| 47 | | - | SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10E to be appropriately designated and to read as follows: "§431:10E- Property insurance; notice of premium increase; policy renewal; notice requirements; common interest communities. (a) Beginning January 1, , this section shall apply to any insurer that renews a master property insurance policy for a policyholder that is a condominium association, planned community association, or cooperative housing corporation in the State. (b) An insurer shall automatically provide a written premium change notice to the policyholder disclosing the causes of any premium increase for the insurance policy if, upon renewal, the premium will increase by per cent or more; 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 premium change notice shall include reasonable explanations and the primary factors contributing to any premium increase, which shall include the following categories: (1) Water damage claims; (2) Wastewater plumbing replacements; (3) Fire safety devices and practices; (4) Directors' and officers' liability claims; (5) Reinsurance costs; and (6) Catastrophic losses to the insurance industry; provided that the notice shall include the extent to which each of these categories contributes to the premium increase. (c) In addition to the requirements of subsection (b), insurers shall automatically issue a loss run report to the policyholder at the end of each policy year. (d) Insurers shall include a statement in all premium change notices that the policyholder may contact their insurer to request additional information about the policyholder's premium increase. Insurers 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. (e) Insurers shall send premium change notices to policyholders in writing and may send either explanations or notices via postal mail or electronic mail if the policyholder has consented to receive notifications electronically. (f) All insurers shall file electronically with the commissioner a copy of any premium change notice 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." SECTION 2. (a) Any insurer that renewed a property insurance policy between the dates of January 1, 2022, to December 31, 2024, for a policyholder that was a condominium association, planned community association, or cooperative housing corporation in the State, shall prepare a written statement, with reasonable explanations and primary factors, disclosing the cause for any premium increase that was effective upon renewal between this period; provided that the premium increased by at least per cent during this period. The insurer shall send its written statement to the insurance commissioner and the respective policyholder no later than days after the effective date of this Act. (b) The insurance commissioner shall review all written statements submitted by insurers pursuant to subsection (a) and shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026; provided that the report shall not be required to include any information concerning premium changes that were warranted due to the structural condition of any insured property. (c) Upon the effective date of this Act, the insurance commissioner shall notify all applicable insurers of their duty to comply with the requirements of this Act. SECTION 3. New statutory material is underscored. SECTION 4. This Act shall take effect on July 1, 2050. |
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| 47 | + | SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10E to be appropriately designated and to read as follows: "§431:10E- Property insurance; notice of premium increase; policy renewal; notice requirements; common interest communities. (a) Beginning January 1, , this section shall apply to any insurer that renews a master property insurance policy for a policyholder that is a condominium association, planned community association, or cooperative housing corporation in this State. (b) An insurer shall automatically provide a written premium change notice to the policyholder disclosing the causes of any premium increase for the insurance policy if, upon renewal, the premium will increase by per cent or more; 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 premium change notice shall include reasonable explanations and the primary factors contributing to any premium increase, which shall include the following categories: (1) Water damage claims; (2) Wastewater plumbing replacements; (3) Fire safety devices and practices; (4) Directors' and officers' liability claims; (5) Reinsurance costs; and (6) Catastrophic losses to the insurance industry; provided that the notice shall include the extent to which each of these categories contributes to the premium increase. (c) Insurers shall include a statement in all premium change notices that the policyholder may contact their insurer to request additional information about the policyholder's premium increase. Insurers 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) Insurers shall send premium change notices to policyholders 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) All insurers shall file electronically with the commissioner a copy of any premium change notice 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." SECTION 2. (a) Any insurer that renewed a property insurance policy between the dates of January 1, 2022, to December 31, 2024, for a policyholder that was a condominium association, planned community association, or cooperative housing corporation in this State, shall prepare a written statement, with reasonable explanations and primary factors, disclosing the cause for any premium increase that was effective upon renewal between this period; provided that the premium increased by at least per cent during this period. The insurer shall send its written statement to the insurance commissioner and the respective policyholder no later than days after the effective date of this Act. (b) The insurance commissioner shall review all written statements submitted by insurers pursuant to subsection (a) and shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026; provided that the report shall not be required to include any information concerning premium changes that were warranted due to the structural condition of any insured property. (c) Upon the effective date of this Act, the insurance commissioner shall notify all applicable insurers of their duty to comply with the requirements of this Act. SECTION 3. New statutory material is underscored. SECTION 4. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ |
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