RELATING TO THE INSURANCE AFFORDABILITY ASSISTANCE PILOT PROGRAM.

HB1474

HOUSE OF REPRESENTATIVES

H.B. NO.

1474

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the insurance affordability assistance pilot program
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1.
�
The legislature finds that the rising
cost of property insurance has placed a significant financial burden on
homeowners in Hawaii, particularly those with limited incomes or those
recovering from recent natural disasters.
�
In light of these challenges, it is in the
public interest to establish a temporary program to provide direct financial
assistance to homeowners with demonstrated financial hardship who are facing
unexpected increases in insurance premiums.

����
The
purpose of this Act is to establish a temporary pilot program to assist
eligible homeowners with unexpected increases in property insurance premiums by
providing financial relief through a state-administered fund.

����
SECTION
2.
�
(a)
�

There is established within the insurance division of the department of
commerce and consumer affairs a three-year insurance affordability assistance
pilot program.

����
(b)
�
The pilot program shall provide direct
financial assistance to eligible homeowners to offset unexpected increases in
property insurance premiums.

����
(c)

�
The insurance division of the department of
commerce and consumer affairs shall:

����
(1)
�
Establish rules pursuant to chapter 91, Hawaii
Revised Statues, regarding the procedures and requirements for the pilot
program;

����
(2)
�
Work with community organizations, local
banks, and credit unions to raise awareness about the pilot program and
facilitate access for underserved communities; and

����
(3)
�
Submit a report of its findings and
recommendations, including any proposed legislation, to the legislature no
later than twenty days prior to the convening of the regular session of
2027 and a final report to the
legislature no later than twenty days prior to the convening of the regular
session of 2028.
�
The reports
shall include:

���������
(A)
�
The
number of pilot program applicants and recipients;

���������
(B)
�
The total funds disbursed; and

���������
(C)
�
Recommendations
for extending or modifying the program.

����
(d)
�
For the purposes of this section:

����
"Eligible
homeowner" means a homeowner who can demonstrate:

����
(1)
�
An increase of at least twenty-five per cent
in property insurance premiums compared to the immediately preceding policy
period; and

����
(2)
�
Financial hardship as determined through rules
adopted by the department of commerce and consumer affairs pursuant to chapter
91, Hawaii Revised Statutes; provided that the financial hardship criteria
shall include, at minimum:

���������
(A)
�
Household
income at or below eighty per cent of the area median income as determined by
the United States Department of Housing and Urban Development;

���������
(B)
�
Recent
unemployment or loss of significant income;

���������
(C)
�
High
debt-to-income ratio or other extraordinary circumstances; and

���������
(D)
�
Fixed
income status, including seniors or others relying on pension income, social security
benefits, or similar income sources.

����
"Financial
assistance" means a one-time assistance grant of up to $5,000 per
household or a maximum of fifty per cent of the insurance premium increase,
whichever is less.

����
(e)
�
The pilot program shall cease to exist on
June 30, 2028.

����
SECTION
3.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of $1,000,000 or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 to be deposited into
the compliance resolution fund.

����
SECTION
4.
�
There is appropriated out of the
compliance resolution fund the sum of $1,000,000 or so much thereof as may be
necessary for fiscal year 2025-2026 and the same sum or so much thereof as may
be necessary for fiscal year 2026-2027 for the purposes of the insurance
affordability assistance pilot program.

����
The sums

appropriated shall be expended by the
department of commerce and consumer affairs for the purposes of this Act.

����
SECTION 5.
�
This Act shall take effect on July 1, 2025,
and shall be repealed on June 30, 2028.

INTRODUCED BY:

_____________________________

Report Title:

DCCA;
Insurance Affordability Assistance Pilot Program; Compliance Resolution Fund;
Appropriation

Description:

Establishes
the Insurance Affordability Assistance Pilot Program within the Insurance
Division of the Department of Commerce and Consumer Affairs to assist eligible homeowners
with sudden increases in property insurance premiums.
�
Sunsets 6/30/2028.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.