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, as they are deemed contrary to public policy. Exceptions are made for assignments to federally insured financial institutions, mortgagees, or subsequent property purchasers, as well as for liability coverage under property insurance policies. Violations of this provision are classified as unfair competition and deceptive practices. Additionally, the bill amends existing laws to define unfair methods of competition and deceptive acts in the insurance sector, including a list of practices such as misrepresentation and unfair discrimination, particularly protecting individuals with disabilities or those who have experienced domestic abuse.

Furthermore, the bill introduces amendments targeting unfair claim settlement practices and the regulation of title insurance. It prohibits insurers and their representatives from offering insurance as an inducement for purchasing another policy and outlines various unfair practices related to claim settlements, including misrepresentation and delays in payment. The bill also addresses rebates and inducements in title insurance, forbidding title insurance companies from offering any form of rebate to secure business and requiring disclosure of financial interests in referrals. It repeals a previous statute and grants the commissioner authority to adopt necessary regulations for enforcement, with the provisions taking effect upon publication in the statute book.

Statutes affected:
As introduced: 40-2404