H.R. NO.













requesting commercial general liability insurers to submit premium information to the legislature.




     WHEREAS, the decision by the Hawaii Intermediate Court of Appeals in Group Builders, Inc., v. Admiral Insurance Company, 231 P.3d 67(2010), held that construction defect claims are not "occurrences" under contractors' general liability policies, and therefore such policies do not cover bodily injury or property damage arising from construction defects; and


     WHEREAS, insurance companies doing business in Hawaii had sold contractors' general liability insurance policies to contractors, representing that their insurance policies would cover claims for bodily injury and property damage arising from construction defects; and


     WHEREAS, contractors and developers who had purchased commercial general liability policies to cover claims for bodily injury and property damage arising from construction defects had the expectation that insurance carriers would honor their contractual obligations; and


     WHEREAS, if the insurance coverage is not restored, numerous contractors, subcontractors, and others could risk bankruptcy if they are unable to pay ancillary damages, thereby leaving consumers without any payment for claims; now, therefore,


     BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2011, that every domestic and foreign insurance company that has ever issued commercial general liability policies in the State is requested to submit information to the Legislature on the total premiums received for their commercial general liability policies during the past ten years; and


     BE IT FURTHER RESOLVED that these domestic or foreign insurers are requested to submit this information to the Legislature not later than May 3, 2011, of the Regular Session of 2011; and


     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the State Insurance Commissioner, the Executive Director of the Hawaii Insurers Council, the President of the General Contractors Association of Hawaii, and the President of the Building Industry Association of Hawaii.









Report Title: