HB 1718 — An Act amending Title 40 (Insurance) of the Pennsylvania Consolidated Statutes, providing for flood insurance notification; imposing duties on the Insurance Department; and imposing a penalty.

PRIOR PRINTER'S NO.

2114 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

17182822 2025THE INTRODUCEDGENERAL BYASSEMBLY RUSNOCK,OF PROBST,PENNSYLVANIA GUZMAN,HOUSE SANCHEZ,BILL SAMUELSON,Session RIVERA, WEBSTER, HILL-EVANS AND CEPEDA-FREYTIZ, JULY 10, 2025 REFERRED TO COMMITTEE ON INSURANCE, JULY 10, 2025 AN ACT Amending Title 40 (Insurance) of theNo. Pennsylvania Consolidated Statutes, providing for flood insurance notification;

1718 2025 INTRODUCED BY RUSNOCK, PROBST, GUZMAN, SANCHEZ, SAMUELSON, AND GREEN, JULY 10, 2025ANS, CEPEDA-FREYTIZ, NEILSON, WARREN AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JANUARY 28, 2026 AN ACT Amending Title 40 (Insurance) of the Pennsylvania Consolidated Statutes, providing for flood insurance notification;

Duties of department.department SURPLUS LINES LICENSEES.

<-- 5205.

Enforcement.Enforcement REGULATIONS.

<-- 5206.

The purpose of this chapter is to require insurers to inform <-- individuals purchasing or renewing a homeowner's insurance policy of the availability and cost of flood insurance coverage to ensure that individuals are informed of the potential risks and availability and cost of flood insurance coverage.

AND <-- SURPLUS LINES LICENSEES TO SHARE INFORMATION ABOUT FLOOD RISKS AND FLOOD INSURANCE WITH INDIVIDUALS PURCHASING OR RENEWING A HOMEOWNER'S INSURANCE POLICY.

<-- "Flood insurance policy." An insurance policy which provides <-- coverage for damage to real or personal property that is caused by flooding.flooding A NATURAL FLOOD EVENT.

<-- "Homeowner's insurance policy." An insurance policy which <-- provides coverage for damage to real or personal property should an event considered a covered loss occur.

"HOMEOWNER'S INSURANCE POLICY." A POLICY OF INSURANCE <-- COVERING AN OWNER-OCCUPIED PRIVATE RESIDENTIAL PROPERTY THAT DOES NOT PROVIDE COVERAGE FOR DAMAGE CAUSED BY A NATURAL FLOOD EVENT.

§ 6102 (relating <-- to definitions).

"NATURAL FLOOD EVENT." A GENERAL AND TEMPORARY CONDITION OF <-- 20250HB1718PN2822 - 2 - PARTIAL OR COMPLETE INUNDATION OF TWO OR MORE ACRES OF NORMALLY DRY LAND AREA OR OF TWO OR MORE PARCELS OF REAL PROPERTY, AT LEAST ONE OF WHICH IS THE SUBJECT PROPERTY, FROM ANY OF THE FOLLOWING:

(1) OVERFLOW OF INLAND OR TIDAL WATERS.

(2) UNUSUAL AND RAPID ACCUMULATION OR RUNOFF OF SURFACE WATERS FROM ANY SOURCE.

(3) MUDFLOW.

(4) COLLAPSE OR SUBSIDENCE OF LAND ALONG THE SHORE OF A LAKE OR SIMILAR BODY OF WATER AS A RESULT OF EROSION OR UNDERMINING CAUSED BY WAVES OR CURRENTS OF WATER EXCEEDING ANTICIPATED CYCLICAL LEVELS.

"SURPLUS LINES HOMEOWNER'S INSURANCE POLICY." A HOMEOWNER'S INSURANCE POLICY ISSUED BY A NONADMITTED INSURER, AS DEFINED IN SECTION 1602 OF THE ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN AS THE INSURANCE COMPANY LAW OF 1921.

"SURPLUS LINES LICENSEE." A PERSON LICENSED AS A SURPLUS LINES PRODUCER UNDER SECTION 1615 OF THE INSURANCE COMPANY LAW OF 1921 TO PLACE SURPLUS LINES INSURANCE WITH NONADMITTED INSURERS ELIGIBLE TO ACCEPT THE INSURANCE.

