Hawaii Senate Bill SR8

Hawaii 2024 Regular Session

• Introduced: 2/29/24
• Refer: 3/1/24

Caption

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

Impact

The expansion of coverage to commercial properties is intended to equip business owners with greater access to essential insurance options. Currently, those seeking commercial property insurance often face challenges due to restrictions in the private market, particularly in areas vulnerable to natural disasters. By acting on this resolution, the aim is to enhance the resilience of businesses in Hawaii against unforeseen economic disruptions caused by natural events.

Summary

Senate Resolution 8 (SR8) seeks to address the limitations of the Hawaii Property Insurance Association by requesting that it expands its coverage to include commercial properties. Established in 1991, the Hawaii Property Insurance Association currently provides basic property insurance primarily for dwellings and personal use. This resolution highlights the growing concern that business owners in Hawaii are significantly underserved by the existing insurance frameworks, particularly in light of the unique risks posed by events such as volcanic activity.

Contention

While the bill promotes the notion of increased coverage, the discussions may reveal potential opposition or concerns from insurance providers about the feasibility and risk underwriting associated with insuring commercial properties. Some stakeholders may worry about the financial implications for the Hawaii Property Insurance Association and how expanding coverage could affect premium rates or the sustainability of the Association's services.

Additional_points

This resolution calls for formal communication to the Insurance Commissioner and the Board of Directors of the Hawaii Property Insurance Association to facilitate dialogue on the possible expansion. If adopted, it could significantly alter the landscape of commercial property insurance in Hawaii, hence ensuring that business owners are better protected against property losses.