CS for SB 1218 Summary

• Creates a water damage restoration licensing program under the Department of Business and Professional Regulation, requiring persons performing water damage restoration to be licensed as professional water damage restorers effective January 1, 2018.

• Establishes licensing requirements including passing an examination, completing approved water damage restoration courses, maintaining $1 million in liability insurance, and submitting to fingerprinting and background checks; allows grandfathering of applicants with 3 years of experience who apply by September 1, 2017.

• Prohibits property insurance policies from prohibiting post-loss assignment of benefits and establishes requirements for assignment agreements, including a 5-day rescission period for policyholders, $750 cap on referral fees, and mandatory licensing for water damage work.

• Requires insurers to report annually to the Office of Insurance Regulation on claims paid via assignment agreements, including litigation data, timeframes, and adjuster licensing status; prohibits attorney fees paid by insurers from being included in rate bases.

• Prohibits insurers from requiring a particular vendor for dwelling repairs or recommending vendors unless expressly requested by the insured under homeowners' replacement cost coverage policies.