Report Title:

Insurance

 

Description:

Requires that money in the Hawaii hurricane relief fund that is no longer needed for commercial property coverage be returned pro rata to policyholders.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

59

TWENTY-FIRST LEGISLATURE, 2001

 

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 Act 154, Session Laws of Hawaii 2000 terminated commercial property coverage under the Hawaii hurricane relief fund. However, the legislature finds that the Act does not provide a clear directive to the fund to return accumulated funds to policyholders. The purpose of this Act is to require the fund to return accumulated funds to policyholders on a pro rata basis.

SECTION 2. Section 431P-10, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Upon the authorization of the commissioner, insurers may provide standard extended coverage endorsements for residential property, including coverage of hurricane risks, subject to the fund's program for incentives and credits; provided that in the absence of such authorization, no other policy of residential property insurance or endorsement to a policy of residential property insurance on eligible residential property located in this State shall be issued to provide insurance for damages or losses caused by a covered event if such coverage is less than that offered by the fund. If standard extended coverage endorsements on commercial property are no longer being offered by the fund, any standard extended coverage endorsements on commercial property offered by an insurer shall qualify as a comparable coverage under section 431P-5(b)(8)(A)[.]; provided that if the standard extended coverage endorsements on commercial property are no longer being offered by the fund, funds accumulated shall be returned to policyholders on a pro rata basis. Standard extended coverage endorsements on residential property which include coverage for hurricane losses offered by an insurer shall qualify as a comparable coverage under section 431P-5(b)(8)(A)."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall, upon its approval, take effect retroactive to September 1, 1998.

INTRODUCED BY:

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