101           
HOUSE OF REPRESENTATIVES             H.C.R. NO.            
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  CONCURRENT
                        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, the Senate concurring, that the Insurance Commissioner
31   is respectfully requested to determine the effectiveness of the
32   Hawaii Insurance Bureau's fire rating program with regard to
33   the 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;

 
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 1   
 2        (2)  What prevents insurance carriers from quoting rates
 3             different from that produced by the Hawaii Insurance
 4             Bureau; and
 5   
 6        (3)  What impact have the answers to (1) and (2) had on
 7             any of the current problems facing the property and
 8             casualty insurance industry;
 9   
10   and
11   
12        BE IT FURTHER RESOLVED that the Insurance Commissioner is
13   requested to report findings and recommendations to the
14   Legislature twenty days prior to the convening of the Regular
15   Session of 2001; and
16   
17        BE IT FURTHER RESOLVED that a certified copy of this
18   Concurrent Resolution be transmitted to the Insurance
19   Commissioner.
20 
21 
22 
23                         OFFERED BY:  ____________________________