STAND. COM. REP. NO. 1124

Honolulu, Hawaii

RE:    S.R. No. 116

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committees on Technology and the Arts and Commerce and Consumer Protection, to which was referred S.R. No. 116 entitled:

"SENATE RESOLUTION REQUESTING THE INSURANCE COMMISSIONER TO CONVENE A WORKING GROUP TO EXPLORE THE USE OF ELECTRONIC TRANSMISSION OF INSURANCE NOTICES AND DOCUMENTS AND THE POTENTIAL INCREASE TO HAWAII'S MINIMUM LIABILITY COVERAGE FOR MOTOR VEHICLE INSURANCE,"

beg leave to report as follows:

     The purpose and intent of this measure is to request the Insurance Commissioner to convene a working group composed of the Insurance Commissioner and representatives from the Commission to Promote Uniform Legislation, Property Casualty Insurers Association of America, Hawaii Insurers Council, and State Farm Insurance Company to explore the use of electronic transmission of insurance notices and documents and the potential increase to Hawaii's minimum liability coverage for motor vehicle insurance.

     Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs, State Farm Mutual Automobile Insurance Company, and Property Casualty Insurers Association of America.  Your Committees received testimony in opposition to this measure from the Hawaii Association for Justice and Hawaii Insurers Council.

     Your Committees find that insurance notices and documents are currently required to be in writing, even though consumers increasingly show preferences for electronic access to their records in lieu of receiving paper mailings.  Your Committees further find that many Hawaii residents would prefer to conduct business using electronic communications and should have the opportunity to opt in to that means of communication with their insurers.

     Your Committees have amended this measure by:

     (1)  Removing references to minimum liability coverage for motor vehicle insurance;

     (2)  Amending the title of this measure to remove the reference to minimum liability coverage for motor vehicle insurance accordingly; and

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

     As affirmed by the records of votes of the members of your Committees on Technology and the Arts and Commerce and Consumer Protection that are attached to this report, your Committees concur with the intent and purpose of S.R. No. 116, as amended herein, and recommend that it be referred to the Committee on Ways and Means, in the form attached hereto as S.R. No. 116, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Technology and the Arts and Commerce and Consumer Protection,

____________________________ ROSALYN H. BAKER, Chair

____________________________ GLENN WAKAI, Chair