Bill > SB2299

This bill establishes provisions that allow common interest associations, which are entities like homeowner associations or condominium associations responsible for managing shared property, to form and participate in residential association captive insurance companies. These specialized insurance companies can be formed by one or more common interest associations to provide property and casualty insurance coverage for common elements and association-level risks, either through a protected cell structure or a traditional captive model. The bill also grants the Insurance Commissioner the authority to regulate these residential association captive insurance companies, including establishing minimum capital requirements, mandatory reinsurance, disclosure requirements for owners, and approval processes for business plans and actuarial studies, while clarifying that this coverage is not considered personal lines insurance.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2299&year=2026