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Committee advances bill prohibiting post-loss assignment of property-insurance benefits after close vote
Summary
House Bill 2399, which would bar assignment of post‑loss property‑insurance benefits to third parties, was reported out of committee with a due‑pass recommendation after an 8‑7 roll call; supporters called the practice predatory, while opponents said the ban could block a route to prompt home repairs.
House Bill 2399, aiming to prohibit post‑loss assignment of property‑insurance benefits, was reported out of the Consumer Protection and Business Committee on Feb. 4, 2026 by an 8‑7 vote.
Megan Mulvihill, committee staff, described the bill as prohibiting assignment agreements that transfer insurance benefits after a loss. Vice Chair Hackney described post‑loss assignments as "a predatory practice that almost never leads to the advantage of the property owner," and urged support. "This bill does that," Hackney said.
Representative Abarno opposed the measure and urged a no vote, saying assignments can be necessary in communities hit by seasonal flooding where contractors step in to get homeowners back into their homes. "When the homeowner is in a dispute with an insurance company and their house is not getting repaired, often the assignment of those benefits is the only way they can get into their home," Abarno said, calling the bill ‘‘overly sweeping.’'
After debate the committee recorded eight ayes and seven nays and reported House Bill 2399 out of committee with a due‑pass recommendation. The chair called the outcome a "soft due pass recommendation" and encouraged the Office of the Insurance Commissioner and sponsors to continue working to narrow scope and avoid unintended consequences.
The bill will move toward further consideration where sponsors may propose targeted exceptions or refinements.
