Substitute House Bill No. 6981 aims to modernize the delivery of insurance documents and enhance consumer protections in property and casualty insurance policies. Key provisions allow insurers to post policies and endorsements on their websites instead of mailing them, provided these documents do not contain personally identifiable information. Insurers are required to keep these documents accessible for the duration of the policy and inform insured individuals of their rights to request paper copies and opt out of electronic delivery. The bill also introduces new notice requirements for the cancellation and nonrenewal of homeowners insurance policies, mandating that notices be sent using the U.S. Postal Service's intelligent mail barcode tracking method or similar tracking methods, with the option for electronic delivery if agreed upon by both parties.

Additionally, the bill includes significant amendments to the Insurers Rehabilitation and Liquidation Act, particularly concerning Federal Home Loan Banks (FHL Banks) and their interactions with insurers undergoing liquidation. It specifies that certain transfers related to FHL Bank agreements cannot be deemed fraudulent unless made with intent to defraud, and it outlines requirements for FHL Banks when exercising collateral rights during delinquency proceedings. The bill also mandates that the Insurance Department conduct a study on digital insurance payment processing systems, with findings due by February 1, 2026. Overall, the bill seeks to streamline insurance processes while ensuring consumer rights and protections are upheld, with a planned effective date of October 1, 2025, for most provisions.

Statutes affected:
Raised Bill:
INS Joint Favorable Substitute:
File No. 314: