Bill
HB 5571
Overview: HB 5571, AN ACT RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACTStatus: 03/25/2025 Committee recommended measure be held for further studyIntroduced: March
Overview: HB 5571, AN ACT RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT
Status: 03/25/2025 Committee recommended measure be held for further study
Introduced: March 14, 2025
Purpose and Intent: The purpose of HB 5571 is to amend the state's Unfair Claims Settlement Practices Act, which regulates the claims handling practices of insurance companies. The intent is to strengthen consumer protections and ensure more fair and timely processing of insurance claims.
Key Provisions:
- Expands the definition of "unfair claims settlement practices" to include additional prohibited insurer behaviors
- Requires insurers to acknowledge receipt of claims within 10 business days and provide a status update every 30 days
- Mandates that insurers make a decision on claims within 45 days of receiving all necessary information
- Increases penalties for insurers that engage in unfair claims settlement practices
Affected Parties and Impacts:
- Consumers filing insurance claims, who would benefit from faster processing times and stronger protections against unfair insurer practices
- Insurance companies, which would need to adjust their claims handling procedures to comply with the new requirements
Procedural and Timeline Considerations:
The bill has been recommended by committee to be held for further study, indicating the legislature is taking a more cautious approach and may make additional revisions before advancing the legislation.
Compiled from official sources — confirm details with the bill’s official record.
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