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General Assembly Raised Bill No. 6967
January Session, 2025
LCO No. 4631
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING THE ASSIGNMENT OF POST -LOSS
HOMEOWNERS AND COMMERCIAL PROPERTY INSURANCE
BENEFITS AND HOME IMPROVEMENT CONTRACTORS AND
SALESPERSONS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective January 1, 2026) (a) As used in this section: 1
(1) "Assignee" means any person who is assigned any post-loss 2
benefit under a homeowners insurance policy or commercial property 3
insurance policy through an assignment agreement; 4
(2) "Assignment agreement" means any instrument that assigns, 5
transfers or acquires, in whole or in part, any post-loss benefit under a 6
homeowners insurance policy or commercial property insurance policy 7
providing coverage for a residential or commercial property, to or from 8
any person commencing any repair, inspection, remediation or 9
mitigation following a loss on such residential or commercial property; 10
(3) "Assignor" means any person who assigns, transfers or acquires 11
any post-loss benefit under a homeowners insurance policy or 12
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commercial property insurance policy to an assignee through an 13
assignment agreement; 14
(4) "Home improvement" has the same meaning as provided in 15
section 20-419 of the general statutes, as amended by this act; 16
(5) "Presuit settlement demand" means any monetary request 17
submitted by an assignee in a written notice of intent to initiate litigation 18
pursuant to subsection (g) of this section; and 19
(6) "Presuit settlement offer" means any monetary proposal, 20
submitted by the insurance company providing homeowners or 21
commercial property insurance coverage for the residential or 22
commercial property, to settle a dispute with an assignee prior to such 23
assignee filing a cause of action against such insurance company. 24
(b) (1) Any assignment agreement that assigns, transfers or acquires 25
any post-loss benefit under a homeowners insurance policy or 26
commercial property insurance policy delivered, issued for delivery, 27
renewed, amended or continued in this state on or after January 1, 2026, 28
shall: 29
(A) Be in writing and executed by the assignor and assignee of such 30
assignment agreement; 31
(B) Include a provision affording such assignor the right to rescind 32
such assignment agreement, without penalty, by submitting a signed 33
notice of rescission to such assignee (i) not later than fourteen days after 34
the execution of such assignment agreement, (ii) at least thirty days after 35
the date on which post-loss repair, inspection, remediation or mitigation 36
services are scheduled to commence on the residential or commercial 37
property pursuant to the terms of such assignment agreement, provided 38
such assignee has not substantially performed such post-loss services on 39
the residential or commercial property, in accordance with the terms of 40
such assignment agreement, or (iii) at least thirty days after the 41
execution of such assignment agreement, provided such assignment 42
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agreement does not contain a date by which such post-loss repair, 43
inspection, remediation or mitigation services on such residential or 44
commercial property are scheduled to commence and such assignee has 45
not substantially performed such post-loss services on such residential 46
or commercial property, in accordance with the terms of such 47
assignment agreement; 48
(C) (i) Include a provision requiring such assignee to deliver a copy 49
of such executed assignment agreement to the insurance company 50
providing homeowners or commercial property insurance coverage for 51
the residential or commercial property not later than (I) three business 52
days after the date on which such assignment agreement is executed, or 53
(II) the date on which post-loss repair, inspection, remediation or 54
mitigation services are scheduled to commence on such residential or 55
commercial property pursuant to the terms of such assignment 56
agreement, whichever is earlier; and 57
(ii) Deliver a copy of such executed assignment agreement pursuant 58
to the provisions of subparagraph (C)(i) of this subdivision by personal 59
service, overnight mail, return receipt requested, to the address 60
designated in the applicable homeowners or commercial property 61
insurance policy, or by electronic means evidenced by a delivery receipt, 62
to the electronic mail address designated in the homeowners or 63
commercial property insurance policy, as applicable; 64
(D) Include an itemized, per unit cost estimate of the post-loss repair, 65
inspection, remediation or mitigation services to be performed by such 66
assignee on such residential or commercial property; 67
(E) Only relate to the post-loss repair, inspection, remediation or 68
mitigation services that such assignee agreed to perform on such 69
residential or commercial property pursuant to the terms of such 70
assignment agreement; 71
(F) Include the following notice in not less than eighteen-point 72
boldface type: 73
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"YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU 74
HAVE UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, 75
WHICH MAY RESULT IN LITIGATION AGAINST YOUR INSURER. 76
PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE 77
SIGNING IT. YOU HAVE THE RIGHT TO CANCEL THIS 78
AGREEMENT WITHOUT PENALTY WITHIN 14 DAYS AFTER THE 79
DATE THIS AGREEMENT IS EXECUTED, AT LEAST 30 DAYS AFTER 80
THE DATE WORK ON THE PROPERTY IS SCHEDULED TO 81
COMMENCE IF THE ASSIGNEE HAS NOT SUBSTANTIALLY 82
PERFORMED, OR AT LEAST 30 DAYS AFTER THE EXECUTION OF 83
THE AGREEMENT IF THE AGREEMENT DOES NOT CONTAIN A 84
