HCR 85 Summary

• Requests the Insurance Commissioner to study alternative insurance models for Hawaii condominium associations facing dramatic premium increases of 300-600 percent in 2024.

• Directs the study to develop standards and requirements for condominium associations to obtain property insurance through mutual insurance models.

• Requires examination of building life insurance as a property insurance model, including 60-year minimum coverage periods, mandatory maintenance schedules, and reserve fund requirements for associations.

• Specifies that building life insurance premiums must be held in escrow accounts with Hawaii-licensed escrow depositories and allow for clear, predictable step increases.

• Requires the Insurance Commissioner to submit findings, recommendations, and proposed legislation to the Legislature no later than 20 days before the 2026 Regular Session convening.