“Hawaii’s legislative decision to conduct a study of the NCOIL Property/Casualty Insurance Modernization Act suggests that the state legislature is committed to making strides toward rate modernization, which will promote market competition in the insurance industry that will benefit insurance consumers,” stated State Affairs Manager, Christian J. Rataj.
HCR 83 authorizes the insurance commissioner to convene a working group to review the NCOIL Property/Casualty Insurance Modernization Act, as amended Nov. 21, 2003. The working group is comprised of the Directors of the Department of Commerce and Consumer Affairs and the Department of Business, Economic Development, and Tourism, members of the insurance industry, the Hawaii Insurers Council, and Consumer Lawyers of Hawaii.
The insurance commissioner is to report the working group’s findings to the Legislature no later than 20 days before the convening of the regular session of 2006.
The Legislature also tabled HB 214 that would have authorized “open rating” for rate reductions by the insurance industry, opening the way for the study of the NCOIL Act.
“NAMIC is a staunch advocate of rate modernization. Intrusive and burdensome regulations adversely impact the insurance options available to the consumer and create tiers of bureaucracy that increase insurance rates for the consumer,” stated Rataj.
“NAMIC is pleased to see the state’s business community, the insurance industry, consumer groups and the Division of Insurance working together in concert to evaluate potential changes to the state’s insurance rating system,” stated Rataj.
NAMIC will continue to advocate for rate modernization throughout the country, and will work with the Hawaii Insurers Council, to promote a regulatory environment that promotes the ideals of market competition.
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