HB 1141 Summary

• Makes mediation mandatory rather than optional for property insurance claim disputes under personal lines and commercial residential policies, with mediation serving as a condition precedent to litigation.

• Requires all named insureds to personally attend mediation conferences, though parties may mutually agree to conduct mediation by teleconference or telephone.

• Establishes that insurers must bear all mediation costs except when a policyholder fails to appear (requiring the policyholder to pay rescheduling costs) or when a party requests an expert or representative (that party bears the cost).

• Requires policyholders to provide supporting documents to insurers within 10 days of invoking mediation and limits settlement rescission rights to 3 business days only if the policyholder is unrepresented by an attorney or public adjuster and has not cashed settlement funds.

• Appropriates $1 million in recurring funds from the Insurance Regulatory Trust Fund to the Department of Financial Services for fiscal year 2023-2024 to administer the mediation program; effective January 1, 2024.