STAND. COM. REP. NO. 784

Honolulu, Hawaii

, 2025

RE: H.B. No. 97

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 97, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRAVEL INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to establish a new regulatory framework for the sale of travel insurance in the State.

Your Committee received testimony in support of this measure from Crum & Forster; AGA Service Company; United States Travel Insurance Association; and American Property Casualty Insurance Association. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that travel insurance is a type of insurance for risk associated with traveling, such as loss of luggage, trip cancellation, and delays. Travel insurance gives consumers peace of mind when booking a trip well in advance of departure by enabling travelers to be reimbursed for part of or all their expenses should an undesirable event occur that prompts cancellation or interruption of their trip.

Your Committee further finds that a comprehensive and uniform regulatory regime for the sale of travel insurance will greatly benefit consumers by creating a level playing field for the travel insurance market and establishing standard protections and requirements for the sale of travel insurance. Your Committee also finds that this measure closely tracks the Travel Insurance Model Act adopted by the National Council of Insurance Legislators and National Association of Insurance Commissioners and which, as of January 2024, has been adopted by thirty-five states. This measure is intended to clarify and standardize the application of the State's existing insurance laws to the unique aspects of travel insurance.

Your Committee has amended this measure by:

(1) Deleting from the definition of "eligible group" any automobile or truck rental or leasing company covering a group of individuals;

(2) Specifying that licensed managing general agents and licensed insurance producers with property and casualty lines of authority are authorized to sell travel insurance;

(3) Clarifying that persons who direct or control a limited lines travel insurance producer's insurance operations shall comply with the fingerprinting requirements applicable to insurance producers in the resident state of the limited lines travel insurance producer;

(4) Deleting language that specified the provisions of this measure control over other provisions of the Insurance Code if it conflicted with the provisions of the Insurance Code relating to unfair methods of competition and unfair and deceptive acts and practices;

(5) Replacing language that specified that coverage for sickness, accident, disability, or death occurring during travel, or incidental limited property and casualty benefits, may be filed under accident and health line of insurance or inland marine line of insurance, with language that specifies repatriation of remains shall be filed under an accident and health or sickness line of insurance; and

(6) Making technical, nonsubstantive amendments for the purposes of 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 H.B. No. 97, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 97, H.D. 2.

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

____________________________

SCOT Z. MATAYOSHI, Chair