Report Title:

Hawaii Hurricane Relief Fund Coverage Limits

Description:

Increases insurance coverages available under the Hawaii Hurricane Relief Fund to reflect increases in property values.

THE SENATE	S.B. NO.	3014
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE HAWAII HURRICANE RELIEF FUND.

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

     SECTION 1.  Section 431P-1, Hawaii Revised Statutes, is amended by amending the definition of "policy of hurricane property insurance" to read as follows:

     ""Policy of hurricane property insurance" means a policy or endorsement of insurance issued by the fund insuring only against damage or loss to eligible property caused by a covered event in excess of the deductible and up to:

     (1)  [$750,000] $1,000,000 per risk on real property of one to four units used for residential purposes and the personal property located therein or thereon and other structures at the insured location, subject to the limits defined by the plan of operation or any manual of rules and rates adopted under the plan of operation; and

     (2)  [$500,000] $750,000 per risk on real and personal property used for business, commercial, or industrial purposes, subject to the limits defined by the plan of operation or any manual of rules and rates adopted under the plan of operation; provided that the board may designate an association of property owners or cooperative housing corporation to be a commercial risk;

provided that this policy or endorsement shall not include coverage for business interruption and other similar coverages."

     SECTION 2.  Section 431P-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a)  Policies issued by the fund shall provide a maximum aggregate coverage of up to [$750,000] $1,000,000 per risk on real property of one to four units used for residential purposes and [$500,000] $750,000 per risk for real property used for business, commercial, or industrial purposes and shall provide for a mandatory deductible.  The deductible amount for residential property policies shall be the greater of $1,000 or one per cent of the insured value or the greater of $2,000 or two per cent of the insured value; provided that the board may establish higher deductible limits.  The deductible amount for commercial property policies shall be the greater of $5,000 or five per cent of the insured value or an amount equivalent to all the other perils deductible of the companion policy; provided that the board may establish higher deductible limits."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________
	BY REQUEST