COMMENCEMENT DATE AND THE ASSIGNEE HAS NOT BEGUN 85
SUBSTANTIAL WORK ON THE PROPERTY. HOWEVER, YOU ARE 86
OBLIGATED FOR PAYMENT OF ANY CONTRACTED WORK 87
PERFORMED BEFORE THE AGREEMENT IS RESCINDED. THIS 88
AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO 89
PERFORM THE DUTIES REQUIRED UNDER YOUR HOMEOWNERS 90
OR COMMERCIAL PROPERTY INSURANCE POLICY. "; and 91
(G) Include a provision requiring such assignee to indemnify and 92
hold harmless such assignor from any liability, damages, losses or costs, 93
including, but not limited to, attorney's fees, arising from such post-loss 94
repair, inspection, remediation or mitigation services performed by 95
such assignee on the residential or commercial property pursuant to the 96
terms of such assignment agreement; 97
(2) No assignment agreement executed in accordance with the 98
provisions of this subsection shall include (A) a bank check or mortgage 99
processing fee, (B) a penalty or fee for cancellation of such assignment 100
agreement by the assignor, or (C) any administrative fee. 101
(3) If, prior to the execution of an assignment agreement pursuant to 102
the provisions of this section, an assignor acts under an urgent or 103
emergency circumstance to protect such assignor's residential or 104
commercial property from damage, the assignee shall not receive an 105
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assignment of post-loss benefits under a homeowners or commercial 106
insurance policy providing insurance coverage for such residential or 107
commercial property in excess of three thousand dollars or one per cent 108
of the coverage limit under such homeowners or commercial insurance 109
policy that such policy will cover for losses resulting from damage to 110
the policyholder's residential or building structure, or any structure of 111
the policyholder that is attached to such residential or building 112
structure, whichever is greater. For purposes of this section, "urgent or 113
emergency circumstance" means any situation in which a loss to 114
residential or commercial property, if not addressed immediately, will 115
result in additional damage to such residential or commercial property. 116
(4) Any assignment agreement that fails to comply with the 117
provisions of this subsection shall be void and unenforceable. 118
(c) If any insurance claim arises under an assignment agreement for 119
post-loss repair, inspection, remediation or mitigation services, the 120
assignee of such assignment agreement shall have the burden of 121
proving that the insurance company providing homeowners or 122
commercial property insurance coverage for the residential or 123
commercial property is not prejudiced by such assignee's failure to: 124
(1) Maintain records of all post-loss repair, inspection, remediation or 125
mitigation services provided under such assignment agreement; 126
(2) Cooperate with any internal claims investigation conducted by 127
such insurance company; 128
(3) Provide such insurance company with any documents related to 129
post-loss repair, inspection, remediation or mitigation services provided 130
by such assignee; or 131
(4) Deliver a copy of the executed assignment agreement to such 132
insurance company not later than three business days after the date on 133
which such assignment agreement is executed or the date on which such 134
post-loss repair, inspection, remediation or mitigation services 135
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commenced, whichever is earlier. 136
(d) Any assignee of such assignment agreement shall: 137
(1) Provide the assignor of such assignment agreement with current 138
cost estimates concerning the scope of such post-loss repair, inspection, 139
remediation or mitigation services to be performed, as such assignee 140
determines that any such additional repair, inspection, remediation or 141
mitigation services are required; 142
(2) Perform such post-loss repair, inspection, remediation or 143
mitigation services in accordance with the State Building Code adopted 144
pursuant to section 29-252 of the general statutes; 145
(3) Not seek payment from such assignor in an amount that exceeds 146
the deductible under the applicable homeowners or commercial 147
property insurance policy, unless such assignor and assignee executed 148
a separate agreement for the performance of home improvement or 149
other services at such assignor's own expense; and 150
(4) Prior to submitting an insurance claim under the applicable 151
homeowners or commercial property insurance policy, (A) submit to an 152
examination under oath or recorded statement conducted by such 153
homeowners or commercial property insurance company or such 154
insurance company's authorized agent that is (i) reasonably necessary, 155
(ii) based on the scope and complexity of the post-loss repair, inspection, 156
remediation or mitigation services performed on such property, and (iii) 157
limited to the scope and costs of such post-loss repair, inspection, 158
remediation or mitigation services pursuant to the terms of such 159
assignment agreement, and (B) participate in any alternative dispute 160
resolution proceedings pursuant to the terms of the applicable 161
homeowners or commercial property insurance policy. 162
(e) Notwithstanding any provision of title 38a of the general statutes, 163
no assignment agreement executed in accordance with the provisions of 164
this section shall transfer or create any authority to negotiate, adjust or 165
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effect the settlement of any portion of any insurance claim to any person 166
or entity not authorized to negotiate, adjust or effect such settlement of 167
such insurance claim or take any action on behalf of any assignor or 168
public adjuster, as defined in section 38a-723 of the general statutes. 169
