Budget Amendment ID: FY2027-S4-868-R3

3rd Redraft OTH 868

Insurance Guidance

Mr. Rush moved that the proposed new text be amended in section 28, in proposed section 116, by inserting after the word “feature”, in line 305, the following words:- “; provided, however, that sellers of products insuring property or liability may comply with this paragraph by sending written notice in combination with a policy renewal proposal not more than 50 and not less than 5 calendar days prior to the policy renewal effective date.”; and

in said section 28, in subsection (b) of said proposed section 116, by adding the following paragraph:

“(3) Where a product with a negative option feature is marketed or sold in conjunction with another party’s product, the party responsible for billing the consumer for the product with a negative option feature shall provide the notice required under this subsection; provided, however, that the payment of insurance premiums through a mortgage escrow account shall not transfer the notice obligation to the mortgage lender or servicer.”; and

in said section 28, in subsection (d) of said proposed section 116, by striking out the second sentence.