HI SB2452

Requires property and casualty insurers writing over $10 million in premiums in Hawaii to stop underwriting or investing in new fossil fuel projects after July 1, 2026, and phase out all existing fossil fuel investments and underwriting by 2035.

Mandates covered insurers to submit annual reports disclosing their fossil fuel investments, underwriting activities, financed emissions, and insured emissions, with CEO or CFO certification of accuracy.

Establishes a climate-friendly insurers special fund to collect penalties from non-compliant insurers, with funds directed toward climate adaptation projects benefiting low-income and disadvantaged communities.

Authorizes penalties for non-compliance including fines based on market share and net profits, prohibition on dividends and executive bonuses, 150% increase in licensing fees, and potential license suspension or revocation.

Requires the insurance commissioner to report biennially to the legislature on implementation efforts, climate risks facing insurers, and effects on insurance affordability in underserved communities.