Bill Text: HI SB2242 | 2024 | Regular Session | Introduced
Bill Title: Relating To Insurance.
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Introduced - Dead) 2024-01-19 - Referred to PSM, CPN. [SB2242 Detail]
Download: Hawaii-2024-SB2242-Introduced.html
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THE SENATE |
S.B. NO. |
2242 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
Relating to Insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The "Miracle House" recently underwent a renovation, which specifically included removing the landscaping directly surrounding the house and replacing it with river stones, which experts determined made the biggest difference in protecting the house from the wildfire. Wildfire experts also maintain that the "zone zero" or "ember ignition zone" is a key factor in identifying whether homes are more susceptible to fire damage. For example, removing combustible materials, like wood fences, bushes, and dry grass, within a five-foot radius directly surrounding the house can reduce certain fire risks.
The legislature also finds that many Lahaina residents did not have homeowner's insurance. The legislature believes that the high cost of homeowner's insurance premiums in the State may be one factor that deters homeowners from obtaining coverage. A recent analysis revealed that Hawaii has been historically lucrative for insurers as they have been raising premium rates without having to pay out many claims. As a result, the State had the highest homeowner's insurance markup rates of any state from 1996 to 2021.
The legislature also finds that many insurers have loss-control programs that are designed to help policyholders reduce risks of damage and loss from certain perils. These programs benefit both the policyholder, who is rewarded with reductions to their insurance premium rates, and the insurer, who is less likely to have to pay out on claims.
Accordingly, the purpose of this measure is to require homeowners insurers to establish a loss-control program aimed at reducing the risk of loss or mitigating damage to insured property caused by the peril of fire, including fire caused by wildfires, lava, or both, with discounted premium rates for policyholders who implement certain loss-control measures.
SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10E to be appropriately designated and to read as follows:
"§431:10E- Homeowners insurance; loss-control
program; premium reduction for fire safety.
(a) Beginning January 1, 2025, and in
accordance with rules adopted by the commissioner, a homeowners insurer shall
grant to an applicant a discount in the applicant's homeowners insurance
premiums for insured property upon receipt of written verification from the
applicant that, at the insured property, the applicant has implemented
loss-control measures to lessen or minimize an insured loss from the perils of
fire, including fire caused by wildfire, lava, or both, including:
(1) Removal of flammable material,
debris, and vegetation within certain perimeters of the insured property;
(2) Removal of risk of fire caused by
lava; and
(3) Use of inflammable material in the
construction or renovation of the insured property.
(b) The commissioner shall prescribe the
requirements for determining that insured property was constructed or renovated
with inflammable material.
(c) Verification under this section shall comply
with the requirements prescribed by the commissioner.
(d) For purposes of this section, "homeowners insurance" and "homeowners insurer" have the same meanings as defined in section 431:14-110.8(c)."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Insurance Commissioner; Homeowners Insurance; Loss-Control Program; Discounted Premium Rates; Fire; Wildfire; Lava; Rulemaking
Description:
Beginning
1/1/2025, requires homeowners insurers to establish a loss-control program
aimed at reducing the risk of the loss or mitigating damage to the insured property
caused by the peril of fire, including fire caused by wildfire, lava, or both, with
discounted premium rates for policyholders who implement certain loss-control
measures. Requires the Insurance Commissioner
to adopt rules.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
