SB 802: DCCA; Insurance Commissioner; Property Insurance; Premium Change; Notice; Review; Reports; Public Reporting and Dispute Resolution Program; Disaster Risk Mitigation
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-02-28
Current Status:
Failed
(2025-12-08: Carried over to 2026 Regular Session.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Requires insurers to provide advance written notice to policyholders and the Insurance Commissioner, with reasonable explanations and primary factors, of any policy cancellation, non-renewal, or proposed premium increase, if, upon renewal, premiums are scheduled to increase more than 10 per cent. Requires insurers that provide property insurance to file rate schedules and underlying criteria with the Insurance Commissioner. Requires the Insurance Commissioner to conduct periodic reviews of insurance rates and submit annual reports to the Legislature. Requires the Insurance Commissioner to establish a Public Reporting and Dispute Resolution Program to handle complaints and appeals regarding premium increases. Requires insurers to provide premium discounts or credits to policyholders that implement disaster risk mitigation measures. Effective 7/1/2050. (SD2)
Requires insurers to provide advance written notice to policyholders and the Insurance Commissioner, with reasonable explanations and primary factors, of any policy cancellation, non-renewal, or proposed premium increase, if, upon renewal, premiums are scheduled to increase more than ten per cent. Requires insurers that provide property insurance to file rate schedules and underlying criteria with the Insurance Commissioner. Requires the Insurance Commissioner to conduct periodic reviews of insurance rates and submit annual reports to the Legislature. Requires the Insurance Commissioner to establish a Public Reporting and Dispute Resolution Program to handle complaints and appeals regarding premium increases. Requires insurers to provide premium discounts or credits to policyholders that implement disaster risk mitigation measures. Effective 7/1/2050. (SD1)
Requires insurers to provide advance written notice to policyholders and the Insurance Commissioner, with reasonable explanations and primary factors, of any policy cancellation, non-renewal, or proposed premium increase, if, upon renewal, premiums are scheduled to increase more than ten per cent. Requires insurers that provide property insurance to file rate schedules and underlying criteria with the Insurance Commissioner. Requires the Insurance Commissioner to conduct periodic reviews of insurance rates and submit annual reports to the Legislature. Requires the Insurance Commissioner to establish a Public Reporting and Dispute Resolution Program to handle complaints and appeals regarding premium increases. Requires insurers to provide premium discounts or credits to policyholders that implement disaster risk mitigation measures.
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THE SENATE |
S.B. NO. |
802 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO INSURANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§431:10E- Property insurance; notice of premium increase; policy renewal; notice requirements. (a) Beginning January 1, , this section shall apply to any insurer offering property insurance in the State.
(b) If an insurer cancels or refuses to renew a policyholder's insurance policy, or if, upon renewal, a policyholder's premium will increase by ten per cent or more, the insurer shall automatically provide a written notice to the policyholder disclosing the causes of any policy cancellation, non-renewal, or premium increase; 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 notice shall include reasonable explanations and the primary factors contributing to any premium increase, non-renewal, or cancellation, which shall include the following categories:
(1) Specific risk factors;
(2) Claims history;
(3) Market conditions;
(4) A summary of any changes to policy terms, conditions, or coverage; and
(5) A clear and concise breakdown of the premium calculation, which shall identify any administrative costs, loss reserves, reinsurance costs, and claims‑related factors specific to the insured property;
provided that the notice shall include the extent to which each of these categories contributes to the premium increase.
(c) The insurer shall include a statement in all written notices provided pursuant to this section that the policyholder may contact the insurer to request additional information about the policyholder's premium increase. The insurer 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) The insurer shall send the written notice to the policyholder 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) The insurer shall contemporaneously file electronically with the commissioner a copy of any written notice and supporting documentation 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. A listing of all notices received by the commissioner shall be available to the public.
§431:10E- Property insurance; annual filings; review of insurance practices; reports. (a) Beginning January 1, , all insurers offering property insurance policies in the State shall file a copy of the insurer's rate schedules and underwriting criteria with the commissioner annually.
