HB254

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding four new sections to article 10E to be appropriately designated and to read as follows:

"§431:10E- Property insurance; notice of premium increase; policy renewal; notice requirements. (a) Beginning January 1, , this section shall apply to any insurer offering property insurance in the State.

(b) If an insurer cancels or refuses to renew a policyholder's insurance policy, or if, upon renewal, a policyholder's premium will increase by ten per cent or more, the insurer shall automatically provide a written notice to the policyholder disclosing the causes of any policy cancellation, non-renewal, or premium increase; provided that the notice required under this subsection shall be provided to the policyholder no less than calendar days before the effective date of the renewed policy. The notice shall include reasonable explanations and the primary factors contributing to any premium increase, non-renewal, or cancellation, which shall include the following categories:

(1) Specific risk factors;

(2) Claims history;

(3) Market conditions;

(4) A summary of any changes to policy terms, conditions, or coverage; and

(5) A clear and concise breakdown of the premium calculation, which shall identify any administrative costs, loss reserves, reinsurance costs, and claims-related factors specific to the insured property;

provided that the notice shall include the extent to which each of these categories contributes to the premium increase.

(c) The insurer shall include a statement in all written notices provided pursuant to this section that the policyholder may contact the insurer to request additional information about the policyholder's premium increase. The insurer shall respond to and provide additional information for a policyholder's subsequent requests for premium change transparency no less than calendar days from the receipt of any request.

(d) The insurer shall send the written notice to the policyholder in writing and may send either explanations or notices via postal mail or electronic mail, if the policyholder has consented to receive notifications electronically.

(e) The insurer shall contemporaneously file electronically with the commissioner a copy of any written notice and supporting documentation provided to a policyholder pursuant to this section. An insurer's failure to send the notice required by this section to the policyholder or file a copy with the commissioner shall be considered a violation of this chapter. A listing of all notices received by the commissioner shall be available to the public.

§431:10E- Property insurance; annual filings; review of insurance practices; reports. (a) Beginning January 1, , all insurers offering property insurance policies in the State shall file a copy of the insurer's rate schedules and underwriting criteria with the commissioner annually.

(b) The commissioner shall conduct periodic reviews of insurance rates to ensure compliance with state laws, focusing on rate-setting practices, prevention of price-gouging, and unfair discrimination.

(c) In addition to the filing requirements established in subsection (a), an insurer shall file with the commissioner an annual report in a form to be approved by the commissioner that shall detail:

(1) The average premium increases for all policyholders, including master property insurance policies for policyholders that are condominium associations, planned community associations, or cooperative housing corporations in this State;

(2) The reasons for the average premium increase, including trends in claims or market conditions; and

(3) The total number of complaints filed by policyholders.

(d) The commissioner shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session that contains a summary of the information received pursuant to this section, including any other findings, recommendations, or proposed legislation.

§431:10E- Property insurance; public reporting; dispute resolution. (a) The commissioner shall establish and administer a public reporting and dispute resolution program that shall include:

(1) A dedicated consumer hotline and online reporting system to handle complaints related to insurance rates and practices, or concerns regarding excessive premiums or inadequate coverage; and

(2) An appeals process for policyholders to file a formal appeal with the commissioner to challenge a premium increase believed to be unjustified; provided that the commissioner shall:

(A) Acknowledge receipt of the policyholder's filed appeal within five business days;

(B) Conduct an investigation and provide a written determination within thirty calendar days; and

(b) An insurer shall not take any retaliatory action against a policyholder that files a complaint or appeal pursuant to this section.

§431:10E- Property insurance; disaster risk mitigation credits. (a) An insurer offering property insurance in the State shall provide premium discounts or credits to policyholders that implement disaster risk mitigation measures, including the installation of wind-resistant roofing, flood-proofing systems, fire suppression or sprinkler systems, and other fire prevention improvements.

(b) Insurers shall notify policyholders of the amount of the discount or credit in writing via postal mail or electronic mail if the policyholder has consented to receive notifications electronically."

SECTION 2. New statutory material is underscored.

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

INTRODUCED BY:	_____________________________

Report Title:

Insurance Division; Insurance Commissioner; Property Insurance; Premium Change Notice; Notice Requirements; Transparency; Review; Reports; Public Reporting and Dispute Resolution Program; Complaint; Appeals; Disaster Risk Mitigation

Description:

Requires insurers to provide advance written notice to policyholders and the Insurance Commissioner, with reasonable explanations and primary factors, of any policy cancellation, non-renewal, or proposed premium increase, if, upon renewal, premiums are scheduled to increase more than ten per cent. Requires insurers that provide property insurance to file rate schedules and underlying criteria with the Insurance Commissioner. Requires the Insurance Commissioner to conduct periodic reviews of insurance rates and submit annual reports to the Legislature. Requires the Insurance Commissioner to establish a Public Reporting and Dispute Resolution Program to handle complaints and appeals regarding premium increases. Requires insurers to provide premium discounts or credits to policyholders that implement disaster risk mitigation measures.

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

HOUSE OF REPRESENTATIVES	H.B. NO.	254
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII