Hawaii Senate Bill SR68

Hawaii 2024 Regular Session

• Introduced: 3/8/24
• Refer: 3/14/24

Caption

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.

Impact

The resolution aims to address significant challenges in the insurance market where private carriers have largely withdrawn from providing insurance products for these high-risk areas. In particular, the Universal Property and Casualty Insurance Company's exit from the market has left many residents with drastically higher premiums from the Hawaii Property Insurance Association, which is the only remaining state-run insurer. This shift has led to severe financial hardships for homeowners and small businesses, particularly affecting low-income families looking to secure housing or commercial funding in these zones.

Summary

Senate Resolution 68 requests the Director of Commerce and Consumer Affairs to establish a working group aimed at studying and developing strategies to restore accessible insurance options for residents and commercial businesses located in the high-risk areas known as Lava Zones 1 and 2 in Hawaii. These zones have been identified due to their susceptibility to volcanic eruptions, which pose a substantial risk to properties and livelihoods. The resolution recognizes that, despite these risks, development in these areas continues, fueled by factors such as affordable housing demand and volcanic tourism.

Conclusion

Ultimately, SR68 seeks to secure a path forward for those living and working in Lava Zones 1 and 2 of Hawaii by ensuring that they have reliable and affordable insurance options despite the inherent risks of their geography. The working group's findings and proposed legislation, to be reported back to the legislature, could pave the way for meaningful changes in the state's approach to high-risk insurance markets.

Contention

Notable contention surrounding SR68 arises from concerns about the equitable distribution of insurance coverage and costs. The resolution proposes the working group to consider various means of assistance including evaluating premium applications, potentially decreasing policy premiums, and expanding insurance options to commercial entities within these lava zones. Critics may argue about the feasibility of such measures and whether they sufficiently address the unique risks presented by living and operating businesses in volcanic areas. The diverse membership of the proposed working group, which includes homeowners, small business owners, and officials, is intended to bring multiple perspectives on these pressing issues, reflecting the community's needs.