The proposed bill aims to prohibit the post-loss assignment of benefits in property insurance claims, establishing that any such assignment agreement is void and unenforceable. The legislation highlights the potential risks associated with these agreements, which can allow third parties to collect insurance payments, limit policyholder involvement, and take legal action against insurers without the policyholder's consent. The intent of the bill is to ensure that policyholders maintain control over their insurance claims and protect their rights within the insurance process.

The bill includes specific exceptions to the prohibition, allowing for assignments related to licensed public adjusters, attorneys under certain agreements, and transfers to federally insured financial institutions or mortgagees. It also clarifies that policyholders can still authorize payments for services covered under their insurance policies. Additionally, the bill empowers the insurance commissioner to impose fines for violations of this prohibition, with fines set at $50,000 per violation, which will contribute 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.