STAND. COM. REP. NO. 2747

Honolulu, Hawaii

RE: S.B. No. 2961

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 Ways and Means, to which was referred S.B. No. 2961, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to provide insured persons with greater flexibility and opportunity to use additional living expenses benefits paid by insurers.

More specifically, this measure requires insurers to:

(1) Authorize the use of additional living expenses benefits to lease a housing unit as a temporary primary residence;

(2) Issue an advance payment of additional living expenses benefits after a total loss during a state of emergency; and

(3) Provide additional living expenses benefits for a minimum of thirty-six months after a total loss.

Your Committee received written comments in support of this measure from United Policyholders and four individuals.

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

Your Committee finds that the State's geographic isolation, preexisting housing shortage, high cost of living, and reliance on limited and fragile supply chains for construction materials complicate disaster recovery. Rebuilding timelines after disasters are protracted, and homeowners displaced by disasters often face prolonged housing instability while awaiting insurance proceeds to begin rebuilding or to secure replacement housing. Additional living expenses benefits provided by insurers are often terminated long before an insured person's housing situation has stabilized. Requiring longer payment periods and payments in advance that may be used to lease temporary replacement housing will assist displaced homeowners and help reduce housing instability after a disaster.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2961, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair