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, mortgagees, or subsequent property purchasers. It also allows for exceptions related to 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 provide a clearer definition of unfair methods of competition and deceptive acts in the insurance sector, including a list of practices such as misrepresentation and unfair discrimination, particularly concerning victims of domestic abuse.

Moreover, the bill introduces several amendments aimed at curbing unfair practices in the insurance industry. It prohibits insurers and their representatives from using insurance as an inducement for purchasing other policies and outlines unfair claim settlement practices, including misrepresentation and delays in claim investigations. Insurers are required to keep a complete record of complaints and face penalties for misrepresentation in applications. The bill also addresses title insurance by prohibiting rebates or inducements from title insurance companies and agents, mandating financial interest disclosures, and ensuring compliance with federal regulations regarding the protection of nonpublic personal information. Lastly, it repeals a specific statute and states that the act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 40-2404