(f) (1) Notwithstanding any provision of the general statutes and 170
except as provided in subdivision (2) of this subsection, no assignee or 171
subcontractor of such assignee, who executes an assignment agreement 172
in accordance with the provisions of this section, shall (A) file any civil 173
or administrative claim against the assignor of such assignment 174
agreement or any named insured under the applicable homeowners or 175
commercial property insurance policy for payment of any post-loss 176
repair, inspection, remediation or mitigation services performed at the 177
residential or commercial property, (B) collect payment from such 178
assignor of such assignment agreement or any named insured under the 179
applicable homeowners or commercial property insurance policy, (C) 180
claim a lien on the residential or commercial property of such assignor 181
of such assignment agreement or any named insured under the 182
applicable homeowners or commercial property insurance policy, or (D) 183
report such assignor of such assignment agreement or any named 184
insured under the applicable homeowners or commercial property 185
insurance policy to a credit reporting agency for any payment due 186
pursuant to such assignment agreement. 187
(2) Such assignor of such assignment agreement or named insured 188
under the applicable homeowners or commercial property insurance 189
policy shall be responsible for payment of any (A) deductible under the 190
terms of such policy, (B) home improvement or other services 191
performed by the assignee on the residential or commercial property 192
that were approved by such assignor pursuant to subdivision (3) of 193
subsection (d) of this section, or (C) post-loss repair, inspection, 194
remediation or mitigation services performed on the property before 195
such assignor rescinded such assignment agreement pursuant to 196
subparagraph (B) of subdivision (1) of subsection (b) of this section. 197
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(g) (1) No assignee of an assignment agreement shall have a cause of 198
action against the homeowners or commercial property insurance 199
company providing coverage for the residential or commercial property 200
for payment of an insurance claim arising from post-loss repair, 201
inspection, remediation or mitigation services performed on the 202
assignor's, or named insured's, residential or commercial property, 203
unless such assignee provides written notice of: 204
(A) Such assignee's intent to bring such cause of action to such named 205
insured under the homeowners or commercial property insurance 206
policy, assignor and insurance company not later than ten business days 207
before filing such cause of action and after such insurance company has 208
made a determination of coverage under such homeowners or 209
commercial property insurance policy; and 210
(B) The claimed damages in dispute, the amount claimed by such 211
assignee and a presuit settlement demand. As a precondition to filing 212
such cause of action, such assignee shall provide such named insured, 213
such assignor and such insurance company with a written invoice or 214
cost estimate of the post-loss repair, inspection, remediation or 215
mitigation services performed or scheduled to be performed by such 216
assignee, including itemized information identifying equipment, 217
materials, the number of hours worked, and, in circumstances where 218
such post-loss repair, inspection, remediation or mitigation services 219
were performed, proof that such services were performed in accordance 220
with accepted industry standards. Such notice requirements pursuant 221
to this subdivision shall be served by (i) certified mail, return receipt 222
requested, to the name and mailing address designated by the insurance 223
company in the homeowners or commercial property insurance policy, 224
and to the name and mailing address designated by such named insured 225
or assignor in the assignment agreement, or (ii) electronic means 226
evidenced by a delivery receipt, to the electronic mail address 227
designated by such insurance company in the homeowners or 228
commercial property insurance policy, and to the electronic mail 229
address designated by such named insured or assignor in such 230
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assignment agreement. 231
(2) Not later than ten business days after receiving such notice 232
pursuant to the provisions of subdivision (1) of this subsection, such 233
insurance company shall submit a presuit settlement offer to such 234
assignee or require such assignee to participate in an appraisal process, 235
as provided in chapter 700 of the general statutes, or any other 236
alternative dispute resolution pursuant to the terms of the applicable 237
homeowners or commercial property insurance policy. Such insurance 238
company shall investigate such assignee's claimed damages, in 239
accordance with the provisions of title 38a of the general statutes. 240
(h) The provisions of this section shall not apply to: 241
(1) Any assignment, transfer or conveyance of residential or 242
commercial property granted to a subsequent purchaser of such 243
residential or commercial property who holds an insurable interest in 244
such residential or commercial property following a loss; 245
(2) A power of attorney, as provided in chapter 15c of the general 246
statutes, that grants to a management company, family member, 247
guardian or similarly situated person of a named insured under the 248
applicable homeowners or commercial property insurance policy the 249
authority to act on behalf of such named insured with respect to any 250
homeowners or commercial property insurance claim; or 251
(3) General liability coverage under a homeowners or commercial 252
property insurance policy. 253
