Bill Text: HI HCR137 | 2013 | Regular Session | Introduced

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Bill Title: Insurance Commission; Working Group; Insurance Notices and Documents; Electronic Transmission; Minimum Liability Coverage

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2013-03-25 - The committee(s) on TRN recommend(s) that the measure be deferred. [HCR137 Detail]

Download: Hawaii-2013-HCR137-Introduced.html

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HOUSE OF REPRESENTATIVES	H.C.R. NO.	137
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

requesting the insurance commissioner to convene a working group to explore the use of electronic transmission of insurance notices and documents and the potential increase to hawaii's minimum liability coverage for motor vehicle insurance.

 

 

     WHEREAS, Hawaii has adopted the model Uniform Electronic Transactions Act, codified as chapter 489E, Hawaii Revised Statutes; and

 

     WHEREAS, chapter 489E, Hawaii Revised Statutes, excludes insurance documents and notices from its purview; and

 

     WHEREAS, insurance notices and documents are currently required to be in writing; and

 

     WHEREAS, although consumers have indicated a preference to obtain notices and documents by electronic means, there are certain questions as to the appropriate use and application of electronic notices and documents; and

 

     WHEREAS, the insurance industry, like other industries, is engaged in more online and internet-based sales and notifications; and

 

     WHEREAS, because the insurance marketplace is in the process of this change, the State is interested in exploring the appropriate balance between consumer convenience and consumer protection; and

 

     WHEREAS, another aspect of the insurance industry that needs to be explored relates to increasing the minimum liability coverage of motor vehicle insurance; and

 

     WHEREAS, since 1997, the minimum insurance requirement for bodily injury liability has been $20,000 per person with an aggregate limit of $40,000 per accident; and

 

     WHEREAS, Hawaii is one of only fifteen states that require a minimum liability coverage of $20,000 or less; and

 

     WHEREAS, Hawaii has been the nation's most profitable automobile insurance market for over fifteen years; and

 

     WHEREAS, an increase in Hawaii's minimum liability coverage for motor vehicle insurance may be appropriate to provide appropriate levels of benefits for individuals killed or injured in traffic accidents; and

 

     WHEREAS, there is concern that the increase in minimum liability coverage may result in higher insurance premiums, higher numbers of uninsured drivers, and other unintended consequences; and

 

     WHEREAS, potential issues related to the use of electronic transmission of insurance notices and documents and an increase in Hawaii's minimum liability coverage for motor vehicle insurance should be explored; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, the Senate concurring, that the Insurance Commissioner is requested to convene a working group to explore the use of electronic transmission of insurance notices and documents and the potential increase to Hawaii's minimum liability coverage for motor vehicle insurance; and

 

     BE IT FURTHER RESOLVED that the working group be composed of the Insurance Commissioner and representatives from the Commission to Promote Uniform Legislation, Property Casualty Insurers Association of America, Hawaii Insurers Council, and State Farm Insurance Company; and

 

     BE IT FURTHER RESOLVED that the working group is also requested to:

 

     (1)  Develop alternatives for insurance notices and documents that balance the convenience of electronic notices and documents with consumer protection; and

 

     (2)  Consider any corresponding reforms that may be necessary to offset an increase in premiums that may result from the increase in minimum liability coverage of motor vehicle insurance; and

 

     BE IT FURTHER RESOLVED that the representatives on the working group not be considered state employees based solely upon their participation in the working group; and

 

     BE IT FURTHER RESOLVED that the working group is requested to submit a final report of the working group's findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2014; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Insurance Commissioner, Commission to Promote Uniform Legislation, Property Casualty Insurers Association of America, Hawaii Insurers Council, and State Farm Insurance Company.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Insurance Commission; Working Group; Insurance Notices and Documents; Electronic Transmission; Minimum Liability Coverage