REPORT TITLE: 
HHRF Phase Out


DESCRIPTION:
Requires the HHRF to end its insurance program by December 1,
2005.  Creates on December 15, 2005, the emergency natural
disaster relief fund, administered by the governor for relief
following a natural disaster.  Creates on December 15,     , the
natural disaster loss mitigation fund administered by DCCA for
natural disaster loss prevention efforts.  Mitigates the long-
term risk posed by hurricanes through a loan program to be
administered by the HHRF.  Moneys left in the HHRF after payment
of HHRF obligations shall be transferred to these funds after
December 1, 2005 and by December 15, 2005.  (HB665 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        665
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO INSURANCE.



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

 1      SECTION 1.  The legislature finds that the Hawaii hurricane
 
 2 relief fund, which was enacted following Hurricane Iniki in 1992
 
 3 to solve a homeowners property insurance crisis, is fulfilling
 
 4 its purposes and should be phased out within the next five years.
 
 5 The Hawaii hurricane relief fund was intended as a temporary
 
 6 measure to restore stability to the insurance market and was not
 
 7 intended to interfere with the private insurance market or dampen
 
 8 economic development in Hawaii.
 
 9      The provision of insurance belongs in the private market
 
10 where effective competition can take place.  Insurers
 
11 participating in the program of the Hawaii hurricane relief fund
 
12 should do all things necessary to be ready to exit the program
 
13 and provide insurance that covers hurricanes at reasonable rates
 
14 and in amounts sufficient to insure Hawaii's citizens and
 
15 businesses.
 
16      This purpose of this Act is to:
 
17      (1)  Cause the Hawaii hurricane relief fund to end its
 
18           hurricane insurance program by December 1, 2005;
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (2)  Create two funds that will receive the net moneys
 
 2           transferred from the Hawaii hurricane relief fund as
 
 3           follows:
 
 4           (A)  The emergency natural disaster relief fund to be
 
 5                used by the governor for relief following a
 
 6                natural disaster; and
 
 7           (B)  The natural disaster loss mitigation fund to be
 
 8                used by the director of commerce and consumer
 
 9                affairs for natural disaster loss prevention
 
10                efforts;
 
11      (3)  Mitigate the long-term risk posed by hurricanes through
 
12           a loan program to be administered by the Hawaii
 
13           hurricane relief fund; and
 
14      (4)  Protect the policyholders of the Hawaii hurricane
 
15           relief fund in the event a hurricane should occur prior
 
16           to December 1, 2005, by preventing any transfer of
 
17           moneys from the Hawaii hurricane relief fund until all
 
18           of its payment obligations have been met.
 
19      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
20 a new chapter to be appropriately designated and to read as
 
21 follows:
 

 
 
 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1                             "CHAPTER
 
 2                         NATURAL DISASTERS
 
 3        -1  Emergency natural disaster relief fund.(a)  There
 
 4 shall be created an emergency natural disaster relief fund in the
 
 5 treasury of the State to be placed within the office of the
 
 6 governor for administrative purposes.
 
 7      (b)  If there has been no hurricane resulting in claims
 
 8 under the policies of the Hawaii hurricane relief fund prior to
 
 9 December 1, 2005, then no later than December 15, 2005, ninety-
 
10 nine per cent of the net moneys available to the Hawaii hurricane
 
11 relief fund shall be transferred to the emergency natural
 
12 disaster relief fund, and the remaining one per cent shall be
 
13 transferred to the natural disaster loss mitigation fund.  If
 
14 there has been a hurricane resulting in claims under the policies
 
15 of the Hawaii hurricane relief fund prior to December 1, 2005,
 
16 moneys available to the Hawaii hurricane relief fund shall not be
 
17 transferred to the emergency natural disaster relief fund until
 
18 after payment, satisfaction, discharge, release, or termination
 
19 of all obligations of the Hawaii hurricane relief fund, including
 
20 but not limited to obligations under its policies of hurricane
 
21 property insurance, or its bonds, notes, or other indebtedness.
 
