Bill > HB426

This bill aims to stabilize Hawaii's property insurance market by expanding the powers of the Hawaii Property Insurance Association (HPIA) and reactivating the Hawaii Hurricane Relief Fund (HHRF). The legislation responds to recent challenges in the insurance market, including rising insurance costs, reduced coverage options for condominiums, and increased risks from wildfires and hurricanes. Key provisions include allowing the HPIA to provide insurance coverage for condominium buildings that cannot obtain adequate insurance in the standard market, establishing a temporary recording fee to fund the HHRF, and creating new assessment mechanisms for insurers. The bill provides a five-year stop-gap measure to help condominium associations obtain property insurance, with the requirement that the insurance commissioner conduct a study to develop long-term solutions. Additionally, the legislation authorizes the HPIA to potentially expand coverage to other property types if the insurance market experiences further disruptions. To ensure the financial stability of these insurance entities, the bill includes provisions for funding through insurer assessments, general fund appropriations, and a potential new recording fee. The ultimate goal is to maintain insurance availability, protect property owners, and prevent potential economic disruptions caused by insurance market instability.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=426&year=2026