The bill aims to prohibit the post-loss assignment of benefits in property insurance claims, establishing that such agreements, which transfer the rights and benefits of an insurance policy from the policyholder to a third party, are void and unenforceable. The legislation highlights the potential risks associated with these agreements, including the possibility for third parties to collect insurance payments without the policyholder's involvement, limit the policyholder's communication with the insurer, and initiate legal action against the insurer without the policyholder's consent. The intent of the bill is to ensure that policyholders maintain control over their claims and protect their interests in dealings with insurance companies.

The bill includes specific exceptions to the prohibition on assignment agreements, allowing for situations where an insured retains the services of a licensed public adjuster or attorney, or where assignments are made to federally insured financial institutions or for liability coverage. Additionally, the bill clarifies that it does not prevent insured individuals from authorizing payments for services covered under their insurance policies. Violations of this prohibition may result in fines of up to $50,000 per incident, which would be directed to the state general fund. Definitions for key terms such as "assignment agreement," "property insurance," and "public adjuster" are also provided to ensure clarity in the application of the law.