ENGR. H. B. NO. 1624 - Summary

• Requires lenders holding residential property insurance proceeds to notify insureds within 10 days of receiving payment, specifying all requirements for release of funds.

• Mandates lenders release requested insurance proceeds within 10 days if insured has met all requirements, or provide written notice explaining the specific reasons for denial and remaining requirements.

• Imposes 10% annual interest penalty on lenders who fail to provide timely notice or release proceeds, beginning when insured meets compliance requirements and ending when lender complies.

• Requires lienholders to endorse/approve personal property insurance claim checks within 14 business days of request or provide written denial with specific reasons, with civil penalties up to $500 per violation enforced by the Attorney General.

• Effective date: November 1, 2013.