Report Title:

Property insurance

 

Description:

Mandates that coverage for loss or damage caused by earthquakes be offered when property insurance is offered.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1509

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to insurance.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Chapter 431:10E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§431:10E-A   Coverage for damage caused by earthquake.  (a)  No contract of insurance on property or of any interest therein or arising therefrom shall be issued in this State unless the named insured is offered coverage for loss or damage caused by earthquake.  The coverage may be provided in the policy of insurance itself, either by specific provision or endorsement, or in a separate policy specifically providing coverage for loss or damage caused by earthquake alone or in combination with other perils.

     (b)  Nothing in this section shall require an insurer to issue a policy of property insurance except in accordance with the insurer's usual underwriting standards.  The standards shall not permit an insurer to provide a policy of property insurance unless the offer of coverage required by this section is made.

     (c)  An insurer that issues or delivers a policy of property insurance in this State may comply with the provisions of this section in any of the following ways:

          (1)  By offering to underwrite directly the risk of

loss or damage caused by earthquake;

          (2)  By arranging for earthquake coverage to be

offered by an affiliated insurer; or

          (3)  By arranging for the coverage to be offered

through an insurance agent or broker under a policy or certificate of insurance issued by a nonaffiliated insurer."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on January 1, 2008.

 

 

INTRODUCED BY:

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