Senate Bill 531 aims to regulate the postloss assignment of rights or benefits under property insurance policies specifically for residential contractors. The bill defines a "residential contractor" as someone who repairs or replaces residential roof systems or performs other related work due to damage from catastrophes, which include natural disasters like fires, floods, and tornadoes. Key provisions of the bill prohibit contractors from advertising or promising to rebate any insurance deductible as an inducement for their services. Additionally, contractors are restricted from representing or negotiating on behalf of property owners in insurance claims related to repairs. They must also provide written disclosures regarding the contract obligations and rights before entering into agreements with homeowners.

The bill establishes specific criteria for postloss assignments of rights under property insurance policies. These assignments must include detailed descriptions of the work to be performed, associated costs, and a statement indicating that the contractor has not guaranteed full coverage of the claimed loss. Importantly, homeowners have the right to cancel the assignment within five business days without penalty. If a contractor violates any provisions of the bill, the contract becomes void, and the commissioner of insurance may impose penalties up to $10,000 per violation. The bill also ensures that any assignment does not impair the interests of mortgagees and mandates that contractors provide a copy of the executed assignment to the insurer within five business days.