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HomeMy WebLinkAboutRES 223 Draft 01 2022-2024 A RESOLUTION STRONGLY URGING IMMEDIATE ACTION BY THE HAWAIʻI STATE LEGISLATURE, DEPARTMENT OF COMMERCE & CONSUMER AFFAIRS, AND HAWAI‘I PROPERTY INSURANCE ASSOCIATION TO ADDRESS INSURANCE ACCESSIBILITY ON HAWAI‘I ISLAND, PARTICULARLY IN LAVA ZONES 1 AND 2. WHEREAS, a stable and accessible insurance market is of critical importance for residents of Hawai‘i Island, residing in or operating a commercial business in Lava Zones 1 and 2; and WHEREAS, the recent decision by Universal Property and Casualty Insurance Co. to withdraw from the Hawai‘i market has left residents in these lava zones without viable insurance options, posing significant challenges to their financial security and quality of life; and WHEREAS, the lack of affordable insurance particularly impacts vulnerable individuals and families with limited incomes, and those aspiring to purchase property through financing; and  WHEREAS, Hawai‘i Property Insurance Association is considered to be the insurance carrier of last resort for residential properties, but currently offers no policy options for commercial enterprises; and  WHEREAS, Hawai‘i’s insurance market must be robust, accessible, and equitable for all; and  WHEREAS, it is imperative that prompt action be taken and potential solutions are explored, in order to resolve this pressing issue, safeguard the financial well-being of residents, and foster economic stability throughout our communities; now, therefore BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I that it strongly urges the Hawai‘i State Legislature, Department of Commerce & Consumer Affairs, Insurance Division, and Hawai‘i Property Insurance Association to take immediate and decisive action to address the insurance challenges faced by residents of Hawai‘i Island, residing in or operating a commercial business in Lava Zones 1 and 2.  BE IT FURTHER RESOLVED that the Hawai‘i State Legislature, Department of Commerce & Consumer Affairs, Insurance Division, and Hawai‘i Property Insurance Association (HPIA), explore various means of assisting affected residents, including: a) increasing HPIA policy premiums and expanding coverage to include commercial businesses, b) implementing subsidies or financial assistance programs to mitigate the financial burden for vulnerable residents in Lava Zones 1 and 2, and c) exploring the creation of a risk pooling mechanism.  BE IT FURTHER RESOLVED that the Hawai‘i State Legislature and Department of Commerce & Consumer Affairs, Insurance Division, explore and consider adapting successful aspects of the National Flood Insurance Program into HPIA’s structure, including risk-based pricing and community rating systems to ensure property owners are protected and lenders’ investments are secured. BE IT FURTHER RESOLVED that the Hawai‘i State Legislature and Department of Commerce & Consumer Affairs, Insurance Division, convene relevant stakeholders, including insurance carriers, financial experts, and community representatives, to devise comprehensive strategies that restore accessible insurance options in Lava Zones 1 and 2. BE IT FINALLY RESOLVED that the County Clerk shall transmit copies of this resolution to the Honorable Governor Josh Green, M.D.; the Honorable Members of the Hawai‘i State Legislature; Nadine Ando, Director of the Hawai‘i State Department of Commerce & Consumer Affairs; Gordon Ito, Hawai‘i State Insurance Commissioner; and the Administrator and Board of Directors of the Hawai‘i Property Insurance Association.  Dated at _____________, Hawai‘i, this ______ day of ___________________, 20___. INTRODUCED BY: _______________________________________ COUNCIL MEMBER, COUNTY OF HAWAI‘I COUNTY COUNCIL County of Hawai‘i Hilo, Hawai‘i ROLL CALL VOTE    AYES NOES ABS EX   EVANS       GALIMBA       I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawai‘i on _____________________________________. INABA       KAGIWADA       KĀNEALI‘I-KLEINFELDER       KIERKIEWICZ      ATTEST: KIMBALL       LEE LOY       VILLEGAS              Reference:  COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER RESOLUTION NO.