STAND. COM. REP. NO. 2924

Honolulu, Hawaii

RE: S.B. No. 2336

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2336, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LONG-TERM CARE INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to require the thirty-day lapse or termination notices for long-term care policies to be sent by certified mail, priority mail, commercial delivery service, or other method of delivery requiring proof of delivery.

Your Committee received testimony in support of this measure from the Alzheimer's Association, Aloha Chapter. Your Committee received testimony in opposition to this measure from the American Council of Life Insurers. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that Hawaii has a long history of respecting and helping its kupuna. Accordingly, your Committee finds that additional protections are needed to help seniors avoid unintended lapses or terminations of their long-term care insurance for non-payment of premiums. This measure would require the thirty-day lapse or termination notices for long-term care policies to be sent via certified mail, priority mail, commercial delivery service, or other method of delivery requiring proof of delivery.

Your Committee has amended this measure by:

(1) Inserting language that requires thirty-day lapse or termination notices to be marked with the words "cancellation notice" or "lapse notice" in large font on the front of the envelope or visible through the envelope window; and

(2) Making technical, nonsubstantive amendments for purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2336, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2336, S.D. 2.

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

________________________________

ROSALYN H. BAKER, Chair