STAND. COM. REP. NO. 2596

Honolulu, Hawaii

RE: S.B. No. 2913

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2913 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to establish a framework to regulate the sale of travel insurance in the State.

Your Committee received testimony in support of this measure from Allianz Global Assistance, Hawaii Insurers Council, U.S. Travel Insurance Association, and Crum & Forster.

Your Committee received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs.

Your Committee finds that a nationwide comprehensive and uniform regulatory framework for the sale of travel insurance is necessary to protect travelers across the nation. Therefore, this measure, which is based on the Travel Insurance Model Act adopted by the National Council of Insurance Legislators and National Association of Insurance Commissioners model legislation, will clarify the application of existing laws relating to travel insurance and provide uniformity among participating states.

Your Committee has amended this measure by:

(1) Clarifying the definition of "limited lines travel insurance producer" to include licensed insurance producers and limited lines producers, licensed under section 431:9A-107.5(a)(1), Hawaii Revised Statutes;

(2) Deleting language that would have exempted each travel administrator and its employees from the licensing requirements of section 431:9-201, Hawaii Revised Statutes, for any travel insurance administered;

(3) Inserting an effective date of July 1, 2040, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2913, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2913, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

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

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JARRETT KEOHOKALOLE, Chair