Assembly Bill A10176

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10176
 
                           I N  A S S E M B L Y
 
                             February 12, 2026
                                ___________
 
 Introduced by M. of A. WEPRIN -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation to enacting the "New York
   property rehabilitation protection act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the  "New  York
 property rehabilitation protection act".
   § 2. Legislative findings and determinations. 1. The legislature here-
 by  finds  and  determines that it has become apparent that unscrupulous
 rehabilitation contractors have been using the mechanism  of  assignment
 of benefit agreements to defraud and take advantage of residential prop-
 erty owners and their insurance companies.
   2.  The  legislature further finds and determines that these unscrupu-
 lous rehabilitation contractors, who most often operate in the  wake  of
 natural  disasters, fires, or other catastrophic events, have been found
 to use these assignment of benefit agreements, to sign up impacted  home
 owners,  for inadequate, inordinately expensive, insufficient or unreli-
 able  home  rehabilitation  services,   without   appropriate   consumer
 protections,   express  contractual  provisions  outlining  what  actual
 construction work will be performed and at what cost, based upon a frau-
 dulent and/or misleading promise that all costs of such services will be
 paid for by such home owners' insurance company.
   3. The legislature further finds and determines that  these  unscrupu-
 lous rehabilitation contractors, and their unreliable and often mislead-
 ing  assignment  of  benefit  agreements,  can  result in homeowners not
 receiving quality rehabilitation services,  and/or  ultimately  becoming
 responsible  for  enormous  rehabilitation costs, without the benefit of
 the necessary rehabilitation work.
   4. The legislature further finds and determines that this problem,  of
 the  misuse  of  such  assignment  of  benefit  agreements, has not only
 happened in New York, but in many other states  as  well,  causing  such
 other  states  to  limit or preclude the execution of such assignment of

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14767-01-6
              

 A. 10176                            2
 
 benefit  agreements,  and  mandating  consumer   protection   for   such
 destressed homeowners.
   5.  The  legislature  further  finds  and determines, that in order to
 provide consumer protection for such distressed homeowners in  New  York
 state,  as  well  as  their insurance companies that collect premiums to
 provide property insurance coverage for such  homeowners,  that  similar
 limits  and  preclusions  on  the unscrupulous use of such assignment of
 benefit agreements, must become a part of New York state law,  and  that
 in  order to accomplish such consumer protection, this New York property
 rehabilitation protection act is sought to be enacted to address limita-
 tions with respect to assignment of benefit agreements executed prior to
 January 1, 2027, and to expressly prohibit the use  of  such  agreements
 after January 1, 2027.
   6.  The  legislature  further  finds and determines that this New York
 property rehabilitation protection act will bring New York state and its
 homeowners and insurers in  conformance  with  similar  protections  and
 preclusions  that  have  been  enacted  in  other  states, and that have
 provided such consumer protection  to  their  homeowners  and  insurance
 companies.
   § 3. The insurance law is amended by adding a new section 3463 to read
 as follows:
   §  3463.  NEW  YORK  PROPERTY REHABILITATION PROTECTION ACT. (A) DEFI-
 NITIONS.  AS USED IN THIS SECTION, THE FOLLOWING TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   (1)  "ASSIGNEE" SHALL MEAN A PERSON WHO IS ASSIGNED POST-LOSS BENEFITS
 THROUGH AN ASSIGNMENT AGREEMENT.
   (2) "ASSIGNMENT AGREEMENT" SHALL MEAN ANY INSTRUMENT  BY  WHICH  POST-
 LOSS  BENEFITS  UNDER A RESIDENTIAL PROPERTY INSURANCE POLICY OR COMMER-
 CIAL PROPERTY INSURANCE POLICY, WHICH ARE ASSIGNED  OR  TRANSFERRED,  OR
 ACQUIRED IN ANY MANNER, IN WHOLE OR IN PART, TO OR FROM A PERSON PROVID-
 ING  SERVICES,  INCLUDING,  BUT  NOT LIMITED TO, INSPECTING, PROTECTING,
 REPAIRING, RESTORING, OR REPLACING THE PROPERTY  OR  MITIGATING  AGAINST
 FURTHER DAMAGE TO THE PROPERTY. "ASSIGNMENT AGREEMENT" SHALL NOT INCLUDE
 FEES COLLECTED BY A PUBLIC OR INDEPENDENT ADJUSTER AS DEFINED IN SECTION
 TWO THOUSAND ONE HUNDRED EIGHT OF THIS CHAPTER.
