STAND. COM. REP. NO. 2781
RE: H.B. No. 2354
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fifth State Legislature
Regular Session of 2010
State of Hawaii
Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 2354, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE FRAUD,"
begs leave to report as follows:
The purpose of this measure is to prevent individuals, entities, and insurers from failing to cooperate with the Department of Commerce and Consumer Affairs' insurance fraud investigations.
This measure also precludes individuals who do not cooperate with the Department's investigations and prosecutions from collecting proceeds or vestitution resulting from the investigations and prosecutions.
Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, the Hawaii Medical Service Association, the American Council of Life Insurers, and State Farm Insurance Companies. Testimony in support of the intent of this measure with amendments was submitted by the Hawaii Association for Justice. Written testimony presented to the Committee may be reviewed on the Legislature's website.
Your Committee finds that insurance fraud is a national problem, with fraudulent or abusive claims costing the healthcare industry alone from $125 billion to $175 billion annually. This measure, patterned after Section 9 of the National Conference of Insurance Legislators' Insurance Fraud Model Act, will strengthen existing insurance fraud provisions and improve the Department of Commerce and Consumer Affairs' ability to investigate insurance fraud.
Your Committee has amended this measure by:
(1) Removing immunity for a person who falsely and maliciously accuses another person of insurance fraud; and
(2) Making this measure effective on July 1, 2010.
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 H.B. No. 2354, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2354, H.D. 1, S.D. 1, and be referred to the Committee on Judiciary and Government Operations.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
ROSALYN H. BAKER, Chair