H.F. _____ Section 1. Section 507B.4, subsection 3, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . w. Insured —— requests for information. 3 Refusing to provide requested information to an insured in 4 accordance with section 507B.4D on the basis that the requested 5 information is privileged, if the information is later 6 determined not to be privileged. 7 Sec. 2. NEW SECTION . 507B.4D Insured —— requests for 8 information. 9 1. As used in this section, unless the context otherwise 10 requires: 11 a. “Insured” means a person covered under an insurance 12 policy. 13 b. “Insurer” means a person licensed to transact the 14 business of insurance in this state. 15 c. “Person” means an individual, corporation, limited 16 liability company, business trust, estate, trust, partnership 17 or association, or any other legal entity. 18 2. Except as provided under subsection 3, an insurer shall 19 provide, within fifteen calendar days of receipt of a request, 20 the following information to an insured if requested by the 21 insured: 22 a. A certified copy of the insured’s insurance policy. 23 b. A copy of a claim application filed by the insured. 24 c. The name and contact information of any person involved 25 on the insurer’s behalf with a claim filed by the insured. 26 d. An accounting of the amount paid on a claim filed by the 27 insured. 28 e. An accounting of the reserve set on a claim filed by the 29 insured. 30 f. A copy of internal communications, notes, or memos 31 related to a claim filed by the insured, including internal 32 communications, notes, or memos of a third-party administrator 33 or independent adjusting firm. 34 g. A copy of communications related to a claim filed by the 35 -1- LSB 6005YC (4) 91 nls/ko 1/ 17

H.F. _____ insured between the insurer and any other party. 1 h. A copy of all information in the possession of the 2 insurer related to a claim filed by the insured, including 3 information submitted by the insured to the insurer, and 4 information the insurer independently gathered. 5 i. Other information required to be provided to an insured 6 upon request pursuant to rules adopted by the commissioner. 7 3. An insurer shall not be required to provide privileged 8 information to an insured. If an insurer refuses to provide 9 information to an insured on the basis that the information 10 is privileged, the insurer shall provide the insured with a 11 written explanation for the basis of the privilege. If the 12 information is later determined not to be privileged, the 13 insurer’s prior refusal to provide the requested information 14 shall constitute an unfair method of competition and unfair or 15 deceptive act or practice under section 507B.4. 16 Sec. 3. NEW SECTION . 507B.4E Insurance policies —— 17 prohibited deadlines and statutes of limitation. 18 An insurer shall not include any of the following in an 19 insurance policy: 20 1. A deadline for an insured to provide notice of a loss 21 to the insurer if the insured could not have reasonably known 22 about the loss, and the insurer will not be prejudiced by a 23 delay in notice. 24 2. If the insurance policy provides for replacement cost, 25 a deadline for the insured to recover the depreciation amount 26 that is less than one year from the date that the insurer made 27 the most recent actual cash value payment to the insured. An 28 insurer shall provide written notice to the insured of the 29 deadline for the insured to recover the depreciation amount 30 no later than ninety calendar days prior to the date of the 31 deadline. 32 3. Language that imposes a statute of limitations for an 33 insured to file a lawsuit against the insurer for wrongfully 34 denying a claim submitted by the insured to less than five 35 -2- LSB 6005YC (4) 91 nls/ko 2/ 17

H.F. _____ years from the date of the loss that is the subject of the claim 1 that the insurer denied, or less than two years from the date 2 of the denial of the claim, whichever is later. An insurer 3 shall provide written notice to the insured of the statute of 4 limitations deadline for the insured to file a lawsuit related 5 to a denied claim no later than ninety calendar days prior to 6 the date of the deadline. 7 Sec. 4. NEW SECTION . 515.116 Loss calculations —— property 8 insurance claims. 9 1. Definitions. As used in this section, unless the context 10 otherwise requires: 11 a. “Actual cash value” means the replacement cost of 12 property at the time of the loss, less depreciation, if 13 any. If the replacement cost of property at the time of the 14 loss, less depreciation, cannot be ascertained, a person may 15 determine the actual cash value of property using the market 16 value, diminished value, or other evidence or information to 17 determine the actual cash value of property at the time of the 18 loss. 19 b. “Commissioner” means the commissioner of insurance. 20 c. “Insurance policy” means a property insurance policy 21 issued by an insurer. 22 d. “Insured” means a named insured covered under an 23 insurance policy. 24 e. “Insurer” means a person to whom the commissioner of 25 insurance has issued a property insurance producer license. 26 f. “Line of sight” means any location a reasonable person 27 would stand, on the ground or any floor of an insured’s damaged 28 structure, to view, without obstruction or the use of aerial 29 tools or technology, the damaged area of the interior or 30 exterior of the damaged structure from a reasonable distance. 31 “Line of sight” is not limited to a view of the insured’s 32 damaged structure from the location at which the damage 33 occurred. 34 g. “Reasonable distance” means, for exterior repair or 35 -3- LSB 6005YC (4) 91 nls/ko 3/ 17