   (3)  "ASSIGNOR"  MEANS A PERSON WHO ASSIGNS POST-LOSS BENEFITS UNDER A
 RESIDENTIAL PROPERTY INSURANCE POLICY OR COMMERCIAL  PROPERTY  INSURANCE
 POLICY TO ANOTHER PERSON THROUGH AN ASSIGNMENT AGREEMENT.
   (4) "COMMERCIAL PROPERTY INSURANCE" SHALL MEAN A CONTRACT OF INSURANCE
 WHICH  IS  LIMITED  TO COVERAGE OF COMMERCIAL RISKS, EXCLUDING WINDSTORM
 COVERAGE, FLOOD INSURANCE, FEDERAL CROP INSURANCE, CROP  HAIL  INSURANCE
 AND  OTHER  FEDERAL  GOVERNMENTAL  POOLS AND ASSOCIATIONS, IN ACCORDANCE
 WITH SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE.
   (5) "RESIDENTIAL PROPERTY INSURANCE" SHALL MEAN INSURANCE  ISSUED  FOR
 DELIVERY  IN  THIS  STATE,  ON A RISK LOCATED OR RESIDENT IN THIS STATE,
 INSURING LOSS OF OR DAMAGE TO REAL PROPERTY USED PREDOMINANTLY FOR RESI-
 DENTIAL PURPOSES AND THAT CONSISTS OF NOT MORE THAN FOUR DWELLING UNITS,
 OTHER THAN HOTELS AND MOTELS, IN ACCORDANCE WITH SECTION THREE  THOUSAND
 FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE.
   (6) "PRE-SUIT SETTLEMENT DEMAND" MEANS THE DEMAND MADE BY THE ASSIGNEE
 IN THE WRITTEN NOTICE OF INTENT TO INITIATE LITIGATION.
   (7) "PRE-SUIT SETTLEMENT OFFER" MEANS THE OFFER MADE BY THE INSURER IN
 ITS WRITTEN RESPONSE TO THE NOTICE OF INTENT TO INITIATE LITIGATION.
   (B) ASSIGNMENT AGREEMENTS. (1) ALL ASSIGNMENT AGREEMENTS SHALL:
 A. 10176                            3
 
   (A) BE EXECUTED UNDER A RESIDENTIAL PROPERTY INSURANCE POLICY OR UNDER
 A COMMERCIAL PROPERTY INSURANCE POLICY PRIOR TO JANUARY FIRST, TWO THOU-
 SAND TWENTY-SEVEN;
   (B) BE DEEMED INVALID, UNLAWFUL AND OF NO LEGAL EFFECT, IF EXECUTED ON
 OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN;
   (C)  BE  IN  WRITING  AND EXECUTED BY AND BETWEEN THE ASSIGNOR AND THE
 ASSIGNEE;
   (D) BE DEEMED TO ALLOW THE ASSIGNOR TO RESCIND THE  ASSIGNMENT  AGREE-
 MENT  WITHOUT A PENALTY OR FEE BY SUBMITTING A WRITTEN NOTICE OF RESCIS-
 SION SIGNED BY THE ASSIGNOR TO THE ASSIGNEE WITHIN FOURTEEN  DAYS  AFTER
 THE EXECUTION OF THE AGREEMENT, AT LEAST THIRTY DAYS AFTER THE DATE WORK
 ON  THE  PROPERTY  IS  SCHEDULED  TO  COMMENCE  IF  THE ASSIGNEE HAS NOT
 SUBSTANTIALLY PERFORMED, OR AT LEAST THIRTY DAYS AFTER THE EXECUTION  OF
 THE  AGREEMENT IF THE AGREEMENT DOES NOT CONTAIN A COMMENCEMENT DATE AND
 THE ASSIGNEE HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY;
   (E) BE DEEMED TO REQUIRE  THE  ASSIGNEE  TO  PROVIDE  A  COPY  OF  THE
 EXECUTED  ASSIGNMENT AGREEMENT TO THE INSURER WITHIN THREE BUSINESS DAYS
 AFTER THE DATE ON WHICH THE ASSIGNMENT AGREEMENT IS EXECUTED OR THE DATE
