STAND. COM. REP. NO. 2742
RE: S.B. No. 2769
Honorable Shan S. Tsutsui
President of the Senate
Twenty-Sixth State Legislature
Regular Session of 2012
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2769, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
begs leave to report as follows:
The purpose and intent of this measure is to require the Insurance Commissioner to publish lists of homeowners and motor vehicle insurers, with respective annual premiums, on the Insurance Division's official website.
In addition, this measure allows the Insurance Commissioner to intervene to adjust insurance rates if the Insurance Commissioner determines that the rates are excessive, inadequate, or unfairly discriminatory.
Your Committee received written comments in support of this measure from Hawaii Insurers Council. Your Committee received written comments in opposition to this measure from American Insurance Association.
Your Committee finds that the publication requirements in this measure will allow Hawaii's consumers to compare insurance rates and to make more informed decisions when purchasing insurance. Additionally, authorizing the publication of this information electronically will provide the Insurance Commissioner with an alternative to address cost concerns associated with publication in a newspaper of general circulation.
Your Committee has amended this measure by:
(1) Clarifying that the Insurance Commissioner's authority to mandate insurers to submit new filings for any type of insurance is in addition to the Insurance Commissioner's authority to adjust motor vehicle insurance rates pursuant to section 431:10C-209.5, Hawaii Revised Statutes;
(2) Clarifying that if the insurer files a written request for a hearing on the Insurance Commissioner's disapproval of a rate filing, the existing effective rate shall remain in effect until the final order is rendered; and
(3) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2769, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2769, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DAVID Y. IGE, Chair