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Sen. Hunt’s Bill Would Bar Contractors From Taking Post‑loss Insurance Rights; OIC, Consumer Advocates Support
Summary
SB 6178 would make assignment agreements that transfer post-loss insurance benefits from homeowners to contractors void and unenforceable; the Office of Insurance Commissioner and consumer-advocate groups testified in support and the bill includes a $50,000-per-violation fine, though members asked about calibrating penalties and cooling-off periods.
Senate Bill 6178, which the Consumer Protection and Business Committee heard Feb. 18, would prohibit soliciting, coercing or contracting for post‑loss assignment of insurance benefits and make such assignment agreements void and unenforceable.
Senator Victoria Hunt (5th Legislative District), the bill’s sponsor, said the measure is aimed at protecting homeowners after disasters such as wildfires, when contractors may condition repairs on an assignment that transfers insurance claim control to the contractor. “The purpose of this…
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