HB2102 HSCR272-02

 

STAND. COM. REP. NO.272-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2102

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2102 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE LICENSES,"

begs leave to report as follows:

The purpose of this bill is to authorize the Insurance Commissioner to issue limited licenses to motor vehicle rental or leasing companies to sell individual accident and sickness insurance in connection with the rental of passenger motor vehicles. This bill requires rental car companies that have been issued a limited license to:

(1) Conduct training programs for licensed employees regarding the insurance coverage offered;

(2) Supervise sales by employees;

(3) Inform consumers that insurance coverage may duplicate existing coverage and that a vehicle may be rented without purchasing insurance; and

(3) Provide consumers with complete written disclosure of the terms of coverage and a description of the process for filing a claim.

Testimony in support of this measure was received by the Insurance Division of the Department of Commerce and Consumer Affairs. Hertz Corporation and Catrala-Hawaii supported the intent of this measure and suggested amendments.

Your Committee finds that the requirements for obtaining a limited license under this bill will provide important consumer protections and will enable consumers to make informed decisions when purchasing vehicle-related insurance coverage while renting a motor vehicle.

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. 2102 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

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

 

		____________________________ KENNETH T. HIRAKI, Chair