STAND. COM. REP. NO. 3280

Honolulu, Hawaii

RE: S.C.R. No. 137

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.C.R. No. 137 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THAT THE INSURANCE COMMISSIONER ESTABLISH AND CONVENE AN INSURANCE MODERNIZATION WORKING GROUP TO UPDATE AND MODERNIZE HAWAII'S PROPERTY, CASUALTY, AND LIFE INSURANCE LAWS,"

begs leave to report as follows:

The purpose and intent of this measure is to request the Insurance Commissioner to establish and convene an Insurance Modernization Working Group to update and modernize Hawaii's property, casualty, and life insurance laws.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, State Farm Mutual Automobile Insurance Company, and one individual. Your Committee received comments on this measure from the National Association of Insurance and Financial Advisors and Hawaii Association for Justice.

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. This measure therefore requests the Insurance Commissioner to establish a working group to explore and propose legislation to update and modernize Hawaii's property, casualty, and life insurance laws, in light of the rapid technological changes to the insurance industry, which will help streamline Hawaii's insurance laws and ensure a seamless transition in the evolution of insurance regulation in the State.

Your Committee has amended this measure by 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 concurs with the intent and purpose of S.C.R. No. 137, as amended herein, and recommends that it be referred to your Committee on Ways and Means, in the form attached hereto as S.C.R. No. 137, S.D. 1.

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

________________________________

ROSALYN H. BAKER, Chair