H.F. _____ replacement, a vantage point approximately thirty feet from 1 where the repair or replacement is to occur. A “reasonable 2 distance” for interior repair or replacement means a vantage 3 point approximately five feet from where the repair or 4 replacement is to occur. Based on a particular property, 5 “reasonable distance” may be determined to be greater than or 6 less than thirty feet for exterior repair, or greater than or 7 less than five feet for interior repair. 8 h. “Reasonably similar appearance” means if, within a 9 line of sight, a person viewing the repaired or replaced 10 property would find the property to resemble the property’s 11 preloss condition, or would find the repaired or replaced 12 property indistinguishable from the remaining original 13 property. Whether a replacement results in a reasonably 14 similar appearance is a fact-specific determination made 15 on a case-by-case basis considering the totality of the 16 circumstances. 17 2. Replacement cost. For an insurance policy providing for 18 the adjustment and settlement of first-party losses based on 19 replacement cost, all of the following shall apply: 20 a. When a loss requires repair or replacement of a product 21 or part, consequential physical damage incurred during the 22 repair or replacement of the product or part shall be included 23 in the calculation of loss. The insured shall not be required 24 to pay for betterment or other costs, except for any applicable 25 deductible. 26 b. (1) When a loss requires repair or replacement of a 27 product or part, the insurer shall repair or replace as much 28 of the product or part as is necessary to achieve a reasonably 29 similar appearance. 30 (2) An insurer shall have the burden to prove that a 31 proposed repair or replacement of a product or part will 32 achieve a reasonably similar appearance, after the insurer 33 conducts a comparison of the original product or part to the 34 proposed repair or replacement product or part. 35 -4- LSB 6005YC (4) 91 nls/ko 4/ 17

H.F. _____ (3) As necessary to determine whether a proposed repair 1 or replacement will achieve a reasonably similar appearance, 2 an insurer may compel an insured to complete the repair or 3 replacement at the expense of the insurer. The insured shall 4 not bear any cost over the insured’s applicable deductible, if 5 any. 6 (4) An insurer that includes, in an insurance policy 7 providing for the adjustment and settlement of first-party 8 losses based on replacement cost, an endorsement that excludes 9 or limits the requirement for a repair or replacement product 10 or part to achieve a reasonably similar appearance shall not 11 be subject to subparagraphs (1) through (3), provided the 12 endorsement meets all of the following requirements: 13 (a) The endorsement is approved by the commissioner. 14 (b) The endorsement is listed in the insurance policy 15 declarations page. 16 (c) The endorsement results in a premium discount for the 17 insured. 18 (d) The endorsement includes a disclosure statement, 19 in twelve point or larger bold font, informing the insured 20 that the insured is forfeiting the rights provided under 21 subparagraphs (1) through (3). 22 (e) The endorsement is signed by the insured. 23 c. (1) When a loss requires repair or replacement of a 24 building, the insurer shall repair or replace as much of the 25 building as is necessary to bring the building into compliance 26 with the building code adopted by the jurisdiction in which 27 the damaged building is located. If the jurisdiction has not 28 adopted a building code, the insurer shall repair or replace as 29 much of the building as is necessary to bring the building into 30 compliance with the state building code. The insured shall 31 not bear the cost of betterment or any cost except for the 32 applicable deductible, if any. 33 (2) An insurer that includes, in an insurance policy 34 providing for the adjustment and settlement of first-party 35 -5- LSB 6005YC (4) 91 nls/ko 5/ 17