(b) The commissioner shall conduct periodic reviews of insurance rates to ensure compliance with state laws, focusing on rate-setting practices, prevention of price-gouging, and unfair discrimination.
(c) In addition to the filing requirements established in subsection (a), an insurer shall file with the commissioner an annual report in a form to be approved by the commissioner that shall detail:
(1) The average premium increases for all policyholders, including master property insurance policies for policyholders that are condominium associations, planned community associations, or cooperative housing corporations in this State;
(2) The reasons for the average premium increase, including trends in claims or market conditions; and
(3) The total number of complaints filed by policyholders.
(d) The commissioner shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session that contains a summary of the information received pursuant to this section, including any other findings, recommendations, or proposed legislation.
§431:10E- Property insurance; public reporting; dispute resolution. (a) The commissioner shall establish and administer a public reporting and dispute resolution program that shall include:
(1) A dedicated consumer hotline and online reporting system to handle complaints related to insurance rates and practices, or concerns regarding excessive premiums or inadequate coverage; and
(2) An appeals process for policyholders to file a formal appeal with the commissioner to challenge a premium increase believed to be unjustified; provided that the commissioner shall:
(A) Acknowledge receipt of the policyholder's filed appeal within five business days;
(B) Conduct an investigation and provide a written determination within thirty calendar days; and
(C) If the commissioner determines that the premium increase violates state law, require adjustments or refunds.
(b) An insurer shall not take any retaliatory action against a policyholder that files a complaint or appeal pursuant to this section.
§431:10E- Property insurance; disaster risk mitigation credits. (a) An insurer offering property insurance in the State shall provide premium discounts or credits to policyholders that implement disaster risk mitigation measures, including the installation of wind-resistant roofing, flood‑proofing systems, fire suppression or sprinkler systems, and other fire prevention improvements.
(b) Insurers shall notify policyholders of the amount of the discount or credit in writing via postal mail or electronic mail if the policyholder has consented to receive notifications electronically."
SECTION 2. Section 431:10-226.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§431:10-226.5[]]
Notice of cancellation or nonrenewal. In the case of cancellation of a policy, the
insurer shall give written notice to the insured not fewer than ten days prior
to the effective date of cancellation.
For nonrenewal of a policy, the insurer shall give written notice to the
insured not fewer than thirty days prior to the effective date of
nonrenewal. If, upon renewal, a
policyholder's premium will increase by ten per cent or more, the insurer shall
give written notice to the insured not fewer than
days prior to the
effective date of renewal. If under
title 24 or a policy, a longer time period is required for a notice of
cancellation or nonrenewal for the policy, the longer period shall be
applicable. Cancellation or nonrenewal
shall not be deemed valid unless evidence of mailing is provided."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. This Act shall not be applied so as to impair any contract existing as of the effective date of this Act in a manner violative of either the Constitution of the State of Hawaii or Article I, section 10, of the United States Constitution.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2050.
Report Title:
DCCA; Insurance Commissioner; Property Insurance; Premium Change; Notice; Review; Reports; Public Reporting and Dispute Resolution Program; Disaster Risk Mitigation
Description:
Requires insurers to provide advance written notice to policyholders and the Insurance Commissioner, with reasonable explanations and primary factors, of any policy cancellation, non-renewal, or proposed premium increase, if, upon renewal, premiums are scheduled to increase more than 10 per cent. Requires insurers that provide property insurance to file rate schedules and underlying criteria with the Insurance Commissioner. Requires the Insurance Commissioner to conduct periodic reviews of insurance rates and submit annual reports to the Legislature. Requires the Insurance Commissioner to establish a Public Reporting and Dispute Resolution Program to handle complaints and appeals regarding premium increases. Requires insurers to provide premium discounts or credits to policyholders that implement disaster risk mitigation measures. Effective 7/1/2050. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
802 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO INSURANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§431:10E- Property insurance; notice of premium increase; policy renewal; notice requirements. (a) Beginning January 1, , this section shall apply to any insurer offering property insurance in the State.
(b) If an insurer cancels or refuses to renew a policyholder's insurance policy, or if, upon renewal, a policyholder's premium will increase by ten per cent or more, the insurer shall automatically provide a written notice to the policyholder disclosing the causes of any policy cancellation, non-renewal, or premium increase; 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 notice shall include reasonable explanations and the primary factors contributing to any premium increase, non-renewal, or cancellation, which shall include the following categories:
(1) Specific risk factors;
(2) Claims history;
(3) Market conditions;
(4) A summary of any changes to policy terms, conditions, or coverage; and
(5) A clear and concise breakdown of the premium calculation, which shall identify any administrative costs, loss reserves, reinsurance costs, and claims-related factors specific to the insured property;
provided that the notice shall include the extent to which each of these categories contributes to the premium increase.
(c) The insurer shall include a statement in all written notices provided pursuant to this section that the policyholder may contact the insurer to request additional information about the policyholder's premium increase. The insurer 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) The insurer shall send the written notice to the policyholder 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) The insurer shall contemporaneously file electronically with the commissioner a copy of any written notice and supporting documentation 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. A listing of all notices received by the commissioner shall be available to the public.
§431:10E- Property insurance; annual filings; review of insurance practices; reports. (a) Beginning January 1, , all insurers offering property insurance policies in the State shall file a copy of the insurer's rate schedules and underwriting criteria with the commissioner annually.
(b) The commissioner shall conduct periodic reviews of insurance rates to ensure compliance with state laws, focusing on rate-setting practices, prevention of price-gouging, and unfair discrimination.
(c) In addition to the filing requirements established in subsection (a), an insurer shall file with the commissioner an annual report in a form to be approved by the commissioner that shall detail:
(1) The average premium increases for all policyholders, including master property insurance policies for policyholders that are condominium associations, planned community associations, or cooperative housing corporations in this State;
(2) The reasons for the average premium increase, including trends in claims or market conditions; and
(3) The total number of complaints filed by policyholders.
(d) The commissioner shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session that contains a summary of the information received pursuant to this section, including any other findings, recommendations, or proposed legislation.
§431:10E- Property insurance; public reporting; dispute resolution. (a) The commissioner shall establish and administer a public reporting and dispute resolution program that shall include:
(1) A dedicated consumer hotline and online reporting system to handle complaints related to insurance rates and practices, or concerns regarding excessive premiums or inadequate coverage; and
(2) An appeals process for policyholders to file a formal appeal with the commissioner to challenge a premium increase believed to be unjustified; provided that the commissioner shall:
(A) Acknowledge receipt of the policyholder's filed appeal within five business days;
(B) Conduct an investigation and provide a written determination within thirty calendar days; and
(C) If the commissioner determines that the premium increase violates state law, require adjustments or refunds.
(b) An insurer shall not take any retaliatory action against a policyholder that files a complaint or appeal pursuant to this section.
§431:10E- Property insurance; disaster risk mitigation credits. (a) An insurer offering property insurance in the State shall provide premium discounts or credits to policyholders that implement disaster risk mitigation measures, including the installation of wind-resistant roofing, flood‑proofing systems, fire suppression or sprinkler systems, and other fire prevention improvements.
(b) Insurers shall notify policyholders of the amount of the discount or credit in writing via postal mail or electronic mail if the policyholder has consented to receive notifications electronically."
SECTION 2. Section 431:10-226.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§431:10-226.5[]]
Notice of cancellation or nonrenewal. In the case of cancellation of a policy, the
insurer shall give written notice to the insured not fewer than ten days prior
to the effective date of cancellation.
