STAND. COM. REP. NO.970-02
RE: S.B. No. 2341
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 2341, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUM PROPERTY REGIMES,"
begs leave to report as follows:
The purpose of this measure is to allow condominiums located in designated flood zones to purchase flood insurance required under the condominium property regimes law, from private insurance companies, so long as it meets the requirements of the National Flood Insurance Program (NFIP) and the Federal Insurance Administration (FIA).
The Department of Land and Natural Resources and a concerned individual testified in support of the measure.
Your Committee finds that current state law requires condominium associations to purchase their flood insurance from NFIP, although NFIP allows this insurance to be provided by private insurers. If a private insurer is unable to cover all flood claims under its policies, FIA will provide coverage so long as the private insurer has complied with NFIP guidelines.
Your Committee finds that affording condominium associations greater flexibility in purchasing NFIP-compliant flood insurance will reduce association costs and support the State's insurance industry without compromising the level of flood coverage maintained by condominium associations in Hawaii.
As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2341, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
KENNETH T. HIRAKI, Chair