STAND. COM. REP. NO. 2649

Honolulu, Hawaii

RE: S.B. No. 2777

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2777 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require property insurers to disclose certain information regarding payment of claims for the previous year to the Insurance Division of the Department of Commerce and Consumer Affairs;

(2) Require the Insurance Division to retain and make the information publicly available; and

(3) Establish penalties.

Your Committee received testimony in support of this measure from one individual.

Your Committee received testimony in opposition to this measure from the Hawaii Insurers Council and National Association of Mutual Insurance Companies.

Your Committee received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs.

Your Committee finds that the cost of property insurance continues to increase in the State, in part due to climate change and climate-related impacts. This measure would provide consumers in the State with access to more information to inform property insurance policy purchasing decisions.

Your Committee acknowledges the concerns raised in testimony by the Insurance Division of the Department of Commerce and Consumer Affairs that establishing a separate claims disclosure requirement in the State may result in duplicative reporting obligations and additional administrative burdens.

Accordingly, your Committee has amended this measure by:

(1) Deleting language that would have required any insurer operating in the State that provides property insurance as defined in section 431:1-206, Hawaii Revised Statutes, to submit annual disclosures containing certain information to the Insurance Commissioner;

(2) Inserting language to require that any insurer authorized to do business in the State that sells, solicits, or offers coverage under a policy for insurance against loss of or damage to real property shall provide certain annual information relating to policies covering commercial or residential real property, or both, within the State to:

(A) The person or persons to whom any offer to sell or renew insurance is made;

(B) Concurrently with the offer to sell or renew; and

(C) In a manner that is clearly and conspicuously displayed;

(3) Deleting language that would have required the Insurance Commissioner to specify the form of, retain for a certain period of time, make available on request, and publish certain information required to be disclosed by an insurer;

(4) Clarifying that an authorized insurer in violation of the disclosure requirement shall be fined not more than $1,000 per violation;

(5) Amending section 1 to reflect its amended purpose;

(6) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(7) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2777, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2777, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

________________________________

JARRETT KEOHOKALOLE, Chair