HOUSE OF REPRESENTATIVES
TWENTY-EIGHTH LEGISLATURE, 2015
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. Section 431:21-105, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) In addition to any other powers allowed by law, the association may:
(1) Add additional insurance coverages with the approval of the commissioner, including coverage for commercial risks up to the limits of coverage for residential risks as set forth in the plan of operation;
(2) Employ or retain persons as are necessary to perform the duties of the association;
(3) Contract with a member insurer to perform the duties of the association;
(4) Sue or be sued;
(5) Borrow funds necessary to effectuate the purposes of this article in accord with the plan of operation;
(6) If there is not then in effect a valid policy of hurricane property insurance issued by the Hawaii hurricane relief fund, expend up to $ of the Hawaii hurricane relief fund established under chapter 431P to cover extraordinary losses incurred by the association caused by the flow of lava or other volcanic activity in a United States geological services lava flow hazard zone one or two;
(6)] (7) If approved by the
commissioner, assess member insurers amounts necessary to cover extraordinary
losses incurred by the association[ .]; provided that up to
$ of the Hawaii hurricane relief fund established under chapter 431P may
be expended to reduce any assessment made pursuant to this paragraph if there
is not then in effect a valid policy of hurricane property insurance issued by
the Hawaii hurricane relief fund. Each member insurer shall be notified of
the assessment not later than thirty days before it is due. No member insurer
may be assessed in any year an amount greater than two per cent of that member
insurer's net direct written premiums for the preceding calendar year. The
association may exempt or defer, in whole or in part, the assessment of any
member insurer if the assessment would cause the member insurer's financial
statement to reflect amounts of capital or surplus less than the minimum
amounts required for a certificate of authority by any jurisdiction in which
the member insurer is authorized to transact business;
(7)] (8) Devise a method to give credit
to member insurers for homeowners and fire insurance policies individually
underwritten on risks located in the area designated for coverage by the
(8)] (9) Negotiate and become a party
to contracts as are necessary to carry out the purposes of this article; and
(9)] (10) Perform all other acts as are
necessary or proper to effectuate the purpose of this article."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
Hawaii Hurricane Relief Fund; Hawaii Property Insurance Association
Authorizes the Hawaii property insurance association to spend funds in the Hawaii hurricane relief fund to pay for extraordinary losses caused by the flow of lava or other volcanic activity.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.