HB255 would create a new insurance disclosure requirement for master property insurance policies covering condominium associations, planned community associations, and cooperative housing corporations in Hawaii. For qualifying renewals, insurers would have to send an advance written premium-change notice when a renewal premium increases by at least a specified percentage, explain the main reasons for the increase, and identify how much each listed factor contributed. The bill specifically points to water damage claims, wastewater plumbing replacements, fire safety devices and practices, directors’ and officers’ liability claims, reinsurance costs, and catastrophic industry losses as categories that must be addressed in the notice.
The bill also requires insurers to tell policyholders they may request more information and to respond to those follow-up requests within a specified time. Notices could be sent by mail or email if the policyholder has consented to electronic delivery, and insurers would have to file copies of the notices electronically with the Insurance Commissioner. Failure to provide the notice or file it with the commissioner would be treated as a violation of the insurance code.
Impact
HB255 would amend chapter 431, Hawaii Revised Statutes, by adding a new section governing premium increase notices for common interest community master property insurance policies. It would impose new disclosure and filing obligations on insurers, create a compliance violation for missing notices or filings, and expand the Insurance Commissioner’s oversight role. The bill also reaches backward to require insurers to explain certain premium increases from renewals between January 1, 2022 and December 31, 2024, and directs the commissioner to review those statements and report findings and recommendations, including possible legislation, to the 2026 Legislature.
Sentiment
Based on the bill text and available context, the measure appears to be aimed at transparency and accountability in a market where condominium and similar community associations may be facing significant premium increases. The framing of the bill suggests a consumer-protection and oversight-oriented approach rather than a punitive one, with the goal of helping policyholders understand why their costs are rising. No committee transcripts or vote history were provided, so there is no recorded public debate or voting pattern to indicate broader legislative sentiment.
Contention
The main potential points of contention are the scope and burden of the new reporting requirements on insurers, the retroactive requirement to explain past premium increases, and the specific threshold that triggers notice obligations, which is left blank in the bill text. Insurers may object to the administrative burden of preparing detailed causal explanations and filing them with the commissioner, while condominium and planned community associations are likely to support the added transparency. Another possible issue is the bill’s focus on certain causes of premium increases, which may raise questions about whether the list is exhaustive or whether other underwriting factors should also be disclosed.