HomeMy WebLinkAboutRES 223 Draft 02 2022-2024oJNYY OF !�yY6,,'.
COUNTY OF HAWAII :. STATE OF HAWAII
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RESOLUTION NO. ,;,a 3 23
(DRAFT 2)
A RESOLUTION STRONGLY URGING IMMEDIATE ACTION BY THE HAWAII STATE
LEGISLATURE, DEPARTMENT OF COMMERCE & CONSUMER AFFAIRS, AND
HAWAII PROPERTY INSURANCE ASSOCIATION TO ADDRESS INSURANCE
ACCESSIBILITY ON HAWAII ISLAND, PARTICULARLY IN LAVA ZONES 1 AND 2.
WHEREAS, a stable and accessible insurance market is of critical importance for residents of
Hawaii Island residing in or operating a commercial business in Lava Zones 1 and 2, as shown in
"Exhibit A" attached hereto; and
WHEREAS, the recent decision by Universal Property and Casualty Insurance Co. to
withdraw from the Hawaii 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, Hawaii 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 HAWAII that it
strongly urges the Hawaii State Legislature, Department of Commerce & Consumer Affairs,
Insurance Division, and Hawaii Property Insurance Association to take immediate and decisive
action to address the insurance challenges faced by residents of Hawaii Island, residing in or
operating a commercial business in Lava Zones 1 and 2.
BE IT FURTHER RESOLVED that the Hawaii State Legislature, Department of Commerce
& Consumer Affairs, Insurance Division, and Hawaii Property Insurance Association (HPIA), explore
various means of assisting affected residents, including: a) evaluating the equitable application of
policy premiums, b) decreasing HPIA policy premiums and expanding coverage to include commercial
businesses, c) implementing subsidies or financial assistance programs to mitigate the financial burden
for vulnerable residents in Lava Zones 1 and 2, and d) exploring the creation of a risk pooling
mechanism.
BE IT FURTHER RESOLVED that the Hawaii 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 Hawaii 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 Hawaii State
Legislature; Nadine Ando, Director of the Hawaii State Department of Commerce & Consumer
Affairs; Gordon Ito, Hawaii State Insurance Commissioner; and the Administrator and Board of
Directors of the Hawaii Property Insurance Association.
Dated at Hilo
Hawaii, this 6th day of September , 2023 .
INTRODUCED BY:
/I A Z, k—==
COUN&JL MEMBER, COUNTY OF HAWAII
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 September 6, 2023
ATTEST:
�TYL AIRPERSON &PRESIDING OFFICER
ROLL CALL. VOTF.
Reference: C-397, 391/GOEAC— 72
RESOLUTION NO. 223 23
2
(Draft 2)
AYES NOES ABS EX
EVANS
X
GALIMBA
X
INABA
X
KAGIWADA
X
KANEALI`I-KLEINFELDER
X
KIERKIEWICZ
X
KIMBALL
X
LEE LOY
X
VILLEGAS
X
9 0 0 0
Reference: C-397, 391/GOEAC— 72
RESOLUTION NO. 223 23
2
(Draft 2)
Exhibit A
Lava-flow hazard zones map, Island of Hawaii
Source: United States Geological Survey