SB803 would add a new insurance disclosure requirement for master property insurance policies covering common interest communities in Hawaii, including condominium associations, planned community associations, and cooperative housing corporations. For renewals where the premium increases by a specified threshold, insurers would have to send an advance written premium change notice explaining the causes of the increase and identifying the primary contributing factors. The bill specifically lists categories such as water damage claims, wastewater plumbing replacements, fire safety devices and practices, directors’ and officers’ liability claims, reinsurance costs, and catastrophic industry losses, and requires the notice to describe the extent to which each factor contributed to the increase.
The bill also requires insurers to automatically provide a loss run report at the end of each policy year, include a statement telling policyholders they may request more information, and respond to follow-up transparency requests within a set number of days. Insurers would be allowed to send notices by mail or email if the policyholder consents to electronic delivery, and they would have to file copies of premium change notices electronically with the insurance commissioner. The bill further directs insurers to prepare retroactive written explanations for certain premium increases on renewals between January 1, 2022, and December 31, 2024, and requires the insurance commissioner to review those submissions and report findings and recommendations to the Legislature before the 2026 session.
Impact
SB803 would amend chapter 431 of the Hawaii Revised Statutes by creating a new section governing premium increase notices for master property insurance policies in common interest communities. It would impose new disclosure, reporting, and record-filing obligations on insurers, create a compliance violation for failure to provide or file required notices, and expand the insurance commissioner’s oversight role. The bill would also require a one-time retrospective review of prior premium increases and a legislative report, potentially informing future policy changes for condominium and similar community insurance markets.
Sentiment
The available voting history suggests the bill was received favorably in committee, passing the Senate Commerce and Consumer Protection Committee 3-0 with amendments. That vote indicates broad support for the bill’s transparency goals, at least at the committee level. No committee transcripts were provided, so there is no recorded debate to show opposition or detailed support arguments, but the amended passage suggests the committee saw a need to refine the proposal rather than reject it.
Contention
The main points of contention appear to be the scope and mechanics of the disclosure requirements, including the unspecified percentage threshold for triggering notices and the unspecified number of days for advance notice and follow-up responses. Insurers may also view the required explanations, loss run reports, retroactive disclosures, and commissioner filings as administratively burdensome or as requiring disclosure of sensitive underwriting information. On the other hand, condominium and other common interest community policyholders are the likely supporters, as the bill is designed to increase transparency around steep premium hikes and help explain rising insurance costs. The bill’s exception for premium changes warranted by the structural condition of the insured property also suggests an effort to limit disputes over increases that are tied to property-specific risk rather than broader market factors.