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Senate committee directs study after amending lava‑zone insurance bill
Summary
The Hawaii Senate Commerce and Consumer Protection Committee on March 24 amended House Bill 20 to remove substantive subsidy language and instead direct the Legislative Reference Bureau to study options to attract insurers and estimate subsidies needed for homeowners in Lava Zones 1 and 2; the amended measure passed.
The Hawaii State Senate Committee on Commerce and Consumer Protection voted March 24 to amend House Bill 20 (HD1), removing the bill’s original subsidy language and instructing the Legislative Reference Bureau (LRB) to study how to bring more insurers into the market and to estimate any subsidy needed to lower premiums for homeowners in Lava Zones 1 and 2.
Chair opened the measure by outlining the bill’s original intent: to establish a Lava Zone Insurance Special Fund to subsidize insurance premiums for properties in Lava Zones 1 and 2 and to define zones and appropriate funds. The DCCA insurance division filed opposition testimony, and the Hawaii Insurers Council submitted written opposition, while a list of individuals filed support and opposition in writing.
Under the committee’s adopted amendment, the bill will fund an LRB study that includes gathering information from actuaries and identifying mechanisms to increase insurer participation and determine the level of subsidy required to return rates to pre‑downturn levels. The amendment also includes an appropriation to cover the study’s cost.
There was no extended floor debate recorded after the amendment was offered; the chair called the question and the committee passed the measure with the chair recorded as voting aye and other present members voting in the affirmative.
The committee’s action moves the issue from an immediate subsidy proposal to a fact‑finding and design phase, with the LRB tasked to provide technical estimates and options for legislative consideration. The study will determine fiscal assumptions, actuarial inputs and potential program designs for any future subsidy or market‑entry strategies.
The committee’s decision keeps open the possibility of later substantive legislation based on the study’s findings. The measure will proceed with the adopted amendment and the appropriation for the LRB study.
