STAND. COM. REP. NO. 505-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2216
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2216 entitled: 

     "A BILL FOR AN ACT RELATING TO UNINSURED MOTOR VEHICLES,"

begs leave to report as follows:

     The purpose of this measure is to amend the definition of
"uninsured motor vehicle," by removing the requirement that a
claimant who may have a legal action under the uninsured motorist
provisions of a motor vehicle insurance policy, provide the
claimant's insurer with notice of the potential claim within 30
days of the accident.

     Your Committee received testimony supporting this measure
from the Department of Commerce and Consumer Affairs and the
Consumer Lawyers of Hawaii.  Testimony in opposition was
submitted by State Farm Insurance Companies.

     Your Committee finds that if the 30-day notice requirement
functions to bar an uninsured motorist claim, it is inconsistent
with the statute of limitations under section 431:10C-315, Hawaii
Revised Statutes, that is applicable to all claims for benefits
under a motor vehicle insurance contract.  In addition, if the
requirement is intended to provide notice of an uninsured
motorist claim to an insurer, it is unnecessary, because
insurance companies are provided with notice of a claim that has
the potential to exceed the $5,000 personal injury protection
tort liability cutoff and give rise to a legal action, when they
receive and process claims for medical coverage, as well as for

 
 
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                                 Page 2

 
optional benefits such as collision or wage loss that arise from
an accident.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2216 and recommends that it pass Second
Reading and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair