Bill > SB805

This bill establishes the Hawaii Condominium Mutual Insurance Company, a state-backed insurance entity designed to provide property and casualty insurance specifically for high-rise residential condominium associations and unit owners experiencing challenges in the insurance market. Responding to recent issues like the Maui wildfires and escalating insurance costs, the bill creates an independent mutual insurance company with a nine-member board of directors that will offer insurance coverage to condominiums unable to obtain coverage in the voluntary market. The company will be responsible for setting premium rates, developing safety programs, and conducting property inspections, while being overseen by a five-member council that will annually review its performance. Additionally, the bill creates a Condominium Loan Fund to assist condominium associations experiencing significant increases in insurance premiums, with the director of commerce and consumer affairs empowered to make loans to qualifying associations. The legislation acknowledges the current insurance marketplace challenges, including exponentially increasing insurance costs, higher deductibles, and reduced availability of coverage, and aims to stabilize the insurance market for high-rise residential condominiums in Hawaii. The bill is set to take effect on July 1, 2050, with some provisions becoming effective on July 1, 2025.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=805&year=2026