H.F. _____ losses based on replacement cost, an endorsement that excludes 1 or limits the requirement for a repair or replacement of a 2 building to comply with the building code adopted by the 3 jurisdiction in which the damaged building is located or the 4 state building code shall not be subject to subparagraph 5 (1) provided the endorsement meets all of the following 6 requirements: 7 (a) The endorsement is approved by the commissioner. 8 (b) The endorsement is listed in the insurance policy 9 declarations page. 10 (c) The endorsement results in a premium discount for the 11 insured. 12 (d) The endorsement includes a disclosure statement, 13 in twelve point or larger bold font, informing the insured 14 that the insured is forfeiting the rights provided under 15 subparagraph (1). 16 (e) The endorsement is signed by the insured. 17 d. (1) The insurance policy shall not include a roof 18 payment schedule, or a similar provision, intended to reduce 19 the insurer’s liability for damage to roof surfaces or to 20 property otherwise insured at a replacement cost. 21 (2) An insurer that includes, in an insurance policy 22 providing for the adjustment and settlement of first-party 23 losses based on replacement cost, an endorsement that excludes 24 or limits the insurer’s liability for damage to roof surfaces 25 or to property otherwise insured at a replacement cost shall 26 not be subject to subparagraph (1), provided the endorsement 27 meets all of the following requirements: 28 (a) The endorsement is approved by the commissioner. 29 (b) The endorsement is listed in the insurance policy 30 declarations page. 31 (c) The endorsement results in a premium discount for the 32 insured. 33 (d) The endorsement includes a disclosure statement, 34 in twelve point or larger bold font, informing the insured 35 -6- LSB 6005YC (4) 91 nls/ko 6/ 17

H.F. _____ that the insured is forfeiting the rights provided under 1 subparagraph (1). 2 (e) The endorsement is signed by the insured. 3 e. The replacement cost of damaged property shall be 4 calculated based on the replacement cost on the date that the 5 damaged property is repaired or replaced. 6 3. Actual cash value. For an insurance policy providing 7 for adjustment and settlement of first-party losses based on 8 actual cash value, if the actual cash value of a claim is 9 not calculated as the replacement cost less depreciation, 10 the insurer shall provide a copy of the claim file worksheet 11 detailing all deductions for depreciation and a detailed 12 written explanation that describes the manner in which 13 depreciation was calculated and the actual cash value 14 determined. 15 4. Total loss. For property covered by an insurance 16 policy that is wholly destroyed or damaged and cannot be 17 repaired, or the cost of repair exceeds the value of the 18 property, the insurer shall pay the insured the limit of the 19 insurance policy. The insurer shall not withhold the cost of 20 depreciation or the insured’s deductible. 21 5. Cosmetic damage. 22 a. An insurance policy shall not include a provision that 23 requires covered property damage to satisfy certain criteria in 24 order to exclude or limit the insurer’s liability for cosmetic 25 or nonfunctional damages. 26 b. An insurer that includes an endorsement insurance policy 27 that establishes criteria that covered property must satisfy 28 in order for the insured to receive cosmetic or nonfunctional 29 damages shall not be subject to this subsection provided the 30 endorsement meets all of the following requirements: 31 (1) The endorsement is approved by the commissioner. 32 (2) The endorsement is listed in the insurance policy 33 declarations page. 34 (3) The endorsement results in a premium discount for the 35 -7- LSB 6005YC (4) 91 nls/ko 7/ 17

