STAND. COM. REP. NO. 2513

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2009

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2009 entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to regulate the use of claims history information for homeowners insurance and provide certain consumer protections with respect to the use of this information.

 

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs.  Your Committee received testimony in opposition to this measure from the Hawaii Insurers Council, Property Casualty Insurers Association of America, State Farm Insurance Companies, and National Association of Mutual Insurance Companies.

 

     Your Committee finds that claims history databases provide insurance companies access to consumer claims information.  This measure regulates the use of claims history reports by home insurers in Hawaii.

 

     Your Committee has heard the concerns that some of the provisions in this measure may result in higher prices or reduced availability of homeowners insurance.  Your Committee notes that the federal Fair Credit Reporting Act provides consumers similar rights with regard to claims history reports and credit reports; however, there is merit to establishing certain state controls over the use of claims history reports when no claim is made.

 

     Your Committee has amended this measure by:

 

     (1)  Adding the new part, Homeowners Insurance Claims History, to chapter 431, article 10E, Hawaii Revised Statutes, rather than chapter 431, article 10, Hawaii Revised Statutes;

 

     (2)  Deleting certain definitions and the sections relating to the use of insurance claims history information generally, dispute resolution and error correction, disclosure to insurance consumers, treatment of certain information, and disclosures by claims history report providers;

 

     (3)  Clarifying how an insurer may use inquiries made by a consumer; and

 

     (4)  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 and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2009, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2009, S.D. 1, and be placed on the calendar for Third Reading.

 

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

 

 

 

____________________________

ROSALYN H. BAKER, Chair