STAND. COM. REP. NO.  1423

Honolulu, Hawaii

                , 2011

RE:   S.B. No. 124

      S.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 124, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to allow motor vehicle insurers to replace an insured's policy when it expires with a new policy through an affiliate or subsidiary; provided that the new policy provides the same or better coverage at a lower premium than the expired policy.

     The Department of Commerce and Consumer Affairs and State Farm Insurance Companies supported this bill.

     Your Committee finds that this provision will not only benefit the consumer by providing lower premiums but will also exempt the insurer from prohibitions on cancellation or nonrenewal of motor vehicle policies under these conditions.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 124, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair