Section 379.135

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

Effective - 28 Aug 2026, see footnote   

  379.135.  Property damage claim, legal title to vest in insurer to extent of insurance payment — post-loss benefits, assignment agreements — violation, penalty. — 1.  Upon payment by an insurer of all or any part of a claimant's property damage claim, legal title to the portion of the claim paid shall vest in the insurer to the extent of such payment.  No assignment or other action by the claimant shall be required for the insurer to enforce its legal title.  The claimant shall retain legal title only to that portion of the property damage claim not paid by the insurer.  

  2.  Notwithstanding the provisions of subsection 1 of this section to the contrary, an insured under a policy of insurance shall not, before or after a claimed or covered loss, assign or otherwise transfer, in whole or in part, the insured's:  

  (1)  Duties under the policy; or  

  (2)  Rights or benefits arising from the policy or any duties owed by the insurer under the policy.

  3.  As used in this section, "assignment agreement" means any instrument by which post-loss benefits under any policy of insurance covering property, including, but not limited to, any right of action against the insurer or any proceeds acquired from the insurer are assigned, transferred, or acquired in any other manner, in whole or in part, to or from a person providing services, including, but not limited to, communicating with an insurer or on an insured's behalf or inspecting, estimating, protecting, repairing, restoring, or replacing the property or mitigating against further damage to the property.

  4.  (1)  A person shall not solicit or accept an assignment, in whole or in part, of any post-loss insurance benefit for property damage under a contract of insurance.  An assignment agreement is against public policy and is null and void, and any contract entered into in violation of this section shall be void and unenforceable; and

  (2)  The provisions of this subsection shall not apply to an assignment, transfer, pledge, or conveyance granted to a financial institution, mortgagee, lienholder, or a subsequent purchaser of the property; and

  (3)  The provisions of this subsection shall not apply to any covenant not to execute or contract to limit recovery under section 537.065.

  5.  A violation of subsection 4 of this section shall be considered a level two violation under section 374.049.  

  6.  Any contract entered into in violation of this section shall be void and unenforceable.

  7.  Nothing in this section shall be construed to prohibit an insured from exercising any express authority granted under a policy of insurance to authorize or direct payment to, or to pay, a person for services, materials, or any other thing which^* may be, or is, covered under the^** insurance policy.  Insurers shall issue payment directly to a person for services, materials, and other items that are covered under an insurance policy, when the insured agrees that any person providing such services should be paid directly, subject to applicable liens.

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(L. 2026 H.B. 2636 merged with S.B. 835 & 1111)

*Word "that" appears in original rolls of H.B. 2636, 2026.

**Word "an" appears in original rolls of S.B. 835 & 1111, 2026.

Severability clause, see § 1.1004