Bill > SB1140

This bill establishes the Fair Access to Insurance Requirements (FAIR) Program, a specialized insurance initiative designed to provide affordable property insurance for residents in high-risk areas of Hawaii who struggle to obtain coverage through traditional insurance markets. The program will be administered by the Department of Commerce and Consumer Affairs and implemented by a primarily Hawaii-based insurance company, with the goal of offering comprehensive property insurance for residential properties in zones prone to catastrophic risks like hurricanes or fires. Key provisions include creating a framework for selecting an insurance provider, establishing reinsurance mechanisms through the Hawaii Hurricane Relief Fund and private arrangements, developing an incentive program for resilient construction practices, and implementing consumer protection standards. The bill authorizes the director to issue revenue bonds to capitalize the program and create a premium stabilization fund to help subsidize insurance costs. The selected insurer will be required to submit annual reports detailing the program's financial performance, policyholder participation, and recommendations for improvement. The program includes robust oversight mechanisms, such as periodic reviews, audits, and the ability to impose penalties for non-compliance. The bill aims to address insurance market gaps by providing a specialized, locally-managed solution for residents in high-risk areas, with an intended implementation timeline targeting administrative rule adoption by January 1, 2026, and policy offerings by December 31, 2025.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1140&year=2026