All Roll Calls
Yes: 220 • No: 0
HawaiiSB 10442025–2026 Regular Session (Year 1)SenateWALLET
RELATING TO THE STABILIZATION OF PROPERTY INSURANCE.
Sponsored By: Jarrett Keohokalole (Democratic)
Signed by Governor
Summary
Expands the powers of the Hawaii Property Insurance Association and reactivates the Hawaii Hurricane Relief Fund to help stabilize the property insurance market in the State. Establishes the Condominium Loan Program and the Condominium Loan Revolving Fund, to be administered by the Hawaii Green Infrastructure Authority on behalf of the Department of Business, Economic Development, and Tourism, for the purpose of providing financing for essential repairs and deferred maintenance to condominium associations. Abolishes the Condominium Loan Revolving Fund on 6/30/2047. Establishes the Condominium Loan Loss Reserves Program to incentivize lenders to provide loans at competitive rates and terms to allow condominium associations to make necessary maintenance and repairs. Requires the Insurance Commissioner to conduct a study to develop long-term solutions to help stabilize the property insurance market in the State. Requires reports to the Legislature. Authorizes the issuance of reimbursable general obligation bonds to facilitate the initial issuance of policies to condominium associations. Appropriates funds. (CD1)
HPIAHHRFDBEDTHGIAProperty InsuranceHurricane Insurance CoverageCondominiumsCondominium Loan ProgramCondominium Loan Revolving FundCondominium Loan Loss Reserves ProgramCommunity Development Financial InstitutionsReportsReimbursable General Obligation BondsAppropriationsCPC, FIN
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 6 benefits, 3 costs, 5 mixed.
More homes can get state insurance
Registered condominium associations can seek property insurance through the state association for qualifying Hawaii property. The association may also offer statewide coverage for property types facing a market failure, with the insurance commissioner’s approval. The commissioner must designate eligible areas in lava zones 1 and 2; qualifying properties there are to receive association insurance.
More homes qualify for hurricane coverage
The hurricane relief fund’s eligible residential property is no longer limited to properties with one to four units. Qualifying residential condominiums can also receive coverage if their association is registered, the units meet the law’s definition, and the property is residential and insurable. The fund’s plan or manual sets the coverage details.
More property insurance options for businesses
With the insurance commissioner’s approval, the property insurance association may offer coverage for commercial risks. The association’s plan sets the coverage limits, so this creates another possible source of property insurance for businesses that meet the plan’s requirements.
Insurance surcharges may raise bills
Insurers can add approved surcharges to recoup assessments for the state property insurance association or hurricane relief fund. The association surcharge is capped at 2% of the policy’s total premium; motor vehicle insurance is excluded. Hurricane fund surcharges apply to policies assessed, with no specific cap stated here. Surcharges must be shown separately and are not counted for premium taxes or producer commissions. Excess collections are credited to affected policyholders the next year unless used for another assessment.
New limits on state condo coverage
The association’s plan sets condominium coverage terms, limits, deductibles, and pricing rules, and it can allow coverage denials. High-rise coverage cannot last more than 60 months, and the plan may bar coverage when identified maintenance problems seriously affect insurability. Applicants must provide claims documents and complete an inspection before coverage is issued or renewed. The association does not provide hurricane coverage, and it no longer must provide mortgage coverage matching the mortgage obligation.
New insurer payments to hurricane fund
The hurricane relief fund may assess insurers up to 3.75% of certain Hawaii property and casualty premiums in a year without a covered event. After a covered event, the rate may reach 5% and include motor vehicle premiums until related claims and other obligations are settled. These assessments are collected quarterly. Separately, an insurer that served the fund during the required 12-month period and had a loss from the event may face a servicing assessment; the rate is 1.5% through 2025 and is capped at 1.5% starting January 1, 2026. The fund must contract with an insurer or insurance-administration group to service policies, and the law changes which entities count as licensed insurers. The law does not set a matching household surcharge.
