AI-assisted research summary: The commissioner must give consumers clear information about stated value policies, post it on the department website, send it to homeowners at least every two years, and keep it updated.
§1346.5. Dissemination of information on risks associated with stated value policies; commissioner A. To promote consumer awareness within the insurance marketplace, the commissioner shall provide clear, understandable, and accessible informational materials to consumers regarding the risks, potential disadvantages, and limitations associated with stated value policies. At a minimum, the commissioner shall include the following in informational materials: (1) A clear explanation of what stated value policies are and how they differ from other types of property insurance policies, including but not limited to differences of replacement costs. (2) A description of the potential financial risks of a stated value policy, including the possibility that the stated value may not fully cover the cost of repairing or replacing damaged or destroyed property. (3) A comparison of stated value policies with other types of policies, including but not limited to actual cash value policies, highlighting the advantages and disadvantages of each. (4) Consumer tips for evaluating insurance options and understanding policy terms, including instructions on how the consumer may ask questions and seek clarification from the insurer about the terms and conditions of a stated value policy. B.(1) The commissioner shall establish a dedicated section on the department's website for consumers to access the informational materials described in this Section and shall distribute the informational materials to homeowners at least once every two years through either direct mail, email, or other means deemed appropriate by the commissioner. (2) The commissioner shall periodically review and update the informational material provided to homeowners to ensure it reflects any changes in the insurance market. Acts 2025, No. 480, §1, eff. June 30, 2025.