Bill > SB804

This bill addresses insurance challenges for Hawaii condominium properties by requiring property insurers to offer premium discounts for specific risk mitigation upgrades and strategies. The bill establishes a comprehensive framework where insurers must provide financial incentives for condominium associations that implement various safety improvements, such as installing impact-resistant windows, flood barriers, fire-resistant materials, sprinkler systems, and smart building technologies like leak detection sensors and automated safety systems. Additionally, the legislation mandates that insurers base premium increases on actuarial justifications reflecting actual risk reduction, limiting increases to no more than 10% without substantial evidence. Property insurers must file annual reports with the insurance commissioner detailing premium increases, including actuarial data and predictive modeling techniques, which will be made publicly available. The bill also includes penalties for insurers who violate these requirements, with potential fines up to $10,000 per violation and the possibility of license suspension for repeated infractions. The legislation stems from concerns about shrinking insurance availability and exponentially increasing costs for condominium properties, particularly in light of recent natural disasters and evolving building safety standards, with the ultimate goal of promoting proactive risk mitigation and providing more transparent and fair insurance practices for condominium associations.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=804&year=2026