H.F. _____ insured. 1 (4) The endorsement includes a disclosure statement, in 2 twelve point or larger bold font, informing the insured that 3 the insured is forfeiting the rights provided under paragraph 4 “a” . 5 (5) The endorsement is signed by the insured. 6 Sec. 5. NEW SECTION . 515.117 Adjustment and payment of 7 claims. 8 1. Definitions. As used in this section, unless the context 9 otherwise requires: 10 a. “Commissioner” means the commissioner of insurance. 11 b. “Insurance policy” means a property insurance policy 12 issued by an insurer. 13 c. “Insured” means a named insured covered under an 14 insurance policy. 15 d. “Insurer” means a person to whom the commissioner of 16 insurance has issued a property insurance producer license. 17 2. Acknowledgment of claim. No later than fifteen business 18 days after the date an insurer receives notice of a claim, 19 or notice that a claim has been received by an agent of the 20 insurer, the insurer shall do all of the following: 21 a. Provide acknowledgment to the insured that the claim has 22 been received. If the acknowledgment is not made in writing, 23 the insurer shall make a record specifying the date, manner, 24 and content of the acknowledgment. 25 b. Commence review or investigation of the claim as 26 necessary. 27 c. Request that the insured provide any item, statement, 28 or form related to the claim, including any proof of loss form 29 required by the insurer, necessary for review or investigation 30 of the claim. The insurer shall provide the insured with any 31 form or instruction necessary for the insured to provide such 32 item, statement, or form. The insurer may request additional 33 items, statements, or forms related to the claim during the 34 course of the review or investigation. 35 -8- LSB 6005YC (4) 91 nls/ko 8/ 17

H.F. _____ 3. Communications. An insurer shall reply within fifteen 1 business days from the date of receipt to a communication 2 from an insured to which an insured would reasonably expect 3 a response from the insurer. The insurer’s response shall 4 address all material parts of the insured’s communication. 5 4. Acceptance or denial of claim. 6 a. Except as provided by paragraph “b” , an insurer shall 7 notify an insured in writing of the acceptance or denial of 8 a claim no later than thirty calendar days from the date of 9 receipt of a properly completed proof of loss form. 10 b. If there is a reasonable basis, supported by specific 11 evidence, for an insurer to believe that an insured 12 fraudulently caused or contributed to a claim, an insurer shall 13 do all of the following: 14 (1) Notify the insured, no later than thirty calendar days 15 from the date of receipt of a properly completed proof of loss 16 form, of the reason additional time is required to investigate 17 the claim. 18 (2) Notify the insured every thirty calendar days following 19 the notice under subparagraph (1) of the reason additional time 20 is required to investigate the claim. 21 (3) Within a reasonable amount of time after completing an 22 investigation of the claim and making a determination whether 23 the insured fraudulently caused or contributed to the claim, 24 notify the insured of the acceptance or denial of the claim. 25 c. If any part of a claim is denied by an insurer, the 26 notice required by paragraph “a” or paragraph “b” , subparagraph 27 (3), must include a complete and detailed explanation of the 28 reason for the denial and include a citation to applicable 29 insurance policy language or law that is the basis for the 30 denial. If a denial of a claim, in part or in full, is based 31 on a written report or other documentation of the claim by the 32 insurer or by an agent of the insurer, the written report or 33 other documentation shall be provided to the insured. 34 5. Inspection of damaged property. 35 -9- LSB 6005YC (4) 91 nls/ko 9/ 17

H.F. _____ a. If, prior to an insurer accepting or denying a claim, 1 inspection of damaged property that is the subject of a claim 2 is required, the insurer shall schedule and complete the 3 inspection no later than thirty calendar days from the date of 4 receipt of a properly completed proof of loss form. 5 b. An insurer shall complete an inspection of damaged 6 property within the time limit under paragraph “a” unless 7 an act of nature prevents the insurer from completing the 8 inspection. If an inspection is delayed the insurer shall 9 notify the insured within the time limit under paragraph “a” , 10 and every thirty calendar days thereafter until an inspection 11 is completed, of the reason the inspection is delayed or 12 continuing to be delayed. 13 6. Claim payment. 14 a. Except as otherwise provided by this section, if an 15 insurer accepts liability for all or part of a claim, the 16 insurer shall pay the portion of the claim for which liability 17 has been accepted not later than ten business days after the 18 date liability was accepted. 19 b. If payment of all or part of a claim is conditioned on 20 the performance of an act by the insured, the insurer shall pay 21 the portion of the claim for which liability has been accepted 22 not later than ten business days after the act is performed by 23 the insured. 24 c. This subsection shall not apply if, through litigation, 25 arbitration, mediation, or appraisal, it is discovered that any 26 of the following are true: 27 (1) The damaged property that is the subject of a claim does 28 not belong to the insured that filed the claim, such that the 29 insured did not suffer any loss. 30 (2) The insured’s insurance policy does not provide 31 coverage for the damaged property that is the subject of a 32 claim. 33 (3) The claim is otherwise invalid. 34 7. Penalties. 35 -10- LSB 6005YC (4) 91 nls/ko 10/ 17

