§ 26.1-30-23 — Managed repair programs - Penalty

1. A property insurance policy may be issued or delivered in this state with a managed
repair program provision offering premium incentives for managed repair program
participation. As used in this section, "managed repair program" means an insurance
policy providing a program with a specified reduction in premium or other specified
incentive for participation in a program restricting an insured's choice of repair vendors
or contractors for covered repairs.
2. An insurer offering a managed repair program shall:
a. Prominently disclose on the policy declarations page the policy restricts the
insured's right to choose repair vendors;

b. Specify any premium benefits for program participation;
c. Include a separate disclosure form, written in at least twelve-point font, which
explains the restrictions on vendor selection, including:
(1) The process for repairs under the program;
(2) The insured's rights and responsibilities; and
(3) Any warranty or guarantee provided for repairs.
3. This section does not apply to contractor referral or managed or direct repair programs
that do not provide a specified reduction in premium or other incentive.
4. This section applies to insurance policies issued or renewed after August 1, 2025.
5. The commissioner shall enforce this section.
6. The commissioner may assess a penalty on an insurer in violation of this section, as
determined by the commissioner.