Requires that money in the Hawaii hurricane relief fund that is no longer needed for commercial property coverage be returned pro rata to policyholders.

A BILL FOR AN ACT

SECTION 1. Section 431P-10, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Upon the authorization of the commissioner, insurers may provide standard extended coverage endorsements for residential property, including coverage of hurricane risks, subject to the fund's program for incentives and credits; provided that in the absence of such authorization, no other policy of residential property insurance or endorsement to a policy of residential property insurance on eligible residential property located in this State shall be issued to provide insurance for damages or losses caused by a covered event if such coverage is less than that offered by the fund. If standard extended coverage endorsements on commercial property are no longer being offered by the fund, any standard extended coverage endorsements on commercial property offered by an insurer shall qualify as a comparable coverage under section 431P-5(b)(8)(A)[.]; provided that if the standard extended coverage endorsements on commercial property are no longer being offered by the fund, funds and interest income accumulated shall be applied to cover the winding down costs and the remainder shall be returned to policyholders on a pro rata basis. Standard extended coverage endorsements on residential property which include coverage for hurricane losses offered by an insurer shall qualify as a comparable coverage under section 431P-5(b)(8)(A)."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.