Bad Google day? - HPIA

[StillHope]

I don't know what to think -can not find HPIA website.
Is it available only through an agent?

Even if this is the case,seems kind of strange that the company didn't have at least general information ,FAQ .

Even Avon who sells exclusively through representatives still have a website.

I don't need to purchase a policy at this time .

So am I having a bad Google day?




___________________________
Whatever you assume,please
just ask a question first.

[kjlpahoa]

HPIA is a State insurance program where they contract out the coverage to independant insurance companies. Presently the company that is handling the HPIA program is First Insurance Co of Hawaii Ltd. in Honolulu. I have tried to correspond with them and they do not answer my letters. Their rates are outragous but you have no choice for Lava Zone 1 risks. I have copies of their last 3 filings with the State Dept. of Insurance and there are some real grey areas in their rate setting methodology. I am about ready to ask the State Attorney General's Office to do an investigation.

[Bob Orts]

quote:

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Originally posted by StillHope

I don't know what to think -can not find HPIA website.
Is it available only through an agent?

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You can start with Hawaii Revised Statutes §431:21-101 through §431:21-118.

HPIA is a funny beast.

It's similar to the standard P&C/Auto risk pools you see in some states. Basically all insurers are required to be in the pool and are assigned cases when people can't get insurance on their own. So lets say your young, buy a used car, live in NY but no insurance company will insure you. You get the insurance from a company the state assigns from the pool.

But unlike those normal risk pools which can comprises hundreds of thousands, HPIA is about 3,000. Since all cost of the program must be paid by the policyholders, the risk and cost are shouldered by few, compared to any other type of risk pool.

What makes this hard on property owners is because the pool is so small, insurers are few and the cost they want is high. You also have an awful lot of people on Hawaii who believes this is government socializing lava insurance. They believe it should be a free market and businesses should set market prices. But as we all know, when it was up to insurance companies alone, they said no way to Lava Zone 1 and nobody could get insurance. So government was forced to step in.

Of concern is what happened in Florida (with hurricane insurance) where the insurance companies lost millions, raised rates, people complain, state said no to the rate increases and some companies said screw you and pulled out of the state. That reduced completion, placed more risk on those still operating and rates went up anyway. What would happen if all the high risk carriers said No, we’ll stop selling insurance in Hawaii and concentrate on the mainland? Because Hawaii is so small, it’s not a major thing for them to pull up stakes and leave policy holders high and dry.

So Hawaii may know the rates are too high, but how do you balance the small risk pool premiums against loosing a major carrier? I’m sure the people on Kauai, Maui and Oahu won’t be too happy if their carriers says good-bye because they are being forced to cover a few on Hawaii who freely made the decision to live in Lava Zone 1.

[StillHope]

Thank you,Bob!
Did you use HPIA ?
I am thinking if you did,you probably didn't need an agent.


___________________________
Whatever you assume,please
just ask a question first.

[John S. Rabi]

You do need to go through an agent to get HPIA policy, they don't deal with anyone individually.

Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
808.327.3185
johnrabi@johnrabi.com
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
(This is what I think of the Kona Board of Realtors http://KonaBoardOfRealtors.info)

[StillHope]

Thank you,John!
I am curious what's their reason for that.
Never mind,they don't need a reason - no competition.

___________________________
Whatever you assume,please
just ask a question first.

[Bob Orts]

HPIA is not an insurance company, they are an association formed by the State to provide insurance for those in Lava Zones where insurance is not available on the open market. As for competition, I'm sure the State would love and welcome competition. HPIA wouldn't be needed if there were other insurance companies willing to offer insurance in those areas, but since there isn't HPIA was formed to at least be able to provide something.

The question to ask isn't how much HPIA charges in premiums but what would premiums be if insurance companies were mandated to provide coverage?

[StillHope]

Thank you,Bob.
I meant First Insurance Co,which is,according to kjlpahoa,is contracting HPIA services,if this is the right way to put it.

I would need an agent/broker where the variety of choices can make it difficult to make the right decision or where the process requires to know the legal aspect but in the case of one(may be 2) company to choose and only one small house to insure I don't think I need one.

In any case,even if I do need an insurance agent/broker ,

I'd prefer to have a choice whether to have one or not.


So,Bob - does a customer have a right not to use an agent/broker

or whatever First(or "second")Insurance Co says goes?



I'd appreciate your advice.

___________________________
Whatever you assume,please
just ask a question first.

[Bob Orts]

quote:

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Originally posted by StillHope

So,Bob - [b]does a customer have a right not to use an agent/broker

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You are not required to use an insurance agent/broker (not to be confused with licensed producer) to buy insurance. Each company decides if they will deal direct with consumers or if they will only deal with agents/brokers.

There are dozens of insurance companies licensed to sell insurance on Hawaii. Go to the Dept of Insurance website and you can look up all the companies. All you need to do is visit their websites and see if they will sell direct to you. Some do. However, the only two insurance entities that offer insurance in Lava Zone 1 do not deal direct with consumers.

[StillHope]

Thank you.I am in lava zone 2,not 1.
Does it change anything in this case?

___________________________
Whatever you assume,please
just ask a question first.