THE SENATE
S.B. NO.
142
THIRTY-THIRD LEGISLATURE, 2025
S.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
relating to insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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:
"[Underlined: §431:][Underlined: 10E][Underlined: - ] [Underlined: Payment of proceeds involving mortgaged property][Underlined: .] [Underlined: (a) When a homeowners insurance policy that covers a mortgaged property allows for the payment of proceeds by issuing a check, the insured may authorize the insurer to electronically deliver the check to the insured's mortgagee. ][Underlined: ]
[Underlined: (b) A mortgagee in receipt of electronic delivery of a claim check pursuant to subsection (a) shall deliver the proceeds of the claim to the insured in accordance with the mortgage agreement and the insurance policy.]
[Underlined: (c) For the purposes of this section, "check" has the same meaning as defined in section 490:3-104][Underlined: .]"[Underlined: ]
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2050.
Report Title:
Property Insurance; Claims; Payment; Mortgaged Property; Electronic Delivery
Description:
Allows an insured to authorize the insurer to electronically deliver a claim check to the insured's mortgagee when a homeowners insurance policy that covers a mortgaged property allows for the payment of proceeds by issuing a check. Requires a mortgagee in receipt of electronic delivery of a claim check to deliver the proceeds of the claim to the insured in accordance with the mortgage agreement and the insurance policy. Effective 7/1/2050. (SD1)
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