HOUSE OF REPRESENTATIVES	H.B. NO.	2052
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

relating to INSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that homeowners residing in lava-flow hazard zones 1 and 2 face unique challenges caused by the inherent volcanic hazards associated with their properties. There have been drastic increases for home insurance premiums for property owners in these zones, with some residents saying their rates rose more than four hundred per cent.

The legislature further finds that insurance companies are prioritizing profits over service and have decided to leave the market or not insure certain zip codes due to the risks associated with these lava-flow hazard zones. The only choice for homeowner's insurance for many residents in the lava-flow hazard zones is the Hawaii Property Insurance Association, a state-run, last resort option with higher premiums. As a result, many residents are concerned they may be priced out of their homes.

The purpose of this Act is to increase access to insurance for all properties in the State by mandating private insurance companies that maintain policies in that State to also issue policies for properties in lava-flow hazard zones.

SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10 to be appropriately designated and to read as follows:

"§431:10-    Prohibitions against issuance, cancellation, or failure to renew based on lava-flow hazard zone. (a) No insurer offering property insurance in the State shall refuse to issue or fail to renew a homeowner's insurance policy solely on the basis that the applicant's or insured's real property is located in a lava-flow hazard zone.

(b) Nothing in this section shall prohibit an insurer from setting property insurance rates based on risk associated with properties located in a lava-flow hazard zone.

(c) For purposes of this section, "lava-flow hazard zone" means land categories based on the potential hazard that lava will flow in a given area, as determined by the latest version of the United States Geological Survey Miscellaneous Field Studies Map MF-2193, or its successor."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval, and shall apply to any policy of property insurance issued or renewed in this State on or after January 1, 2025.

INTRODUCED BY:

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Report Title:

Insurance; Property Insurance; Lava-Flow Hazard Zones

Description:

Prohibits insurers offering property insurance in the State from refusing to issue or failing to renew a homeowner's insurance policy solely on the basis that the applicant's or insured's real property is located in a lava-flow hazard zone.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.