HB490 • 2026

RELATING TO INSURANCE.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: IWAMOTO, PIERICK, WARD, Matsumoto
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide details on how the findings will be used after submission.

Insurance Study for Condominiums

This bill requires the Insurance Commissioner to study how condominium associations can use mutual insurance models, self-insurance, and investment-based protection funds to improve their insurance coverage.

What This Bill Does

Requires the Insurance Commissioner to develop standards for condominium associations to obtain property insurance through self-insurance and mutual insurance.
Asks the commissioner to examine and evaluate the feasibility of implementing guaranteed buyback programs and investment-based protection funds for condominiums.
Tells the commissioner to submit a report with findings and recommendations, including any proposed legislation, to the Legislature before a specific date.

Who It Names or Affects

Insurance Commissioner
Condominium associations
Unit owners of condominiums

Terms To Know

Mutual insurance model: A system where members share the cost and risk of insuring each other's properties.
Guaranteed buyback program: A plan that guarantees to buy back a property at a certain value if it is damaged or destroyed.

Limits and Unknowns

The bill does not specify how the findings and recommendations will be used.
It's unclear what specific changes might come from this study.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment requires the insurance commissioner to study if mutual insurance models can work for condominium associations in Hawaii and report back with findings and recommendations by a certain date.

The insurance commissioner must determine the feasibility of mutual insurance for condominiums.
The commissioner needs to submit a report with findings, recommendations, and proposed legislation before the regular session of 2026.

The amendment does not specify what actions will be taken based on the report's recommendations.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-14 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).
2025-02-14 H
Reported from CPC (Stand. Com. Rep. No. 783) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2025-02-12 H
The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Chun, Ilagan, Ichiyama, Iwamoto, Kong, Marten, Pierick; Ayes with reservations: none; Noes: none; and 3 Excused: Representative(s) Matayoshi, Lowen, Tam.
2025-02-10 H
Bill scheduled for decision making on Wednesday, 02-12-25 2:00PM in conference room 329 VIA VIDEOCONFERENCE.
2025-01-30 H
The committee(s) on CPC recommend(s) that the measure be deferred.
2025-01-28 H
Bill scheduled to be heard by CPC on Thursday, 01-30-25 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.
2025-01-21 H
Referred to CPC, FIN, referral sheet 2
2025-01-21 H
Introduced and Pass First Reading.
2025-01-17 H
Pending introduction.

Official Summary Text

RELATING TO INSURANCE.
Condominiums; Insurance Commissioner; Mutual Insurance; Report
Requires the Insurance Commissioner to study the feasibility of the mutual insurance model for condominium associations and submit a report to the Legislature. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB490

HOUSE OF REPRESENTATIVES

H.B. NO.

490

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.
�
The legislature finds that Hawaii's
condominium unit owners face increasing challenges in obtaining adequate and
affordable insurance coverage for their properties.
�
In many cases, insurance rates have increased
by more than one thousand three hundred per cent in a single year.

����
The
legislature further finds that alternative insurance models, including
self-insurance, mutual insurance, and investment-based protection programs, may
provide viable solutions for condominium associations and owners.
�
Establishing clear standards and requirements
for these alternative models is essential to protect condominium owners while
ensuring the financial stability and sustainability of the programs.

����
Accordingly,
the purpose of this Act is to require the insurance commissioner to:

����
(1)
�
Develop comprehensive standards and
requirements for condominium associations and developers to the obtain property
insurance through self‑insurance and mutual insurance;

����
(2)
�
Examine and evaluate the feasibility of
implementing guaranteed buyback programs and investment-based protection funds
for condominiums; and

����
(3)
�
Submit 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.

����
SECTION
2.
�
(a)
�

The insurance commissioner shall:

����
(1)
�
Develop comprehensive standards and
requirements, including financial and maintenance requirements, for condominium
associations, developers, and groups of condominium associations and
developers, to the obtain the property insurance required under section 514B‑143,
Hawaii Revised Statutes, through self‑insurance and mutual insurance; and

����
(2)
�
Examine and evaluate the feasibility of
implementing:

���������
(A)
�
Guaranteed buyback programs and
investment-based protection funds for condominiums; and

���������
(B)
�
An alternative model for condominiums in
which:

�������������
(i)
�
Unit owners deposit extra moneys each month
into a fund, which accumulates interest;

������������
(ii)
�
The fund accumulates interest; and

�����������
(iii)
�
Moneys in the fund may be used for major
repairs, guaranteed buyback at a minimum value, emergency situations, and future
down payments on other properties.

����
(b)
�
The standards and requirements developed
under subsection (a)(1) shall comply with the requirements of federally
chartered mortgage lending entities, such as Fannie Mae and Freddie Mac, to
allow unit owners and potential unit purchasers to qualify for a mortgage.

����
(c)
�
The insurance commissioner 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.

����
(d)
�
As used in this Act:

����
"Condominium
association" has the same meaning as "association" in section
514B-3, Hawaii Revised Statutes.

����
"Developer"
has the same meaning as in section 514B-3, Hawaii Revised Statutes.

����
"Unit
owner" has the same meaning as in section 514B-3, Hawaii Revised Statutes.

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

INTRODUCED BY:

_____________________________

Report Title:

Condominiums;
Developers; Insurance Commissioner; Mutual Insurance; Self-Insurance; Study

Description:

Requires
the Insurance Commissioner to develop comprehensive standards and requirements for
condominium associations and developers to obtain property insurance through
self-insurance and mutual insurance, and e
xamine and evaluate the
feasibility of implementing guaranteed buyback programs and investment-based
protection funds.

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