New rules for hurricane fund coverage
The fund’s plan, with insurance commissioner approval, sets coverage limits and deductibles; the law removes former statutory coverage caps of $750,000 for residential property and $500,000 for business property. The law does not set replacement limits. The fund does not have to accept an application when property is ineligible under its plan or the applicant can get coverage from an authorized insurer. Applicants must prove that licensed Hawaii insurers cannot provide hurricane coverage. Condominiums must be inspected before coverage is issued or renewed, and the plan may bar high-rise coverage when serious maintenance problems affect insurability.
Hawaii builds hurricane insurance reserves
After securing $500 million in qualifying commitments or bonds, the hurricane fund must control or freeze rates and build reserves. If its accumulated net money falls below $400 million, commissioner-approved rates must restore it to $500 million as promptly as reasonably practicable. Hawaii can issue up to $30 million in bonds for the reserve fund, after committing its existing balance, and provide up to $30 million in working capital for approved uses in fiscal year 2025–2026. The fund can lend to the state property insurance association and hold authorized fees and other money in separate accounts. Some insurer assessments are discretionary, and proceeds collected after December 31, 2025, go into a separate reserve account. Fund interest no longer has to go to the state general fund each year. Available fund money, including policy premiums, can repay bond debt when the insurance commissioner finds a transfer advisable.
Low-cost loans help condo repairs
Eligible condominium associations can get low-cost financing for repairs such as fire-safety work, pipes, and roofs. An association needs at least one lender denial and must have or plan to get full replacement property and hurricane insurance; loan terms can last up to 20 years, and the association must build its replacement reserves. No new loans can be issued after June 30, 2027. Hawaii can put up to $20 million into the loan fund and spend up to $20 million from it in fiscal year 2025–2026. The state can also set aside 5% of an eligible loan for losses; participating lenders pay a fee that may be passed on to borrowers. The fund ends June 30, 2047, but borrowers still owe payments required by their loans.
Insurers gain flexibility to offer coverage
The hurricane fund can create incentives for insurers to offer hurricane coverage, including excluding some premiums from assessments. Insurers no longer need the insurance commissioner’s permission for certain residential multi-peril coverage, and a related coverage restriction is removed. These changes give insurers more flexibility, but the law does not specify how household coverage options or prices change.
State study of property insurance
Starting July 1, 2025, Hawaii provides up to $100,000 for the insurance commissioner’s property-insurance market study. The money comes from state general revenues for fiscal year 2025–2026. The state can spend less if that is all the study needs.
Study targets Hawaii insurance stability
Beginning July 1, 2025, the insurance commissioner must study long-term ways to stabilize Hawaii’s property insurance market. The study covers funding, oversight, insurance models, and condominium maintenance. Findings and recommendations are due at least 20 days before the 2026 and 2027 regular sessions.
New recording fee replaces mortgage fee
The old special mortgage recording fee of 0.1% of secured debt, or a qualifying debt increase, is repealed. The board may instead activate a fee of up to $44 for each eligible land document recorded or filed. The fee needs insurance commissioner approval, can last no more than 36 months, and does not apply to parcels in the agricultural land use district.
Mixed changes to association insurer costs
The property insurance association can assess member insurers for extraordinary losses, with the insurance commissioner’s approval. Each insurer’s annual assessment is capped at 2% of its prior-year net direct written premiums, and collections can last up to 36 months. Insurers get at least 30 days’ notice, and assessments may be deferred or waived to protect required capital. The association must set a method for giving credits to member insurers and may hold money in reserve trust funds outside the state treasury; repayment of general-fund loans waits until the reserve is sufficiently funded. The law also ends insurers’ former premium-tax credit of 20% of an assessment in each of the five years after payment.