22      (c)  Interest or other earnings on moneys in the emergency
 
23 natural disaster relief fund shall be credited to the emergency
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 natural disaster relief fund; provided that on the first day of
 
 2 July of each year beginning in 2006, one per cent of the amount
 
 3 in the emergency natural disaster relief fund, calculated as of
 
 4 May 31 of that year, shall be transferred to the natural disaster
 
 5 loss mitigation fund.
 
 6      (d)  Following the occurrence of a natural disaster in the
 
 7 State and the declaration of an emergency by the governor, moneys
 
 8 in the emergency natural disaster relief fund may be used by the
 
 9 governor, not subject to chapter 103D, to mitigate the impact of
 
10 the damage caused by the natural disaster and to cause or assist
 
11 the recovery, repair, and rehabilitation of property, persons,
 
12 businesses, or institutions following the disaster.  Moneys may
 
13 be provided to any person, business, or governmental agency or
 
14 body in the form of aid, assistance, grants, or loans.  Moneys in
 
15 the emergency natural disaster relief fund may also be used to
 
16 pay the costs and expenses of administering and operating the
 
17 emergency natural disaster relief fund.
 
18      (e)  There shall be no liability on the part of, and no
 
19 cause of action of any nature shall arise against, the State or
 
20 its officers or employees for any action taken by them in the
 
21 performance of their powers and duties with respect to the Hawaii
 
22 hurricane relief fund, the emergency natural disaster relief
 
23 fund, or the natural disaster loss mitigation fund.  Nothing in
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 this section shall create an obligation, debt, claim, cause of
 
 2 action, claim for relief, charge, or any other liability of any
 
 3 kind whatsoever against the State or its officers and employees
 
 4 in favor of any person or entity without regard to whether that
 
 5 person or entity did receive or could have received any benefits
 
 6 from the Hawaii hurricane relief fund, the emergency natural
 
 7 disaster relief fund, or the natural disaster loss mitigation
 
 8 fund.
 
 9        -2  Natural disaster loss mitigation fund.(a)  There
 
10 shall be created a natural disaster loss mitigation fund in the
 
11 treasury of the State to be placed within the department of
 
12 commerce and consumer affairs for administrative purposes.
 
13      (b)  If there has been no hurricane resulting in claims
 
14 under the policies of the Hawaii hurricane relief fund prior to
 
15 December 1, 2005, then no later than December 15, 2005, one per
 
16 cent of the net moneys available to the Hawaii hurricane relief
 
17 fund shall be transferred to the natural disaster loss mitigation
 
18 fund, and the remaining ninety-nine per cent shall be transferred
 
19 to the emergency natural disaster relief fund.  If there has been
 
20 a hurricane resulting in claims under the policies of the Hawaii
 
21 hurricane relief fund prior to December 1,2005, moneys available
 
22 to the Hawaii hurricane relief fund shall not be transferred to
 
23 the natural disaster relief fund until after payment,
 
24 satisfaction, discharge, release, or termination of all
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 obligations of the Hawaii hurricane relief fund, including but
 
 2 not limited to obligations under its policies of hurricane
 
 3 property insurance, or its bonds, notes, or other indebtedness.
 
 4      (c)  On the first day of July of each year beginning in
 
 5 2006, one per cent of the amount in the emergency natural
 
 6 disaster relief fund, calculated as of May 31 of that year, shall
 
 7 be transferred to the natural disaster loss mitigation fund.
 
 8      (d)  Interest or other earnings on moneys in the natural
 
 9 disaster loss mitigation fund shall be credited to the natural
 
10 disaster loss mitigation fund.  Investments in the natural
 
11 disaster loss mitigation fund shall be subject to article 6 of
 
12 chapter 431.
 
