The Puna Community Medical Center, potentially threatened by a lava flow approaching Pahoa, was told Monday it will be able to keep its insurance following news reports that its policy was being dropped in November.
Honolulu-based Dongbu Insurance sent the medical center a letter Sept. 11 that said its policy wouldn’t be renewed Nov. 3. The notice came as a lava flow continued to advance a few miles from the medical center’s office in the Malama Market shopping center.
That caught the attention of Stepens Media Hawaii and other media sources, which reported the situation Sunday and Monday.
Dan Domizio, medical center clinical programs director, said he was told Monday the insurance company was reversing that decision, and that a representative would meet with him today.
“It doesn’t change anything as far as the lava is concerned,” he said. “It’s one other issue we don’t have to be worrying about right at this juncture. I am relieved.”
A Dongbu Insurance representative said the company changed its decision after realizing how important the medical center is to the community. The state Insurance Commission also spoke with the company’s branch manager Monday morning.
The company offers residential building insurance, in addition to commercial coverage, in the Pahoa area.
Asked if other policies also could be at risk of not being renewed, Jinny Bae, Dongbu underwriting manager, said that issue is under review.
“We have not yet made a decision on that matter,” he said.
A press release from the Insurance Commission said state law prohibits the cancellation of policies while they are in effect unless payments have not been made. But state law does not require insurance companies to renew policies.
“The Insurance Division is contacting insurers serving the Puna area and asking them to carefully consider their decisions on non-renewals,” said Gordon Ito, insurance commissioner. “We urge these companies to be good corporate citizens and do the right thing for the people in this area and the state.”
A pamphlet the division made for homeowners in response to the flow can be found at http://cca.hawaii.gov/ins/files/2014/09/HI-FAQ-Lava-Flow-Informational-Fair.pdf.
Email Tom Callis at tcallis@hawaiitribune-herald.com.