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Insurers, climate advocates and the Attorney General spar over SB 1166; committee defers
Summary
SB 1166 would encourage insurers and the Hawaii Property Insurance Association to pursue subrogation claims against responsible parties for climate-driven catastrophic losses; the Attorney General raised constitutional and vagueness concerns and stakeholders proposed amendments; the committee deferred the measure to Feb. 12 for further work and an amended SD.
Senators heard competing views Feb. 7 on SB 1166, which would encourage insurers and the Hawaii Property Insurance Association to pursue subrogation claims against parties the bill describes as responsible for losses linked to climate change.
Jerry Bong of the DCCA Insurance Division stood in opposition on the record. Deputy Attorney General Andrew Kim told the committee he had constitutional concerns and found portions of the draft vague and potentially in conflict with state law and case law. Dave Jones, former California insurance commissioner, testified in support of the bill as amended, saying subrogation has been used in other contexts to recover damages and could help keep insurance affordable and available in Hawaii. Gordon Levitt of the Center for Climate Integrity urged optional, non-mandatory cost-recovery pathways and private pathways for affected parties and insurers.
Committee members asked clarifying questions about the scope, remedies and reporting mechanisms. The chair said amendments were in progress and that a proposed SD would be posted. The committee recommended deferring decision-making on SB 1166 to Wednesday, Feb. 12, 2025, to allow review of an amended draft.
Next steps: the sponsor and staff will post the proposed senate draft and the committee will reconvene for a decision vote after reviewing the revised language.
