Authorized insurer issuing a property insurance policy with replacement cost coverage to withhold payment until the insurer receives proof of insured's deducible payment.
Provided methods of reasonable proof of payment as canceled check, credit card statement, financing arrangement that requires full payment of deductible over time.
Authorized any used motor vehicle source generally recognized by business industry.
Insurers issuing property insurance policies can require claimants to submit a proof of loss statement before insurer pays a claim, using form approved by INS Commissioner.
Insurers that mandate proof of loss statement must provide form to claimant within 10 business days of receiving the claim, and make it easily accessible on their websites.
Insurer's penalty for delay in paying third party claimant (without cause) to claimant's expenses, penalty not to exceed 10% or $2.5k, whichever is greater, and attorney fees
If insurer fails to timely provide rental coverage to first-party insured, insurer must pay reasonable expenses, penalty not to exceed 50% or $2.5k, whichever is greater.
Limited reasonable expenses to insured's rental costs or other expenses incurred due to insured's inability to use insured vehicle when rental coverage was not authorized.
Legislative History
On Apr. 4, 2025, bill introduced in House; on Apr. 30, 2025, bill was passed in House.
On Apr. 30, 2025, bill delivered to Senate; on Jun. 3, 2025, amended bill passed.
On Jun. 4, 2025, bill returned to House; on Jun. 8, 2025, amendments concurred in.
Effectiveness
If an effective date is not provided in the bill text, the bill will always become effective on Aug. 1 of the year that the bill passed the Legislature, so effective on Aug. 1, 2025.
Jul. 2025 LOU LEG Bill Enactment
On Jul. 1, 2025, LOU LEG report bill became Act No. 500 without governor signature.
