Bill > HCR85

This concurrent resolution requests the Insurance Commissioner to conduct a comprehensive study of alternative insurance models for condominium associations in Hawaii, driven by the current insurance crisis characterized by extreme premium increases (300-600% in 2024) and limited insurance options. The resolution specifically asks the Insurance Commissioner to develop standards for mutual insurance and examine a "building life insurance" model that would require developers to obtain a long-term (at least 60-year) insurance contract with specific provisions, including clear maintenance schedules, reserve fund requirements, and premium structures that consider building materials and construction details. The proposed model would mandate that insurers cover claims necessary to restore condominiums to habitable conditions and include legal safeguards comparable to traditional life insurance. The Insurance Commissioner is requested to submit a report with findings and recommendations, including potential legislation, to the Legislature twenty days before the 2026 Regular Session. The context for this resolution stems from the challenging insurance landscape in Hawaii, exacerbated by recent disasters like the Maui wildfires and limited insurance provider options, which have made it difficult for condominium associations to maintain full insurance coverage and potentially impacting property values and mortgage availability.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HCR&billnumber=85&year=2025