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Committee defers study of alternative condominium insurance models after cost and scope concerns
Summary
The committee deferred HCR85/HR79 after the DCCA insurance division warned the study could require costly consultants and an estimated $1.5 million appropriation; the committee said it will work with the measure’s introducer to narrow scope.
The House Committee on Consumer Protection & Commerce on March 20 deferred HCR85/HR79, a pair of resolutions requesting a study of alternative insurance models for condominium associations and unit owners, after DCCA’s acting insurance commissioner raised cost and scope concerns.
Jerry Bomp, acting insurance commissioner (DCCA Insurance Division), told the committee that the division lacks in-house expertise to develop a full model and that a broad study could require legal, actuarial and regulatory consultants. “I didn't just pluck the 1,500,000.0 out of thin air,” Bomp said, describing $1.5 million as a consensus ballpark estimate for the study as worded. He added the cost could fall if the resolution were narrowed to a survey or limited scope.
Witnesses including Greg Mesakian supported studying alternatives but urged lower-cost approaches. Mesakian suggested the insurance commission hire permanent staff with expertise rather than repeatedly contracting consultants.
Bomp also reviewed the pathway for market entrants, saying admitted carriers can propose new products but typically must file rates and policy forms for review and preapproval before selling property-insurance products in Hawaii.
After discussion the committee’s recommendation was to defer HCR85/HR79 so the introducer and DCCA can revise the scope and potential appropriation. The committee did not adopt an appropriation in committee and did not set a new hearing date in the record.