H.F. _____ a. If an insurer that accepts all or part of a claim 1 violates subsection 4, 5, or 6, the insurer shall be liable 2 for, in an action brought by an insured against the insurer 3 in which the insured prevails, the portion of the claim for 4 which the insurer accepted liability plus simple interest at 5 an annual rate of eighteen percent on the portion of the claim 6 not adjusted or paid pursuant to this section, the insured’s 7 cost of litigation, including reasonable attorney fees, and 8 any other damages provided by law. Simple interest on a claim 9 shall begin accruing on the date of the insurer’s violation and 10 shall accrue until the date the underlying claim and interest 11 is paid in full by the insurer. 12 b. This subsection shall not be construed to prevent or 13 replace an award of prejudgment interest or any other damages 14 as provided by law. 15 8. Public adjusters. 16 a. An insurer shall not include a provision in an insurance 17 policy that prohibits an insured from contracting with a public 18 adjuster. 19 b. For purposes of this subsection, “public adjuster” means 20 the same as defined in section 522C.2. 21 Sec. 6. NEW SECTION . 515.135 Use of aerial images. 22 1. As used in this section, unless the context otherwise 23 requires: 24 a. “Aerial image” means an image of a named insured’s 25 property captured by or from an airborne platform. 26 b. “Cancellation” means the termination of a policy within 27 sixty calendar days from the date of issuance of the policy 28 due to misalignment of the covered property with the insurer’s 29 underwriting guidelines. 30 c. “Insurance policy” means a property insurance policy 31 issued by an insurer. 32 d. “Insured” means a named insured covered under an 33 insurance policy. 34 e. “Insurer” means a person to whom the commissioner of 35 -11- LSB 6005YC (4) 91 nls/ko 11/ 17

H.F. _____ insurance has issued a property insurance producer license and 1 who utilizes aerial images for underwriting. 2 2. An insurer that cancels or does not renew an insurance 3 policy due to nonacceptance of risk based in whole or in part 4 on aerial images shall do all of the following: 5 a. Include, as part of a notice to an insured of nonrenewal 6 or cancellation of an insurance policy, all of the following: 7 (1) Full-resolution color copies of each date-stamped 8 aerial image from the immediately preceding twelve months that 9 depict the specific conditions of the property that misalign 10 with the insurer’s underwriting guidelines. 11 (2) An explanation of the specific conditions of the 12 property that require remediation to align with the insurer’s 13 underwriting guidelines. 14 (3) An explanation of the process to appeal the nonrenewal 15 or cancellation. 16 b. (1) Establish a specific point of contact and a 17 process for an insured to provide documentation of completed 18 remediations of the specific conditions of the property that 19 require remediation to align with the insurer’s underwriting 20 guidelines. 21 (2) Consider documentation provided by an insured pursuant 22 to subparagraph (1) to determine whether to uphold or reverse 23 the nonrenewal or cancellation of the insurance policy. 24 c. (1) Disclose to an insured any factors, risk-scoring 25 system, or criteria that the insurer considered to make the 26 determination to cancel or not renew the insurance policy. 27 (2) Establish an appeals process for an insured to correct 28 an error or misunderstanding related to the insured’s risk 29 score. 30 (3) Consider documentation provided by an insured pursuant 31 to subparagraph (2) to determine whether to uphold or reverse 32 the nonrenewal or cancellation of the insurance policy. 33 d. (1) Provide an insured a minimum of sixty calendar days 34 from the date the insured receives notice of nonrenewal of an 35 -12- LSB 6005YC (4) 91 nls/ko 12/ 17