(i) (1) Not later than February 1, 2026, and annually thereafter, each 254
homeowners or commercial property insurance company licensed in 255
this state shall submit a report to the Insurance Commissioner, in a form 256
and manner prescribed by the commissioner, that includes data for any 257
such homeowners or commercial property insurance claim paid 258
pursuant to an assignment agreement executed in accordance with the 259
provisions of this section. 260
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(2) Not later than March 1, 2026, and annually thereafter, said 261
commissioner shall submit a report, in accordance with the provisions 262
of section 11-4a of the general statutes, to the joint standing committee 263
of the General Assembly having cognizance of matters relating to 264
insurance. Such report shall include an evaluation of the data submitted 265
to the commissioner pursuant to subdivision (1) of this subsection for 266
the immediately preceding calendar year, including an evaluation of 267
claims adjustments, settlement time frames and claims and litigation 268
trends, categorized by claims litigated, claims settled prior to litigation 269
and loss adjustment expenses. 270
(j) The commissioner shall adopt regulations, in accordance with the 271
provisions of chapter 54 of the general statutes, to implement the 272
provisions of this section. 273
Sec. 2. Section 20-419 of the general statutes is repealed and the 274
following is substituted in lieu thereof (Effective October 1, 2025): 275
As used in this chapter and section 3 of this act, unless the context 276
otherwise requires: 277
(1) "Business day" has the same meaning as provided in section 42-278
134a. 279
[(1)] (2) "Business entity" means an association, corporation, limited 280
liability company, limited liability partnership or partnership. 281
[(2)] (3) "Certificate" means a certificate of registration issued under 282
section 20-422. 283
[(3)] (4) "Commissioner" means (A) the Commissioner of Consumer 284
Protection, and (B) any person designated by the commissioner to 285
administer and enforce this chapter. 286
[(4)] (5) (A) "Contractor" means any person who (i) owns and operates 287
a home improvement business, or (ii) undertakes, offers to undertake or 288
agrees to perform any home improvement. 289
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(B) "Contractor" does not include a person for whom the total price 290
of all of such person's home improvement contracts with all of such 291
person's customers does not exceed one thousand dollars during any 292
period of twelve consecutive months. 293
[(5)] (6) (A) "Home improvement" includes, but is not limited to, the 294
repair, replacement, remodeling, alteration, conversion, modernization, 295
improvement, rehabilitation or sandblasting of, or addition to, any land 296
or building or that portion thereof which is used or designed to be used 297
as a private residence, dwelling place or residential rental property, or 298
the construction, replacement, installation or improvement of alarm 299
systems not requiring electrical work, as defined in section 20-330, 300
driveways, swimming pools, porches, garages, roofs, siding, insulation, 301
sunrooms, flooring, patios, landscaping, fences, doors and windows, 302
waterproofing, water, fire or storm restoration or mold remediation in 303
connection with such land or building or that portion thereof which is 304
used or designed to be used as a private residence, dwelling place or 305
residential rental property or the removal or replacement of a residential 306
underground heating oil storage tank system, in which the total price 307
for all work agreed upon between the contractor and owner or proposed 308
or offered by the contractor exceeds two hundred dollars. 309
(B) "Home improvement" does not include (i) the construction of a 310
new home, (ii) the sale of goods or materials by a seller who neither 311
arranges to perform nor performs, directly or indirectly, any work or 312
labor in connection with the installation or application of the goods or 313
materials, (iii) the sale of goods or services furnished for commercial or 314
business use or for resale, provided commercial or business use does not 315
include use as residential rental property, (iv) the sale of appliances, 316
such as stoves, refrigerators, freezers, room air conditioners and others, 317
which are designed for and are easily removable from the premises 318
without material alteration thereof, (v) tree or shrub cutting or the 319
grinding of tree stumps, and (vi) any work performed without 320
compensation by the owner on such owner's own private residence or 321
residential rental property. 322
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[(6)] (7) "Home improvement contract" means an agreement between 323
a contractor and an owner for the performance of a home improvement. 324
[(7)] (8) "Owner" means a person who owns or resides in a private 325
residence and includes any agent thereof, including, but not limited to, 326
a condominium association. An owner of a private residence shall not 327
be required to reside in such residence to be deemed an owner under 328
this subdivision. 329
[(8)] (9) "Person" means an individual or a business entity. 330
[(9)] (10) "Private residence" means a single family dwelling, a 331
multifamily dwelling consisting of not more than six units, or a unit, 332
common element or limited common element in a condominium, as 333
defined in section 47-68a, or in a common interest community, as 334
defined in section 47-202, or any number of condominium units for 335
which a condominium association acts as an agent for such unit owners. 336
[(10)] (11) "Proprietor" means an individual who (A) has an 337
ownership interest in a business entity that holds or has held a certificate 338
