Opinion ID: 2572529
Heading Depth: 1
Heading Rank: 2

Heading: The hearings officer's recommendations

Text: The hearings officer issued her findings of fact, conclusions of law, and recommended order on June 15, 1999. The hearings officer recommended that the Insurance Commissioner vacate the Cease and Desist Order, concluding that HRS § 431:10C-207 applies only to rate making and not to underwriting. The hearings officer based her ruling on the statutory context and legislative history of HRS § 431:10C-207. First, she pointed to the statutory context: she noted that HRS § 431:10C-207 is included in Part II of Article 10C (entitled Rates and Administration) rather than in Part I of Article 10C (entitled General Provisions). Part II of Article 10C contains a number of statutory provisions on motor vehicle insurance rates and rate administration, see, e.g., HRS §§ 431:10C-201 to 431:10C-203, 431:10C-208 to 431:10C-210 (1993 & Supp.2003), whereas Part I of Article 10C contains statutory provisions relating to rejection, cancellation, and renewal of policies, see, e.g., HRS §§ 431:10C-110 to 431:10C-114 (1993 & Supp.2003). Second, the hearings officer looked to the legislative history of the motor vehicle insurance code. She noted that, prior to 1993, an insurer had virtually no discretion as to whether to accept or reject an applicant for automobile insurance because of the take all comers statute then in effect. [4] Therefore, prior to 1993, a statutory provision relating to discrimination in underwriting ( i.e., HRS § 431:10C-207) would have been superfluous. The hearings officer concluded that, prior to 1993, HRS § 431:10C-207's prohibitions on discrimination must have related to rate making rather than underwriting. The hearings officer also concluded that the scope of HRS § 431:10C-207 did not change upon the repeal of the take all comers provision in 1993. In fact, the hearings officer noted, some legislators opposed the repeal of the take all comers provision because they believed an insurer would be able to discriminate against applicants on the basis of age, sex, and residence location. Hse. Conf. Comm. Rep. No. 124, in 1993 House Journal at 799-801; 1993 House Journal, Special Session, at 19-24.