HOUSE OF REPRESENTATIVES	H.C.R. NO.	173
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

REQUESTING THE INSURANCE COMMISSIONER TO CONVENE A WORKING GROUP tO ASSESS thE FEASIBILITY AND IMPACT OF REQUIRING COVERAGE FOR commercial PROPERTIES AND STRUCTURES, including greenhouses and shade houses, under THE HAWAII PROPERTY INSURANCE ASSOCIATION'S PLAN OF OPERATION.

WHEREAS, insurance markets around the world have been roiled by several factors which have resulted in rapidly rising premiums and even withdrawal of coverage, including supply chain disruptions, inflation, and multiple natural disasters negatively impacting the global reinsurance market; and

WHEREAS, real property insurance and hurricane insurance in particular have seen significant increases in recent times, with the Maui wildfire disaster causing insurers to reassess the risks of providing coverage within the State; and

WHEREAS, these disruptions in the insurance market have severely impacted residents and businesses throughout the State, including on the Island of Hawaii, which already suffers from higher premiums due to the threat of natural disasters in Lava Zones 1 and 2; and

WHEREAS, the floriculture industry on the Big Island is under particular duress, with businesses facing extreme difficulty in insuring important structures like greenhouses and shade houses; many small nurseries face the prospect of losing their insurance coverage altogether; and

WHEREAS, the Hawaii Property Insurance Association was statutorily established by the Legislature in 1991 to provide basic property insurance for persons unable to purchase homeowners coverage in the private market due to the ongoing volcanic eruption in Lava Zones 1 and 2 on the Island of Hawaii; and

WHEREAS, the Hawaii Property Insurance Association operates under the regulatory oversight of the insurance commissioner and is guided by a plan of operation that is approved by the insurance commissioner; and

WHEREAS, the Hawaii Property Insurance Association, as an insurer of last resort, may offer a lifeline to these local floriculture businesses, which is an industry that contributes $47 million in value to Hawaii's economy; now, therefore,

BE IT RESOLVED by the House of Representatives of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the Senate concurring, that the insurance commissioner is requested to convene a working group to assess the feasibility and impact of requiring insurance coverage for commercial property and structures, including greenhouses and shade houses, under the Hawaii Property Insurance Association's plan of operation; and

BE IT FURTHER RESOLVED that the insurance commissioner invite the following stakeholders to participate in the working group:

(1) A member of the board of directors of the Hawaii Property Insurance Association;

(2) A representative from the Hawaii Floriculture and Nursery Association;

(3) Four representatives from floriculture businesses operating in the State; and

(4) A representative of an insurer offering commercial property insurance in the State; and

BE IT FURTHER RESOLVED that the working group is requested to submit a final report to the Legislature, including recommendations and any proposed legislation, no later than twenty days prior to the convening of the Regular Session of 2025; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the insurance commissioner who is requested in turn to transmit copies to stakeholders invited to the working group.

OFFERED BY:

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Report Title:

Working Group; HPIA; Commercial Property Insurance; Floriculture