Bill Text: HI SB2524 | 2016 | Regular Session | Introduced
Bill Title: Property Insurance; HPIA
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2016-01-27 - Referred to CPH. [SB2524 Detail]
Download: Hawaii-2016-SB2524-Introduced.html
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THE SENATE |
S.B. NO. |
2524 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to property insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Act 32, Session Laws of Hawaii 2015, is amended by amending sections 2 and 3 to read as follows:
"SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding two new sections to article 10E to be appropriately designated and to read as follows:
"§431:10E- Lava zone defined. As used in this article, "lava zone" means a volcanic hazard zone identified by the United States Geological Survey on the island of Hawaii.
§431:10E- Provisions for properties in
lava zones in the county of Hawaii. (a) Where the mayor of the county of
Hawaii has issued a proclamation declaring the existence of a state of
emergency due to the threat of imminent disaster from a lava flow in a lava
zone, the total number (rounded to the nearest whole number) of property
insurance policies that an insurer may non-renew in a lava zone shall be
limited for each calendar year to five per cent of the total number of covered
policies of the insurer in force in that lava zone[.]; provided that
the non-renewed policies shall not include policies for which the premiums have
been paid on a timely basis.
(b) Notwithstanding subsection (a), an insurer may cancel or non-renew a property insurance policy where:
(1) Premium payments for the policy are not made after reasonable demand therefor; or
(2) The commissioner determines the financial soundness of the insurer would be impaired."
SECTION 3. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 21 to be appropriately designated and to read as follows:
"§431:21- Issuance of new policies; removal of moratorium. If residential property insurance is unavailable due to a moratorium on the issuance of policies on property situated in lava zones where the mayor of the county of Hawaii has issued a proclamation declaring a state of emergency exists due to the threat of imminent disaster from a lava flow, the association shall remove its moratorium.
Upon the moratorium's removal, the association [shall]:
(1) Shall offer new policies and may provide a
waiting period [of no longer than six months for the policy coverage to take
effect]; and
(2) For residential properties that are denied coverage under section 431:10E- , relating to provisions for properties in lava zones in the county of Hawaii, but are otherwise insurable, shall offer policies with no waiting period,
provided that the residential property in the lava zone does not have current insurance.""
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2016.
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INTRODUCED BY: |
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Report Title:
Property Insurance; HPIA
Description:
Excludes certain lava zone property insurance policies from those that may be non-renewed during a state of emergency. Prospectively removes the authority of the HPIA to impose a waiting period following its lifting of a moratorium on the issuance of new residential property insurance policies.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
