HB2050 Summary

• Appropriates funds to the Department of Commerce and Consumer Affairs for fiscal year 2024-2025 to modernize and expand the Hawaii Property Insurance Association's technology systems and software (specific amount blank in bill).

• Modernization includes implementation of payment plan options, commercial and mixed-use policies, and expanded coverage areas outside traditional lava zones on the island of Hawaii.

• Enables new policy types including climate change risk coverage outside lava zones, lava-damage exclusion policies, single-peril lava-only policies, and distinct coverage options for properties in lava zones 1 and 2.

• Addresses the departure of Universal Property and Casualty Insurance Company from Hawaii's market in 2024, which limits homeowners' insurance options for residents in lava zones 1 and 2 to the association's coverage.

• Exceeds the state general fund expenditure ceiling for fiscal year 2024-2025, with the legislature finding the appropriation necessary to serve the public interest and address identified needs.