STAND. COM. REP. NO. 1662

Honolulu, Hawaii

, 2005

RE: H.C.R. No. 83

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.C.R. No. 83 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE INSURANCE DIVISION OF THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS TO CONDUCT A REVIEW OF THE NATIONAL CONFERENCE OF INSURANCE LEGISLATORS (NCOIL) PROPERTY-CASUALTY INSURANCE MODERNIZATION ACT AS AMENDED ON NOVEMBER 21, 2003,"

begs leave to report as follows:

The purpose of this measure is to request the Insurance Commissioner (Commissioner) to convene a working group to review the National Conference of Insurance Legislators (NCOIL) Property/Casualty Insurance Modernization Act.

The Department of Commerce and Consumer Affairs (DCCA), State Farm Insurance Companies, and Hawaii Insurers Council testified in support of this measure.

The NCOIL Property/Casualty Insurance Modernization Act is model legislation that establishes a "use and file" rate regulatory system for personal lines of insurance and a "no-file" system for commercial lines of insurance, and allows policies sold to large, sophisticated commercial insurance providers to be exempt from rate and regulatory requirements. The intent of the model legislation is to create a more competitive and less onerous regulatory system that protects policyholders and the public from the adverse effects of excessive, inadequate, or unfairly discriminatory rates.

This measure requests the Commissioner to convene a working group to review the model legislation and to submit a report on the group's review to the Legislature. Your Committee finds that this measure supports a balanced study of rate filing and review systems that may be appropriate for Hawaii's insurance market.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 83, and recommends its adoption.

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

____________________________

RON MENOR, Chair