STAND. COM. REP. NO. 2797

Honolulu, Hawaii

RE: S.B. No. 2964

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. 2964 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) Require homeowners insurers to:

(A) Provide policyholders with annual disclosures of replacement cost value and the sufficiency of the policyholder's coverage;

(B) Offer annually to policyholders increased coverage if the property is underinsured; and

(C) Maintain records of disclosures and offers for five years; and

(2) Provide that failure to comply constitutes an unfair or deceptive act or practice in the business of insurance.

Your Committee received testimony in support of this measure from United Policyholders and three individuals.

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

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

Your Committee finds that underinsurance can create challenges for homeowners following catastrophic events. This measure would support homeowners to better understand whether their dwelling coverage reflects current rebuilding costs and may reduce the prevalence and impact of underinsurance following catastrophic events.

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. 2964, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2964, 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,

________________________________

JARRETT KEOHOKALOLE, Chair