HOUSE OF REPRESENTATIVES             H.C.R. NO.103         
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  CONCURRENT
                        RESOLUTION

  REQUESTING THE AUDITOR TO AUDIT THE HAWAII HURRICANE RELIEF
    FUND.



 1        WHEREAS, the Hawaii Hurricane Relief Fund was established
 2   in 1993 to monitor the availability of property insurance in
 3   this State and to offer policies of hurricane property
 4   insurance for sale if it determines in its sole discretion that
 5   the private insurance market is not making such insurance
 6   reasonably available to consumers in this State; and
 7   
 8        WHEREAS, the Hawaii Hurricane Relief Fund administers the
 9   Hurricane Reserve Trust Fund, which is funded by special
10   mortgage recording fees against all mortgagees and assessments
11   against all licensed property and casualty insurers; and
12   
13        WHEREAS, the Hawaii Hurricane Relief Fund is required to
14   adopt actuarially sound rates based on reasonable assumptions
15   relative to expectations of hurricane frequency and severity to
16   be charged for insurance it provides; and
17   
18        WHEREAS, homeowners and mortgagees in the regions of the
19   State that are the least susceptible to hurricane frequency and
20   severity should be paying the lowest rates; now, therefore,
21   
22        BE IT RESOLVED by the House of Representatives of the
23   Twentieth Legislature of the State of Hawaii, Regular Session
24   of 1999, the Senate concurring, that the Auditor is
25   respectfully requested to conduct an audit of the Hawaii
26   Hurricane Relief Fund to determine whether the fund is
27   fulfilling its statutory purpose in adopting actuarially sound
28   rates charged for the insurance it provides, based on
29   reasonable assumptions relative to expectations of hurricane
30   frequency and severity; and
31   
32        BE IT FURTHER RESOLVED that the Auditor is requested to
33   submit findings and recommendations to the Legislature twenty
34   days prior to the convening of the Regular Session of 2000; and
35   

 
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                                  H.C.R. NO.103         
                                                        
                                                        

 
 1        BE IT FURTHER RESOLVED that certified copies of this
 2   Concurrent Resolution be transmitted to the Auditor and to the
 3   Executive Director of the Hawaii Hurricane Relief Fund.
 4 
 5 
 6 
 7                         OFFERED BY:  ____________________________