The proposed bill aims to enhance consumer protection in the insurance sector by implementing new requirements for public adjusters, insurance firms, and insurers. It mandates that public adjusters and their apprentices respond to claim status requests from claimants or their representatives within 14 days and retain a copy of their response. Additionally, the bill introduces a new section that requires universal life insurance policies to include an annual report provision detailing the policy's status and financial metrics. It also revises existing laws related to group health insurance policies and establishes new regulations for automobile insurers regarding towing and labor coverage, necessitating express consent before submitting claims.

Moreover, the bill requires insurers to pay or deny certain claims within 60 days of receiving notice, along with providing written explanations for any denials. Payments made after this timeframe will accrue interest from the date the claim is received. The bill clarifies that non-compliance with these provisions does not create a private cause of action, while also outlining exceptions for specific claims. It introduces new categories of insurance coverage and establishes conditions under which certain requirements are tolled, such as during mediation or when a policyholder fails to provide requested claims information within a specified timeframe. The tolling provisions pause the period for fulfilling requirements during mediation or if the policyholder does not respond within 10 days, resuming once mediation concludes or the requested information is received. The bill is set to take effect on July 1, 2025.

Statutes affected:
S 1428 Filed: 627.6515