Loading...
HomeMy WebLinkAboutRES 075 Draft 02 2020-2022JNSY nF N,�1 lP' L i COUNTY OF HAWAII •' 4TH GF•NI� RESOLUTION NO. STATE OF HAWAII 75 ZI (DRAFT 2.) A RESOLUTION REQUESTING THAT THE STATE OF HAWAII DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS INSURANCE DIVISION WORK WITH THE COUNTY ADMINISTRATION TO CONDUCT A STUDY TO ADDRESS THE LACK OF AVAILABLE AND AFFORDABLE PROPERTY INSURANCE FOR RESIDENTS OF LAVA ZONES 1 AND 2. WHEREAS, areas of Puna have historically been affected by property -damaging lava flows and will continue to be exposed to that risk, as will other areas of Hawai'i County; and WHEREAS, there are 43,533 acres of land (13.4% of land in Puna) containing 984 developed parcels (28.2% of all parcels in Puna) within Lava Zone 1; and WHEREAS, there are 96,347 acres of land (29.7% of land in Puna) with 3,865 developed parcels (25.9% of all parcels in Puna) within Lava Zone 2; and WHEREAS, the developable properties that are within Lava Zones 1 and 2 are considered "High Risk" for insurance companies; and WHEREAS, in establishing the Hawaii Property Insurance Association in 1991 and with reference to the Kilauea volcano eruption and lava flows, Section 1 of Act 284 stated that the legislature found "actual and potential losses caused by the volcanic activity has also resulted in the unavailability of basic property insurance for persons having insurable interests in properties in the vicinity which has caused great personal suffering and financial hardship", and that "it is in the interest of the State to foster stability for people adversely affected by major natural disasters, and this purpose will be served by making basic property insurance available to such persons"; and WHEREAS, pursuant to Hawaii Revised Statutes Section 46 -1.5(26) and Chapter 431, Article 19 (Captive Insurance Companies), the County may establish a captive insurance company; and WHEREAS, the State Department of Commerce and Consumer Affairs Insurance Division (hereinafter "Insurance Division") is responsible for ensuring that consumers are provided with insurance services meeting acceptable standards of quality, equity and dependability at fair rates by establishing and enforcing appropriate service standards; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it requests the Insurance Division to conduct a study to address the lack of available and affordable property insurance, with such study to include, but not be limited to, all possible mechanisms, including a captive insurance company, that are actuarially feasible for providing affordable property insurance, either exclusively for Lava Zones 1 and 2 or in combination with other areas and other risks. BE IT FURTHER RESOLVED that the Council respectfully requests that, by June 30, 2021, the Insurance Division advise the Council if it will conduct this study as requested, any reasons preventing or inhibiting said study, and the anticipated time it would need to perform said study. BE IT FURTHER RESOLVED that the Insurance Division include direct discussions with County officials and Hawaii Island stakeholders while conducting a potential study, in part to identify any possible benefits to the County from a captive insurance company model, including viable options for investments of conceivable surplus funds. 4 BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this resolution to the Honorable David Y. Ige, Governor; Colin M. Hayashida, State Insurance Commissioner; Catherine P. Awakuni Collin, Director, Department of Commerce and Consumer Affairs; Rosalyn H. Baker, Chair, Senate Committee on Commerce and Consumer Protection; Aaron Ling Johanson, Chair, House Committee on Consumer Protection & Commerce; all members of the Hawaii Island State Legislature delegation; the Honorable Mitchell D. Roth, Mayor; and Deanna Sako, Director of the Department of Finance. Dated at Kona , Hawai`i, this 21st day of April , 20 21 . INTRODUCED BY: COUNTY COUNCIL County of Hawaii Hilo, Hawaii I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawaii on Anrii 1 21 2021 ATTEST: 3 ROLL CALL VOTE Reference: C-178.4/GOREDC -11 RESOLUTION NO. -75 21 (DRAFT 2) AYES NOES ABS EX CHUNG X DAVID X INABA x KANEALI`I-KLEINFELDER x KIERKIEWICZ X KIMBALL X LEE LOY x RICHARDS X VILLEGAS X 8 0 1 0 Reference: C-178.4/GOREDC -11 RESOLUTION NO. -75 21 (DRAFT 2)