of registration issued under this chapter, and (B) has been found by a 339
court of competent jurisdiction to have violated any provision of this 340
chapter related to the conduct of a business entity holding a certificate 341
or that has held a certificate issued under this chapter within the two 342
years of the effective date of entering into a contract with an owner 343
harmed by the actions of such individual or business entity. 344
[(11)] (12) "Salesman" means any individual who (A) negotiates or 345
offers to negotiate a home improvement contract with an owner, or (B) 346
solicits or otherwise endeavors to procure by any means whatsoever, 347
directly or indirectly, a home improvement contract from an owner on 348
behalf of a contractor. 349
[(12)] (13) "Residential rental property" means a single family 350
dwelling, a multifamily dwelling consisting of not more than six units, 351
or a unit, common element or limited common element in a 352
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condominium, as defined in section 47-68a, or in a common interest 353
community, as defined in section 47-202, which is not owner-occupied. 354
[(13)] (14) "Residential underground heating oil storage tank system" 355
means an underground storage tank system used with or without 356
ancillary components in connection with real property composed of 357
four or less residential units. 358
[(14)] (15) "Underground storage tank system" means an 359
underground tank or combination of tanks, with any underground 360
pipes or ancillary equipment or containment systems connected to such 361
tank or tanks, used to contain an accumulation of petroleum, which 362
volume is ten per cent or more beneath the surface of the ground. 363
Sec. 3. (NEW) (Effective October 1, 2025) Notwithstanding any 364
provision of chapter 400 of the general statutes, no contractor shall 365
advertise, offer or promise to provide, directly or indirectly, any 366
allowance, compensation, discount, payment, waiver or rebate to an 367
owner for any portion of the owner's insurance deductible as an 368
inducement for such owner to enter into a home improvement contract 369
with such contractor. 370
Sec. 4. Section 20-420 of the general statutes is repealed and the 371
following is substituted in lieu thereof (Effective October 1, 2025): 372
(a) (1) No person shall hold such person out to be a contractor or 373
salesperson without first (A) obtaining a certificate of registration from 374
the commissioner as provided in this chapter, except [(1)] (i) that an 375
individual or partner, or officer or director of a corporation registered 376
as a contractor shall not be required to obtain a salesperson's certificate, 377
and [(2)] (ii) as provided in subsections (e) and (f) of this section, and (B) 378
presenting evidence of any insurance coverage required by law. 379
(2) No certificate shall be given to any person who holds such person 380
out to be a contractor that performs radon mitigation unless such 381
contractor provides evidence, satisfactory to the commissioner, that the 382
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contractor is certified as a radon mitigator by the National Radon Safety 383
Board or the National Environmental Health Association. 384
(3) No certificate shall be given to any person who holds such person 385
out to be a contractor that performs removal or replacement of any 386
residential underground heating oil storage tank system unless such 387
contractor provides evidence, satisfactory to the commissioner, that the 388
contractor (A) has completed a hazardous material training program 389
approved by the Department of Energy and Environmental Protection, 390
and (B) has presented evidence of liability insurance coverage of one 391
million dollars. 392
(b) No contractor shall employ any salesman to procure business 393
from an owner unless the salesman is registered under this chapter. 394
(c) No individual shall act as a home improvement salesman for an 395
unregistered contractor. 396
(d) On and after July 1, 2008, a home improvement contractor shall 397
not perform gas hearth product work, as defined in subdivision (22) of 398
section 20-330, unless such home improvement contractor holds a 399
limited contractor or journeyman gas hearth installer license pursuant 400
to section 20-334f. 401
(e) A retail establishment, which is a business that operates from a 402
fixed location where goods or services are offered for sale, may apply 403
annually for a certificate of registration as a salesperson on behalf of its 404
employees if it employs or otherwise compensates one or more 405
salespersons whose solicitation, negotiation and completion of sales are 406
conducted entirely at the retail establishment or virtually or by phone. 407
The retail establishment shall (1) apply for such registration on a form 408
prescribed by the commissioner, (2) maintain a list of all salespersons 409
intended to be covered by the retailer's certificate of registration, and (3) 410
pay a fee equal to the amount that would be due if each person were to 411
apply individually for a certificate of registration, including the amount 412
that would be due under the guaranty fund. The list of salespersons 413
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covered by the retailer's certificate of registration shall be made 414
available to the department upon request. If any person covered by the 415
retail establishment's salesperson certificate of registration conducts 416
activity covered by the salesperson credential at a place other than the 417
retail establishment or virtually or by phone, such person shall apply for 418
an individual salesperson certificate of registration using the form 419
prescribed by the commissioner for such registrations and shall pay the 420
corresponding application fee. 421
