Substitute House Bill No. 6981, also known as Public Act No. 25-87, introduces significant reforms to the delivery of insurance policies and endorsements, allowing insurers to post these documents on their websites instead of mailing them, provided they do not contain personally identifiable information. Effective October 1, 2025, insurers must obtain consent from the insured for electronic delivery and ensure that documents remain accessible throughout the policy's duration. The bill also mandates that insurers inform policyholders of their rights to request paper copies and opt out of electronic delivery. Additionally, it amends existing laws regarding the cancellation and nonrenewal of property and casualty insurance policies, establishing new notification requirements and timelines for cancellations, and allowing for electronic delivery of notices if agreed upon.

The bill further modifies regulations concerning the cancellation of commercial risk insurance policies, specifying that insurers can only cancel policies after sixty days under certain conditions, such as nonpayment or fraud. It also introduces new requirements for cancellation notices, including delivery via registered or certified mail or electronic means if agreed upon. The bill repeals and replaces several sections of existing law to enhance consumer protections and clarify definitions related to insurance insolvency and liquidation processes. Notably, it eliminates the requirement for a bond from the commissioner for issuing injunctions in these proceedings and establishes protections for certain transfers involving Federal Home Loan Banks. Overall, the bill aims to improve transparency, communication, and regulatory compliance within the insurance industry.

Statutes affected:
Raised Bill:
INS Joint Favorable Substitute:
File No. 314:
File No. 925:
Public Act No. 25-87: