SB 233 Summary

• Defines "innocent coinsured" as an insured individual who did not have knowledge of, cooperate in, or intentionally contribute to property loss caused by another coinsured who either died or was charged with a crime, and who signs a sworn affidavit and cooperates with investigations.

• Prohibits insurers from denying, excluding, or limiting payment on claims by innocent coinsureds for primary residence property loss unless the same limitations apply to all other insureds under identical conditions.

• Requires insurers to pay the greater of either the actual repair/replacement cost or the maximum policy limit, but limits payments to the innocent coinsured's ownership interest minus any mortgagee or lienholder payments already made.

• Exempts insurers from payment obligations if the final settlement is less than 60% of available insurance proceeds and allows insurers to apply reasonable standards of proof to dispute innocent coinsured status.

• Prohibits insurers from refusing to renew, refusing to issue, or adding surcharges to policies solely based on an insured being an innocent coinsured; preserves insurer subrogation rights.

• Effective July 1, 2017, applies to policies entered into, amended, or renewed after June 30, 2017.