STAND. COM. REP. NO. 1297-12
RE: S.B. No. 2769
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Sixth State Legislature
Regular Session of 2012
State of Hawaii
Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2769, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
begs leave to report as follows:
(1) Requiring the Insurance Commissioner (Commissioner) to publish on the Insurance Division's official website lists of annual premiums for all homeowners and motor vehicle insurance;
(2) Requiring all homeowners and motor vehicle insurers to provide premium information to the Commissioner within 30 days of the Commissioner's request; and
(3) Authorizing the Commissioner to review the rate filings of all insurers and adjust the rates of any class of insurance if the rates are excessive, inadequate, or unfairly discriminatory.
The Department of Commerce and Consumer Affairs supported this bill. The Hawaii Insurers Council, American Insurance Association, Liberty Mutual, and Property Casualty Insurers Association of America opposed this measure. State Farm Insurance Companies submitted comments.
After careful consideration, your Committee has amended this bill by:
(1) Clarifying that in cases in which an insurer files a written request to the Commissioner for a hearing after an insurer's rate filing has been disapproved by the Commissioner, the existing effective rate will remain in effect until 60 days after the final order is rendered by the Director of Commerce and Consumer Affairs and the appeals process has been exhausted;
(2) Changing the effective date to July 1, 3000, to encourage further discussion; and
(3) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2769, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 2769, S.D. 2, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
ROBERT N. HERKES, Chair