 ON WHICH WORK BEGINS, WHICHEVER IS EARLIER. DELIVERY OF THE COPY OF  THE
 ASSIGNMENT AGREEMENT TO THE INSURER MAY BE MADE:
   (I)  BY  PERSONAL  SERVICE,  OVERNIGHT  DELIVERY, OR ELECTRONIC TRANS-
 MISSION, WITH EVIDENCE OF DELIVERY IN THE FORM OF  A  RECEIPT  OR  OTHER
 PAPER OR ELECTRONIC ACKNOWLEDGMENT BY THE INSURER; OR
   (II)  TO  THE  LOCATION  DESIGNATED  FOR RECEIPT OF SUCH AGREEMENTS AS
 SPECIFIED IN THE POLICY;
   (F) BE DEEMED TO REQUIRE A SEPARATE, WRITTEN, ITEMIZED, PER-UNIT  COST
 ESTIMATE OF THE SERVICES TO BE PERFORMED BY THE ASSIGNEE;
   (G)  BE  DEEMED TO RELATE ONLY TO WORK TO BE PERFORMED BY THE ASSIGNEE
 FOR SERVICES TO PROTECT, REPAIR,  RESTORE,  OR  REPLACE  A  DWELLING  OR
 STRUCTURE OR TO MITIGATE AGAINST FURTHER DAMAGE TO SUCH PROPERTY;
   (H)  CONTAIN  THE FOLLOWING NOTICE IN 18-POINT UPPERCASE AND BOLDFACED
 TYPE AS FOLLOWS:
   "PLEASE KNOW THAT BY SIGNING THIS AGREEMENT YOU ARE AGREEING  TO  GIVE
 UP CERTAIN RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY TO A THIRD PARTY,
 WHICH MAY RESULT IN LITIGATION AGAINST YOU AND/OR YOUR INSURER.
   PLEASE  READ  AND  UNDERSTAND THIS AGREEMENT THOROUGHLY BEFORE SIGNING
 IT.
   PLEASE FURTHER KNOW THAT YOU HAVE THE RIGHT TO CANCEL  THIS  AGREEMENT
 WITHOUT  PENALTY  WITHIN  14  DAYS  AFTER  THE  DATE  THIS  AGREEMENT IS
 EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON THE PROPERTY IS SCHED-
 ULED TO COMMENCE IF THE ASSIGNEE HAS NOT SUBSTANTIALLY PERFORMED, OR  AT
 LEAST 30 DAYS AFTER THE EXECUTION OF THE AGREEMENT IF THE AGREEMENT DOES
 NOT  CONTAIN A COMMENCEMENT DATE AND THE ASSIGNEE HAS NOT BEGUN SUBSTAN-
 TIAL WORK ON THE PROPERTY.
   PLEASE ALSO KNOW THAT YOU FURTHER HAVE THE RIGHT TO CONSULT AN  ATTOR-
 NEY PRIOR TO SIGNING THIS AGREEMENT.
   BY SIGNING THIS AGREEMENT, YOU SHOULD BE AWARE, THAT YOU WILL BE OBLI-
 GATED  FOR PAYMENT OF ANY CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT
 IS RESCINDED.
   YOU SHOULD FURTHER BE AWARE, THAT THIS AGREEMENT DOES NOT  CHANGE  ANY
 OBLIGATION  YOU MAY HAVE TO PERFORM THE DUTIES REQUIRED UNDER YOUR PROP-
 ERTY INSURANCE POLICY.";
   (I) CONTAIN A PROVISION REQUIRING THE ASSIGNEE TO INDEMNIFY  AND  HOLD
 HARMLESS  THE ASSIGNOR FROM ALL LIABILITIES, DAMAGES, LOSSES, AND COSTS,
 INCLUDING, BUT NOT LIMITED TO, ATTORNEY FEES; AND
   (J) NOT CONTAIN ANY PROVISION PROVIDING FOR:
 A. 10176                            4
 
   (I) ANY PENALTY OR FEE FOR RESCISSION;
   (II) ANY CHECK OR MORTGAGE PROCESSING FEE;
   (III) ANY PENALTY OR FEE FOR CANCELLATION OF THE AGREEMENT; OR
   (IV) ANY ADMINISTRATIVE FEE.
