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HB254
HOUSE OF REPRESENTATIVES
H.B. NO.
254
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.
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Chapter 431, Hawaii Revised Statutes, is
amended by adding four new sections to article 10E to be appropriately
designated and to read as follows:
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�431:10E-
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Property insurance; notice of premium
increase; policy renewal; notice requirements.
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(a)
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Beginning January 1, , this section shall apply
to any insurer offering property insurance in the State.
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(b)
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If an insurer cancels or refuses to renew a
policyholder's insurance policy, or if, upon renewal, a policyholder's premium
will increase by ten per cent or more, the insurer shall automatically provide
a written notice to the policyholder disclosing the causes of any policy
cancellation, non-renewal, or premium increase; provided that the notice
required under this subsection shall be provided to the policyholder no less
than calendar days before the effective date of the
renewed policy.
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The notice shall include
reasonable explanations and the primary factors contributing to any premium
increase, non-renewal, or cancellation, which shall include the following
categories:
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(1)
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Specific risk factors;
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(2)
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Claims history;
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(3)
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Market conditions;
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(4)
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A summary of any changes to policy
terms, conditions, or coverage; and
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(5)
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A clear and concise breakdown of the
premium calculation, which shall identify any administrative costs, loss
reserves, reinsurance costs, and claims-related factors specific to the insured
property;
provided
that the notice shall include the extent to which each of these categories
contributes to the premium increase.
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(c)
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The insurer shall include a statement in all written
notices provided pursuant to this section that the policyholder may contact the
insurer to request additional information about the policyholder's premium
increase.
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The insurer shall respond to
and provide additional information for a policyholder's subsequent requests for
premium change transparency no less than calendar days
from the receipt of any request.
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(d)
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The insurer shall send the written notice to the
policyholder in writing and may send either explanations or notices via postal
mail or electronic mail, if the policyholder has consented to receive
notifications electronically.
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(e)
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The insurer shall contemporaneously file
electronically with the commissioner a copy of any written notice and
supporting documentation provided to a policyholder pursuant to this
section.
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An insurer's failure to send
the notice required by this section to the policyholder or file a copy with the
commissioner shall be considered a violation of this chapter.
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A listing of all notices received by the
commissioner shall be available to the public.
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�431:10E-
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Property insurance; annual filings; review
of insurance practices; reports.
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(a)
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Beginning January 1,
, all insurers offering property insurance policies in
the State shall file a copy of the insurer's rate schedules and underwriting
criteria with the commissioner annually.
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(b)
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The commissioner shall conduct periodic
reviews of insurance rates to ensure compliance with state laws, focusing on
rate-setting practices, prevention of price-gouging, and unfair discrimination.
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(c)
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In addition to the filing requirements
established in subsection (a), an insurer shall file with the commissioner an
annual report in a form to be approved by the commissioner that shall detail:
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(1)
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The average premium increases for
all policyholders, including master property insurance policies for
policyholders that are condominium associations, planned community
associations, or cooperative housing corporations in this State;
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(2)
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The reasons for the average premium
increase, including trends in claims or market conditions; and
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(3)
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The total number of complaints filed
by policyholders.
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(d)
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The commissioner shall submit an annual
report to the legislature no later than twenty days prior to the convening of
each regular session that contains a summary of the information received
pursuant to this section, including any other findings, recommendations, or
proposed legislation.
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�431:10E-
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Property insurance; public reporting;
dispute resolution.
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(a)
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The commissioner shall establish and
administer a public reporting and dispute resolution program that shall include:
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(1)
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A dedicated consumer hotline and
online reporting system to handle complaints related to insurance rates and
practices, or concerns regarding excessive premiums or inadequate coverage; and
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(2)
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An appeals process for policyholders
to file a formal appeal with the commissioner to challenge a premium increase
believed to be unjustified; provided that the commissioner shall:
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(A)
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Acknowledge receipt of the policyholder's
filed appeal within five business days;
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(B)
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Conduct an investigation and provide
a written determination within thirty calendar days; and
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(C)
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If the commissioner determines that the
premium increase violates state law, r
equire adjustments or
refunds.
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(b)
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An insurer shall not take any retaliatory
action against a policyholder that files a complaint or appeal pursuant to this
section.
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�431:10E-
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Property insurance; disaster risk
mitigation credits.
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(a)
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An insurer offering property insurance in the
State shall provide premium discounts or credits to policyholders that
implement disaster risk mitigation measures, including the installation of
wind-resistant roofing, flood-proofing systems, fire suppression or sprinkler
systems, and other fire prevention improvements.
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(b)
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Insurers shall notify policyholders of the
amount of the discount or credit in writing via postal mail or electronic mail
if the policyholder has consented to receive notifications electronically.
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SECTION
2.
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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
Division; Insurance Commissioner; Property Insurance; Premium Change Notice;
Notice Requirements; Transparency; Review; Reports; Public Reporting and
Dispute Resolution Program; Complaint; Appeals; Disaster Risk Mitigation
Description:
Requires
insurers to provide advance written notice to policyholders and the Insurance
Commissioner, with reasonable explanations and primary factors, of any policy
cancellation, non-renewal, or proposed premium increase, if, upon renewal,
premiums are scheduled to increase more than ten per cent. Requires insurers
that provide property insurance to file rate schedules and underlying criteria
with the Insurance Commissioner.
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Requires the Insurance Commissioner to conduct periodic reviews of
insurance rates and submit annual reports to the Legislature.
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Requires the Insurance Commissioner to
establish a Public Reporting and Dispute Resolution Program to handle
complaints and appeals regarding premium increases.
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Requires insurers to provide premium
discounts or credits to policyholders that implement disaster risk mitigation
measures.
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The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.