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General Assembly Substitute Bill No. 6967
January Session, 2025
AN ACT CONCERNING THE ASSIGNMENT OF POST -LOSS
HOMEOWNERS AND COMMERCIAL PROPERTY INSURANCE
BENEFITS AND REVISING DISCLOSURE REQUIREMENTS FOR
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
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 Substitute Bill No. 6967
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(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
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 Substitute Bill No. 6967
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(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
"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 Substitute Bill No. 6967
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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
assignment of post-loss benefits under a homeowners or commercial 106
property insurance policy providing insurance coverage for such 107
residential or commercial property in excess of three thousand dollars 108
or one per cent of the coverage limit under such homeowners or 109
commercial property insurance policy that such policy will cover for 110
losses resulting from damage to the policyholder's residential or 111
building structure, or any structure of the policyholder that is attached 112
to such residential or building structure, whichever is greater. For 113 Substitute Bill No. 6967
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purposes of this section, "urgent or emergency circumstance" means any 114
situation in which a loss to residential or commercial property, if not 115
addressed immediately, will result in additional damage to such 116
residential or commercial property. 117
(4) Any assignment agreement that fails to comply with the 118
provisions of this subsection shall be void and unenforceable. 119
(c) If any insurance claim arises under an assignment agreement for 120
post-loss repair, inspection, remediation or mitigation services, the 121
assignee of such assignment agreement shall have the burden of 122
proving that the insurance company providing homeowners or 123
commercial property insurance coverage for the residential or 124
commercial property is not prejudiced by such assignee's failure to: 125
(1) Maintain records of all post-loss repair, inspection, remediation or 126
mitigation services provided under such assignment agreement; 127
(2) Cooperate with any internal claims investigation conducted by 128
such insurance company; 129
(3) Provide such insurance company with any documents related to 130
post-loss repair, inspection, remediation or mitigation services provided 131
by such assignee; or 132
(4) Deliver a copy of the executed assignment agreement to such 133
insurance company not later than three business days after the date on 134
which such assignment agreement is executed or the date on which such 135
post-loss repair, inspection, remediation or mitigation services 136
commenced, whichever is earlier. 137
(d) Any assignee of such assignment agreement shall: 138
(1) Provide the assignor of such assignment agreement with current 139
cost estimates concerning the scope of such post-loss repair, inspection, 140
remediation or mitigation services to be performed, as such assignee 141
determines that any such additional repair, inspection, remediation or 142
mitigation services are required; 143 Substitute Bill No. 6967
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(2) Perform such post-loss repair, inspection, remediation or 144
mitigation services in accordance with the State Building Code adopted 145
pursuant to section 29-252 of the general statutes; 146
(3) Not seek payment from such assignor in an amount that exceeds 147
the deductible under the applicable homeowners or commercial 148
property insurance policy, unless such assignor and assignee executed 149
a separate agreement for the performance of home improvement or 150
other services at such assignor's own expense; and 151
(4) Prior to submitting an insurance claim under the applicable 152
homeowners or commercial property insurance policy, (A) submit to an 153
examination under oath or recorded statement conducted by such 154
homeowners or commercial property insurance company or such 155
insurance company's authorized agent that is (i) reasonably necessary, 156
(ii) based on the scope and complexity of the post-loss repair, inspection, 157
remediation or mitigation services performed on such property, and (iii) 158
limited to the scope and costs of such post-loss repair, inspection, 159
remediation or mitigation services pursuant to the terms of such 160
assignment agreement, and (B) participate in any alternative dispute 161
resolution proceedings pursuant to the terms of the applicable 162
homeowners or commercial property insurance policy. 163
(e) Notwithstanding any provision of title 38a of the general statutes, 164
no assignment agreement executed in accordance with the provisions of 165
this section shall transfer or create any authority to negotiate, adjust or 166
effect the settlement of any portion of any insurance claim to any person 167
or entity not authorized to negotiate, adjust or effect such settlement of 168
such insurance claim or take any action on behalf of any assignor or 169
public adjuster, as defined in section 38a-723 of the general statutes. 170
(f) (1) Notwithstanding any provision of the general statutes and 171
except as provided in subdivision (2) of this subsection, no assignee or 172
subcontractor of such assignee, who executes an assignment agreement 173
in accordance with the provisions of this section, shall (A) file any civil 174
or administrative claim against the assignor of such assignment 175 Substitute Bill No. 6967
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agreement or any named insured under the applicable homeowners or 176
commercial property insurance policy for payment of any post-loss 177
repair, inspection, remediation or mitigation services performed at the 178