   (2) ANY ASSIGNMENT AGREEMENT CONTAINING ANY PROHIBITED PROVISION ITEM-
 IZED  IN  SUBPARAGRAPH  (J) OF PARAGRAPH ONE OF THIS SUBSECTION SHALL BE
 DEEMED UNLAWFUL, AND SHALL BE AFFORDED NO LEGAL EFFECT.
   (3) IF AN ASSIGNOR ACTS UNDER AN URGENT OR EMERGENCY  CIRCUMSTANCE  TO
 PROTECT  PROPERTY  FROM  DAMAGE  AND EXECUTES AN ASSIGNMENT AGREEMENT TO
 PROTECT, REPAIR, RESTORE, OR REPLACE PROPERTY  OR  TO  MITIGATE  AGAINST
 FURTHER  DAMAGE  TO THE PROPERTY, AN ASSIGNEE MAY NOT RECEIVE AN ASSIGN-
 MENT OF POST-LOSS BENEFITS UNDER A RESIDENTIAL PROPERTY INSURANCE POLICY
 IN EXCESS OF THE GREATER OF THREE THOUSAND DOLLARS OR ONE PERCENT OF THE
 LIMIT UNDER SUCH POLICY.  FOR  PURPOSES  OF  THIS  PARAGRAPH,  THE  TERM
 "URGENT  OR  EMERGENCY  CIRCUMSTANCE"  SHALL MEAN A SITUATION IN WHICH A
 LOSS TO PROPERTY, IF NOT ADDRESSED IMMEDIATELY, SHALL  RESULT  IN  ADDI-
 TIONAL DAMAGE UNTIL MEASURES ARE COMPLETED TO PREVENT SUCH DAMAGE.
   (4)  ANY  ASSIGNMENT  AGREEMENT THAT DOES NOT COMPLY WITH THIS SECTION
 SHALL BE DEEMED INVALID AND UNENFORCEABLE.
   (C) ASSIGNMENT AGREEMENT CLAIMS. (1) IN ANY  CLAIM  ARISING  UNDER  AN
 ASSIGNMENT  AGREEMENT,  AN ASSIGNEE SHALL HAVE THE BURDEN TO DEMONSTRATE
 THAT THE INSURER IS NOT PREJUDICED BY THE ASSIGNEE'S FAILURE TO:
   (A) MAINTAIN ALL RECORDS, INCLUDING BUT NOT LIMITED TO ALL PHOTOGRAPHS
 OF DAMAGED AREAS TAKEN UPON INSPECTION OF THE DAMAGE PRIOR TO ANY  REHA-
 BILITATION EFFORTS, AS WELL AS ALL PRE-REHABILITATION MOISTURE READINGS,
 ALL MITIGATION LOGS, ALL DETAILED DETERMINATIONS REGARDING SCOPE OF WORK
 PERFORMED  OR TO BE PERFORMED, ALL ITEMIZED ESTIMATES, AND ALL ESTIMATED
 AND ACTUAL TIMELINES, OF ALL  SERVICES  PROVIDED  UNDER  THE  ASSIGNMENT
 AGREEMENT;
   (B) COOPERATE WITH THE INSURER IN THE CLAIM INVESTIGATION;
   (C)  PROVIDE  THE INSURER WITH REQUESTED RECORDS AND DOCUMENTS RELATED
 TO THE SERVICES PROVIDED, AND PERMIT THE INSURER TO MAKE COPIES OF  SUCH
 RECORDS AND DOCUMENTS; AND
   (D) DELIVER A COPY OF THE EXECUTED ASSIGNMENT AGREEMENT TO THE INSURER
 WITHIN  THREE  BUSINESS DAYS AFTER EXECUTING THE ASSIGNMENT AGREEMENT OR
 WORK HAS BEGUN, WHICHEVER IS EARLIER.
