House Bill No. 1213, introduced by Representative Braud, amends the Stated Value Homeowner's Policy Act to redefine the "stated value policy" as a residential insurance policy where the insured may declare a stated value for their property, which the insurer agrees to as the coverage amount, regardless of the property's replacement cost value. The bill clarifies that insurers can offer this policy option based on the stated value rather than solely on the market value. Additionally, it requires homeowners opting for a stated value policy to submit a written payoff statement from any financial institution holding a mortgage or lien on the property, ensuring that the insurance coverage reflects the financial obligations associated with the property.

The bill also introduces a requirement for insurers to obtain a signed statement from insureds before issuing a stated value policy, which includes a notice about the limitations of the coverage. Furthermore, it removes the previous requirement for insurers to prominently disclose stated value policy offerings in all insurance proposals and agreements. The commissioner of insurance is tasked with providing consumer information about the risks associated with stated value policies but is no longer required to distribute these materials directly to homeowners. The bill will take effect upon the governor's signature or after the designated time for gubernatorial action.

Statutes affected:
HB825 Original: 22:5(B)(1)
HB825 Engrossed: 22:1, 22:3(A)