13      (e)  Moneys in the natural disaster loss mitigation fund may
 
14 be used by the director of commerce and consumer affairs, not
 
15 subject to chapter 103D, to mitigate or reduce the risk of loss
 
16 or damage to property that may result from future natural
 
17 disasters.  Moneys may be provided to any person, business, or
 
18 governmental agency or body in the form of aid, assistance,
 
19 grants, or loans.  Moneys in the natural disaster loss mitigation
 
20 fund may also be used to pay the costs and expenses of
 
21 administering and operating the natural disaster loss mitigation
 
22 fund.
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (f)  There shall be no liability on the part of, and no
 
 2 cause of action of any nature shall arise against, the State or
 
 3 its officers or employees for any action taken by them in the
 
 4 performance of their powers and duties with respect to the Hawaii
 
 5 hurricane relief fund, the emergency natural disaster relief
 
 6 fund, or the natural disaster loss mitigation fund.  Nothing in
 
 7 this section shall create an obligation, debt, claim, cause of
 
 8 action, claim for relief, charge, or any other liability of any
 
 9 kind whatsoever against the State or its officers and employees
 
10 in favor of any person or entity without regard to whether that
 
11 person or entity did receive or could have received any benefits
 
12 from the Hawaii hurricane relief fund, the emergency natural
 
13 disaster relief fund, or the natural disaster loss mitigation
 
14 fund."
 
15      SECTION 3.  Chapter 431P, Hawaii Revised Statutes, is
 
16 amended by adding four new sections to be appropriately
 
17 designated and to read as follows:
 
18      "431P-    Termination of fund operations.  The fund shall
 
19 stop writing new and renewal policies of hurricane property
 
20 insurance on December 1, 2004, and shall provide no insurance
 
21 coverage after December 1, 2005.  All fund operations, including
 
22 its authorized assessments, fees, charges, surcharges, and other
 
23 collection of revenues shall cease upon payment, satisfaction,
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 discharge, release, or termination of all obligations of the
 
 2 fund, including but not limited to obligations under its policies
 
 3 of hurricane property insurance, or its bonds, notes, or other
 
 4 indebtedness.
 
 5      431P-    Transfer of net moneys following termination of
 
 6 fund insurance operations.  If there has been no hurricane
 
 7 resulting in claims under the policies of the Hawaii hurricane
 
 8 relief fund prior to December 1, 2005, then no later than
 
 9 December 15, 2005, ninety-nine per cent of the net moneys in the
 
10 hurricane reserve trust fund shall be transferred to the
 
11 emergency natural disaster relief fund, and the remaining one per
 
12 cent shall be transferred to the natural disaster loss mitigation
 
13 fund.  If there has been a hurricane resulting in claims under
 
14 the policies of the Hawaii hurricane relief fund prior to
 
15 December 1, 2005, moneys available to the Hawaii hurricane relief
 
16 fund shall not be transferred to the emergency natural disaster
 
17 relief fund and the natural disaster loss mitigation fund until
 
18 after payment, satisfaction, discharge, release, or termination
 
19 of all obligations of the Hawaii hurricane relief fund, including
 
20 but not limited to obligations under its policies of hurricane
 
21 property insurance, or its bonds, notes, or other indebtedness.
 
22      431P-    Hurricane relief administrative procedures loan
 
23 committee.  (a)  The board shall establish an account outside of
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 the hurricane reserve trust fund to be known as the hurricane
 
 2 relief loan fund into which the board may in its sole discretion
 
 3 deposit up to $       annually from the hurricane reserve trust
 
 4 fund.
 
 5      (b)  The hurricane relief loan fund shall be administered by
 
 6 an advisory committee called the hurricane relief administrative
 
 7 procedures loan committee, which shall be composed of seven
 
 8 members as follows:
 
 9      (1)  The director of business, economic development, and
 
10           tourism, or designee, as an ex officio member;
 
11      (2)  The insurance commissioner, or designee, as an ex
 
12           officio member; and
 
13      (3)  Five members of financial institutions in the State,
 
14           who shall be appointed by the board.
 
