| 1 | Representative(s) Johnson offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between lines 1296 and 1297, insert: |
| 5 | Section 17. (1) All property insurance contracts issued |
| 6 | in this state shall include the following provisions: |
| 7 | (a) Property insurers shall reimburse all claims or any |
| 8 | portion of any claim from an insured or an insured's assignees, |
| 9 | for payment under a property insurance policy, within 60 days |
| 10 | after receipt of notice of the claim by the property insurer. If |
| 11 | a claim or a portion of a claim is contested by the property |
| 12 | insurer, the insured and the insured's assignees shall be |
| 13 | notified in writing that the claim is contested or denied, |
| 14 | within 60 days after receipt of the notice of claim by the |
| 15 | property insurer. The notice that a claim is contested shall |
| 16 | specifically identify the contested portion of the claim and the |
| 17 | specific reasons for contesting the claim. |
| 18 | (b) A property insurer, upon receipt of the additional |
| 19 | information requested from the insured or the insured's |
| 20 | assignees, shall pay or deny the contested claim or portion of |
| 21 | the contested claim within 90 days. |
| 22 | (c) An insurer shall pay or deny any claim no later than |
| 23 | 120 days after receiving notice of the claim. |
| 24 | (d) Payment shall be treated as being made on the date a |
| 25 | draft or other valid instrument which is equivalent to payment |
| 26 | was placed in the United States mail in a properly addressed, |
| 27 | postpaid envelope, or, if not so posted, on the date of |
| 28 | delivery. |
| 29 | (e) All overdue payments shall bear simple interest at the |
| 30 | rate of 10 percent per year. |
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| 32 | In the event of a violation of this section, the insurer is |
| 33 | liable to the insured or an insured's assignees for incidental |
| 34 | and consequential damages in addition to any other damages |
| 35 | permitted by law. |
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| 38 | ================ T I T L E A M E N D M E N T ============= |
| 39 | Between lines 107 and 108 insert: |
| 40 | specifying required provisions in property insurance |
| 41 | contracts; imposing liability on insurers for damages for |
| 42 | specified violations; |