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Committee advances bill to restrict assignment-of-benefits and tighten contractor standards after natural disasters
Summary
The House Agriculture & Consumer Affairs Committee voted to pass Senate Bill 201, which narrows the definition of substandard work, prohibits assignment of benefits on homeowners policies for 12 months after a natural disaster, and staggers effective dates to allow insurers time to file new forms.
The House Agriculture & Consumer Affairs Committee voted to pass Senate Bill 201 (LC461228S), a homeowner-protection measure that aims to limit contractor abuses after natural disasters and require insurers to revise policy forms. Senator Larry Walker III presented the substitute and described changes to clarify construction standards and to give insurers time to file new forms.
Supporters said the substitute tightens language that originally used the term “substandard construction,” replacing it with a standard that failures must be “inconsistent…
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