Property insurers must explain repair programs and arbitration choices

A property insurer may offer mandatory binding arbitration only through a separate endorsement that the named insured accepts in writing. This applies to property and casualty policies, except large commercial risks and commercial surplus lines policies. The separate form must explain the court and jury trial rights being given up in exchange for a stated premium discount. The policy may not require arbitration upon request. Acceptance or rejection applies to all insureds and continues through renewal, replacement, or reinstatement unless the named insured asks in writing to change it. This rule excludes voluntary agreements made after a dispute, large commercial risks, and commercial surplus lines policies. This applies to policies issued or renewed after the Act's effective date.

An insurer offering an incentivized managed repair program must explain its terms to policyholders. This applies when a property policy offers an incentive to take part in a program that limits an insured's choice of repair vendors or contractors. The insurer must state the premium benefit or other incentive and explain the repair process, the insured's rights and duties, and any repair warranty or guarantee. This does not cover referral or repair programs without a specified premium reduction or other incentive. This applies to policies issued or renewed after the Act's effective date.

A named insured must obtain a final court judgment that a property insurer broke the insurance contract before bringing a bad faith claim. This concerns bad faith claims by named insureds against property insurers.

Insureds must notify insurers of reopened or supplemental property insurance claims by the stated deadlines. This covers reopened and supplemental property damage claims, including claims under eligible surplus lines policies. A reopened claim seeks payment for damage from the original event that was not previously identified or disclosed to the insurer. A supplemental claim seeks more for a loss or cost from the same event that the insurer already paid. The deadlines pause during a named insured service member's combat-zone or combat-support deployment if it materially affects the ability to file. Reopened-claim notice is due within one year after the loss. Supplemental-claim notice is due within 12 months after the insurer's last payment for that part of the loss.

A surplus lines insurer may not issue a policy meant to satisfy a law that requires coverage from a licensed insurance company. This applies to surplus lines insurers and policies designed to meet a legal insurance requirement.