Raised Bill No. 5263 introduces comprehensive regulations aimed at enhancing consumer protection in the context of homeowners and commercial property insurance, particularly concerning post-loss benefits and home improvement contracts. Effective January 1, 2027, the bill mandates that any assignment agreement for post-loss benefits must be in writing, executed by both parties, and include specific provisions such as the assignor's right to rescind the agreement, an itemized cost estimate, and a clear notice of rights being relinquished. It also prohibits certain fees, places the burden of proof on the assignee regarding record-keeping, and declares non-compliant agreements void. Additionally, the bill outlines requirements for assignees, including providing cost estimates, compliance with the State Building Code, and restrictions on filing claims against the assignor.

The bill further amends existing laws governing home improvement contracts, requiring written contracts that include specific details such as the contractor's registration number and cancellation rights. It prohibits deceptive practices, such as soliciting work through misleading advertisements, and mandates that contractors must be registered and insured. The bill also establishes penalties for unregistered activities and requires the Insurance Commissioner to develop a consumer bill of rights related to insurance and real estate. Overall, Raised Bill No. 5263 aims to promote transparency, accountability, and consumer protection in the home improvement and insurance sectors.

Statutes affected:
Raised Bill: 20-419, 20-420, 20-429, 20-429a