STAND. COM. REP. NO. 2531
Honolulu, Hawaii
RE: S.B. No. 2938
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Sir:
Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2938 entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE REGULATORY VARIANCE,"
begs leave to report as follows:
The purpose and intent of this measure is to authorize the Insurance Commissioner to grant variances, waivers, or no action letters with respect to specific requirements of the Insurance Code or its rules when certain conditions are met.
Your Committee
received testimony in support of this measure from the Department of Commerce and
Consumer Affairs, American Insurance Association, and Hawaii Medical Service
Association.
Your Committee finds that technology and consumer expectations are rapidly transforming the regulated insurance industry. Substantial investments are being made in innovative insurance products, services, and technologies, which have great potential to improve risk mitigation, improve efficiencies, reduce costs of insurance transactions, speed up claim payments, and improve overall customer understanding of, and satisfaction with, this essential form of financial protection.
Your Committee further finds that it is advantageous to have a procedure available to provide narrowly-tailored variances for insurers, as this could promote expanded competition and innovation in the insurance industry and ultimately benefit consumers. Your Committee additionally finds that this measure authorizes the Insurance Commissioner to approve applications for no action letters, waivers, or variances with respect to certain enforcement or application requirements of the State's insurance laws, but does not alter existing requirements regulating the financial viability and duties and obligations of insurers. This measure therefore encourages the piloting and testing of new and innovative products, pricing, and ways of delivering insurance to businesses and consumers.
Your Committee has amended this measure by:
(1) Clarifying the Insurance Commissioner's ability to approve applications for no action letters, waivers, or variances; and
(2) 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, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2938, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2938, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,
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________________________________ ROSALYN H. BAKER, Chair |
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