This bill introduces a new section to Chapter 27-5 of the General Laws concerning fire insurance policies and reserves, establishing minimum limitations standards for structural property damage claims. It specifies that no policy provision, endorsement, condition, limitation, agreement, discount, premium credit, or other consideration can shorten the time frame within which insured parties, beneficiaries, claimants, or assignees may pursue benefits, invoke appraisal, or commence an action for payment, making any such provisions void and unenforceable.

The bill sets a minimum limitations period of 24 months for claims related to fire or lightning and 10 years for other structural property damage claims, unless a shorter period is explicitly provided by statute. It mandates that insurers provide clear written disclosures to insured parties regarding these limitations and the conditions under which claims can be considered closed.

Additionally, the bill prohibits insurers from stating or implying that a claim is closed, satisfied, or settled without a formal written release executed by the claimant, witnessed by a disinterested adult, and notarized by a notary who is not affiliated with the insurer. It holds insurers liable for direct physical damage caused by covered perils but allows them to deny coverage for additional damage resulting from the claimant's neglect.

The bill empowers the director of business regulation to enforce these provisions and to create rules for standardized disclosures, ensuring compliance with the new standards. This act will take effect upon passage.