STAND. COM. REP. NO. 2798

Honolulu, Hawaii

RE: S.B. No. 2952

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2952 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to require certain insurers to notify policyholders of rate changes at least sixty days before the effective date of the rate change.

Your Committee received testimony in support of this measure from two individuals.

Your Committee received testimony in opposition to this measure from the National Association of Mutual Insurance Companies and American Property Casualty Insurance Association.

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

Your Committee finds that there is currently no requirement for insurers to provide direct notice of rate changes to policyholders in the State, which can leave consumers uninformed about adjustments that may affect their coverage and financial planning. This measure would enhance transparency and ensure that consumers are informed of changes that may affect their insurance premiums.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) 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. 2952, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2952, S.D. 1, and be placed on the calendar for Third Reading.

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

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JARRETT KEOHOKALOLE, Chair