Substitute House Bill No. 6981 aims to modernize the delivery of insurance documents and enhance consumer protections for property and casualty insurance policies. Effective October 1, 2025, insurers will be permitted to post policies and endorsements on their websites instead of mailing them, provided they obtain the insured's consent and ensure the documents are accessible throughout the policy's duration. Insurers must also inform policyholders of their rights to request paper copies and opt out of electronic delivery at any time. The bill introduces new requirements for cancellation notifications, including specific timelines for cancellations based on the reason, and mandates that notices be sent using verifiable tracking methods, such as the U.S. Postal Service's intelligent mail barcode tracking system.

Additionally, the bill modifies existing statutes related to the rehabilitation and liquidation of insurers, particularly concerning Federal Home Loan Banks. It broadens the definition of fraudulent transfers and stipulates that a receiver cannot avoid transfers related to an FHL Bank unless there is intent to defraud. The bill also outlines specific requirements for FHL Banks regarding collateral management and allows for certain activities to proceed during an insurer's conservation or rehabilitation. Overall, the legislation seeks to enhance transparency, accountability, and consumer protection within the insurance industry while streamlining communication between insurers and policyholders.

Statutes affected:
Raised Bill:
INS Joint Favorable Substitute:
File No. 314:
File No. 925: