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 promptly shared with the insurance company. Key provisions include the requirement for clear notices regarding the rights being relinquished by the assignor, the prohibition of certain fees in the agreements, and the establishment of the assignee's burden to prove that the insurance company is not prejudiced by any failures in record-keeping. Additionally, the bill stipulates that any non-compliant assignment agreements will be deemed void and unenforceable, thereby enhancing transparency and protecting the rights of property owners.

In parallel, the bill also amends existing laws governing home improvement contracts, prohibiting contractors from using an owner's insurance deductible as an inducement for entering into contracts and requiring specific disclosures in contracts, such as cancellation rights. It expands the registration requirements for home improvement contractors and salespersons, including proof of liability insurance and restrictions on public adjusting activities. The bill further outlines prohibitions against misleading advertising practices related to roof repairs and mandates that contracts include clear notices of these prohibitions. Overall, the bill aims to enhance consumer protection and ensure ethical practices within the home improvement and insurance 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