Bill > SB55

This bill prohibits the assignment of benefits under residential and commercial property insurance policies, meaning that policyholders cannot transfer their right to receive insurance payments to a third party, such as a contractor, for services performed after a loss. This prohibition applies to "assignment agreements," which are defined as any document where post-loss benefits are assigned to someone providing services like inspecting, protecting, repairing, restoring, or replacing property. The bill makes such assignments against public policy and void, with exceptions for assignments to financial institutions, mortgagees, or subsequent purchasers, and for liability coverage. Violating this prohibition is considered an unfair method of competition and an unfair or deceptive act or practice in the insurance business, and it amends Kansas Statute Annotated (K.S.A.) 40-2404, which defines these unfair practices.

Business and Industry

Financial Institutions and Insurance (Senate)

https://kslegislature.gov/li/b2025_26/measures/sb55/