STAND. COM. REP. NO. 1317

Honolulu, Hawaii

, 2005

RE: H.B. No. 214

H.D. 1

S.D. 1

 

 

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.B. No. 214, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE RATE REGULATION,"

begs leave to report as follows:

The purpose of this measure is to authorize the use of a reduced insurance rate upon its filing with the Insurance Commissioner (Commissioner).

The Department of Commerce and Consumer Affairs and State Farm Insurance Companies testified in support of this measure. The Hawaii Insurers Council opposed the measure.

Presently, an insurance rate filing must be approved by the Commissioner before use of the proposed insurance rate is authorized. This measure would allow for the immediate use of any newly filed casualty, surety, property, marine, or transportation insurance rate if the new rate is lower than the latest approved rate on file with the Commissioner for the same type of insurance coverage. This measure would only affect insurance rates filed under article 14 of the Insurance Code, and not health insurance rates filed under article 14F of the Code.

Your Committee finds that this measure would allow policyholders to enjoy immediate rate relief, while retaining the Commissioner's authority to examine the new rate to ensure its adequacy.

Your Committee has amended this measure by making a technical amendment for clarification.

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 is in accord with the intent and purpose of H.B. No. 214, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 214, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

RON MENOR, Chair