STAND. COM. REP. NO. 2795
Honolulu, Hawaii
RE: S.B. No. 2960
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. 2960 entitled:
"A BILL FOR AN ACT RELATING TO PROPERTY INSURANCE,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Establish a minimum time frame of thirty-six months following a loss due to a declared disaster or emergency for the policyholder to submit documentation to recover full replacement cost value of a covered dwelling or structure;
(2) Allow extensions for good cause;
(3) Establish a minimum time frame of twelve months from completion of a covered dwelling or structure for the policyholder to submit documentation to recover full replacement cost value of covered personal property; and
(4) Require homeowners insurers to give timely notice to policyholders to explain the time frames and extensions.
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 and American Property Casualty Insurance
Association.
Your Committee finds that the 2023 Maui
wildfires demonstrated the barriers that can delay home rebuilding, including
limited contractor availability, supply-chain disruptions, permitting delays,
and financing constraints. This measure
would ensure that policyholders have a fair and sufficient opportunity to
access the replacement cost value benefits of their homeowners insurance
policies consistent with realistic timelines in the event of a declared
disaster or emergency.
Your Committee has amended this
measure by:
(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(2) 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. 2960, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2960, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
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________________________________ JARRETT KEOHOKALOLE, Chair |
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