15      (c)  The loan committee:
 
16      (1)  Shall elect a chair from among its members;
 
17      (2)  Shall establish, subject to the approval of the
 
18           director of business, economic development, and tourism
 
19           and the insurance commissioner:
 
20           (A)  Procedures under which financial institutions
 
21                shall access the hurricane relief loan fund,
 
22                including fees, charges, the amount, and form of
 
23                security; and
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           (B)  Terms and requirements for loans or grants to
 
 2                homeowners to make any improvements to real
 
 3                property, which is at risk because of the type of
 
 4                structure or because it is in an area prone to
 
 5                hurricane damage that will increase the property's
 
 6                ability to withstand hurricane-force winds, for
 
 7                the purpose of obtaining homeowners insurance;
 
 8           and
 
 9      (3)  May request the board to employ or contract with
 
10           technical experts, officers, agents, and employees,
 
11           permanent or temporary, as required to assist the loan
 
12           committee in effectuating its purpose.
 
13      (d)  Members of the loan committee shall serve without
 
14 compensation but shall be reimbursed for their actual and
 
15 necessary expenses, including travel expenses, incurred in
 
16 carrying out their duties.
 
17      (e)  Any person having an interest in real property who has
 
18 been unable to obtain a loan to increase the property's ability
 
19 to withstand hurricane-force winds for the purpose of obtaining
 
20 homeowners insurance may apply to a financial institution for a
 
21 loan.  Any person applying for such a loan may also apply for a
 
22 loan or grant from the hurricane relief loan fund.  Any person
 
23 applying for a loan or grant from the hurricane relief loan fund
 
24 shall submit to the methodology commission for review and
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 approval of the plans, specifications, and standards for the work
 
 2 to be performed on the real property.  In addition to offering
 
 3 loans, the loan committee may offer grants of up to fifty per
 
 4 cent of the applicant's requested loan amount.  The loan
 
 5 committee shall process the requested loan or grant based on the
 
 6 applicant's financial need.  Upon approval by the loan committee,
 
 7 the applicant's lending institution may process the loan.  Upon
 
 8 completion of the work performed on the property, a completion
 
 9 report shall be submitted to the methodology commission.
 
10      The methodology commission shall determine whether the
 
11 property is located in an area of projected hurricane loss or is
 
12 at risk because of the type of structure of the property.  If the
 
13 property is found to be located in such an area or at risk
 
14 because of the type of structure, the loan committee may provide
 
15 a loan or grant to the property owner pursuant to this section.
 
16 The methodology commission shall adopt standards for building
 
17 loss mitigation to be used as the basis for loan and grant
 
18 approval by the loan committee.
 
19      (f)  There shall be no liability on the part of, and no
 
20 cause of action of any nature shall arise against, any member of
 
21 the loan committee or any officer or employee of the State for
 
22 any action taken in the performance of their duties under this
 
23 section.
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      431P-    Hurricane loss projection methodology commission.
 
 2 (a)  The board shall appoint an advisory committee called the
 
 3 hurricane loss projection methodology commission.  The
 
 4 methodology commission shall consist of nine members appointed by
 
 5 the board as follows:
 
 6      (1)  The insurance commissioner;
 
 7      (2)  The chair of the hurricane relief loan fund;
 
 8      (3)  A representative from the Hawaii Insurers Council;
 
 9      (4)  A representative from the civil defense division of the
 
10           department of defense;
 
11      (5)  A hurricane loss methodology specialist;
 
12      (6)  A hazard mitigation specialist from the University of
 
13           Hawaii;
 
14      (7)  A representative from the Structural Engineers
 
15           Association of Hawaii;
 
16      (8)  A statistical modeling expert; and
 
17      (9)  An expert in meteorology who is a full-time member of
 
18           the faculty of the University of Hawaii.
 
