Read the full stored bill text
HB255
HOUSE OF REPRESENTATIVES
H.B. NO.
255
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:
����
SECTION
1
.
�
Chapter 431, Hawaii Revised Statutes, is
amended by adding a new section to article 10E to be appropriately designated
and to read as follows:
����
"
�431:10E-
�
Property insurance; notice of premium increase;
policy renewal; notice requirements; common interest communities.
�
(a)
�
Beginning January 1, , this section shall apply
to any insurer that renews a master property insurance policy for a
policyholder that is a condominium association, planned community association,
or cooperative housing corporation in this State.
����
(b)
�
An insurer shall automatically provide a written
premium change notice to the policyholder disclosing the causes of any premium
increase for the insurance policy if, upon renewal, the premium will increase
by per cent or more; 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.
�
The premium change notice shall
include reasonable explanations and the primary factors contributing to any
premium increase, which shall include the following categories:
����
(1)
�
Water damage claims;
����
(2)
�
Wastewater plumbing replacements;
����
(3)
�
Fire safety devices and practices;
����
(4)
�
Directors' and officers' liability
claims;
����
(5)
�
Reinsurance costs; and
����
(6)
�
Catastrophic losses to the insurance
industry;
provided
that the notice shall include the extent to which each of these categories
contributes to the premium increase.
����
(c)
�
Insurers shall include a statement in all
premium change notices that the policyholder may contact their insurer to
request additional information about the policyholder's premium increase.
�
Insurers 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.
����
(d)
�
Insurers shall send premium change notices to
policyholders in writing and may send either explanations or notices via postal
mail or electronic mail if the policyholder has consented to receive
notifications electronically.
����
(e)
�
All insurers shall file electronically with
the commissioner a copy of any premium change notice provided to a policyholder
pursuant to this section.
�
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.
"
����
SECTION
2.
�
(a)
�
Any insurer that renewed a property insurance policy between the dates
of January 1, 2022, to December 31, 2024, for a policyholder that was a
condominium association, planned community association, or cooperative housing
corporation in this State, shall prepare a written statement, with reasonable
explanations and primary factors, disclosing the cause for any premium increase
that was effective upon renewal between this period; provided that the premium
increased by at least per cent during this period.
�
The insurer shall send its written statement to
the insurance commissioner and the respective policyholder no later than
days after the effective date of this Act.
����
(b)
�
The insurance commissioner shall review all written statements submitted
by insurers pursuant to subsection (a) and shall 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
2026;
provided that the
report shall not be required to include any information concerning premium
changes that were warranted due to the structural condition of any insured
property.
����
(c)
�
Upon the effective date of this Act, the insurance commissioner shall
notify all applicable insurers of their duty to comply with the requirements of
this Act.
����
SECTION
3.
�
New statutory material is
underscored.
����
SECTION
4.
�
This Act shall take effect upon its
approval.
INTRODUCED BY:
_____________________________
Report Title:
Insurance
Commissioner; Property Insurance; Premium Change Notice; Common Interest
Communities; Notice Requirements; Disclosures; Report
Description:
Requires
insurers to provide automatic, advance written premium change notices to common
interest community policyholders and the Insurance Commissioner, with
reasonable explanations and primary factors, disclosing the causes of any
premium increase if, upon renewal, premiums are scheduled to increase more than
an unspecified per cent.
�
Requires
insurers that renewed property insurance policies between 2022 and 2024 for
policyholders that were condominium associations, planned community
associations, or cooperative housing corporations in the State, to provide an
explanation for certain premium increases during this period.
�
Requires the Insurance Commissioner to submit
a report to the Legislature.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.