Hawaii 2024 Regular Session

Hawaii Senate Bill SCR24 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.C.R. NO. 24 THIRTY-SECOND LEGISLATURE, 2024 STATE OF HAWAII SENATE CONCURRENT RESOLUTION requesting homeowners insurers to establish a loss-control program aimed at reducing the risk of loss or mitigating damage to insured property caused by the peril of fire.
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3	3	THE SENATE S.C.R. NO. 24
4	4	THIRTY-SECOND LEGISLATURE, 2024
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.C.R. NO.
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13	13	THIRTY-SECOND LEGISLATURE, 2024
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17	17	STATE OF HAWAII
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29	29	SENATE CONCURRENT
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31	31	RESOLUTION
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37	37	requesting homeowners insurers to establish a loss-control program aimed at reducing the risk of loss or mitigating damage to insured property caused by the peril of fire.
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43	43	WHEREAS, the State had the highest homeowner's insurance markup rates of any state from 1996 to 2021; and WHEREAS, a recent analysis revealed that the State has been historically lucrative for insurers as insurers have been raising premium rates without having to pay out many claims; and WHEREAS, the August 2023 Maui wildfires devastated the historic town of Lahaina; and WHEREAS, many residents of Lahaina during the August 2023 Maui wildfires did not have homeowner's insurance, likely due to the high cost of homeowner's insurance premiums in the State; and WHEREAS, one wooden house in the center of Lahaina, now known as the "Miracle House", survived relatively unscathed due to certain loss-control measures the owner implemented, including removing the landscaping directly surrounding the house and replacing it with river stones; and WHEREAS, many insurers have loss-control programs that are not only designed to help policyholders reduce risks of damage and loss from certain perils, but also benefit both the policyholder, who is rewarded with reductions to their insurance premium rates, and the insurer, who is less likely to have to pay out on claims; and WHEREAS, insurers should offer discounted premium rates for certain policyholders in the State who, like the owner of the "Miracle House", implement loss-control measures, including removing flammable material, debris, and vegetation within certain perimeters of the insured property; removing risks of fire caused by lava; and using inflammable material in the construction or renovation of the insured property; now, therefore, BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the House of Representatives concurring, that homeowners insurers are requested to establish a loss-control program aimed at reducing the risk of loss or mitigating damage to insured property caused by the peril of fire; and BE IT FURTHER RESOLVED that the loss-control program established is requested to: (1) Begin on January 1, 2025; (2) Comply with all rules adopted by the Insurance Commissioner; and (3) Grant to an applicant a discount in the applicant's homeowners insurance premiums for insured property upon receipt of written verification from the applicant that the applicant has implemented loss-control measures at the insured property to lessen or minimize an insured loss from the perils of fire, including fire caused by wildfire, lava, or both, including: (A) Removal of flammable material, debris, and vegetation within certain perimeters of the insured property; (B) Removal of risk of fire caused by lava; and (C) Use of inflammable material in the construction or renovation of the insured property; and BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to adopt rules for the loss-control program, including prescribing the requirements for determining whether insured property was constructed or renovated with inflammable material; and BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Insurance Commissioner. OFFERED BY: _____________________________ Report Title: Insurance; Homeowners Insurance; Loss-Control Program; Discounted Premium Rates; Fire
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45	45	WHEREAS, the State had the highest homeowner's insurance markup rates of any state from 1996 to 2021; and
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49	49	WHEREAS, a recent analysis revealed that the State has been historically lucrative for insurers as insurers have been raising premium rates without having to pay out many claims; and
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53	53	WHEREAS, the August 2023 Maui wildfires devastated the historic town of Lahaina; and
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57	57	WHEREAS, many residents of Lahaina during the August 2023 Maui wildfires did not have homeowner's insurance, likely due to the high cost of homeowner's insurance premiums in the State; and
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61	61	WHEREAS, one wooden house in the center of Lahaina, now known as the "Miracle House", survived relatively unscathed due to certain loss-control measures the owner implemented, including removing the landscaping directly surrounding the house and replacing it with river stones; and
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65	65	WHEREAS, many insurers have loss-control programs that are not only designed to help policyholders reduce risks of damage and loss from certain perils, but also benefit both the policyholder, who is rewarded with reductions to their insurance premium rates, and the insurer, who is less likely to have to pay out on claims; and
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69	69	WHEREAS, insurers should offer discounted premium rates for certain policyholders in the State who, like the owner of the "Miracle House", implement loss-control measures, including removing flammable material, debris, and vegetation within certain perimeters of the insured property; removing risks of fire caused by lava; and using inflammable material in the construction or renovation of the insured property; now, therefore,
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73	73	BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the House of Representatives concurring, that homeowners insurers are requested to establish a loss-control program aimed at reducing the risk of loss or mitigating damage to insured property caused by the peril of fire; and
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77	77	BE IT FURTHER RESOLVED that the loss-control program established is requested to:
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81	81	(1) Begin on January 1, 2025;
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85	85	(2) Comply with all rules adopted by the Insurance Commissioner; and
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89	89	(3) Grant to an applicant a discount in the applicant's homeowners insurance premiums for insured property upon receipt of written verification from the applicant that the applicant has implemented loss-control measures at the insured property to lessen or minimize an insured loss from the perils of fire, including fire caused by wildfire, lava, or both, including:
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93	93	(A) Removal of flammable material, debris, and vegetation within certain perimeters of the insured property;
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97	97	(B) Removal of risk of fire caused by lava; and
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101	101	(C) Use of inflammable material in the construction or renovation of the insured property; and
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105	105	BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to adopt rules for the loss-control program, including prescribing the requirements for determining whether insured property was constructed or renovated with inflammable material; and
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109	109	BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Insurance Commissioner.
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117	117	OFFERED BY: _____________________________
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121	121	OFFERED BY:
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175	175	Report Title:
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177	177	Insurance; Homeowners Insurance; Loss-Control Program; Discounted Premium Rates; Fire