19      (b)  The methodology commission:
 
20      (1)  Shall elect a chair from among its members;
 
21      (2)  Shall adopt standards for building loss mitigation to
 
22           be used as the basis for loan and grant approval by the
 
23           loan committee;
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (3)  Shall consider any actuarial methods, principles,
 
 2           standards, models, or output ranges that have the
 
 3           potential for improving and mitigating potential losses
 
 4           from hurricanes to residential properties in the State;
 
 5      (4)  Shall create standards and guidelines for improvement
 
 6           to real property, which is at risk because of the type
 
 7           of structure or because it is in an area prone to
 
 8           hurricane damage that will increase the property's
 
 9           ability to withstand hurricane-force winds;
 
10      (5)  Shall receive and deliver reports, and approve or deny
 
11           loan or grant applications, in connection with the
 
12           program administered by the loan committee; and
 
13      (6)  May request the board to employ or contract with
 
14           technical experts, officers, agents, and employees,
 
15           permanent or temporary, as required to assist the
 
16           methodology commission in effectuating its purpose.
 
17      (c)  Members of the methodology commission shall serve
 
18 without compensation but shall be reimbursed for their actual and
 
19 necessary expenses, including travel expenses, incurred in
 
20 carrying out their duties.
 
21      (d)  There shall be no liability on the part of, and no
 
22 cause of action of any nature shall arise against, any member of
 
23 the methodology commission or any officer or employee of the
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 State for any action taken in the performance of their duties
 
 2 under this section.  The methodology commission may, in writing,
 
 3 waive any potential cause of action for negligence of a
 
 4 consultant, contractor, or contract employee engaged to assist
 
 5 the methodology commission."
 
 6      SECTION 4.  Section 431P-1, Hawaii Revised Statutes, is
 
 7 amended by adding two new definitions to read as follows:
 
 8      ""Loan committee" means the hurricane relief administrative
 
 9 procedures loan committee.
 
10      "Methodology commission" means the hurricane loss projection
 
11 methodology commission."
 
12      SECTION 5.  Section 431P-16, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "431P-16  Establishment of trust funds.  (a)  The fund
 
15 shall establish outside the state treasury a hurricane reserve
 
16 trust fund and any accounts thereunder and any other trust fund
 
17 or account necessary to carry out the purposes of this chapter.
 
18 Moneys deposited in the hurricane reserve trust fund and any
 
19 accounts thereunder or any other trust fund or account shall be
 
20 held by the fund, as trustee, in a depository as defined in
 
21 section 38-1 or according to a similar arrangement at the
 
22 discretion of the board[,] including, but not limited to[,] trust
 
23 or custodial accounts created for the benefit of the fund's
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 secured parties under contractual claims financing arrangements.
 
 2 These moneys may be invested and reinvested in accordance with
 
 3 the plan of operation.  Disbursements from the trust funds shall
 
 4 not be subject to chapter 103D and shall be made in accordance
 
 5 with procedures adopted by the board.
 
 6      (b)  The hurricane reserve trust fund shall receive deposits
 
 7 of the special mortgage recording fee established by this
 
 8 chapter.  The special mortgage recording fee shall be imposed on
 
 9 each mortgage and each amendment to a mortgage which, in each
 
10 case, increases the principal amount of the secured debt and
 
11 which is recorded in the bureau of conveyances of the State under
 
12 chapter 502 or filed with the assistant registrar of the land
 
13 court of the State under chapter 501.
 
14      The special mortgage recording fee shall be an amount equal
 
15 to one-tenth of one per cent of the stated principal amount of
 
16 the debt secured by the mortgage or, in the case of an amendment
 
17 or refinancing of a mortgage, an amount equal to one-tenth of one
 
18 per cent of the amount of the increase of the stated principal
 
19 amount of the secured debt; provided that the board may establish
 
20 a lower special mortgage recording fee amount pursuant to section
 
21 431P-5(b)(14).  With respect to an open end revolving loan, the
 
22 principal amount of the debt on which the special mortgage
 
23 recording fee is calculated shall be the maximum amount which may
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 be outstanding under the loan at any one time.  With respect to a
 
 2 mortgage securing a nonmonetary or inchoate obligation, the
 
 3 principal amount of the debt on which the special mortgage
 
 4 recording fee is calculated shall be the monetary amount which
 
 5 the mortgagee attributes to the obligation.  If the debt is
 
 6 stated in a foreign currency, it shall be converted to U.S.
 
