RELATING TO INSURANCE.

HB21

HOUSE OF REPRESENTATIVES

H.B. NO.

21

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to insurance
.

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

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SECTION
1
.
�
Section 431:21-105, Hawaii Revised Statutes,
is amended to read as follows:

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"
�431:21-105
�

Powers and duties of the association.
�
(a)
�
In
addition to any other requirements imposed by law, the association shall:

����
(1)
�
Formulate and administer a plan of operation
to insure persons having an insurable interest in real
property, including
commercial property,
or tangible personal property in the area designated
by the commissioner;
provided that coverage for commercial risks shall be contingent
upon the person being denied such coverage by no less than two insurers;

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(2)
�
Reimburse each servicing facility for
obligations of the association paid by the facility and for expenses incurred
by the facility while processing applications and servicing policies on behalf
of the association; and

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(3)
�
Collect and maintain statistical information
and other information required by the commissioner.

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(b)
�
In addition to any other powers allowed by
law, the association may:

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(1)
�
Add additional insurance coverages with the
approval of the commissioner[
, including coverage for commercial risks up to
the limits of coverage for residential risks as set forth in the plan of
operation
];

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(2)
�
Employ or retain persons as are necessary to
perform the duties of the association;

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(3)
�
Contract with a member insurer to perform the
duties of the association;

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(4)
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Sue or be sued;

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(5)
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Borrow funds necessary to effectuate the
purposes of this article in accord with the plan of operation;

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(6)
�
If approved by the commissioner, assess member
insurers amounts necessary to cover extraordinary losses incurred by the
association.
�
Each member insurer shall
be notified of the assessment not later than thirty days before it is due.
�
No member insurer may be assessed in any year
an amount greater than two per cent of that member insurer's net direct written
premiums for the preceding calendar year.
�

The association may exempt or defer, in whole or in part, the assessment
of any member insurer if the assessment would cause the member insurer's
financial statement to reflect amounts of capital or surplus less than the
minimum amounts required for a certificate of authority by any jurisdiction in
which the member insurer is authorized to transact business;

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(7)
�
Devise a method to give credit to member
insurers for homeowners and fire insurance policies individually underwritten
on risks located in the area designated for coverage by the association;

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(8)
�
Negotiate and become a party to contracts as
are necessary to carry out the purposes of this article; and

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(9)
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Perform all other acts as are necessary or
proper to effectuate the purpose of this article."

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SECTION
2.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 3.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Insurance;
Hawaii Property Insurance Association; Plan of Operation; Commercial Properties

Description:

Requires
the Hawaii Property Insurance Association to include in its plan of operation
insurance coverage for commercial properties twice denied by private insurers.

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