(f) Certificates of registration for salespersons issued to retail 422
establishments shall not be transferable or assignable, except a retail 423
establishment that is a holder of a salesperson certificate may remove an 424
existing or former employee currently listed on the certification of 425
registration and replace such person with a new or existing employee 426
employed as a salesperson. If the retail establishment adds or removes 427
salespeople, there shall be no refund or supplemental payment. The fee 428
shall be based on the number of salespeople at the time of each renewal. 429
(g) A contractor or salesperson shall update, through the 430
department's online licensing system, any application information the 431
contractor or salesperson has provided to the department pursuant to 432
this section, including, but not limited to, any contact information, 433
including, but not limited to, a change in business or trade name, 434
residence address or business address for such contractor or 435
salesperson, insurance information or criminal history for such 436
contractor or salesperson, or, if such contractor is a business entity, 437
criminal histories of the individual owners of such business entity, not 438
later than thirty days after any change in such information. 439
Sec. 5. Subsection (a) of section 20-421 of the general statutes is 440
repealed and the following is substituted in lieu thereof (Effective October 441
1, 2025): 442
(a) Any person seeking a certificate of registration shall apply to the 443
commissioner online, on a form provided by the commissioner. The 444
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application shall include, but need not be limited to: 445
(1) [the] The applicant's name [, residence address, business address, 446
business telephone number and electronic mail address, (2) a] and trade 447
name, if the applicant is a natural person, or business name, if the 448
applicant is not a natural person; 449
(2) The applicant's contact information, if the applicant is a natural 450
person, or business address, if the applicant is not a natural person; 451
(3) The applicant's business telephone number, electronic mail 452
address and Internet web site address; 453
(4) The name, trade name and contact information of each business 454
entity in which any individual owner or member of the applicant holds 455
a financial or equitable interest, provided such business entity offers 456
home improvement services in the state; 457
(5) If the applicant is not a natural person, the name and contact 458
information of each director, officer or principal shareholder of such 459
applicant; 460
(6) A statement, attested to by the applicant, disclosing whether (A) 461
the applicant previously held a certificate of registration and, if the 462
applicant previously held such a certificate, (i) the name by which such 463
applicant held such certificate, and (ii) whether such certificate was 464
suspended or revoked, and (B) any judgment or arbitration award has 465
been entered against the applicant; 466
(7) A statement by the applicant disclosing whether the applicant has 467
been found guilty or convicted as a result of an act which (A) constitutes 468
a felony under the laws of this state or federal law, or (B) was committed 469
in another jurisdiction but, if committed in this state, would constitute a 470
felony under the laws of this state; [, (3) proof] 471
(8) Proof that the applicant has obtained (A) general liability 472
insurance coverage in an amount not less than twenty thousand dollars, 473
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demonstrated by providing the policy number and business name of the 474
insurance provider, and (B) any other insurance coverage required by 475
law; and [(4) such] 476
(9) Such other information as the commissioner may require. 477
Sec. 6. Subsection (b) of section 20-427 of the general statutes is 478
repealed and the following is substituted in lieu thereof (Effective October 479
1, 2025): 480
(b) No person shall: (1) Present or attempt to present, as such person's 481
own, the certificate of another, (2) knowingly give false evidence of a 482
material nature to the commissioner for the purpose of procuring a 483
certificate, (3) represent himself or herself falsely as, or impersonate, a 484
registered home improvement contractor or salesman, (4) use or attempt 485
to use a certificate which has expired or which has been suspended or 486
revoked, (5) offer to make or make any home improvement without 487
having a current certificate of registration under this chapter, (6) 488
represent in any manner that such person's registration constitutes an 489
endorsement of the quality of such person's workmanship or of such 490
person's competency by the commissioner, (7) employ or allow any 491
person to act as a salesman on such person's behalf unless such person 492
is registered as a home improvement salesman, [or] (8) fail to refund the 493
amount paid for a home improvement within ten days of a written 494
request mailed or delivered to the contractor's last-known address, if no 495
substantial portion of the contracted work has been performed at the 496
time of the request and more than thirty days has elapsed since the 497
starting date specified in the written contract, or more than thirty days 498
has elapsed since the date of the contract if such contract does not 499
specify a starting date, or (9) engage in the activities of a public adjuster, 500
as defined in section 38a-723, except that such person may (A) explain 501
or discuss a bid for construction or repair of property loss or damage 502
covered under a homeowners insurance policy with an owner of such 503
property or the insurer of such property if such person does so for the 504
