STAND. COM. REP. NO.  602-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 1990

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1990 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to amend the scope of persons authorized to work as adjusters and public adjusters in the State.  Among other things, this measure:

     (1)  Disallows certain salaried employees and third party entities hired or employed by an insurer from qualification as an adjuster or public adjuster; and

     (2)  Establishes a framework for insurance appraisers and umpires to act as public adjusters.

Hawaii Public Adjusters and many individuals testified in support of this measure.  USAA, State Farm, National Association of Mutual Insurance Companies, and Hawaii Insurers Council testified in opposition.  The Department of Commerce and Consumer Affairs and an individual provided comments.

     Upon careful consideration of testimony presented in the public hearing, your Committee has amended this measure by deleting its contents and inserting provisions requiring the Auditor to conduct a study regarding the regulation of insurance appraisers and insurance umpires in the State, and how they are regulated in other states.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1990, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1990, H.D. 1, and be referred to your Committee on Judiciary.

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

____________________________

ANGUS L.K. McKELVEY, Chair