Senate Bill 2014 Summary

• Requires lenders to notify insured parties within 10 days of receiving insurance proceeds for residential property damage, specifying all requirements for release of funds.

• Mandates lenders release insurance proceeds within 10 days of receiving proof of compliance or provide written explanation detailing reasons for denial and additional requirements needed.

• Imposes 10% annual interest penalty on lenders who fail to release proceeds or provide required notifications, accruing from the date of compliance documentation.

• Requires lienholders to endorse insurance claim checks/drafts or approve claims within 14 business days, or provide written denial statement with specific reasons.

• Authorizes civil penalties up to $500 per violation against lienholders who fail to comply, with Attorney General enforcement authority; effective November 1, 2014.