For nonrenewal of a policy, the insurer shall give written notice to the
insured not fewer than thirty days prior to the effective date of
nonrenewal. If, upon renewal, a
policyholder's premium will increase by ten per cent or more, the insurer shall
give written notice to the insured not fewer than
days prior to the effective date of renewal. If under title 24 or a policy, a longer time
period is required for a notice of cancellation or nonrenewal for the policy,
the longer period shall be applicable.
Cancellation or nonrenewal shall not be deemed valid unless evidence of
mailing is provided."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
Insurance Division; Insurance Commissioner; Property Insurance; Premium Change Notice; Notice Requirements; Transparency; Review; Reports; Public Reporting and Dispute Resolution Program; Complaint; Appeals; Disaster Risk Mitigation
Description:
Requires insurers to provide advance written notice to policyholders and the Insurance Commissioner, with reasonable explanations and primary factors, of any policy cancellation, non-renewal, or proposed premium increase, if, upon renewal, premiums are scheduled to increase more than ten per cent. Requires insurers that provide property insurance to file rate schedules and underlying criteria with the Insurance Commissioner. Requires the Insurance Commissioner to conduct periodic reviews of insurance rates and submit annual reports to the Legislature. Requires the Insurance Commissioner to establish a Public Reporting and Dispute Resolution Program to handle complaints and appeals regarding premium increases. Requires insurers to provide premium discounts or credits to policyholders that implement disaster risk mitigation measures. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
802 |
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THIRTY-THIRD LEGISLATURE, 2025 |
|
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§431:10E- Property insurance; notice of premium increase; policy renewal; notice requirements. (a) Beginning January 1, , this section shall apply to any insurer offering property insurance in the State.
(b) If an insurer cancels or refuses to renew a policyholder's insurance policy, or if, upon renewal, a policyholder's premium will increase by ten per cent or more, the insurer shall automatically provide a written notice to the policyholder disclosing the causes of any policy cancellation, non-renewal, or premium increase; 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 notice shall include reasonable explanations and the primary factors contributing to any premium increase, non-renewal, or cancellation, which shall include the following categories:
(1) Specific risk factors;
(2) Claims history;
(3) Market conditions;
(4) A summary of any changes to policy terms, conditions, or coverage; and
(5) A clear and concise breakdown of the premium calculation, which shall identify any administrative costs, loss reserves, reinsurance costs, and claims-related factors specific to the insured property;
provided that the notice shall include the extent to which each of these categories contributes to the premium increase.
(c) The insurer shall include a statement in all written notices provided pursuant to this section that the policyholder may contact the insurer to request additional information about the policyholder's premium increase. The insurer 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) The insurer shall send the written notice to the policyholder 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) The insurer shall contemporaneously file electronically with the commissioner a copy of any written notice and supporting documentation 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. A listing of all notices received by the commissioner shall be available to the public.
§431:10E- Property insurance; annual filings; review of insurance practices; reports. (a) Beginning January 1, , all insurers offering property insurance policies in the State shall file a copy of the insurer's rate schedules and underwriting criteria with the commissioner annually.
(b) The commissioner shall conduct periodic reviews of insurance rates to ensure compliance with state laws, focusing on rate-setting practices, prevention of price-gouging, and unfair discrimination.
(c) In addition to the filing requirements established in subsection (a), an insurer shall file with the commissioner an annual report in a form to be approved by the commissioner that shall detail:
(1) The average premium increases for all policyholders, including master property insurance policies for policyholders that are condominium associations, planned community associations, or cooperative housing corporations in this State;
(2) The reasons for the average premium increase, including trends in claims or market conditions; and
(3) The total number of complaints filed by policyholders.
(d) The commissioner shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session that contains a summary of the information received pursuant to this section, including any other findings, recommendations, or proposed legislation.
