Bill > H1151

This bill aims to clarify auto insurance liability during claims investigations. It amends the existing law by adding several new provisions: First, it gives the insurance company a 30-day period to investigate the cause of loss after being notified of an insured loss. The insurer must notify the insured of the start and end of the investigation. Second, it prohibits the insurance company from terminating the policy when an insured files a claim. During the investigation period, the insurance company must continue making any ongoing premium payments to the financial institution holding the title of the insured vehicle. Third, it prevents the title holder from reporting any delinquency or taking collection actions until the investigation is complete and a determination has been made. Lastly, it requires gap insurance providers to make payment to the insured within 15 business days after the insurance company's settlement, and for the title holder to list the account as "paid in full" and not report it negatively to credit bureaus until all related insurance policies have been paid. The bill also includes a $10,000 fine for violating these provisions, as determined by the insurance commissioner.

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https://malegislature.gov/Bills/192/H1151