Bill > H7517

This bill strengthens consumer protections in insurance claims by expanding the definition of unfair claims settlement practices and clarifying an insured's right to pursue bad-faith remedies, meaning individuals can sue their insurance company if they believe it acted unfairly or unreasonably in handling their claim. Specifically, it clarifies that an insurer's duty of good faith and fair dealing includes conducting reasonable investigations with qualified individuals and timely evaluating and settling claims, and that using unlicensed individuals for these tasks can be considered bad faith. The bill also explicitly allows for a private right of action, meaning individuals can sue directly for violations of unfair claims practices, and can recover actual damages, attorney fees, and potentially enhanced damages if the insurer knowingly or recklessly violated the law, while also clarifying that this does not apply to mere negligence or good-faith disputes over coverage. Furthermore, it expands the types of unfair practices to include failing to conduct reasonable investigations of property claims using appropriate standards, assigning unqualified personnel, and improperly depreciating labor costs when calculating claim values.