Report Title:

Hawaii Property Insurance Association; Availability of Property Insurance

 

Description:

Requires the Hawaii property insurance association to provide basic property insurance to owners provided that structures on their property are structurally sound, regardless of its age.

 


THE SENATE

S.B. NO.

2522

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO PROPERTY INSURANCE.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. The legislature finds that homeowners in Hawaii have been unable to obtain basic property insurance solely because of the age of their homes.

The legislature has established the Hawaii property insurance association, a nonprofit unincorporated legal entity whose membership consists of all insurers authorized to offer property insurance in Hawaii. Each member insurer participates in the writings, expenses, profits, and losses of the Hawaii property insurance association. The purpose of the Hawaii property insurance association is to ensure the availability of basic property insurance for owners of property in high risk areas for major natural disasters.

The purpose of this Act is to expand the scope of persons to whom the Hawaii property insurance association is required to provide coverage to property owners unable to obtain basic property insurance because of the age of the dwelling, if the dwelling is otherwise structurally sound and not condemnable.

SECTION 2. Chapter 431:21, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"431:21-   Application; non-geographic designation; inspection. (a) Notwithstanding the geographic limitations of section 431:21-107, any person with an insurable interest in real property who has been unable to obtain basic property insurance from a licensed insurer may apply to the association for coverage.

(b) Within ten days of receiving an application, the association may inspect the property to determine its structural soundness and determine whether it is subject to condemnation.

(c) If it is determined that structures on the property are structurally sound and are not condemnable pursuant to applicable county building code, then, within ten days of the inspection, an inspection report shall be submitted to the member insurer designated by the association. The designated member insurer shall perform the duties of the association as required by the plan of operation. A copy of the completed inspection report shall be sent to the applicant upon request."

SECTION 3. New statutory material is underscored.


SECTION 4. This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________