Hawaii 2023 Regular Session

Hawaii Senate Bill SCR48

Introduced
3/7/23  
Refer
3/10/23  
Report Pass
4/4/23  
Engrossed
4/5/23  
Refer
4/11/23  
Report Pass
4/17/23  

Caption

Requesting That The Department Of Commerce And Consumer Affairs Compile Pertinent Data To Determine The Appropriate Scope Of A Study Analyzing Whether Implementation In This State Of Laws Similar To Captive Insurance Laws Of Massachusetts Would Address This State's Residential Condominium Property Insurance Needs.

Impact

By proposing a study into captive insurance laws, SCR48 could potentially offer a new solution to Hawaii’s condominium property insurance challenges. This approach suggests a shift from traditional insurance models towards more tailored and potentially affordable options for residents facing financial strain due to high premiums. The resolution calls for a comprehensive survey of apartment owners within specified condominium properties to assess the viability of a Massachusetts-style captive insurance model in addressing these insurance issues.

Summary

SCR48 is a Senate Concurrent Resolution requesting the Department of Commerce and Consumer Affairs to collect data to evaluate the feasibility of implementing a captive insurance system in Hawaii similar to that of Massachusetts. The bill addresses the rising costs associated with residential condominium property insurance that has markedly increased since 2021. The significant insurance hikes are attributed to local ordinances in Honolulu mandating automatic fire sprinkler systems in condo buildings, which, despite some associations opting out, have led to increased premiums for nearly all condominium properties.

Sentiment

There appears to be a supportive sentiment among the stakeholders regarding the need for alternative insurance solutions. Advocates of SCR48, including property associations, express a strong belief that traditional insurance markets are failing them, thus highlighting the urgency for legislative intervention. However, skepticism may arise surrounding the transition to a captive insurance model and questions about its effectiveness compared to existing measures.

Contention

One notable point of contention is embedded in the local ordinances that necessitate fire safety requirements that are causing the insurance rates to soar. While some associations might pursue alternative fire safety measures, the overarching concern remains about the adequacy of current insurance offerings. The debate over implementing a captive insurance model raises questions regarding its practicality and acceptance among the various stakeholders involved, particularly in a state context where insurance costs are at the forefront of community concern.

Companion Bills

No companion bills found.

Previously Filed As

HI SCR82

Requesting The Director Of Commerce And Consumer Affairs To Convene A Working Group To Study And Devise Comprehensive Strategies To Restore Accessible Insurance Options To Residents And Commercial Businesses In Lava Zones 1 And 2.

HI SR68

Requesting The Director Of Commerce And Consumer Affairs To Convene A Working Group To Study And Devise Comprehensive Strategies To Restore Accessible Insurance Options To Residents And Commercial Businesses In Lava Zones 1 And 2.

HI HCR175

Requesting The Director Of Commerce And Consumer Affairs To Convene A Working Group To Study And Devise Comprehensive Strategies To Restore Accessible Insurance Options To Residents And Commercial Businesses In Lava Zones 1 And 2.

HI HR155

Requesting The Director Of Commerce And Consumer Affairs To Convene A Working Group To Study And Devise Comprehensive Strategies To Restore Accessible Insurance Options To Residents And Commercial Businesses In Lava Zones 1 And 2.

HI SB1577

Relating To The Department Of Commerce And Consumer Affairs.

HI SCR16

Requesting The Hawaii Property Insurance Association To Expand Coverage To Commercial Properties.

HI SB2727

Relating To Condominiums.

HI HB1728

Relating To Condominium Insurance.

HI HCR32

Requesting The Office Of Hawaiian Affairs To Identify The Scope Of Native Hawaiian Cultural Appropriateness For The Purpose Of Addressing Native Hawaiian Disparities.

HI HR21

Requesting The Office Of Hawaiian Affairs To Identify The Scope Of Native Hawaiian Cultural Appropriateness For The Purpose Of Addressing Native Hawaiian Disparities.

Similar Bills

HI SR43

Requesting That The Insurance Division Of The Department Of Commerce And Consumer Affairs Conduct A Study Analyzing Whether Implementation In This State Of Laws Similar To Massachusetts' Captive Insurance Laws Would Address This State's Residential Condominium Property Insurance Needs.

HI HB2036

Relating To Life-safety Systems.

HI SB2727

Relating To Condominiums.

HI SB804

Relating To Insurance For Hawaii Condominium Properties.

HI HB590

Relating To Insurance For Hawaii Condominium Properties.

CA AB1033

Accessory dwelling units: local ordinances: separate sale or conveyance.

NJ A1755

Requires installation of operational automatic rain sensor or smart sprinkler as condition of sale of certain real properties, and on certain commercial, retail, and industrial properties and common interest communities within specified timeframes.

CA AB2825

Accessory dwelling units: inspections: housing purposes.