usual and customary fees applicable to the work to be performed as 505
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stated in the home improvement contract between such person and the 506
owner, or (B) except as provided in subsection (c) of section 20-429a, as 507
amended by this act, recommend to an owner of such property that such 508
owner contact such owner's insurer to determine whether any such bid 509
for construction or repair of property loss or damage is covered under a 510
homeowners insurance policy with such owner of such property. 511
Sec. 7. Section 20-429 of the general statutes is repealed and the 512
following is substituted in lieu thereof (Effective October 1, 2025): 513
(a) (1) (A) No home improvement contract shall be valid or 514
enforceable against an owner unless it: (i) Is in writing, (ii) is signed by 515
the owner and the contractor, (iii) contains the entire agreement 516
between the owner and the contractor, (iv) contains the date of the 517
transaction, (v) contains the name and address of the contractor and the 518
contractor's registration number, (vi) contains a notice of the owner's 519
cancellation rights in accordance with the provisions of chapter 740, (vii) 520
contains a starting date and completion date, (viii) is entered into by a 521
registered salesman or registered contractor, and (ix) includes a 522
provision disclosing each corporation, limited liability company, 523
partnership, sole proprietorship or other legal entity, which is or has 524
been a home improvement contractor pursuant to the provisions of this 525
chapter or a new home construction contractor pursuant to the 526
provisions of chapter 399a, in which the owner or owners of the home 527
improvement contractor are or have been a shareholder, member, 528
partner, or owner during the previous five years. 529
(B) (i) Each contract shall provide the owner with a right to cancel 530
such contract and include a statement, in substantially the following 531
form, in not less than ten-point boldface type located immediately above 532
the place provided in such contract for the owner's signature: 533
"You may cancel this contract not later than midnight on the third 534
business day after both you and the contractor signed this contract or 535
you received notice from your insurer denying any part of your claim 536
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for the cost of the home improvements to be performed pursuant to this 537
contract, whichever last occurs. Please see the attached notice of 538
cancellation forms for additional information." 539
(ii) Each contract shall contain not fewer than two cancellation forms 540
in substantially the following form and in not less than ten-point 541
boldface type, attached to, and easily detachable from, such contract: 542
"NOTICE OF CANCELLATION 543
You may cancel this contract not later than midnight on the third 544
business day after both you and the contractor sign this contract or you 545
receive notice from your insurer denying any part of your claim for the 546
cost of the home improvements to be performed pursuant to this 547
contract, whichever last occurs. In order to cancel this contract, you 548
must sign, date and deliver, mail or electronically mail this notice to 549
(insert name of contractor) at (insert principal business address and 550
business electronic mail address of contractor) by the end of the three-551
day period described in this notice. If you cancel this contract, the 552
contractor shall return all payments that you have made to the 553
contractor pursuant to this contract, less the reasonable cost of any and 554
all home improvements that the contractor performed pursuant to this 555
contract prior to cancellation, and cancel the contractor's security 556
interest, if any, in any home improvements performed prior to 557
cancellation not later than ten business days after the contractor receives 558
this notice. You should retain a copy of this notice for your records. 559
I HEREBY CANCEL THIS TRANSACTION: 560
Signature 561
(Insert date)" 562
[(B)] (C) Each change in the terms and conditions of a contract shall 563
be in writing and shall be signed by the owner and contractor, except 564
that the commissioner may, by regulation, dispense with the necessity 565
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for complying with the requirement that each change in a home 566
improvement contract shall be in writing and signed by the owner and 567
contractor. 568
(2) A contract for repair, remediation or mitigation as set forth in 569
section 38a-313a shall conform to the requirements set forth in 570
subparagraph (A) of subdivision (1) of this subsection and section 38a-571
313a. 572
(b) No home improvement contract shall be valid if it includes any 573
provision obligating the owner to instruct the home improvement 574
contractor, by a date determined by such contractor, that periodic home 575
improvements are not to be performed unless it also includes a 576
provision requiring the contractor to remind the owner of that 577
obligation by means of a card or letter mailed to the owner and 578
postmarked not earlier than twenty days, and not later than ten days, 579
prior to such date. 580
(c) The contractor shall provide and deliver to the owner, without 581
charge, a completed copy of the home improvement contract at the time 582
such contract is executed. 583
(d) The commissioner may, by regulation, require the inclusion of 584
additional contractual provisions. 585
(e) Each home improvement contract entered into shall be considered 586
a home solicitation sale pursuant to chapter 740 and shall be subject to 587
the requirements of said chapter regardless of the location of the 588
transaction or of the signing of the contract. Each home improvement 589
contract in which the owner agrees to repay the contractor an amount 590
