Bill > SB1140

This bill establishes the Fair Access to Insurance Requirements (FAIR) Program, a state-administered insurance initiative designed to provide affordable property insurance for residents in high-risk areas who struggle to obtain coverage through traditional insurance markets. The program will be overseen by the Department of Commerce and Consumer Affairs and implemented by a primarily Hawaii-domiciled insurance company, focusing on residential properties in geographic zones with historical fire incidents or catastrophic risk exposure. Key provisions include creating a mechanism for offering last-resort insurance, establishing reinsurance arrangements through the Hawaii Hurricane Relief Fund and private markets, and developing an incentive program that offers premium discounts for policyholders who implement resilient construction practices like hurricane-resistant roofing and fire-resistant building materials. The bill authorizes the director to issue revenue bonds to capitalize the program and create a premium stabilization fund, which can provide subsidies to ensure insurance affordability. Additionally, the program includes robust consumer protection standards, requiring transparent communication, fair claims handling, and an appeals process. The selected insurer must submit annual reports detailing the program's financial performance, policyholder participation, and recommendations for improvement, with the director subsequently reporting to the legislature. The program is set to begin offering policies by December 31, 2025, with administrative rules to be adopted by January 1, 2026, and the full implementation scheduled for July 1, 2050.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1140&year=2025