HOUSE OF REPRESENTATIVES             H.R. NO.93            
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  RESOLUTION

  REQUESTING THE INSURANCE COMMISSIONER TO DETERMINE THE
    EFFECTIVENESS OF THE HAWAII INSURANCE BUREAU'S FIRE RATING
    PROGRAM.


 1        WHEREAS, the Insurance Commissioner may license
 2   organizations as rating organizations for such classes of
 3   property and casualty insurance that are specified in their
 4   application; and
 5   
 6        WHEREAS, rating organizations are authorized on behalf of
 7   their members and subscribers to prepare policy forms and
 8   endorsements and consult with members, subscribers, and others
 9   relative to their use and application, and to file final rates
10   for residual market mechanisms; and
11   
12        WHEREAS, rating organizations are also authorized to
13   conduct research and on-site inspections in order to prepare
14   classifications of public fire defenses and consult with public
15   officials regarding public fire protection as it would affect
16   members, subscribers, and others; and
17   
18        WHEREAS, members and subscribers must generally adhere to
19   filings made on their behalf by the organization, except that
20   any insurer may apply to the Insurance Commissioner for a
21   deviation from the class rates, schedules, rating plans, or
22   rules respecting any class of insurance; and
23   
24        WHEREAS, the Insurance Commissioner may as often as the
25   Insurance Commissioner deems expedient, examine each rating
26   organization; now, therefore,
27   
28        BE IT RESOLVED by the House of Representatives of the
29   Twentieth Legislature of the State of Hawaii, Regular Session
30   of 1999, that the Insurance Commissioner is respectfully
31   requested to determine the effectiveness of the Hawaii
32   Insurance Bureau's fire rating program with regard to the
33   following:
34   
35        (1)  How soon after a change in fire protection for an
36             area does the Hawaii Insurance Bureau revise its
37             rating for the area;
38   
39        (2)  What prevents insurance carriers from quoting rates
40             different from that produced by the Hawaii Insurance

 
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                                  H.R. NO.93            
                                                        
                                                        

 
 1             Bureau; and
 2   
 3        (3)  What impact have the answers to (1) and (2) had on
 4             any of the current problems facing the property and
 5             casualty insurance industry;
 6   
 7   and
 8   
 9        BE IT FURTHER RESOLVED that the Insurance Commissioner is
10   requested to report findings and recommendations to the
11   Legislature twenty days prior to the convening of the Regular
12   Session of 2001; and
13   
14        BE IT FURTHER RESOLVED that a certified copy of this
15   Resolution be transmitted to the Insurance Commissioner.
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19                         OFFERED BY:  ____________________________