovernmental and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2299 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Intergovernmental and Military Affairs,

____________________________

LORRAINE R. INOUYE, Chair