HB 4520 Summary

• Establishes the "Insurance Agents Standard of Care Act" creating a single cause of action for insurance agent errors and omissions liability, abolishing all other common law claims against licensees including negligence, breach of contract, fraud, and breach of fiduciary duty.

• Limits licensee liability to breach of the standard of care (minimum skill, care, knowledge, and expertise possessed by similar agents) only when a special relationship exists with the customer, defined as when the agent expressly undertakes additional duties, responds to customer inquiries, provides advice about the specific disputed issue, or clarifies ambiguous requests.

• Restricts damages to losses that would have been recovered under the policy had there been no error or omission, plus statutory interest, excluding mental distress, punitive damages, lost profits, and other consequential damages.

• Requires expert testimony to establish the standard of care and breach unless the licensee admits the breach or it is readily apparent from the facts.

• Imposes a 2-year statute of limitations from when the licensee last provided services on the specific policy, or 6 months from when the customer discovered or should have discovered the error or omission, whichever is earlier.