Bill > SB1044

This bill aims to stabilize Hawaii's property insurance market by expanding the powers of the Hawaii Property Insurance Association and reactivating the Hawaii Hurricane Relief Fund. The legislation addresses several key issues facing condominium and property owners in the state, including dramatically rising insurance premiums, reduced coverage options, and maintenance challenges. Specifically, the bill establishes a Condominium Loan Program and Condominium Loan Revolving Fund to provide low-cost financing for maintenance and repairs to condominium associations, creates a Condominium Loan Loss Reserves Program to incentivize lending, and authorizes the Hawaii Property Insurance Association to provide additional insurance coverage for properties experiencing market failures. The bill also requires the Insurance Commissioner to conduct a comprehensive study to develop long-term solutions for the property insurance market, including exploring alternative insurance models like mutual or captive insurance. To fund these initiatives, the legislation allows for the issuance of reimbursable general obligation bonds and provides various funding mechanisms, including potential assessments on insurers and a temporary recording fee. The bill is designed as a temporary measure to address immediate insurance market challenges, with most provisions set to take effect on July 1, 2025, and the Condominium Loan Revolving Fund scheduled to be abolished on June 30, 2047.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1044&year=2025