Substitute House Bill No. 6967 introduces comprehensive regulations concerning the assignment of post-loss benefits under homeowners and commercial property insurance policies, effective January 1, 2026. The bill mandates that 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 establishes that any non-compliant agreements will be void. Additionally, in urgent circumstances, the assignee's ability to receive post-loss benefits is capped at $3,000 or 1% of the coverage limit, whichever is greater.

The bill further amends existing laws governing home improvement contracts, prohibiting contractors from advertising or promising to cover an owner's insurance deductible as an inducement for entering into a contract. It requires contractors to provide detailed information on registration applications, including proof of insurance and any financial interests in related businesses. Home improvement contracts must include specific cancellation rights and notices, allowing homeowners to cancel within three business days. The bill also restricts contractors from engaging in public adjusting activities without proper registration and mandates that contracts for roof repairs include a notice of prohibitions against misleading advertising practices. Overall, the bill aims to enhance consumer protection and transparency in both the insurance and home improvement sectors.

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