Hawaii’s 2002 legislative session ended this month with few significant property/casualty bills passed. One pressing issue facing Gov. Benjamin Cayetano’s review, however, is House Bill 2827, which would transfer $4 million from the insurance regulation fund to the general fund.
The National Association of Independent Insurers (NAII) is urging Gov. Cayetano to veto HB 2827 because the legislation undermines wise public policy, violates statutory law and misuses money that insurance companies paid in good faith.
Hawaii Insurance Code expressly provides that the money contained in the insurance regulation fund should not be transferred to the general fund, said Sam Sorich, senior vice president and general counsel at NAII. The insurance regulation fund is financed by assessments paid by insurance companies to pay for the state insurance department’s activities.
“By approving HB 2827, the legislature blatantly ignored this statutory provision,” Sorich said. “Insurance companies doing business in Hawaii have paid their assessments trusting that the assessments would be used by the insurance commissioner to regulate insurers and protect consumers. Section 40 of HB 2827 betrays that trust.”
NAII is advocating that Gov. Cayetano veto HB 2827, or at least declare Section 40 of HB 2827 to be invalid and to direct the state finance director not to enforce the provisions in this section.
“HB 2827 violates Hawaii law and public policy, is unfair to Hawaii insurance consumers, weakens state insurance regulation, and violates statutory and constitutional provisions relating to the imposition of taxes,” Sorich said. “Consumers face the prospect of paying even higher premiums in the future so that money that Section 40 illegally diverts can be replenished.”
Other noteworthy bills passed during the last days of the legislative session this year include:
HB 2167-repeals the motor vehicle photo enforcement program.
HB 233-would allow chiropractors to treat the entire body, rather than just the spine.
SB 707-would transfer the annual interest from the Hawaii Hurricane Relief Fund’s reserves to the general fund.
SB 2733-would establish a personal lines producer license.
HB 2167 took effect as a new law on April 30. The other bills await Gov. Cayetano’s signature. Cayetano has until June 24 to act on the bills.
Topics Legislation Hawaii
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