Proposed Changes to Property Insurance Claim Mediation

The Frame

What this does

If enacted, this bill would change the legal requirements for homeowners and businesses by forcing them to participate in mediation before they can take their insurance company to court, potentially delaying litigation but providing a formal, non-adversarial path to settlement.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Property insurance policyholders

They are required to participate in mediation before filing a lawsuit and must provide supporting documents within 10 days of invoking mediation.

Insurance companies

They are required to participate in mediation and must cover the costs of the mediation conferences.

Department of Financial Services

They are tasked with adopting rules for the mediation program and administering the $1 million appropriation.

What changed

Last recorded activity March 13, 2026.

What's next

Introduced.

Summary

This bill would make mediation a mandatory step for resolving property insurance disputes before a policyholder can file a lawsuit. It also requires the Department of Financial Services to adopt specific rules for these mediation programs and provides $1 million in funding for administration.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Can I still sue my insurance company if we disagree on a claim?

Under this bill, you would be required to participate in mediation first. You can only proceed to litigation after the mediation process has been completed.

Who pays for the mediation?

The insurance company is generally responsible for the costs of the mediation conference, unless you fail to appear and cause the session to be rescheduled.

What happens if I don't have an attorney?

If you are not represented by an attorney or public adjuster, you have 3 business days to rescind a settlement agreement after it is reached, provided you have not already cashed or deposited any settlement funds.

Why It Matters

If enacted, this bill would change the legal requirements for homeowners and businesses by forcing them to participate in mediation before they can take their insurance company to court, potentially delaying litigation but providing a formal, non-adversarial path to settlement.

News Coverage

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Shift from Authorization to Mandate

The bill explicitly changes the language from 'authorizing' to 'requiring' mediation, signaling a legislative intent to force alternative dispute resolution as a standard practice.

Department of Financial Services