SB545 Summary

• Requires insurers to document all claim file information thoroughly, including evidence supporting decisions, and prohibits misrepresenting, altering, or substituting unsupported values in claim files.

• Establishes 45-day deadline for claim investigations (extendable up to 30 additional days), with claims automatically admitted if investigation exceeds 75 total days unless delayed by insured action.

• Mandates insurers pay all undisputed amounts within 30 days, evaluate all potential damages elements, treat policyholder interests equally with insurer interests, and provide written claim decisions including reasons for partial denials.

• Prohibits insurers from denying claims based on biased or unreliable information, providing employee incentives to reduce claim payments, refusing appraisal participation based on coverage disputes, or treating claims as adversarial processes.

• Requires appraisals in first-party property disputes over $10,000 to be completed within 60 days with fair, impartial appraisers and umpires who disclose conflicts of interest and prohibits ex parte communications between parties and umpires during the process.