THE SENATE                           S.C.R. NO.            155
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  CONCURRENT
                        RESOLUTION

  REQUESTING THE AUDITOR TO AUDIT THE HAWAII HURRICANE RELIEF
    FUND.



 1        WHEREAS, the Hawaii Hurricane Relief Fund was established
 2   in 1993 to monitor the availability of property insurance in
 3   this State and to offer policies of hurricane property
 4   insurance for sale if it determines in its sole discretion that
 5   the private insurance market is not making such insurance
 6   reasonably available to consumers in this State; and
 7   
 8        WHEREAS, the Hawaii Hurricane Relief Fund administers the
 9   Hurricane Reserve Trust Fund, which is funded by special
10   mortgage recording fees against all mortgagees and assessments
11   against all licensed property and casualty insurers; and
12   
13        WHEREAS, the Hawaii Hurricane Relief Fund is required to
14   adopt actuarially sound rates based on reasonable assumptions
15   relative to expectations of hurricane frequency and severity to
16   be charged for insurance it provides; and
17   
18        WHEREAS, homeowners and mortgagees in the regions of the
19   State that are the least susceptible to hurricane frequency and
20   severity should be paying the lowest rates; now, therefore,
21   
22        BE IT RESOLVED by the Senate of the Twentieth Legislature
23   of the State of Hawaii, Regular Session of 1999, the House of
24   Representatives concurring, that the Auditor is respectfully
25   requested to conduct an audit of the Hawaii Hurricane Relief
26   Fund to determine whether the fund is fulfilling its statutory
27   purpose in adopting actuarially sound rates charged for the
28   insurance it provides, based on reasonable assumptions relative
29   to expectations of hurricane frequency and severity; and
30   
31        BE IT FURTHER RESOLVED that the Auditor is requested to
32   submit findings and recommendations to the Legislature twenty
33   days prior to the convening of the Regular Session of 2000; and
34   

 
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                                  S.C.R. NO.            155
                                                        
                                                        

 
 1        BE IT FURTHER RESOLVED that certified copies of this
 2   Concurrent Resolution be transmitted to the Auditor and to the
 3   Executive Director of the Hawaii Hurricane Relief Fund.
 4 
 5 
 6 
 7                         OFFERED BY:  ____________________________