residential or commercial property, (B) collect payment from such 179
assignor of such assignment agreement or any named insured under the 180
applicable homeowners or commercial property insurance policy, (C) 181
claim a lien on the residential or commercial property of such assignor 182
of such assignment agreement or any named insured under the 183
applicable homeowners or commercial property insurance policy, or (D) 184
report such assignor of such assignment agreement or any named 185
insured under the applicable homeowners or commercial property 186
insurance policy to a credit reporting agency for any payment due 187
pursuant to such assignment agreement. 188
(2) Such assignor of such assignment agreement or named insured 189
under the applicable homeowners or commercial property insurance 190
policy shall be responsible for payment of any (A) deductible under the 191
terms of such policy, (B) home improvement or other services 192
performed by the assignee on the residential or commercial property 193
that were approved by such assignor pursuant to subdivision (3) of 194
subsection (d) of this section, or (C) post-loss repair, inspection, 195
remediation or mitigation services performed on the property before 196
such assignor rescinded such assignment agreement pursuant to 197
subparagraph (B) of subdivision (1) of subsection (b) of this section. 198
(g) (1) No assignee of an assignment agreement shall have a cause of 199
action against the homeowners or commercial property insurance 200
company providing coverage for the residential or commercial property 201
for payment of an insurance claim arising from post-loss repair, 202
inspection, remediation or mitigation services performed on the 203
assignor's, or named insured's, residential or commercial property, 204
unless such assignee provides written notice of: 205
(A) Such assignee's intent to bring such cause of action to such named 206
insured under the homeowners or commercial property insurance 207
policy, assignor and insurance company not later than ten business days 208 Substitute Bill No. 6967
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before filing such cause of action and after such insurance company has 209
made a determination of coverage under such homeowners or 210
commercial property insurance policy; and 211
(B) The claimed damages in dispute, the amount claimed by such 212
assignee and a presuit settlement demand. As a precondition to filing 213
such cause of action, such assignee shall provide such named insured, 214
such assignor and such insurance company with a written invoice or 215
cost estimate of the post-loss repair, inspection, remediation or 216
mitigation services performed or scheduled to be performed by such 217
assignee, including itemized information identifying equipment, 218
materials, the number of hours worked, and, in circumstances where 219
such post-loss repair, inspection, remediation or mitigation services 220
were performed, proof that such services were performed in accordance 221
with accepted industry standards. Such notice requirements pursuant 222
to this subdivision shall be served by (i) certified mail, return receipt 223
requested, to the name and mailing address designated by the insurance 224
company in the homeowners or commercial property insurance policy, 225
and to the name and mailing address designated by such named insured 226
or assignor in the assignment agreement, or (ii) electronic means 227
evidenced by a delivery receipt, to the electronic mail address 228
designated by such insurance company in the homeowners or 229
commercial property insurance policy, and to the electronic mail 230
address designated by such named insured or assignor in such 231
assignment agreement. 232
(2) Not later than ten business days after receiving such notice 233
pursuant to the provisions of subdivision (1) of this subsection, such 234
insurance company shall submit a presuit settlement offer to such 235
assignee or require such assignee to participate in an appraisal process, 236
as provided in chapter 700 of the general statutes, or any other 237
alternative dispute resolution pursuant to the terms of the applicable 238
homeowners or commercial property insurance policy. Such insurance 239
company shall investigate such assignee's claimed damages, in 240
accordance with the provisions of title 38a of the general statutes. 241 Substitute Bill No. 6967
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(h) The provisions of this section shall not apply to: 242
(1) Any assignment, transfer or conveyance of residential or 243
commercial property granted to a subsequent purchaser of such 244
residential or commercial property who holds an insurable interest in 245
such residential or commercial property following a loss; 246
(2) A power of attorney, as provided in chapter 15c of the general 247
statutes, that grants to a management company, family member, 248
guardian or similarly situated person of a named insured under the 249
applicable homeowners or commercial property insurance policy the 250
authority to act on behalf of such named insured with respect to any 251
homeowners or commercial property insurance claim; or 252
(3) General liability coverage under a homeowners or commercial 253
property insurance policy. 254
(i) (1) Not later than February 1, 2026, and annually thereafter, each 255
homeowners or commercial property insurance company licensed in 256
this state shall submit a report to the Insurance Commissioner, in a form 257
and manner prescribed by the commissioner, that includes data for any 258
such homeowners or commercial property insurance claim paid 259
pursuant to an assignment agreement executed in accordance with the 260
provisions of this section. 261
(2) Not later than March 1, 2026, and annually thereafter, said 262
commissioner shall submit a report, in accordance with the provisions 263
of section 11-4a of the general statutes, to the joint standing committee 264
of the General Assembly having cognizance of matters relating to 265
