Hawaii Senate Bill SCR82

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

With SCR82, the state encourages the establishment of a working group led by the Director of Commerce and Consumer Affairs to explore solutions such as evaluating policy premium fairness, expanding coverage to small businesses, and considering financial assistance for low-income families. This proactive approach seeks to ensure that residents and businesses in Lava Zones 1 and 2 can access equitable insurance markets that reflect their specific needs and circumstances. The initiative is particularly crucial as private insurers continue to withdraw from the market, creating a precarious situation for homeowners and businesses reliant on stable insurance to thrive.

Summary

SCR82 is a Senate Concurrent Resolution that aims to address the pressing issue of accessible insurance options for residents and commercial businesses located in high-risk areas designated as Lava Zones 1 and 2 on Hawaii Island. In light of recent volcanic activity, the bill recognizes the significant challenges that residents face in obtaining affordable and reliable insurance coverage due to the reluctance of private insurance carriers to operate in these hazardous zones. The resolution highlights the need for comprehensive strategies to restore insurance options, particularly as the current state-run insurer, the Hawaii Property Insurance Association (HPIA), offers policies at exorbitant rates, impacting vulnerable populations severely.

Contention

There are concerns regarding the potential effectiveness of the strategies proposed by the working group, which is expected to submit recommendations to the Legislature by early 2025. The discussion around SCR82 may also invoke debates about the balance between governmental intervention and private market solutions. While supporters argue for necessary protections for residents in hazardous areas, opponents may raise issues regarding the sustainability and long-term viability of state involvement in insurance markets. Therefore, the passage of SCR82 could lead to significant discussions about risk management, economic development in vulnerable regions, and the state's role in private insurance regulations.