The bill establishes new regulations concerning assignment agreements for post-loss benefits under residential and commercial property insurance policies, rendering such assignments null and void unless they are made to federally insured financial institutions or pertain to liability coverage. This prohibition is aimed at preventing unfair competition and deceptive practices within the insurance sector. Additionally, the bill amends existing laws to clarify definitions of unfair competition and deceptive acts, specifically addressing issues like misrepresentation and discrimination against individuals who are victims of domestic abuse or living organ donors.

Moreover, the legislation introduces amendments that prohibit insurers and their representatives from using insurance as an inducement for purchasing other policies and outlines various unfair claim settlement practices, including misrepresentation and failure to promptly investigate claims. It also mandates insurers to keep comprehensive records of complaints and establishes penalties for misrepresentation in insurance applications. The bill further addresses title insurance by prohibiting rebates or inducements from title insurance companies and agents, requiring financial interest disclosures, and emphasizing the protection of nonpublic personal information in accordance with federal regulations. Overall, the bill aims to enhance consumer protection and promote fair practices in the insurance industry.

Statutes affected:
As introduced: 40-2404