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Bill

Bill

A 979

Relates to contractual liability insurance policies

2025 Regular Session Introduced by Jen Lunsford and 1 co-sponsor

Bill A 979 mandates minimum coverage for contractual liability insurance, protecting consumers and ensuring clear rights and information for policyholders.

SIGNED CHAP.441
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WeVote Research Nonpartisan
Bill Summary · A 979

Summary of Bill A 979: Contractual Liability Insurance Policies

Bill Overview

  • Bill Number: A 979
  • Title: Relates to contractual liability insurance policies
  • Status: Signed into law as Chapter 441
  • Introduced On: January 8, 2025

Purpose and Intent

Bill A 979 aims to clarify and enhance the regulations surrounding contractual liability insurance policies. The legislation is designed to ensure that such policies provide adequate coverage and protection for parties involved in contractual agreements, thereby promoting fairness and transparency in contractual relationships.

Key Provisions

  • Definition Clarification: The bill provides clear definitions of what constitutes a contractual liability insurance policy, ensuring that all stakeholders have a common understanding of the terms.
  • Coverage Requirements: It establishes minimum coverage requirements for contractual liability insurance policies, ensuring that policyholders are adequately protected against potential liabilities arising from contracts.
  • Policyholder Rights: The legislation outlines the rights of policyholders, including the right to receive clear information about their coverage and the obligations of insurers.
  • Regulatory Oversight: The bill enhances the regulatory framework governing insurance providers, ensuring they comply with the new standards set forth in the legislation.

Impact

  • Affected Parties: The bill primarily affects insurance companies that offer contractual liability insurance, as well as businesses and individuals who engage in contracts requiring such coverage.
  • Consumer Protection: By establishing minimum coverage requirements and clarifying policyholder rights, the bill aims to protect consumers from inadequate insurance coverage and ensure they are informed about their policies.

Legislative Timeline

  • January 8, 2025: Bill introduced and referred to the Insurance Committee.
  • May 13, 2025: Bill reported out of committee.
  • May 20, 2025: Passed by the Assembly and delivered to the Senate.
  • June 9, 2025: Passed by the Senate, returned to the Assembly, and substituted for S5048A.
  • October 9, 2025: Delivered to the Governor.
  • October 16, 2025: Signed into law as Chapter 441.

Related Legislation

  • S 5048: Companion bill in the Senate.
  • S 9101, A 10529, A 1231: Prior-session bills related to contractual liability insurance.

This summary provides a comprehensive overview of Bill A 979, highlighting its purpose, key provisions, and the impact it will have on stakeholders involved in contractual agreements.

Compiled from official sources — confirm details with the bill’s official record.

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