 7 dollars using an exchange rate published in a newspaper of
 
 8 general circulation in this State within one week prior to
 
 9 recordation of the mortgage or amendment of mortgage.
 
10      The special mortgage recording fee shall be in addition to
 
11 any applicable fees under chapter 501 or 502.  The special
 
12 mortgage recording fee shall be submitted to and collected by the
 
13 bureau of conveyances or the assistant registrar of the land
 
14 court of the State and shall be deposited into the hurricane
 
15 reserve trust fund.  The special mortgage recording fee shall be
 
16 submitted at the time the mortgage or amendment of mortgage is
 
17 recorded together with any related forms or certifications
 
18 required by the bureau of conveyances or the assistant registrar
 
19 of the land court of the State.
 
20      (c)  The Hawaii hurricane relief fund shall implement the
 
21 assessments of all property and casualty insurers as authorized
 
22 by section 431P-5(b)(8)(A) and (B) and the proceeds from the
 
23 assessments shall be deposited into the hurricane reserve trust
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 fund or into trust or custodial accounts, created for the benefit
 
 2 of the fund's secured parties, that are held inside or outside
 
 3 the hurricane reserve trust fund.
 
 4      (d)  If the Hawaii hurricane relief fund offers to issue
 
 5 policies of hurricane property insurance, the premiums for the
 
 6 policies shall be deposited into the hurricane reserve trust
 
 7 fund.
 
 8      (e)  Should the moneys in the hurricane reserve trust fund
 
 9 be insufficient to pay claims arising out of a covered event, the
 
10 Hawaii hurricane relief fund is authorized to levy a surcharge
 
11 not to exceed seven and one-half per cent a year on premiums
 
12 charged for all property and casualty insurance policies issued
 
13 for risks insured in this State.  These moneys may be deposited
 
14 into the hurricane reserve trust fund or into trust or custodial
 
15 accounts, created for the benefit of the fund's secured parties,
 
16 that are held inside or outside the hurricane reserve trust fund.
 
17 The formula to calculate the amount and period of the surcharge
 
18 and the procedures and methodology for payment of claims during
 
19 periods of insufficiency of moneys for such purpose shall be
 
20 provided in the plan of operation.  The amount and reason for any
 
21 surcharge made pursuant to this subsection shall be separately
 
22 stated on any billing sent to an insured.  The surcharge shall
 
23 not be considered premiums for any other purpose, including the
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 computation of gross premium tax or the determination of agents'
 
 2 commissions.
 
 3      (f)  Any proceeds, experience refunds, or other return funds
 
 4 under reinsurance shall be deposited into the hurricane reserve
 
 5 trust fund.
 
 6      (g)  Any proceeds from loans or other moneys from the
 
 7 federal government, any proceeds from bonds issued pursuant to
 
 8 this chapter loaned by the director to the Hawaii hurricane
 
 9 relief fund, and other moneys as the State may make available
 
10 from time to time shall be deposited into the hurricane reserve
 
11 trust fund.
 
12      (h)  Moneys in the hurricane reserve trust fund or in trust
 
13 or custodial accounts, created for the benefit of the fund's
 
14 secured parties, shall be expended by the Hawaii hurricane relief
 
15 fund or its authorized designee and used solely for the purposes
 
16 of this chapter. 
 
17      [(i)  Solely upon dissolution of the Hawaii hurricane relief
 
18 fund, the net moneys in the hurricane reserve trust fund shall
 
19 revert to the state general fund, after any payments by the fund
 
20 on behalf of licensed property and casualty insurers or the State
 
21 that are required to be made pursuant to any federal disaster
 
22 insurance program enacted to provide insurance or reinsurance for
 
23 hurricane risks.  In the event such moneys are paid on behalf of
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 licensed property and casualty insurers, payment shall be made in
 
 2 proportion to the premiums from policies of hurricane property
 
 3 insurance serviced by the insurers in the twelve months prior to
 
 4 dissolution of the fund.]"
 
 5      SECTION 6.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 7.  This Act shall take effect upon its approval;
 
 8 provided that section 2 shall take effect on December 15, 2005.