HOUSE OF REPRESENTATIVES

H.B. NO.

1872

TWENTY-SIXTH LEGISLATURE, 2012

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

Relating to Hurricane property insurance.

 

 

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

 

     SECTION 1.  The legislature finds that increases in hurricane property insurance premiums for Hawaii homeowners over the past twenty years have outpaced inflation and construction expenses despite no significant hurricane damage to the islands.  The legislature also finds that the current map hurricane property insurance providers use to determine risk and premiums is outdated and not reflective of actual damages.

     The purpose of this Act is to require hurricane property insurers to develop and approve new maps based upon actual damages to be used as the base to set hurricane property insurance premiums.

     SECTION 2.  (a)  After December 31, 2013, no hurricane property insurer shall charge hurricane property insurance rates that are higher than the rates the insurer charged on January 1, 1992, until the insurer creates and approves a geographic specific disaster model containing property zones depicting actual damages and losses from previous hurricanes.  The map shall not take into account predicted damages and losses.

     (b)  If a current hurricane property insurer did not provide hurricane property insurance in Hawaii during 1992, the provider shall charge rates based upon the average 1992 premiums for similar property in similar locations.

     SECTION 3.  (a)  Until the requirements of section 2 are met and notwithstanding any law to the contrary, the insurance commissioner shall not approve any rate filings that request an increase in hurricane property insurance rates.

     (b)  The insurance commissioner shall enforce the rate rollback required by this Act.

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

 

INTRODUCED BY:

_____________________________

 

 

 

 

Report Title:

Hurricane Property Insurance; Map; Premiums; Rates; Homeowners

 

Description:

Decreases hurricane property insurance rates to 1992 levels until the hurricane property insurers draft a map based upon actual hurricane damage.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.