STAND. COM. REP. NO. 637-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2316
                                     H.D. 1




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. 2316 entitled: 

     "A BILL FOR AN ACT RELATING TO MOTOR VEHICLE INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Allow for insurers to require personal injury
          protection (PIP) claimants to submit to an independent
          medical examination (IME) when reasonably necessary;
          and

     (2)  Allow disputes regarding IMEs to be submitted to
          arbitration.

     Testimony in support of this measure, with proposed
amendments, was submitted by Consumer Lawyers of Hawaii.

     Testimony in opposition to this measure was submitted by the
Hawaii Insurers Council and State Farm Insurance Companies.

     This measure was originally drafted such that any IME
dispute was to be submitted to arbitration.  However, the Hawaii
Insurers' Council testified that disputes in the PIP arena are
submitted to the commissioner for administrative hearing or a
court for determination, as well as arbitration.  


 
 
 
                                 STAND. COM. REP. NO. 637-00
                                 Page 2

 
     Accordingly, your Committee has amended this measure to
include provisions for resolution of an IME dispute by the
commissioner, arbitration, or the court.

     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. 2316, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2316, H.D. 1, 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