REPORT TITLE:
Hawaii Hurricane Relief Fund


DESCRIPTIONs
Exempts an insurer from HHRF assessments on premiums for property
insurance where the insurer is offering standard extended
coverage endorsements, including coverage of hurricane risks, and
this coverage is not available through the HHRF.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2291
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE HAWAII HURRICANE RELIEF FUND. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that the Hawaii hurricane
 
 2 relief fund (hereinafter "fund") has been assessing commercial
 
 3 insurers for their policies of hurricane insurance despite the
 
 4 total withdrawal of the fund from the provision of those
 
 5 commercial policies.  This result was never intended by the
 
 6 legislature.
 
 7      The fund was created to address the lack of availability of
 
 8 hurricane coverage and its establishment was intended to
 
 9 encourage insurers to re-enter the hurricane insurance market.
 
10 When the fund discontinues the provision of hurricane coverage
 
11 because insurers have re-entered the market, it should not
 
12 continue to benefit from assessments made against insurers
 
13 offering this coverage.  These continuing assessments are
 
14 counterproductive to the eventual elimination of the fund.
 
15      The legislature finds that an injustice is occurring with
 
16 the continued assessment of insurers who are providing hurricane
 
17 coverage not offered by the fund.  The purpose of this Act is to
 
18 exempt those insurers from assessments for the fund and to make
 
19 the exemption effective retroactively to allow insurers to be
 

 
Page 2                                                     
                                     S.B. NO.           2291
                                                        
                                                        

 
 1 reimbursed for prior assessments.
 
 2      SECTION 2.  Section 431P-10, Hawaii Revised Statutes, is
 
 3 amended by amending subsection (b) to read as follows:
 
 4      "(b)  [Upon the authorization of the commissioner, insurers]
 
 5 Insurers may provide standard extended coverage endorsements,
 
 6 including coverage of hurricane risks, subject to the fund's
 
 7 program for incentives and credits[; provided that in the absence
 
 8 of such authorization no].   No other policy of property
 
 9 insurance or endorsement to a policy of property insurance on
 
10 eligible property located in this State shall be issued to
 
11 provide insurance for damages or losses caused by a covered event
 
12 if such coverage is less than that offered by the fund.  If
 
13 policies are no longer being offered by the fund, any standard
 
14 extended coverage endorsements, including coverage of hurricane
 
15 risks, offered by an insurer, shall qualify as a comparable
 
16 coverage under section 431P-5(b)."
 
17      SECTION 3.  Statutory material to be repealed is bracketed.
 
18 New statutory material is underscored.
 
19      SECTION 4.  This Act, upon its approval, shall take effect
 
20 retroactive to January 1, 1997.
 
21 
 
22                       INTRODUCED BY:  ___________________________