Bill > SB706

This bill modifies the Hawaii Property Insurance Association's (HPIA) plan of operation to include commercial property insurance coverage, with a specific requirement that such coverage is only available to businesses that have been denied insurance by at least two private insurers. The bill amends Section 431:21-105 of the Hawaii Revised Statutes to explicitly add commercial properties to the association's coverage mandate and remove previous language that limited commercial risk coverage. The HPIA, which is a state-backed insurance pool designed to provide property insurance in high-risk areas where private insurers are reluctant to offer coverage, will now have a clear statutory basis for offering insurance to commercial property owners who cannot obtain coverage through traditional market channels. The bill has a future effective date of July 1, 2050, giving the HPIA and insurance regulators ample time to prepare for and implement these changes. This legislation aims to provide a safety net for commercial property owners who might otherwise struggle to obtain property insurance in challenging markets.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=706&year=2025