STAND. COM. REP. NO. 1258-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2913

S.D. 1

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2913, S.D. 1, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish a new regulatory framework for the sale of travel insurance in the State.

Your Committee received testimony in support of this measure from the Hawaii Insurers Council; Allianz Global Assistance Service Company; United States Travel Insurance Association; and American Property Casualty Insurance Association. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that travel insurance is a type of insurance for risk associated with traveling, such as loss of luggage, trip cancellation, and delays. Travel insurance gives consumers peace of mind when booking a trip well in advance of departure enabling the traveler to be reimbursed for part of or all their expenses should an undesirable event occur that prompts cancellation or interruption of their trip.

Your Committee further finds that a comprehensive and uniform regulatory regime for the sale of travel insurance will greatly benefit consumers by creating a level playing field for the travel insurance market and establishing standard protections and requirements for the sale of travel insurance. Your Committee also finds that this measure closely tracks the Travel Insurance Model Act adopted by the National Council of Insurance Legislators and National Association of Insurance Commissioners and which, as of January 2024, has been adopted by thirty-five states. This measure is intended to clarify and standardize the application of existing laws to the unique aspects of travel insurance.

Your Committee has amended this measure by:

(1) Specifying that for purposes of classifying and filing travel insurance, travel insurance that provides certain coverage for sickness, accident, disability, or death during travel, may be filed under either an accident and health line of insurance or an inland marine line of insurance;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

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 S.B. No. 2913, S.D. 1, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 2913, S.D. 1, H.D. 2.

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

____________________________

MARK M. NAKASHIMA, Chair