203
HOUSE OF REPRESENTATIVES             H.R. NO.              H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  RESOLUTION

  REQUESTING THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS TO
    CONVENE A TASK FORCE TO STUDY FORCED-PLACED INSURANCE.



 1        WHEREAS, forced-placed insurance is an insurance policy
 2   protecting a lender's interest in tangible collateral in
 3   possession of a buyer; and
 4   
 5        WHEREAS, the rates charged to the buyer for the forced-
 6   placed policy of the seller or secured lender is often higher
 7   than the rate formerly paid by the buyer under the buyer's
 8   lapsed policy for coverage on the insurable interest; and
 9   
10        WHEREAS, buyers are often charged for extra coverages not
11   required under the credit agreement, and receive inadequate
12   warning of an impending placement and the cost and nature of
13   forced-placed insurance; and
14   
15        WHEREAS, it is necessary for lenders to have the power to
16   insure their interests; now, therefore,
17   
18        BE IT RESOLVED by the House of Representatives of the
19   Twentieth Legislature of the State of Hawaii, Regular Session
20   of 1999, that the Director of Commerce and Consumer Affairs is
21   requested to form a task force to study the problems of forced-
22   placed insurance, including possible legislative solutions; and
23   
24        BE IT FURTHER RESOLVED that the task force should include,
25   but not be limited to, individuals representing the following
26   entities:
27   
28        (1)  Department of Commerce and Consumer Affairs;
29   
30        (2)  Banking industry;
31   
32        (3)  Insurance industry;
33   
34        (4)  The Senate; and
35   
36        (5)  The House of Representatives;
37   
38   and

 
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                                  H.R. NO.              H.D. 1
                                                        
                                                        

 
 1        BE IT FURTHER RESOLVED that the Director of Commerce and
 2   Consumer Affairs is requested to submit findings and
 3   recommendations of the task force to the Legislature twenty
 4   days prior to the convening of the Regular Session of 2000; and
 5   
 6        BE IT FURTHER RESOLVED that a certified copy of this
 7   Resolution be transmitted to the Director of Commerce and
 8   Consumer Affairs.