(a) Notice.--Beginning six months after the effective date <-- of this section, DISCLOSURE REQUIRED.--SUBJECT TO SUBSECTION <-- (B), an insurer that issues or renews a homeowner's insurance policy in this Commonwealth shall, contemporaneously with the issuance or renewal of the policy, provide written notice to the policyholder regarding the availability of flood insurance.

Written notice under this section shall be provided via mail or <-- electronic communication.

(b) Contents.--The communication provided under this section 20250HB1718PN211420250HB1718PN2822 - 23 - must be sent in a stand-alone manner and not with any other documents or policy-related materials.

(6) Any other information the department deems necessary to ensure that an individual purchasing or renewing a homeowner's insurance policy is notified of the purpose of 20250HB1718PN211420250HB1718PN2822 - 34 - flood insurance and the ability to purchase a flood insurance policy.

(B) METHODS OF COMPLIANCE.-- <-- (1) AN INSURER MAY COMPLY WITH THIS SECTION BY PROVIDING A DISCLOSURE THAT COMPLIES WITH PARAGRAPH (2) OR (3).

(2) AN INSURER MAY PROVIDE THE DISCLOSURE REQUIRED UNDER SUBSECTION (A) USING A FORM THAT IS DEVELOPED BY THE INSURER AND THAT CONTAINS AT LEAST THE FOLLOWING INFORMATION:

(I) A STATEMENT INDICATING THAT THE HOMEOWNER'S INSURANCE POLICY DOES NOT PROVIDE COVERAGE FOR FLOOD LOSS.

(II) A STATEMENT INDICATING THAT FLOODING IS POSSIBLE ANYWHERE, EVEN OUTSIDE OFFICIAL FLOOD ZONES.

(III) A STATEMENT INDICATING THAT COVERAGE MAY BE AVAILABLE THROUGH THE NATIONAL FLOOD INSURANCE PROGRAM.

(IV) A STATEMENT INFORMING THE INSURED THAT THE INSURED MAY VISIT THE INSURANCE DEPARTMENT'S PUBLICLY ACCESSIBLE INTERNET WEBSITE FOR MORE INFORMATION ON FLOOD INSURANCE.

(3) AN INSURER MAY PROVIDE THE DISCLOSURE REQUIRED UNDER SUBSECTION (A) BY USING THE FOLLOWING MODEL FORM:

PLEASE READ:

IMPORTANT INFORMATION ON FLOOD INSURANCE MANY PROPERTIES IN PENNSYLVANIA ARE EXPERIENCING INCREASED RISKS REGARDING FLOODING, REGARDLESS OF WHETHER THE PROPERTY IS IN AN OFFICIAL FLOOD ZONE OR 20250HB1718PN2822 - 5 - NOT.

YOU ARE ENCOURAGED TO VISIT THE PENNSYLVANIA INSURANCE DEPARTMENT'S WEBSITE TO REVIEW INFORMATION REGARDING FLOOD-RELATED RISK FACTORS.

A STANDARD HOMEOWNER'S INSURANCE POLICY TYPICALLY DOES NOT COVER DAMAGE CAUSED BY FLOODING.

YOU ARE ENCOURAGED TO SPEAK WITH AN INSURANCE PROFESSIONAL ABOUT WHETHER YOU ARE COVERED FOR DAMAGE CAUSED BY FLOODING.

IF YOU ARE NOT ALREADY COVERED FOR DAMAGE CAUSED BY FLOODING, COVERAGE MAY BE AVAILABLE FROM AN INSURANCE COMPANY OR THROUGH THE NATIONAL FLOOD INSURANCE PROGRAM.

(C) METHOD OF TRANSMISSION.--AN INSURER SHALL TRANSMIT THE DISCLOSURE REQUIRED UNDER THIS SECTION THROUGH PHYSICAL MAIL OR AN ELECTRONIC COMMUNICATION.

(D) CONTENTS.-- (1) THE DISCLOSURE PROVIDED UNDER THIS SECTION MAY BE DELIVERED ALONGSIDE THE HOMEOWNER'S INSURANCE POLICY OR OTHER POLICY-RELATED DOCUMENTS.