HB 1057 Summary

• Expands Hawaii Property Insurance Association (HPIA) authority to provide property insurance coverage for residential condominiums in insurable condition, with a maximum 60-month coverage period for high-rise condominiums.

• Expands Hawaii Hurricane Relief Fund (HHRF) to provide hurricane property insurance for condominiums and other property types experiencing market failure, replacing the special mortgage recording fee with a temporary flat recording fee that the board can activate, adjust, or terminate.

• Authorizes HPIA and HHRF to assess member insurers up to 2% and 3.75-5% annually respectively, with insurers recouping assessments through surcharges on policyholders' premiums.

• Appropriates $50 million for fiscal year 2025-2026 to capitalize HPIA for administrative costs, solvency, and reinsurance, to be repaid under a board-established schedule.

• Requires Insurance Commissioner to conduct study by 2027 on long-term property insurance market stabilization solutions including mutual/captive insurance models and condominium maintenance mechanisms, with $100,000 appropriated for study costs.