Report Title:

Insurance

 

Description:

Requires that money in the Hawaii hurricane relief fund that is no longer needed for commercial property coverage be returned pro rata to policyholders.

 

THE SENATE

S.B. NO.

1497

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HAWAII HURRICANE RELIEF FUND.

 

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

SECTION 1. The legislature finds that the hurricane relief fund will have accumulated approximately $175,000,000 by the end of 2001. This windfall has been the basis of a few financing schemes of late to provide new programs for the State. Since premiums for the fund were paid faithfully and conscientiously by policyholders across the State, it is only fair and equitable that any disbursement of these funds should rightfully go back to the policyholders.

The purpose of this Act is to provide principal and interest pro rata refunds to policyholders from the hurricane relief fund.

SECTION 2. Notwithstanding any other law to the contrary, the board of directors of the hurricane relief fund under chapter 431P, Hawaii Revised Statutes, shall pay principal and interest pro rata refunds to policyholders of the fund, in an amount and to an extent that results in a remaining balance of $1,000,000 in the fund. The refunds shall be paid after deducting amounts necessary for reasonable expenses to effectuate this Act, amounts to satisfy outstanding obligations of, and any claims against the fund, and any other revenues other than premium payments that also require refunding.

The board of directors, in consultation with the insurance commissioner and the director of finance, shall determine a procedure to ensure a fair and equitable pro rata refund to policyholders. The board of directors shall also provide an accounting of the refund in a report to the legislature twenty days prior to the convening of the 2002 legislative session.

SECTION 3. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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