HI SB1366

Requires Hawaii financial institutions and licensed mortgage servicers to contact borrowers within 30 days of receiving insurance proceeds from damaged or destroyed residential property to determine if proceeds should pay off the mortgage or be placed in escrow for rebuilding

Mandates that insurance proceeds not immediately disbursed to borrowers must be held in interest-bearing accounts, with interest credited monthly to the borrower's benefit

Prohibits financial institutions and mortgage servicers from charging borrowers any fees for maintaining or disbursing interest earned on insurance proceeds held in escrow

Applies specifically during governor-declared states of emergency under section 127A-13 for Hawaii financial institutions

Effective date of July 1, 2050