   (2) IN ANY CLAIM ARISING UNDER AN ASSIGNMENT  AGREEMENT,  AN  ASSIGNEE
 SHALL:
   (A)  PROVIDE  THE  ASSIGNOR WITH ACCURATE AND UP-TO-DATE REVISED ESTI-
 MATES OF THE SCOPE OF WORK TO BE PERFORMED AS SUPPLEMENTAL OR ADDITIONAL
 REPAIRS ARE REQUIRED;
   (B) PERFORM THE WORK IN ACCORDANCE WITH  GENERALLY  ACCEPTED  INDUSTRY
 STANDARDS,  AS  WELL AS ALL BUILDING CODES AND LOCAL PLANNING AND ZONING
 REGULATIONS;
   (C) NOT SEEK PAYMENT FROM THE ASSIGNOR EXCEEDING THE APPLICABLE DEDUC-
 TIBLE UNDER THE POLICY UNLESS THE ASSIGNOR HAS CHOSEN TO HAVE ADDITIONAL
 WORK PERFORMED AT THE ASSIGNOR'S OWN EXPENSE;
   (D) AS A CONDITION PRECEDENT TO FILING SUIT UNDER THE POLICY, AND,  IF
 REQUIRED  BY THE INSURER, SUBMIT TO EXAMINATIONS UNDER OATH AND RECORDED
 STATEMENTS CONDUCTED BY THE INSURER OR THE INSURER'S REPRESENTATIVE THAT
 ARE REASONABLY NECESSARY, BASED  ON  THE  SCOPE  OF  THE  WORK  AND  THE
 COMPLEXITY OF THE CLAIM, WHICH SUCH EXAMINATIONS AND RECORDED STATEMENTS
 SHALL  BE  LIMITED TO MATTERS RELATED TO THE SERVICES PROVIDED, THE COST
 OF THE SERVICES, AND THE ASSIGNMENT AGREEMENT; AND
   (E) AS A CONDITION PRECEDENT TO FILING SUIT UNDER THE POLICY, AND,  IF
 REQUIRED  BY  THE INSURER, PARTICIPATE IN APPRAISAL OR OTHER ALTERNATIVE
 A. 10176                            5
 
 DISPUTE RESOLUTION METHODS IN ACCORDANCE WITH THE TERMS OF THE INSURANCE
 POLICY UNDER WHICH THE CLAIM IS FILED.
   (D)  DEFENSES UNDER ASSIGNMENT AGREEMENTS. AN ASSIGNMENT AGREEMENT AND
 THE PROVISIONS OF THIS SECTION SHALL NOT BE DEEMED TO MODIFY  OR  ELIMI-
 NATE  ANY  TERM,  CONDITION,  OR  DEFENSE RELATING TO ANY MANAGED REPAIR
 ARRANGEMENT PROVIDED UNDER ANY INSURANCE POLICY.
   (E) TRANSFER OF AUTHORITY. NO ASSIGNMENT AGREEMENT SHALL BE DEEMED  TO
 TRANSFER  OR  CREATE  ANY  AUTHORITY TO ADJUST, NEGOTIATE, OR SETTLE ANY
 PORTION OF A CLAIM TO A PERSON OR ENTITY NOT AUTHORIZED TO ADJUST, NEGO-
 TIATE, OR SETTLE A CLAIM ON BEHALF OF AN  ASSIGNOR  OR  A  CLAIMANT,  IN
 ACCORDANCE WITH ANY PROVISION OF THIS CHAPTER.
   (F) EXCLUSIVITY OF ASSIGNMENT AGREEMENT. (1) NOTWITHSTANDING ANY OTHER
 PROVISION  OF  LAW  TO THE CONTRARY, THE ACCEPTANCE BY AN ASSIGNEE OF AN
 ASSIGNMENT AGREEMENT SHALL BE DEEMED A WAIVER BY THE ASSIGNEE,  AS  WELL
 AS ITS SUBCONTRACTORS, OF ANY AND ALL CLAIMS AGAINST A NAMED INSURED FOR
 PAYMENTS ARISING FROM THE ASSIGNMENT AGREEMENT.
   (2)  THE  ASSIGNEE,  AS WELL AS ITS SUBCONTRACTORS, MAY NOT COLLECT OR
 ATTEMPT TO COLLECT ANY MONEY FROM AN INSURED, MAINTAIN ANY ACTION AT LAW
 AGAINST AN INSURED, CLAIM A LIEN ON THE REAL PROPERTY OF AN INSURED,  OR
 REPORT  AN  INSURED  TO  A  CREDIT  AGENCY FOR PAYMENTS ARISING FROM THE
 ASSIGNMENT AGREEMENT.
