STAND. COM. REP. NO. 755

Honolulu, Hawaii

RE:    S.B. No. 953

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 953, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose and intent of this measure is to make various

amendments to the State's insurance code.

More specifically, these amendment relate to third-party claimants, insurance fraud penalties, certificates of authority, 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, and the Hawaii Insurers Council submitted written comments in support of this measure.

Hawaii Medical Service Association submitted written comments on this measure.

     Your Committee finds that under current law, the Insurance Commissioner is required to wait until a catastrophe has occurred before the Commissioner may issue a declaration that permits the use of nonresident adjusters in the State.  Among other reforms, this measure authorizes the Insurance Commissioner to use those adjusters in advance of the Governor's proclamation of emergency.

     Your Committee further finds that this measure also conforms the State's producer licensing requirements to the National Association of Insurance Commissioners' Producer Licensing Model Act, which will make the State's requirements conform with requirements of other states.

     Your Committee has amended this measure by:

     (1)  Amending certain uses of the term "insurer" to ensure that the applicable provisions refer to an insurer who terminates a producer;

     (2)  Amending one use of the term "producer" to ensure that the applicable provision refers to a producer that terminates an insurer; and

     (3)  Deleting unnecessary statutory amendments regarding third-party claimants.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 953, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 953, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair