STAND. COM. REP. NO. 485-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2213
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred H.B. No. 2213 entitled: 

     "A BILL FOR AN ACT RELATING TO BINDING ARBITRATION AWARDS,"

begs leave to report as follows:

     The purpose of this bill is to clarify that the amount that
may be collected under any applicable liability policy under the
optional binding arbitration procedure for claims covered by a
motor vehicle liability insurance policy is limited to the policy
limits.

     The Consumers Lawyers of Hawaii testified in support of the
measure.

     Your Committee finds that the current language can be
interpreted to prohibit use of a single arbitration to resolve
claims for bodily injury liability benefits and underinsured
motorists benefits.  Your Committee finds that this bill will
preserve the original intent of the Legislature that collection
of an award from a liability policy is limited to the policy
limits, while still allowing the arbitrator to determine the full
value of the claim.  This will avoid the need for a second
unnecessary underinsured motorist arbitration in cases where the
same company provides both the bodily injury liability and the
underinsured motorist coverage.

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to

 
 
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                                 Page 2

 
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2213 and recommends that it pass Second
Reading and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   ERIC G. HAMAKAWA, Chair