STAND. COM. REP. NO. 2621

Honolulu, Hawaii

RE:    S.B. No. 2968

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2968, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE INSURANCE,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow motor vehicle insurers to offer insurance premium discounts for completion of a driver safety course or driver improvement course.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and one individual.

     Your Committee finds that this measure offers incentives for policyholders to take driver safety courses or driver improvement courses.  Your Committee further finds that this measure currently creates an exception to prohibited discriminatory practices, which may create confusion, and concludes that the incentive proposed by this measure would be more appropriate as a new section in article 10C, chapter 431, Hawaii Revised Statutes.

     Your Committee has amended this measure by:

     (1)  Amending the provision establishing the driver safety course or driver improvement course incentive by adding the provision as a new section in article 10C, chapter 431, Hawaii Revised Statutes, rather than amending existing section 431:10C-207, Hawaii Revised Statutes;

     (2)  Amending language that a discount may be offered to insureds, and not drivers, who complete a driver safety course or driver improvement course, to clarify that the policyholder is the individual who must complete the driver safety course or driver improvement course; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2968, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2968, S.D. 2.

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

____________________________

ROSALYN H. BAKER, Chair