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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | May 31, 2024 04:19 PM |
|---|---|
| From: | Representative Paul Friel |
| To: | All House members |
| Subject: | Homeowner’s Insurance Consumer Protections |
| Purchasing homeowner’s insurance can be confusing and unsettling for consumers who are unfamiliar with the process. Recently, I heard from a constituent of my district who was convinced by an insurance agent to cancel their current homeowner’s insurance policy and switch insurers. However, the policy then failed to complete underwriting and this constituent was left without a policy. My constituent is one of many people across the Commonwealth who have faced the challenges of homeowner’s insurance. I am introducing legislation that would create new consumer protections for homeowner’s insurance. This bill will organize the rules for rate-setting and policy renewal, similar to other types of insurance like auto insurance, so that insurers and consumers have clear guidelines for homeowner’s insurance. These changes would include two new protections for Pennsylvanians. First, agents would be required to clearly state to customers that a new policy will undergo an underwriting period so that a person is aware that their policy can be canceled for any reason during those 60 days and that they can keep their existing insurance during that period. Second, insurers would be required to report information to the Insurance Department about the number of homeowner’s insurance policies that they enter, the number of policies that are cancelled during the underwriting period, and the number of policies canceled, as well as the reasons for cancellation. Homeowners across the Commonwealth should have clarity about insurance they are purchasing. My bill will make sure that consumers are better equipped to make these major, consequential decisions about their homeowner’s insurance policies so that they have security with their home. Please join me in co-sponsoring this legislation to help our constituents protect their homes. |
Introduced as HB2379