STAND. COM. REP. NO. 1033
Honolulu, Hawaii
, 2011
RE: S.B. No. 124
S.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Sixth State Legislature
Regular Session of 2011
State of Hawaii
Sir:
Your Committee on Transportation, to which was referred S.B. No. 124, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
begs leave to report as follows:
The purpose of this bill is to assist both motor vehicle insurance consumers and motor vehicle insurers by establishing an exemption for insurers to the general prohibition on cancellation or nonrenewal of motor vehicle insurance policies, provided that certain conditions are met, including terms and cost, which are more favorable to the consumer.
The State Insurance Commissioner of the Department of Commerce and Consumer Affairs, State Farm Insurance Companies, and Property Casualty Insurers Association of America testified in support of this bill.
Currently, Hawaii law places several requirements for and prohibitions on the cancellation or nonrenewal of a motor vehicle insurance policy, even in instances where the replacement policy is better for the consumer in terms of cost or benefits. Requiring insurers to cancel or non-renew a current policy whenever the policy is being replaced by a better policy causes confusion among consumers and burdens insurers. Your Committee finds that providing an exemption from some of these statutory provisions limiting policy cancellations and non-renewals is both beneficial to the consumer and insurer.
As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 124, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.
Respectfully submitted on behalf of the members of the Committee on Transportation,
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____________________________ JOSEPH M. SOUKI, Chair |
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