Sponsors & Cosponsors
Sponsor
Jarrett Keohokalole
Democratic • Senate
Cosponsors
AQUINO
Affiliation unavailable
Stanley Chang
Democratic • Senate
Carol Fukunaga
Democratic • Senate
Troy N. Hashimoto
Democratic • Senate
Angus L.K. McKelvey
Democratic • Senate
Sharon Y. Moriwaki
Democratic • Senate
Karl Rhoads
Democratic • Senate
Herbert M. "Tim" Richards III
Democratic • Senate
Glenn Wakai
Democratic • Senate
Roll Call Votes
House vote • 4/30/2025
House Floor Vote
Yes: 50 • No: 0
Senate vote • 4/25/2025
The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS....
Yes: 4 • No: 0
House vote • 4/25/2025
The Conference Committee recommends that the measure be Passed, with Amendments....
Yes: 5 • No: 0
House vote • 4/8/2025
House Floor Vote
Yes: 49 • No: 0
House vote • 3/31/2025
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The ...
Yes: 14 • No: 0
House vote • 3/18/2025
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN...
Yes: 49 • No: 0
House vote • 3/12/2025
The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The ...
Yes: 8 • No: 0
Senate vote • 3/4/2025
Senate Floor Vote
Yes: 25 • No: 0
Senate vote • 2/12/2025
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENT...
Yes: 13 • No: 0
Senate vote • 1/31/2025
The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENT...
Yes: 3 • No: 0
Actions Timeline
Act 296, 07/07/2025 (Gov. Msg. No. 1407).
7/7/2025SenateAct 296, on 07/07/2025 (Gov. Msg. No. 1407).
7/7/2025HouseReceived notice of passage on Final Reading in House (Hse. Com. No. 821).
5/2/2025SenateEnrolled to Governor.
5/2/2025SenateReceived notice of Final Reading (Sen. Com. No. 888).
5/1/2025HousePassed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.
4/30/2025SenatePassed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and Representative(s) Cochran excused (1).
4/30/2025HouseConference committee meeting to reconvene on 04-25-25 3:50 PM; Conference Room 224.
4/25/2025SenateThe Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 4 Aye(s): Senator(s) Keohokalole, Moriwaki, Fukunaga, McKelvey; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Awa.
4/25/2025SenateThe Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 5 Ayes: Representative(s) Matayoshi, Yamashita, Chun, Tam, Pierick; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
4/25/2025HouseReported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 206).
4/25/2025Senate48 Hrs. Notice (as amended CD 1) 04-30-25.
4/25/2025SenateReported from Conference Committee (Conf Com. Rep. No. 206) as amended in (CD 1).
4/25/2025HouseForty-eight (48) hours notice Wednesday, 04-30-25.
4/25/2025HouseConference committee meeting to reconvene on 04-25-25 1:30PM; Conference Room 224.
4/24/2025SenateConference Committee Meeting will reconvene on Thursday 04-24-25 1:30PM in conference room 224.
4/23/2025HouseConference committee meeting to reconvene on 04-23-25 1:31PM; Conference Room 224.
4/22/2025SenateConference committee meeting scheduled for 04-22-25 1:30PM; Conference Room 224.
4/21/2025SenateSenate Conferees Appointed: Keohokalole Chair; Moriwaki Co-Chair; Fukunaga, McKelvey, Awa.
4/17/2025SenateReceived notice of Senate conferees (Sen. Com. No. 829).
4/17/2025HouseReceived notice of appointment of House conferees (Hse. Com. No. 731).
4/15/2025SenateHouse Conferees Appointed: Matayoshi, Yamashita Co-Chairs; Chun, Tam, Pierick.
4/14/2025HouseReceived from House (Hse. Com. No. 669).
4/10/2025SenateSenate disagrees with House amendments.
4/10/2025SenateReceived notice of disagreement (Sen. Com. No. 779).
4/10/2025House
Bill Text
Bill Text
Original
SB1044_CD1
SB1044_HD1
SB1044_HD2
SB1044_SD1
SB1044_SD2
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