Bill > HR79

This resolution requests the Insurance Commissioner to conduct a comprehensive study of alternative insurance models to address the escalating insurance challenges facing condominium associations in Hawaii. The resolution highlights the current insurance crisis, where property and hurricane insurance rates have dramatically increased (300-600% in 2024), with only four standard insurance companies writing policies for condominiums. The study is specifically requested to develop standards for mutual insurance models and examine a "building life insurance" approach that would require developers to obtain long-term insurance contracts (at least 60 years) with specific requirements. These requirements include mandating clear maintenance schedules, reserve funds, consideration of building materials and construction factors when setting premiums, using escrow accounts for premium payments, allowing predictable premium increases, and ensuring insurers can restore condominiums to habitable conditions. The Insurance Commissioner is asked to submit a report with findings and recommendations, including potential legislation, no later than 20 days before the 2026 Regular Session, with the ultimate goal of providing viable insurance solutions for condominium associations and unit owners facing increasingly unaffordable and unavailable insurance options.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HR&billnumber=79&year=2025