PART I. GENERAL PROVISIONS

 

§431P-1  Definitions.  As used in thischapter, unless the context otherwise requires:

"Board" means the board of directorsof the Hawaii hurricane relief fund.

"Commissioner" means the insurancecommissioner as defined in section 431:2-102.

"Companion policy" means a policy ofproperty insurance issued by a servicing facility in conjunction with a fundpolicy of hurricane property insurance that provides, at a minimum, coverageequivalent to a standard fire policy for the peril of fire and windstorm and,after considering all exclusions and endorsements, that provides insurance forwind related losses or damage created by a weather system that has not resultedin the declaration and definition of a hurricane watch or warning.

"Covered event" means each hurricanethat directly causes windstorm damage in the State.

"Deductible" or "mandatorydeductible" means the amount of loss assumed by the policyholder that isnot included in the coverages provided by the fund.

"Department" means the department ofcommerce and consumer affairs.

"Director" means the director offinance.

"Eligible property" means:

(1)  Real property of one to four units used forresidential purposes and which is in insurable condition, and which may includetangible personal property located therein or thereon and other structures atthe insured location, as provided in the plan of operation or any manual ofrules and rates adopted under the plan of operation;

(2)  Real property used for business, commercial, orindustrial purposes which is in insurable condition, and which may includetangible personal property located therein or thereon, as provided in the planof operation or any manual of rules and rates adopted under the plan ofoperation;

(3)  Tangible personal property owned by an occupantof and located in or on real property of the types described in paragraph (1),as provided in the plan of operation or any manual of rules and rates adoptedunder the plan of operation; provided that the owner of the tangible personalproperty does not own the real property in or on which the tangible personalproperty is located; and

(4)  Tangible personal property owned by an occupantof and located in or on real property of the types described in paragraph (2)as provided in the plan of operation or any manual of rules and rates adoptedunder the plan of operation; provided that the owner of the tangible personalproperty does not own the real property in or on which the tangible personalproperty is located.

"Fund" means the Hawaii hurricanerelief fund established by this chapter.

"Hurricane" means a storm that hasbeen declared and defined by the Central Pacific Hurricane Center of theNational Weather Service to be a hurricane.

"Licensed property and casualty insurer"means:

(1)  Any insurer licensed to transact any one or moreclasses of insurance authorized in section 431:3-204 where premiums writtenwithin such authority are required to be reported in the "Exhibit ofPremiums and Losses" for this State in the National Association ofInsurance Commissioners fire and casualty annual statement convention blankthat is required to be filed with the commissioner under section 431:3-302; and

(2)  The Hawaii Property Insurance Association createdin article 21 of chapter 431.

"Mortgage" means every transfer of aninterest in real property, except fixtures, made as security for theperformance of another act or subject to defeasance upon the payment of anobligation, whether the transfer is made in trust or otherwise.

"Plan of operation" means the planfor providing hurricane property insurance as adopted by the board of directorsof the Hawaii hurricane relief fund, and any amendments thereto, under section431P-7.

"Policy of hurricane propertyinsurance" means a policy or endorsement of insurance issued by the fundinsuring only against damage or loss to eligible property caused by a coveredevent in excess of the deductible and up to:

(1)  $750,000 per risk on real property of one to fourunits used for residential purposes and the personal property located thereinor thereon and other structures at the insured location, subject to the limitsdefined by the plan of operation or any manual of rules and rates adopted underthe plan of operation; and

(2)  $500,000 per risk on real and personal propertyused for business, commercial, or industrial purposes, subject to the limitsdefined by the plan of operation or any manual of rules and rates adopted underthe plan of operation; provided that the board may designate an association ofproperty owners or cooperative housing corporation to be a commercial risk;

provided that this policy or endorsement shall notinclude coverage for business interruption and other similar coverages.

"Policy of property insurance" meansa policy providing "property insurance" as defined in section431:1-206.  For purposes of this chapter, it includes "basic propertyinsurance" as provided under article 21 of chapter 431.

"Property insurance" means policies,riders, or endorsements of insurance that provide indemnity, in whole or inpart, for the loss, destruction, or damage of eligible property.

"Servicing facility" means anyinsurer engaged in writing direct property insurance in this State and licensedin this State, and any other party authorized to act in like capacity on behalfof the fund.

"Year immediately preceding the year ofthe covered event" means the twelve-month period ending on the last day ofthe calendar month immediately preceding the month in which a covered eventoccurs. [L 1993, c 339, pt of §2; am L Sp 1995, c 17, §1; am L 1998, c 106,§§1, 2]