Substitute House Bill No. 6967 introduces comprehensive regulations regarding the assignment of post-loss benefits under homeowners and commercial property insurance policies, effective January 1, 2026. The bill mandates that all assignment agreements must be in writing, executed by both the assignor and assignee, and shared with the insurance company. Key provisions include the assignor's right to rescind the agreement within specified timeframes, the requirement for the assignee to provide a copy of the agreement to the insurance company within three business days, and the inclusion of an itemized cost estimate for services. The bill also prohibits certain fees in assignment agreements, such as bank check or mortgage processing fees, and limits the amount of post-loss benefits that can be assigned in urgent situations. Additionally, it places the burden of proof on the assignee in the event of an insurance claim, ensuring that they demonstrate no prejudice to the insurance company due to record-keeping failures.

In parallel, the bill amends existing laws governing home improvement contracts, enhancing consumer protection and regulatory oversight. It prohibits contractors from using an owner's insurance deductible as an inducement for entering into contracts and requires specific disclosures in contracts, including the owner's right to cancel within three business days. The bill also establishes stricter registration requirements for contractors and salespersons, including proof of insurance and detailed contact information. Furthermore, it prohibits misleading advertising practices and outlines penalties for non-compliance, such as potential revocation of registration. Overall, the bill aims to improve transparency and protect the rights of homeowners and commercial property owners in both insurance assignments and home improvement transactions.

Statutes affected:
Raised Bill: 20-419, 20-420, 20-429, 20-429a
INS Joint Favorable: 20-419, 20-420, 20-429, 20-429a
File No. 92: 20-419, 20-420, 20-429, 20-429a