House adopts consumer-protection overhaul for assignment-of-benefits and post-storm contracting

The House passed H.B. 5263 on April 29, a consumer‑protection package aimed at abusive ‘assignment of benefits’ practices that have driven litigation and insurance premium increases following storms. Sponsors said the bill increases transparency for homeowners, preserves legitimate contracting relationships and lowers the potential for fraudulent claims.

Representative Wood, who sponsored the bill on the floor, described primary reforms: mandatory disclosures for homeowners solicited door‑to‑door, a 14‑day cancellation window for assignment agreements (with limited emergency waivers for true immediate mitigation), a required pre‑suit settlement offer to reduce litigation, a ban on contractors acting as public adjusters or taking referral fees, and explicit prohibitions on advertising that promises deductible waivers. The bill also instructs regulators to issue a consumer ‘‘bill of rights’’ and guidance on the use of third‑party drone or satellite imagery in underwriting and claims.

Supporters argued the measures protect homeowners from unscrupulous contractors and help prevent premium inflation driven by opportunistic claims. The Department of Consumer Protection will oversee enforcement and the Department of Insurance will set guidelines for imagery use and public notices. The House adopted the amendment and passed the bill.