§431:10E- Property insurance; public reporting; dispute resolution. (a) The commissioner shall establish and administer a public reporting and dispute resolution program that shall include:
(1) A dedicated consumer hotline and online reporting system to handle complaints related to insurance rates and practices, or concerns regarding excessive premiums or inadequate coverage; and
(2) An appeals process for policyholders to file a formal appeal with the commissioner to challenge a premium increase believed to be unjustified; provided that the commissioner shall:
(A) Acknowledge receipt of the policyholder's filed appeal within five business days;
(B) Conduct an investigation and provide a written determination within thirty calendar days; and
(C) If the commissioner determines that the premium increase violates state law, require adjustments or refunds.
(b) An insurer shall not take any retaliatory action against a policyholder that files a complaint or appeal pursuant to this section.
§431:10E- Property insurance; disaster risk mitigation credits. (a) An insurer offering property insurance in the State shall provide premium discounts or credits to policyholders that implement disaster risk mitigation measures, including the installation of wind-resistant roofing, flood-proofing systems, fire suppression or sprinkler systems, and other fire prevention improvements.
(b) Insurers shall notify policyholders of the amount of the discount or credit in writing via postal mail or electronic mail if the policyholder has consented to receive notifications electronically."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Insurance Division; Insurance Commissioner; Property Insurance; Premium Change Notice; Notice Requirements; Transparency; Review; Reports; Public Reporting and Dispute Resolution Program; Complaint; Appeals; Disaster Risk Mitigation
Description:
Requires insurers to provide advance written notice to policyholders and the Insurance Commissioner, with reasonable explanations and primary factors, of any policy cancellation, non-renewal, or proposed premium increase, if, upon renewal, premiums are scheduled to increase more than ten per cent. Requires insurers that provide property insurance to file rate schedules and underlying criteria with the Insurance Commissioner. Requires the Insurance Commissioner to conduct periodic reviews of insurance rates and submit annual reports to the Legislature. Requires the Insurance Commissioner to establish a Public Reporting and Dispute Resolution Program to handle complaints and appeals regarding premium increases. Requires insurers to provide premium discounts or credits to policyholders that implement disaster risk mitigation measures.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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|---|---|
| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Mar 6, 2025 | Referred to CPC, FIN, referral sheet 19 |
| Mar 6, 2025 | Pass First Reading |
| Mar 4, 2025 | Received from Senate (Sen. Com. No. 199) in amended form (SD 2). |
| Mar 4, 2025 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Feb 28, 2025 | 48 Hrs. Notice 03-04-25. |
| Feb 28, 2025 | Reported from WAM/JDC (Stand. Com. Rep. No. 891) with recommendation of passage on Third Reading, as amended (SD 2). |
| Feb 26, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in JDC were as follows: 5 Aye(s): Senator(s) Rhoads, Gabbard, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 26, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 21, 2025 | The committee(s) on WAM/JDC will hold a public decision making on 02-26-25 10:05AM; Conference Room 211 & Videoconference. |
| Feb 13, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM/JDC. |
| Feb 13, 2025 | Reported from CPN (Stand. Com. Rep. No. 438) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM/JDC. |
| Feb 7, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Richards, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 5, 2025 | The committee(s) on CPN deferred the measure until 02-07-25 9:46AM; Conference Room 229. |
| Jan 31, 2025 | The committee(s) on CPN has scheduled a public hearing on 02-05-25 10:00AM; Conference Room 229 & Videoconference. |
| Jan 23, 2025 | Referred to CPN, WAM/JDC. |
| Jan 21, 2025 | Passed First Reading. |
| Jan 17, 2025 | Introduced. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Mar 4, 2025 | Third Reading | Senate Floor |
Passed |
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| Feb 26, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Judiciary |
Passed |
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| Feb 26, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Feb 7, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Commerce and Consumer Protection |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| American Property Casualty Insurance Association (APCIA) | *** Against | Feb 25, 2025 |
| Hawaii Insurers Council | ** Against | |
| National Association of Mutual Insurance Companies | ** Against | |
| State Farm Mutual Automobile Insurance Company | *** Against | Feb 25, 2025 |
STAND. COM. REP. NO. 891
Honolulu, Hawaii
RE: S.B. No. 802
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 802, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
beg leave to report as follows:
The purpose and intent of this measure is to require more transparency in property insurance rate pricing.
