HomeMy WebLinkAboutRES 223 Draft 02 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, as shown
in “Exhibit A” attached hereto; 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) 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 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.
Exhibit A
Lava-flow hazard zones map, Island of Hawaiʻi
Source: United States Geological Survey
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