Bill Text: HI HB2052 | 2024 | Regular Session | Introduced
Bill Title: Relating To Insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-24 - Referred to CPC, FIN, referral sheet 2 [HB2052 Detail]
Download: Hawaii-2024-HB2052-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2052 |
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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:
SECTION 1.
The legislature finds that homeowners residing in lava-flow hazard
zones 1 and 2 face unique challenges caused by the inherent volcanic hazards
associated with their properties. There have been drastic increases
for home insurance premiums for property owners in these zones, with some
residents saying their rates rose more than four hundred per cent.
The legislature further finds that
insurance companies are prioritizing profits over service and have decided to
leave the market or not insure certain zip codes due to the risks associated
with these lava-flow hazard zones. The
only choice for homeowner's insurance for many residents in the lava-flow
hazard zones is the Hawaii Property Insurance Association, a state-run, last
resort option with higher premiums. As a
result, many residents are concerned they may be priced out of their homes.
The purpose of this Act is to increase
access to insurance for all properties in the State by mandating private
insurance companies that maintain policies in that State to also issue policies
for properties in lava-flow hazard zones.
SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10 to be appropriately designated and to read as follows:
"§431:10-
Prohibitions against issuance, cancellation, or failure to renew
based on lava-flow hazard zone. (a) No insurer offering property insurance in the
State shall refuse to issue or fail to renew a homeowner's insurance policy
solely on the basis that the applicant's or insured's real property is located
in a lava-flow hazard zone.
(b)
Nothing in this section shall prohibit an insurer from setting property
insurance rates based on risk associated with properties located in a lava-flow
hazard zone.
(c)
For purposes of this section, "lava-flow hazard zone" means
land categories based on the potential hazard that lava will flow in a given
area, as determined by the latest version of the United States Geological
Survey Miscellaneous Field Studies Map MF-2193, or its successor."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval, and shall apply to any policy of property insurance issued or renewed in this State on or after January 1, 2025.
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INTRODUCED BY: |
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Report Title:
Insurance; Property Insurance; Lava-Flow Hazard Zones
Description:
Prohibits insurers offering property insurance in the State from refusing to issue or failing to renew a homeowner's insurance policy solely on the basis that the applicant's or insured's real property is located in a lava-flow hazard zone.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