loaned or advanced to the owner by the contractor for the purposes of 591
paying for the goods and services provided in such contract, or which 592
contains a finance charge, (1) shall set forth the information required to 593
be disclosed pursuant to the Truth-in-Lending Act, sections 36a-675 to 594
36a-685, inclusive, (2) shall allow the owner to pay off in advance the 595
full amount due and obtain a partial refund of any unearned finance 596
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charge, and (3) may contain a finance charge set at a rate of not more 597
than the rate allowed for loans pursuant to section 37-4. As used in this 598
subsection, "finance charge" means the amount in excess of the cash 599
price for goods and services under the home improvement contract to 600
be paid by the owner for the privilege of paying the contract price in 601
installments over a period of time. 602
(f) Nothing in this section shall preclude a contractor who has 603
complied with subparagraphs (A)(i), (ii), (vi), (vii) and (viii) of 604
subdivision (1) of subsection (a) of this section from the recovery of 605
payment for work performed based on the reasonable value of services 606
which were requested by the owner, provided the court determines that 607
it would be inequitable to deny such recovery. 608
Sec. 8. Section 20-429a of the general statutes is repealed and the 609
following is substituted in lieu thereof (Effective October 1, 2025): 610
(a) As used in this section: 611
(1) "Prohibited advertisement" means any written or electronic 612
communication, including, but not limited to, door hangers, business 613
cards, magnets, flyers, pamphlets or electronic mail, delivered by any 614
contractor or salesman to encourage, instruct or induce an owner to 615
contact such contractor, salesman or public adjuster, as defined in 616
section 38a-723, to file an insurance claim for roof damage to such 617
owner's property. 618
(2) "Soliciting" means to make direct contact with any person through 619
mail, telephone, electronic mail, in-person communication or any other 620
means for the purpose of inducing such person to make a transaction. 621
(b) No contractor or salesman shall solicit or otherwise endeavor to 622
procure home improvement work or a home improvement contract 623
from an owner by notifying the owner that a contractor will commence 624
home improvement work unless the owner instructs the contractor not 625
to commence such work by a date determined by the contractor. 626
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(c) No contractor or salesman, or any agent or employee of such 627
contractor or salesman shall, directly or indirectly: 628
(1) Solicit any owner through a prohibited advertisement, unless such 629
prohibited advertisement provides, in not less than twelve-point font, 630
that (A) such owner is responsible for payment of any insurance 631
deductible for roof repair costs performed on such owner's property, 632
and (B) intentionally filing an insurance claim containing any false, 633
incomplete or misleading information constitutes insurance fraud 634
punishable as a class D felony pursuant to section 53a-215; 635
(2) Offer any rebate, gift, gift card, cash, coupon, waiver of any 636
insurance deductible or any other item of value to any owner in 637
exchange for (A) allowing such contractor to conduct an inspection of 638
such owner's roof; or (B) such owner, contractor, salesman, or any agent 639
or employee of such contractor submitting an insurance claim for 640
damage to such owner's roof; and 641
(3) Offer, deliver, receive or accept any compensation, inducement or 642
reward for the referral of any home improvement work for which 643
property insurance proceeds are payable. No payment by any owner or 644
insurance company to such contractor for roofing services shall 645
constitute compensation for such referral pursuant to the provisions of 646
this subdivision. 647
(d) Any contract between a contractor and an owner for home 648
improvement services to repair or replace such owner's roof shall 649
include a notice that such contractor is prohibited from engaging in the 650
practices described in subdivision (2) of subsection (c) of this section. 651
(e) Any contractor who violates the provisions of subsection (c) or (d) 652
of this section shall be subject to revocation or suspension pursuant to 653
the provisions of section 20-426. 654
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This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2026 New section
Sec. 2 October 1, 2025 20-419
Sec. 3 October 1, 2025 New section
Sec. 4 October 1, 2025 20-420
Sec. 5 October 1, 2025 20-421(a)
Sec. 6 October 1, 2025 20-427(b)
Sec. 7 October 1, 2025 20-429
Sec. 8 October 1, 2025 20-429a
Statement of Purpose:
To: (1) Establish a process for the assignment of post-loss benefits under
homeowners and commercial property insurance policies; (2) modify
the required terms of home improvement contracts; (3) preclude home
improvement contractors from engaging in certain conduct to induce
owners to enter into home improvement contracts; (4) require home
improvement contractors to notify the commissioner regarding changes
in their business names, trade names and addresses; (5) require home
improvement contractors to maintain additional types of insurance
coverage; (6) expand the required content of the application for a
certificate of registration as a home improvement contractor; and (7)
modify the grounds on which the Commissioner of Consumer
Protection may (A) reprimand or place a home improvement contractor
or salesperson on probation, or (B) revoke, suspend, or refuse to issue
or renew a certificate of registration as a home improvement contractor
or salesperson.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]