STAND. COM. REP. NO.  1322

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 953

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 953, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to make housekeeping and other amendments to the State's Insurance Code relating to third-party claimants, insurance fraud penalties, certificates of authority requirements, certificate of authority fees for applications from motor vehicle insurance self-insurers, nonresident adjusters, insurance producer licensing, and supervisory proceedings undertaken by the Insurance Commissioner.

The Department of Commerce and Consumer Affairs testified in support of this measure.  The Hawaii Medical Service Association testified in support of the intent of this measure.  The American Council of Life Insurers, Hawaii Insurers Council, National Association of Insurance and Financial Advisors Hawaii, and USAA provided comments.

     Your Committee has amended this measure by:

     (1)  Subjecting the payment of the general excise tax and the certificate of ownership fee by an insurer in a total loss motor vehicle damage liability claim to Section 663-31, Hawaii Revised Statutes;

     (2)  Deleting the disclosure requirement by an insurer to third party claimants at the time of the settlement of a total loss motor vehicle claim;

     (3)  Deleting the requirement that an insurance producer notify the Insurance Commissioner within 30 days following the effective date of termination of an appointment, employment, contract, or other insurance business relationship with an insurer; and

     (4)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 953, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 953, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

ROY M. TAKUMI, Chair