STAND. COM. REP. NO.  432

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 690

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 690 entitled:

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

begs leave to report as follows:

The purpose of this measure is to provide more adequate benefits to individuals killed or injured in traffic accidents by increasing motor vehicle liability insurance coverage from:

(1)  Not less than $20,000 per person to not less than $50,000 per person; and

(2)  A maximum of $40,000 per accident to a maximum of $100,000 per accident.

Hawaii Association for Justice and an individual supported this measure.  Property Casualty Insurers Association of America, State Farm Mutual Automobile Insurance Company, USAA, and EAN Holdings, LLC opposed this measure.  The Department of Commerce and Consumer Affairs and Hawaii Insurers Council commented on this measure.

     Your Committee has amended this measure by:

(1)  Decreasing the proposed increase in motor vehicle liability insurance coverage from not less than $50,000 per person, to not less than $35,000 per person; and

(2)  Retaining the existing statutory amount of motor vehicle liability insurance coverage at a maximum of $40,000 per accident.

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 690, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 690, H.D. 1, and be referred to the Committees on Consumer Protection & Commerce and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

RYAN I. YAMANE, Chair