   (3) THE ASSIGNMENT AGREEMENT SHALL BE DEEMED A  WAIVER  TO  ANY  ADDI-
 TIONAL  PAYMENTS DUE TO THE ASSIGNEE, AND SUCH WAIVER SHALL BE DEEMED TO
 REMAIN IN EFFECT AFTER THE ASSIGNMENT  AGREEMENT  IS  RESCINDED  BY  THE
 ASSIGNOR  OR  AFTER  A  DETERMINATION  HAS BEEN MADE THAT THE ASSIGNMENT
 AGREEMENT IS INVALID.
   (4) UNDER AN ASSIGNMENT AGREEMENT, THE NAMED INSURED SHALL  BE  DEEMED
 RESPONSIBLE FOR THE PAYMENT OF ALL OF THE FOLLOWING:
   (A) ANY DEDUCTIBLE AMOUNT DUE UNDER THE POLICY;
   (B) ANY BETTERMENT ORDERED AND PERFORMED THAT IS APPROVED BY THE NAMED
 INSURED; AND
   (C)  ANY  CONTRACTED WORK PERFORMED BEFORE THE ASSIGNMENT AGREEMENT IS
 RESCINDED.
   (G) ADDITIONAL RESPONSIBILITIES OF ASSIGNEE. (1) UNDER  AN  ASSIGNMENT
 AGREEMENT,  THE  ASSIGNEE  SHALL  BE DEEMED RESPONSIBLE TO INDEMNIFY AND
 HOLD HARMLESS THE ASSIGNOR FROM ALL LIABILITIES,  DAMAGES,  LOSSES,  AND
 COSTS, INCLUDING, BUT NOT LIMITED TO, ATTORNEY FEES.
   (2)  UNDER  AN  ASSIGNMENT  AGREEMENT,  THE ASSIGNEE SHALL PROVIDE THE
 NAMED INSURED, THE INSURER, AND THE ASSIGNOR, IF NOT THE NAMED  INSURED,
 A  WRITTEN  NOTICE  OF  INTENT TO INITIATE LITIGATION BEFORE FILING SUIT
 UNDER THE POLICY. SUCH NOTICE SHALL BE SERVED AT LEAST TEN BUSINESS DAYS
 BEFORE FILING SUIT, BUT NOT BEFORE THE INSURER HAS MADE A  DETERMINATION
 OF  COVERAGE.  SUCH  NOTICE  SHALL  BE  SERVED BY CERTIFIED MAIL, WITH A
 RETURN RECEIPT REQUESTED, TO THE NAME AND MAILING ADDRESS DESIGNATED  BY
 THE  INSURER  IN THE POLICY FORMS. SUCH NOTICE SHALL FURTHER SPECIFY THE
 DAMAGES IN DISPUTE, THE AMOUNT CLAIMED, AND INCLUDE A  PRE-SUIT  SETTLE-
 MENT  DEMAND.  CONCURRENT  WITH  SUCH  NOTICE,  AND AS A PRECONDITION TO
 FILING SUIT, THE ASSIGNEE SHALL PROVIDE THE NAMED INSURED, THE  INSURER,
 AND  THE  ASSIGNOR  WITH  A  DETAILED  WRITTEN  INVOICE  OR  ESTIMATE OF
 SERVICES, INCLUDING ITEMIZED INFORMATION ON  EQUIPMENT,  MATERIALS,  AND
 SUPPLIES  USED,  THE NUMBER OF LABOR HOURS EXPENDED, AND, IN THE CASE OF
 WORK PERFORMED, PROOF THAT SUCH WORK HAS BEEN  PERFORMED  IN  ACCORDANCE
 WITH  GENERALLY  ACCEPTED  INDUSTRY  STANDARDS,  AS WELL AS ALL BUILDING
 CODES AND LOCAL PLANNING AND ZONING REGULATIONS.
   (3) AN INSURER SHALL RESPOND IN WRITING  TO  SUCH  NOTICE  WITHIN  TEN
 BUSINESS  DAYS  AFTER RECEIVING THE NOTICE SPECIFIED IN PARAGRAPH TWO OF
 A. 10176                            6
 
 THIS SUBSECTION BY MAKING A PRE-SUIT SETTLEMENT OFFER OR  REQUIRING  THE
 ASSIGNEE  TO  PARTICIPATE IN AN APPRAISAL OR OTHER METHOD OF ALTERNATIVE
 DISPUTE RESOLUTION UNDER THE INSURANCE POLICY UNDER WHICH THE  CLAIM  IS
 FILED. AN INSURER SHALL FURTHER HAVE A PROCEDURE FOR THE PROMPT INVESTI-
 GATION,  REVIEW,  AND EVALUATION OF THE DISPUTE STATED IN THE NOTICE AND
 SHALL INVESTIGATE EACH CLAIM CONTAINED IN THE NOTICE IN ACCORDANCE  WITH
 THE PROVISIONS OF THIS CHAPTER.
