Bill Text: HI HB2048 | 2024 | Regular Session | Amended
Bill Title: Relating To The Hawaii Property Insurance Association.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2024-03-22 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [HB2048 Detail]
Download: Hawaii-2024-HB2048-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2048 |
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THIRTY-SECOND LEGISLATURE, 2024 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE HAWAII PROPERTY INSURANCE ASSOCIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the existing composition of the board of directors of the Hawaii property insurance association does not adequately represent the interests of the public.
The legislature further finds that climate change has drastically impacted Hawaii, through an increase in natural disasters. However, because of the State's unique geography, the challenges posed by these disasters vary depending on where in the State they occur. The Hawaii property insurance association is the State's insurer of last resort; however its board, which represents the State's communities, is centered around public member appointments made by the insurance commissioner. A change in the appointment mechanism for membership on the board of directors of the association is needed to allow comprehensive statewide representation of the State's diverse geographic areas and communities.
Accordingly, the purpose of this Act is to amend the composition of the board of directors of the Hawaii property insurance association by increasing the number of public members from three to four and requiring the speaker of the house of representatives and president of the senate, rather than the insurance commissioner, to appoint the public members.
SECTION 2. Section 431:21-104, Hawaii Revised Statutes, is amended to read as follows:
"§431:21-104 Board of directors. (a)
The board of directors shall have responsibility and control over the
organization, management, policies, and activities of the association. The board of directors of the association
shall consist of [twelve] thirteen persons serving terms as
established in the plan of operation.
The board shall be composed of:
(1) Eight voting members selected by the member insurers;
(2) One voting member
appointed by the commissioner to represent insurance producers; [and]
(3) [Three] Two
voting members appointed by the [commissioner] speaker of the house
of representatives to represent the public[.]; and
(4) Two voting
members appointed by the president of the senate to represent the public.
(b)
[The] Except for voting members representing the public, the
commissioner shall appoint the initial members of the board of directors. All member insurers shall be fairly
represented on the board.
(c) Members of the board may be reimbursed from the assets of the association for reasonable expenses incurred by them as members of the board of directors."
SECTION 3. Notwithstanding the Hawaii property insurance association's plan of operation, the term of each existing public member of the board of directors of the Hawaii property insurance association in office as of the day before the effective date of this Act shall terminate on . The speaker of the house of representatives and president of the senate shall appoint the public members of the board as required by section 431:21-104(a)(3) and (4), Hawaii Revised Statutes, as amended by section 2 of this Act, no later than .
SECTION 4. Statutory material to be repealed is
bracketed and stricken. New statutory
material is underscored.
SECTION 5. This Act shall take effect on July 1, 3000.
Report Title:
Hawaii Property Insurance Association; Board of Directors; Composition; Public Members
Description:
Increases the number of public members on the board of directors of the Hawaii Property Insurance Association from three to four. Requires the Speaker of the House of Representatives and Senate President, rather than the Insurance Commissioner, to appoint the public members. Effective 7/1/3000. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
