Bill Text: HI SR16 | 2024 | Regular Session | Introduced
Bill Title: Requesting 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.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Introduced) 2024-03-01 - Referred to CPN. [SR16 Detail]
Download: Hawaii-2024-SR16-Introduced.html
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THE SENATE |
S.R. NO. |
16 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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SENATE RESOLUTION
requesting 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.
WHEREAS, the State had the highest homeowner's insurance markup rates of any state from 1996 to 2021; and
WHEREAS, a recent analysis revealed that the State has been historically lucrative for insurers as insurers have been raising premium rates without having to pay out many claims; and
WHEREAS, the August 2023 Maui wildfires devastated the historic town of Lahaina; and
WHEREAS, many residents of Lahaina during the August 2023 Maui wildfires did not have homeowner's insurance, likely due to the high cost of homeowner's insurance premiums in the State; and
WHEREAS, one wooden house in the center of Lahaina, now known as the "Miracle House", survived relatively unscathed due to certain loss-control measures the owner implemented, including removing the landscaping directly surrounding the house and replacing it with river stones; and
WHEREAS, many insurers have loss-control programs that are not only designed to help policyholders reduce risks of damage and loss from certain perils, but also 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; and
WHEREAS, insurers should offer discounted premium rates for certain policyholders in the State who, like the owner of the "Miracle House", implement loss-control measures, including removing flammable material, debris, and vegetation within certain perimeters of the insured property; removing risks of fire caused by lava; and using inflammable material in the construction or renovation of the insured property; now, therefore,
BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, that homeowners insurers are requested 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; and
BE IT FURTHER RESOLVED that the loss-control program established is requested to:
(1) Begin on January 1, 2025;
(2) Comply with all rules adopted by the Insurance Commissioner; and
(3) 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 the applicant has implemented loss-control measures at the insured property to lessen or minimize an insured loss from the perils of fire, including fire caused by wildfire, lava, or both, including:
(A) Removal of flammable material, debris, and vegetation within certain perimeters of the insured property;
(B) Removal of risk of fire caused by lava; and
(C) Use of inflammable material in the construction or renovation of the insured property; and
BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to adopt rules for the loss-control program, including prescribing the requirements for determining whether insured property was constructed or renovated with inflammable material; and
BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Insurance Commissioner.
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OFFERED BY: |
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Insurance; Homeowners Insurance; Loss-Control Program; Discounted Premium Rates; Fire
