Bill > SB805

This bill establishes the Hawaii Condominium Mutual Insurance Company (HCMIC), a new state-sponsored insurance entity designed to provide property and casualty insurance to high-rise residential condominium associations that are struggling to obtain affordable coverage. The bill responds to the shrinking insurance marketplace in Hawaii, where condominium insurance costs have dramatically increased due to factors like the Maui wildfires, hurricane risks, and mandatory fire safety upgrades. The HCMIC will be structured as an independent, domestic mutual insurance company with a nine-member board of directors, including eight policyholders and one public member. The company will focus specifically on providing insurance to high-rise condominiums that cannot obtain coverage in the voluntary market, with the goal of offering the highest level of service at the lowest possible cost. Additionally, the bill creates a Condominium Loan Fund to assist condominium associations experiencing significant insurance premium increases, allowing the Department of Commerce and Consumer Affairs to provide loans to associations with premium cost increases of a certain percentage. The bill includes provisions for oversight, including an annual review by a special oversight council, and is set to take effect on July 1, 2050, with some provisions becoming effective earlier in 2025.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=805&year=2025