STAND. COM. REP. NO. 380

Honolulu, Hawaii

RE: S.B. No. 1141

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1141 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE PROTECTIONS,"

begs leave to report as follows:

The purpose and intent of this measure is to require insurers offering homeowners insurance policies to comply with certain minimum requirements in cases of losses of owner-occupied residences due to a wildfire disaster.

Your Committee received testimony in support of this measure from the Council for Native Hawaiian Advancement, Hoʻōlā iā Mauiakama Disaster Long Term Recovery Group, Hawaii Public Adjusters, Kaibigan ng Lahaina, and eight individuals.

Your Committee received testimony in opposition to this measure from the American Property Casualty Insurance Association and Hawaii Insurers Council.

Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, National Association of Mutual Insurance Companies, and one individual.

Your Committee finds that Hawaii's unique geographical and environmental conditions make it susceptible to a number of different types of natural disasters. The 2023 Maui wildfires highlight the need for a robust insurance framework to assist with recovering survivors. This measure is therefore necessary to help ensure residents of the state have access to the resources and coverage they need in the event of an unforeseen event.

Your Committee has amended this measure by:

(1) Deleting the definitions of "wildfire" and "wildfire disaster";

(2) Inserting a definition for "catastrophic disaster";

(3) Inserting language to require insurers to respond to proposal requests for new and renewal policies at least sixty days before the policy term ends;

(4) Inserting language to require insurers to automatically issue loss run reports at the end of each policy year;

(5) Clarifying that a policyholder has the option to twice extend the thirty-six month period by six months to submit receipts and invoices for the replacement costs of the insured owner-occupied residence and for additional living expenses if the policyholder, acting in good faith, encounters unavoidable delays in the approval or reconstruction of the residence due to circumstances beyond the control of the policyholder;

(6) Clarifying that, for costs for removal of debris conducted by or in coordination with governmental entities, payment for covered costs shall be provided within a reasonable amount of time once the amount available for debris removal has been agreed to by all parties;

(7) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(8) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1141, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1141, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

________________________________

JARRETT KEOHOKALOLE, Chair