SB 142 Hawaii Senate · 2026 Regular Session

RELATING TO INSURANCE.

Summary

Allows an insured to authorize the insurer to electronically remit claim proceeds to the insured's mortgagee when a homeowners insurance policy that covers a mortgaged property allows for the payment of proceeds by issuing a check. Requires a mortgagee in receipt of electronic delivery of claim proceeds to deliver the proceeds of the claim to the insured in accordance with the mortgage agreement and the insurance policy. Effective 7/1/2050. (SD2)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Mar 2025

House Passage

Governor

Introduced Jan 10, 2025 Last action Dec 8, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

SB142_SD1 → SB142_SD2 · 5 edits

MODERATE

This bill update clarifies the process for insurers to electronically send insurance claim proceeds directly to mortgage lenders. It strengthens consumer protections by requiring the insurer to obtain written authorization from the homeowner and ensuring the check is made payable only to the lender. Additionally, the revision adds specific legal definitions for key terms like 'electronic delivery' and 'mortgage agreement' to prevent ambiguity.

Scope change

The bill's scope remains focused on homeowners insurance policies covering mortgaged properties, but the applicability is tightened by requiring explicit written consent from the insured.

REQUIREMENT

Changed the authorization method from a general 'authorize' to requiring the insured to 'authorize the insurer in writing'.

Updated the payment instruction to require the check be made 'payable only to the mortgagee' to ensure funds go directly to the lender.

DEFINITION

Added a new definition for 'electronic delivery' to specify acceptable methods like verified email or electronic terminals.

Added a new definition for 'mortgage agreement' to clarify that it includes all related instruments and amendments.

TECHNICAL

Updated the bill version identifier from SD1 to SD2 and adjusted associated metadata dates.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 6, 2025

Committee

Referred to CPC, referral sheet 19

lower

Mar 4, 2025

Introduced

Received from Senate (Sen. Com. No. 98) in amended form (SD 2).

lower

Mar 4, 2025

Upper · Passed

Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Feb 21, 2025

Upper · Passed

The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in JDC were as follows: 4 Aye(s): Senator(s) Rhoads, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Gabbard.

upper

Feb 18, 2025

Upper · Passed

The committee(s) on JDC will hold a public decision making on 02-21-25 10:20AM; Conference Room 016 & Videoconference.

upper

Feb 14, 2025

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC.

upper

Feb 14, 2025

Committee

Reported from CPN (Stand. Com. Rep. No. 664) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC.

upper

Jan 31, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 3 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Richards, Awa.

upper

Jan 23, 2025

Upper · Passed

The committee(s) on CPN has scheduled a public hearing on 01-28-25 9:30AM; Conference Room 229 & Videoconference.

upper

Jan 17, 2025

Committee

Referred to CPN, JDC.

upper

Jan 15, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 10, 2025

Introduced

Pending Introduction.

upper

4 primary · 2 co-sponsors