Specifically, this measure:
(1) Requires insurers to provide advance written notice to policyholders and the Insurance Commissioner, with reasonable explanations and primary factors, of any policy cancellation, non-renewal, or proposed premium increase, if, upon renewal, premiums are scheduled to increase more than ten percent;
(2) Requires insurers that provide property insurance to file rate schedules and underlying criteria with the Insurance Commissioner;
(3) Requires the Insurance Commissioner to:
(A) Conduct periodic reviews of insurance rates and submit annual reports to the Legislature; and
(B) Establish a Public Reporting and Dispute Resolution Program to handle complaints and appeals regarding premium increases; and
(4) Requires insurers to provide premium discounts or credits to policyholders that implement disaster risk mitigation measures.
Your Committees received written comments in support of this measure from two individuals.
Your Committees received written comments in opposition to this measure from the American Property Casualty Insurance Association and State Farm.
Your Committees received written comments on this measure from the Attorney General and Department of Commerce of Consumer Affairs, Insurance Division.
Your Committees find that insurers are able to increase premiums with little or no warning and without explanation. Your Committees further find that this measure will increase transparency in property insurance rate pricing by requiring insurers to provide advanced notice of, and justifications for, premium rate increases that exceed ten percent.
Your Committees have amended this measure by:
(1) Adding a savings clause to clarify that the measure does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before the measure's effective date; and
(2) Adding language to clarify that the measure shall not be applied to impair any contract existing as of the measure's effective date in a manner that violates the Hawaii State Constitution or Article I, Section 10, of the United States Constitution.
As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 802, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 802, S.D. 2.
Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,
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________________________________ KARL RHOADS, Chair |
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 438
Honolulu, Hawaii
RE: S.B. No. 802
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 802 entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Require insurers to provide advance written notice to policyholders and the Insurance Commissioner, with reasonable explanations and primary factors, of any policy cancellation, non-renewal, or proposed premium increase, if, upon renewal, premiums are scheduled to increase more than ten percent;
(2) Require insurers that provide property insurance to file rate schedules and underlying criteria with the Insurance Commissioner;
(3) Require the Insurance Commissioner to conduct periodic reviews of insurance rates and submit annual reports to the Legislature;
(4) Require the Insurance Commissioner to establish a Public Reporting and Dispute Resolution Program to handle complaints and appeals regarding premium increase; and
(5) Require insurers to provide premium discounts or credits to policyholders that implement disaster risk mitigation measures.
Your Committee received testimony in support of this measure from three individuals.
Your Committee received testimony in opposition to this measure from the Hawaii Insurers Council, State Farm, National Association of Mutual Insurance Companies, and American Property Casualty Insurance Association.
Your Committee received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs.
Your Committee finds that insurance rates for property owners in the State have recently significantly increased. For properties like condominium associations that rely on assessments from owners to pay for costs related to insurance policies, insurers who increase rates with little to no warning leave associations susceptible to not being able to afford the insurance premiums or plan for any future adjustments. Additionally, very little justification is provided for why the rates increase, especially as they pertain specifically to the insured property's condition. This measure therefore increases transparency in rate pricing and requires advance notice in the event a premium increases by a certain percentage.
Your Committee has amended this measure by:
(1) Requiring insurers to provide the insured with written notice if, upon renewal, the policyholder's premium will increase by ten percent or more;
(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 802, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 802, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
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________________________________ JARRETT KEOHOKALOLE, Chair |
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Date
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Testimony PDF
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|---|---|
| Feb 25, 2025 | SB802_SD1_TESTIMONY_WAM-JDC_02-26-25_.PDF |
| Feb 4, 2025 | SB802_TESTIMONY_CPN_02-05-25_.PDF |
Bill Author
