THE SENATE
S.B. NO.
1575
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 14 to be appropriately designated and to read as follows:
"[Underlined: §][Underlined: 431:14- ] [Underlined: Exception for condominium master insurance or condominium master hurricane insurance.] [Underlined: (a) Notwithstanding any provision of this article to the contrary, in the event that an existing condominium master insurance policy or condominium master hurricane insurance policy procured by a condominium association or its board of directors, whether wholly or partially, is issued by a surplus lines insurer, an admitted insurer may offer such policies at an amount of no more than fifty per cent of the amount charged by the surplus lines insurer; provided that:]
[Underlined: (1)] [Underlined: The condominium association has been covered by a condominium master insurance policy or condominium master hurricane insurance policy, whether wholly or partially, issued by a surplus lines insurer for no less than the preceding three years;]
[Underlined: (2)] [Underlined: The admitted insurer shall not charge the condominium association the amount authorized under this section for longer than six years; and]
[Underlined: (3)] [Underlined: The admitted insurer may require the condominium association to deposit a specific amount in the association's replacement reserves fund or to make certain maintenance and repairs.]
[Underlined: (b) As used in this section, "condominium association" has the same meaning as association as defined in section 514B-3.]"[Underlined: ]
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2050.
Report Title:
Insurance; Condominiums; Rates; Surplus Lines Insurance; Admitted Insurers
Description:
Allows authorized insurers in the State to offer building and hurricane damage insurance for condominium buildings at a lesser rate than the building's prior surplus lines insurance policy for the same coverage. 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.