   (4)  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN A
 SUIT RELATED TO AN ASSIGNMENT AGREEMENT  FOR  POST-LOSS  CLAIMS  ARISING
 UNDER  A  RESIDENTIAL  OR COMMERCIAL PROPERTY INSURANCE POLICY, ATTORNEY
 FEES AND COSTS MAY BE RECOVERED BY AN ASSIGNEE  ONLY  IF  SUCH  ATTORNEY
 FEES AND COSTS ARE EXPRESSLY ALLOWABLE IN ACCORDANCE WITH THE ASSIGNMENT
 AGREEMENT.
   (5)  IF  AN  ASSIGNEE  COMMENCES  AN ACTION IN ANY COURT OF THIS STATE
 BASED UPON OR INCLUDING THE SAME CLAIM AGAINST THE  SAME  ADVERSE  PARTY
 THAT  SUCH  ASSIGNEE  HAS PREVIOUSLY VOLUNTARILY DISMISSED IN A COURT OF
 THIS STATE, THE COURT MAY ORDER THE ASSIGNEE TO PAY  THE  ATTORNEY  FEES
 AND  COSTS  OF  THE  ADVERSE  PARTY RESULTING FROM THE ACTION PREVIOUSLY
 VOLUNTARILY DISMISSED. THE COURT SHALL FURTHER STAY THE  PROCEEDINGS  IN
 THE SUBSEQUENT ACTION UNTIL THE ASSIGNEE HAS COMPLIED WITH THE ORDER.
   (H) EXCLUSIONS. THIS SECTION SHALL NOT APPLY TO:
   (1)  AN  ASSIGNMENT,  TRANSFER,  OR CONVEYANCE GRANTED TO A SUBSEQUENT
 PURCHASER OF A PROPERTY WITH AN  INSURABLE  INTEREST  IN  SUCH  PROPERTY
 FOLLOWING A LOSS;
   (2)  A  POWER  OF  ATTORNEY  EXECUTED  IN  FULL  ACCORDANCE  WITH  THE
 PROVISIONS OF THE ESTATES, POWERS AND TRUSTS  LAW,  WHICH  GRANTS  TO  A
 MANAGEMENT  COMPANY,  FAMILY  MEMBER,  GUARDIAN,  OR  SIMILARLY SITUATED
 PERSON OF AN INSURED THE AUTHORITY TO ACT ON BEHALF OF THE INSURED AS IT
 RELATES TO A PROPERTY INSURANCE CLAIM;
   (3) ANY ASSIGNMENT OF BENEFIT AGREEMENT  MADE  IN  ACCORDANCE  WITH  A
 POLICY OF AUTOMOBILE INSURANCE, INCLUDING NO FAULT COVERAGE, OR A POLICY
 OF HEALTH OR LIFE INSURANCE; OR
   (4) LIABILITY COVERAGE UNDER A PROPERTY INSURANCE POLICY.
   (I)  PROHIBITION  ON  ASSIGNMENT  OF  ANY POST-LOSS INSURANCE BENEFIT.
 EXCEPT AS PROVIDED IN THIS SECTION, A POLICYHOLDER SHALL NOT ASSIGN,  IN
 WHOLE  OR IN PART, ANY POST-LOSS INSURANCE BENEFIT UNDER ANY RESIDENTIAL
 PROPERTY INSURANCE POLICY OR UNDER  ANY  COMMERCIAL  PROPERTY  INSURANCE
 POLICY  THAT  IS  ISSUED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-
 SEVEN. ANY ATTEMPT TO ASSIGN SUCH POST-LOSS PROPERTY INSURANCE  BENEFITS
 UNDER  SUCH  A POLICY SHALL BE DEEMED UNLAWFUL, VOID, INVALID, AND UNEN-
 FORCEABLE.
   § 4. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.