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Committee narrows bill letting insurers sue over climate-related losses; AG flags legal risks
Summary
The House Committee on Consumer Protection and Commerce advanced SB 1166 SD2 with amendments limiting private suits to insurers and adding statutory clarifications after testimony that the bill may conflict with existing subrogation law and raise AG‑representation questions.
The Committee on Consumer Protection and Commerce advanced SB 1166 SD2 on March 18, 2026, adopting amendments that narrowed the bill's scope to insurer-led litigation and removed an individual private right of action.
Supporters, including the Polluters Pay Hawaii Coalition and the Center for Climate Integrity, urged the change as a way to let insurers, the Hawaii Property Insurance Association (HPIA) and the Hawaii Hurricane Relief Fund (HHRF) recover payouts tied to climate disasters. Gordon Levitt of the Center for Climate Integrity said the amendments would provide the Attorney General and insurance entities "with a civil cause of action to recover costs and losses resulting from climate disasters." He and others pointed to steep rate increases and nonrenewals following recent catastrophes.
Opponents raised statutory and procedural objections. Matthew Jachowski of the Department of Commerce and Consumer Affairs's Insurance Division warned that inserting this language into HRS 431-13 (the insurance-code UDAP section) "may go beyond that scope" and noted a portion of the draft (page 22, lines 8–11) appeared duplicative of existing rate-filing accounting. Lawyers for Justice and legal counsel cited case law (Yukimoto, Hara) and a recent Supreme Court order as grounds that the judicial lien process set out in HRS 663-10 may be the exclusive mechanism for insurer recovery, and that the bill as drafted could conflict with that precedent.
The Department of the Attorney General reiterated constitutional and subject-title concerns, cautioning that authorizing "any person" to sue under a bill titled "relating to insurance" could raise a title‑defect challenge.
In response, committee leadership adopted a package of amendments in committee decision-making. The chair's recommendation removed the individual private right of action, retained a path for insurers to recover, directed drafting of report language examining whether HRS 663-10 needs statutory adjustment, and added a definition treating insurance company payouts for climate-related insured losses as "damages" to supply insurer standing. The motion to pass with amendments was adopted in committee.
What happens next: the committee report will include analysis of whether the judicial-lien statute (HRS 663-10) needs revising to accommodate insurer causes of action. The committee recorded the chair's recommendation as adopted and advanced the measure with amendments for further consideration.
Quotes: "It may be an inappropriate section to insert this language as 431-13 is the insurance code's unfair deceptive trade practices section," said Matthew Jachowski (Insurance Division). "This bill would empower insurance companies and injured individuals to hold major oil and gas companies accountable," said Kaleo Coleman (Polluters Pay Hawaii Coalition). "We're seeking to provide additional clear authority that would buttress what the state has done," said Gordon Levitt (Center for Climate Integrity).
Next steps: SB 1166 SD2 moves forward with committee amendments; the committee directed additional report drafting to clarify whether existing statutes and case law constrain insurer recovery under this approach.
