STAND. COM. REP. NO.  1491

 

Honolulu, Hawaii

                , 2009

 

RE:   S.B. No. 58

      S.D. 2

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 58, S.D. 2, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE INSURANCE,"

 

beg leave to report as follows:

 

     The purpose of this bill is to promote affordable motor vehicle insurance by allowing a named insured on a motor vehicle insurance policy to exclude persons from being covered under the policy, through a written endorsement signed by the named insured and excluded person.

 

     The American Insurance Association testified in support of this bill.  The Office of the Public Defender and Hawaii Independent Insurance Agents Association opposed this measure.  The Department of Commerce and Consumer Affairs, Hawaii Insurers Council, State Farm Insurance Companies, Property Casualty Insurers Association of America, and Hawaii Association for Justice provided comments.

 

     Under current law, the acts of one driver can affect the motor vehicle insurance premiums for that driver's entire household.  This bill seeks to minimize the impact on the remaining household drivers by allowing certain drivers to be specifically excluded from an insurance policy covering a shared motor vehicle.

 

     However, there are numerous concerns with this bill, including its potential to increase the number of uninsured drivers and its corresponding effect on the assigned claims program, which provides motor vehicle insurance benefits to accident victims in cases where no benefits are available. Your Committees note the effective date of this bill is July 1, 2050, and are therefore moving it along for further consideration.

 

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 58, S.D. 2, H.D. 1, and recommend that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

 

 

____________________________

JON RIKI KARAMATSU, Chair

 

____________________________

ROBERT N. HERKES, Chair