Bill > SB142

This bill establishes new rules for how insurance claim proceeds are handled when a homeowner's property is mortgaged. Specifically, the bill allows homeowners to authorize their insurance company to electronically send claim proceeds directly to their mortgage lender, instead of issuing a traditional paper check. The bill defines "electronic delivery" broadly, which can include methods like email, electronic terminals, or online postings. When a mortgage lender receives these electronic proceeds, they are required to then distribute the funds to the homeowner in accordance with the terms of the mortgage agreement and insurance policy. The bill also provides detailed definitions for terms like "check" and "mortgage agreement" to ensure clarity. These new provisions are designed to modernize and streamline the process of distributing insurance claim proceeds for properties with mortgages, potentially making the claims process faster and more convenient for homeowners. The law is set to take effect on July 1, 2050.

Business and Industry, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=142&year=2026