Bill > SB142

This bill allows homeowners with mortgaged properties to authorize their insurance company to electronically transfer insurance claim proceeds directly to their mortgage lender when a homeowners insurance policy traditionally would have issued a paper check. Under this legislation, when an insured person provides written authorization, the insurer can electronically remit claim proceeds to the mortgagee (the mortgage lender), with the funds being payable only to that mortgagee. The bill then requires that the mortgagee who receives these electronic funds must subsequently deliver the proceeds to the insured in accordance with the terms of the mortgage agreement and insurance policy. The bill provides specific definitions for key terms, including "electronic delivery" (which encompasses various digital transfer methods like email, electronic terminals, or online postings) and "mortgage agreement" (covering the full range of documents related to the mortgage). The legislation is set to take effect on July 1, 2050, and aims to modernize and streamline the process of insurance claim payments for properties with mortgages by facilitating electronic fund transfers.

Business and Industry, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=142&year=2025