H.F. _____ insurance policy under paragraph “a” to either: 1 (a) Complete remediations pursuant to paragraph “b” . 2 (b) Appeal the nonrenewal pursuant to paragraph “c” . 3 (2) Provide an insured a minimum of thirty calendar days 4 from the date the insured receives notice of cancellation of an 5 insurance policy under paragraph “a” to either: 6 (a) Complete remediations pursuant to paragraph “b” . 7 (b) Appeal the nonrenewal pursuant to paragraph “c” . 8 3. If an insured provides sufficient documentation of 9 completed remediations pursuant to subsection 2, paragraph 10 “b” , an insurer shall reverse the cancellation of, or offer a 11 renewal of, the insured’s insurance policy, except that the 12 insurer may uphold the nonrenewal or cancellation for a reason 13 unrelated to the conditions requiring remediation pursuant to 14 subsection 2, paragraph “b” . 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to insurer’s requests for information 19 and claim timelines, and property and casualty insurer’s loss 20 calculations, adjustments, payments of claims, policy terms, 21 and aerial images. 22 Under the bill, an insurer shall provide to an insured, 23 within 15 days of receipt of a request, copies of requested 24 documents, the name and contact information of a person 25 involved on the insurer’s behalf with a claim, an accounting of 26 the amount paid and reserve set on a claim, or other required 27 information as detailed by the bill. The insurer is not 28 required to provide privileged information, but must provide 29 to the insured a written explanation for the basis of the 30 privilege. If the information is later determined not to be 31 privileged, the insurer’s prior refusal constitutes an unfair 32 method of competition and unfair or deceptive act or practice. 33 The bill makes a conforming change to Code section 507B.4(3). 34 An insurer shall not include in a policy a deadline for an 35 -13- LSB 6005YC (4) 91 nls/ko 13/ 17

H.F. _____ insured to provide notice of a loss if the insured could not 1 have reasonably known about the loss and the insurer will not 2 be prejudiced by a delay. If a policy provides for replacement 3 cost, an insurer shall not include a deadline for the insured 4 to recover the depreciation amount that is less than one year 5 from the insurer’s most recent actual cash value payment to 6 the insured, and shall notify the insured of such deadline no 7 later than 90 days prior to the deadline. An insurer shall 8 not include in a policy language that imposes a statute of 9 limitations for an insured to sue the insurer for wrongfully 10 denying a claim to less than five years from the date of the 11 loss, or two years from the denial of the claim, whichever is 12 later, and shall notify the insured of such deadline no later 13 than 90 days prior to the deadline. 14 For a policy providing for replacement cost for property, 15 and the loss requires repair or replacement of a product or 16 part, consequential physical damage shall be included in the 17 calculation of loss, the insured shall not be required to pay 18 for betterment or costs other than an applicable deductible, 19 and the insurer shall repair or replace as much of the 20 property necessary to achieve a reasonably similar appearance 21 as detailed by the bill. “Reasonably similar appearance” 22 is defined by the bill. If the loss requires repair or 23 replacement of a building, the insurer shall repair or replace 24 as much of the building necessary to bring the building into 25 compliance with the local or state building code, and the 26 insured shall not be required to pay for betterment or costs 27 other than an applicable deductible. The requirement that an 28 insurer bring a building into compliance with a local or state 29 building code may be waived pursuant to an endorsement in a 30 policy as detailed by the bill. 31 A policy shall not include a roof payment schedule or 32 a similar provision, or a provision that requires covered 33 property damage to satisfy certain criteria in order to exclude 34 or limit the insurer’s liability for cosmetic or nonfunctional 35 -14- LSB 6005YC (4) 91 nls/ko 14/ 17

