THE SENATE	S.R. NO.	43
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

SENATE RESOLUTION

 

 

Requesting that the insurance division of the Department of Commerce and Consumer Affairs conduct a study analyzing whether implementation in this state of laws similar to Massachusetts' captive insurance laws would address this State's residential condominium property insurance needs.

 

 

        WHEREAS, associations of apartment owners throughout the State have faced steep increases in residential condominium property insurance since 2021; and

 

        WHEREAS, the increases are due in part to City and County of Honolulu ordinances Nos. 19-4 and 22-2, which require the installation of automatic fire sprinkler systems in certain residential condominium buildings; and

 

        WHEREAS, although an association of apartment owners may opt out of the sprinkler installation requirements if the association of apartment owners pursues other fire safety improvements, insurance rates have escalated sharply for almost all residential condominium properties regardless of whether a condominium property has received an acceptable score; and

 

        WHEREAS, Massachusetts' approach to captive insurance may provide an alternative to traditional condominium property insurance at a time when insurance offered by major Hawaii insurers is increasingly becoming unaffordable for many homeowners and associations of apartment owners; now, therefore,

 

        BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2023, that the Insurance Division of the Department of Commerce and Consumer Affairs is requested to conduct a study analyzing whether implementation of a captive insurance system in the State that is modeled after Massachusetts' captive insurance system would adequately and appropriately address the State's residential condominium property insurance needs; and

 

BE IT FURTHER RESOLVED that the Insurance Division is requested to include in its study a survey of condominium property management companies, the Department of Commerce and Consumer Affairs, the Hawaii Captive Insurance Council, Hawaii Council of Community Associations, Kokua Council, and the Hawaii Chapter of the Community Associations Institute; and

 

        BE IT FURTHER RESOLVED that the Insurance Division is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the regular session of 2024; and

 

        BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to Insurance Commissioner.

 

 

 

	OFFERED BY:	_____________________________

Report Title:

Insurance Division; Department of Commerce and Consumer Affairs; Captive Insurance Study