HB426 Summary

• Expands Hawaii Property Insurance Association (HPIA) authority to provide property insurance coverage for condominiums and other residential properties when standard market insurers are unavailable, with a maximum 60-month coverage period for high-rise condominiums.

• Reactivates Hawaii Hurricane Relief Fund (HHRF) to provide hurricane coverage for eligible properties including condominiums, with actuarially sound rates and deductibles established in the plan of operation.

• Replaces special mortgage recording fee with a temporary flat recording fee (amount and duration to be set by HHRF board) on documents recorded with bureau of conveyances or land court, with board authority to adjust or terminate the fee without legislative action.

• Authorizes HHRF to assess property and casualty insurers up to 3.75% of premiums annually (5% following covered events) with insurers allowed to recoup assessments through surcharges on policyholders' premiums.

• Appropriates funds for HPIA capitalization and directs insurance commissioner to study long-term property insurance market stabilization solutions, with reports due before 2026 and 2027 legislative sessions.