H.F. _____ damages, unless an endorsement providing otherwise is included 1 in a policy as detailed by the bill. 2 The replacement cost of damaged property shall be calculated 3 based on the date the damaged property is repaired or replaced. 4 For a policy providing for actual cash value for a claim, 5 and the actual cash value is not calculated as the replacement 6 cost less depreciation, the insurer shall provide the insured 7 a copy of the claim file worksheet and an explanation of the 8 calculation of depreciation and determination of the actual 9 cash value. “Actual cash value” is defined by the bill. 10 For property covered by a policy that is wholly destroyed or 11 damaged and cannot be repaired, or is too expensive to repair, 12 the insurer shall pay the limit of the policy and shall not 13 withhold the cost of depreciation or the deductible. 14 The bill requires an insurer to, within 15 days of receiving 15 notice of a claim, acknowledge receipt of the claim to the 16 insured, commence review or investigation of the claim, 17 and request from the insured any item, statement, or form 18 related to the claim. An insurer shall reply within 15 days 19 to a communication from an insured to which an insured would 20 reasonably expect a response, and shall address all material 21 parts of the insured’s communication. 22 An insurer shall notify an insured of the acceptance or 23 denial of a claim no later than 30 days from the date of receipt 24 of a properly completed proof of loss form. If an insurer 25 believes an insured fraudulently caused or contributed to a 26 claim, the insurer shall notify the insured within 30 days of 27 receiving a proof of loss form of the reason additional time is 28 required to investigate the claim, notify the insured every 30 29 calendar days thereafter of the continuing reason additional 30 time is required, and, within a reasonable amount of time after 31 completing an investigation and a determination whether the 32 insured fraudulently caused or contributed to the claim, notify 33 the insured of the acceptance or denial of the claim. 34 If part of a claim is denied by an insurer, the notice 35 -15- LSB 6005YC (4) 91 nls/ko 15/ 17

H.F. _____ must include an explanation of the reason for the denial and 1 a citation to applicable policy language or law that is the 2 basis for the denial. If a denial is based on a written report 3 or other documentation, the report or documentation shall be 4 provided to the insured. 5 If, prior to accepting or denying a claim, inspection of 6 damaged property under a claim is required, the insurer shall 7 schedule and complete the inspection within 30 days of receipt 8 of a proof of loss form. The inspection may only be delayed if 9 an act of nature reasonably prevents the inspection, in which 10 case the insurer shall notify the insured of the reason for 11 delay. 12 If an insurer accepts liability for all or part of a claim, 13 the insurer shall pay the accepted portion of the claim within 14 10 days. If payment is conditioned on the performance of an 15 act by the insured, the insurer shall pay the portion for which 16 liability has been accepted within 10 days of the act being 17 performed. Payment of a claim shall not be required if it is 18 discovered that the damaged property does not belong to the 19 insured, the policy does not provide coverage for the damaged 20 property, or the claim is otherwise invalid. 21 An insurer that violates the bill and has accepted all or 22 part of a claim is liable for, in an action brought by an 23 insured in which the insured prevails, the portion of the claim 24 for which the insurer accepted liability plus simple interest 25 at an annual rate of 18 percent, the insured’s reasonable 26 attorney fees, costs of litigation, and any other damages 27 provided by law. The bill shall not be construed to prevent or 28 replace an award of prejudgment interest or any other damages 29 as provided by law. 30 An insurer shall not include a provision in a policy that 31 prohibits an insured from contracting with a public adjuster. 32 An insurer who utilizes aerial images for underwriting and 33 that cancels or does not renew a policy due to nonacceptance of 34 risk based on aerial images shall provide notice to the insured 35 -16- LSB 6005YC (4) 91 nls/ko 16/ 17

H.F. _____ of the nonrenewal or cancellation, including each aerial 1 image that depicts the specific conditions of the property 2 that misalign with the insurer’s underwriting guidelines, 3 an explanation of the specific conditions of the property 4 that require remediation, and an explanation of the process 5 to appeal. An insurer must establish a specific point of 6 contact and a process for an insured to provide documentation 7 of completed remediations to such conditions, and take the 8 documentation into consideration to determine whether to 9 uphold or reverse the nonrenewal or cancellation. An insurer 10 must also disclose to an insured any factors, risk-scoring 11 system, or criteria that the insurer considered to make the 12 determination, establish an appeals process for an insured to 13 correct an erroneous risk score, and consider documentation 14 provided regarding the erroneous score in determining whether 15 to uphold or reverse the nonrenewal or cancellation. 16 An insurer shall provide an insured a minimum of 60 days from 17 a notification of nonrenewal, or 30 days from a notification of 18 cancellation, to either complete remediations to the property 19 or appeal the decision. If an insured provides sufficient 20 documentation of completed remediations, an insurer shall 21 reverse the cancellation of, or offer a renewal of, the 22 insured’s insurance policy, unless the insurer has an unrelated 23 reason for the nonrenewal or cancellation. 24 -17- LSB 6005YC (4) 91 nls/ko 17/ 17