STAND. COM. REP. NO. 175

Honolulu, Hawaii

RE: S.B. No. 706

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. 706 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to require the Hawaii Property Insurance Association to include in its plan of operation insurance coverage for commercial properties twice denied by private insurers.

Your Committee received testimony in support of this measure from two individuals.

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

Your Committee finds that insurance rates across the State have significantly increased over the last decade. With an increase in natural disasters and other unforeseen emergencies, the insurance market has denied coverage based on the substantial risk posed by various factors. Numerous denials by insurance companies have left certain real property, including commercial properties, without adequate coverage. Therefore, this measure fills important gaps to ensure all properties across the State have access to insurance coverage.

Your Committee has amended this measure by:

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

(2) Making a technical, nonsubstantive amendment 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. 706, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 706, S.D. 1, and be referred to your Committee on Ways and Means.

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

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JARRETT KEOHOKALOLE, Chair