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Committee advances bill to bar most post-loss assignment of property-insurance benefits, 8–7
Summary
The committee reported substitute House Bill 2,399 out of committee with a due-pass recommendation after close debate (8 ayes, 7 nays); supporters called post-loss assignments predatory, opponents said the ban could block homeowners from getting repairs after floods.
The Consumer Protection and Business Committee voted Wednesday to report substitute House Bill 2,399 out of committee with a due-pass recommendation following a split roll-call vote of 8–7.
Megan Mulvihill, staff to the committee, told members the bill prohibits post-loss assignment agreements that transfer post-loss property-insurance benefits from insured homeowners to another party. Vice Chair Hackney urged support, calling the practice “predatory” and saying it often disadvantages property owners.
Representative Abarneau strongly opposed the bill on the floor, arguing that in communities with seasonal flooding assignments to trusted contractors can be the only way homeowners secure repairs and regain access to their homes. Abarneau said existing remedies such as the Consumer Protection Act might be sufficient to hold bad actors accountable in some cases.
The chair said the committee would report the bill onward while encouraging the Office of the Insurance Commissioner and sponsors to work on narrowing the bill’s scope to avoid unintended consequences. The roll call recorded eight ayes and seven nays; committee staff announced the result and the bill was reported out with a due-pass recommendation.
Supporters described the bill as protecting homeowners from abusive assignment arrangements that remove insureds’ decision rights; opponents said the prohibition is too broad and risks harming homeowners who rely on assignments to get emergency repairs.