insurance. Such report shall include an evaluation of the data submitted 266
to the commissioner pursuant to subdivision (1) of this subsection for 267
the immediately preceding calendar year, including an evaluation of 268
claims adjustments, settlement time frames and claims and litigation 269
trends, categorized by claims litigated, claims settled prior to litigation 270
and loss adjustment expenses. 271
(j) The commissioner shall adopt regulations, in accordance with the 272 Substitute Bill No. 6967
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provisions of chapter 54 of the general statutes, to implement the 273
provisions of this section. 274
Sec. 2. Section 20-419 of the general statutes is repealed and the 275
following is substituted in lieu thereof (Effective October 1, 2025): 276
As used in this chapter and section 3 of this act, unless the context 277
otherwise requires: 278
(1) "Business day" has the same meaning as provided in section 42-279
134a. 280
[(1)] (2) "Business entity" means an association, corporation, limited 281
liability company, limited liability partnership or partnership. 282
[(2)] (3) "Certificate" means a certificate of registration issued under 283
section 20-422. 284
[(3)] (4) "Commissioner" means (A) the Commissioner of Consumer 285
Protection, and (B) any person designated by the commissioner to 286
administer and enforce this chapter. 287
[(4)] (5) (A) "Contractor" means any person who (i) owns and operates 288
a home improvement business, or (ii) undertakes, offers to undertake or 289
agrees to perform any home improvement. 290
(B) "Contractor" does not include a person for whom the total price 291
of all of such person's home improvement contracts with all of such 292
person's customers does not exceed one thousand dollars during any 293
period of twelve consecutive months. 294
[(5)] (6) (A) "Home improvement" includes, but is not limited to, the 295
repair, replacement, remodeling, alteration, conversion, modernization, 296
improvement, rehabilitation or sandblasting of, or addition to, any land 297
or building or that portion thereof which is used or designed to be used 298
as a private residence, dwelling place or residential rental property, or 299
the construction, replacement, installation or improvement of alarm 300
systems not requiring electrical work, as defined in section 20-330, 301 Substitute Bill No. 6967
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driveways, swimming pools, porches, garages, roofs, siding, insulation, 302
sunrooms, flooring, patios, landscaping, fences, doors and windows, 303
waterproofing, water, fire or storm restoration or mold remediation in 304
connection with such land or building or that portion thereof which is 305
used or designed to be used as a private residence, dwelling place or 306
residential rental property or the removal or replacement of a residential 307
underground heating oil storage tank system, in which the total price 308
for all work agreed upon between the contractor and owner or proposed 309
or offered by the contractor exceeds two hundred dollars. 310
(B) "Home improvement" does not include (i) the construction of a 311
new home, (ii) the sale of goods or materials by a seller who neither 312
arranges to perform nor performs, directly or indirectly, any work or 313
labor in connection with the installation or application of the goods or 314
materials, (iii) the sale of goods or services furnished for commercial or 315
business use or for resale, provided commercial or business use does not 316
include use as residential rental property, (iv) the sale of appliances, 317
such as stoves, refrigerators, freezers, room air conditioners and others, 318
which are designed for and are easily removable from the premises 319
without material alteration thereof, (v) tree or shrub cutting or the 320
grinding of tree stumps, and (vi) any work performed without 321
compensation by the owner on such owner's own private residence or 322
residential rental property. 323
[(6)] (7) "Home improvement contract" means an agreement between 324
a contractor and an owner for the performance of a home improvement. 325
[(7)] (8) "Owner" means a person who owns or resides in a private 326
residence and includes any agent thereof, including, but not limited to, 327
a condominium association. An owner of a private residence shall not 328
be required to reside in such residence to be deemed an owner under 329
this subdivision. 330
[(8)] (9) "Person" means an individual or a business entity. 331
[(9)] (10) "Private residence" means a single family dwelling, a 332
multifamily dwelling consisting of not more than six units, or a unit, 333 Substitute Bill No. 6967
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common element or limited common element in a condominium, as 334
defined in section 47-68a, or in a common interest community, as 335
defined in section 47-202, or any number of condominium units for 336
which a condominium association acts as an agent for such unit owners. 337
[(10)] (11) "Proprietor" means an individual who (A) has an 338
ownership interest in a business entity that holds or has held a certificate 339
of registration issued under this chapter, and (B) has been found by a 340
court of competent jurisdiction to have violated any provision of this 341
chapter related to the conduct of a business entity holding a certificate 342
or that has held a certificate issued under this chapter within the two 343
years of the effective date of entering into a contract with an owner 344
harmed by the actions of such individual or business entity. 345
[(11)] (12) "Salesman" means any individual who (A) negotiates or 346
offers to negotiate a home improvement contract with an owner, or (B) 347
solicits or otherwise endeavors to procure by any means whatsoever, 348
directly or indirectly, a home improvement contract from an owner on 349
behalf of a contractor. 350
[(12)] (13) "Residential rental property" means a single family 351
dwelling, a multifamily dwelling consisting of not more than six units, 352
or a unit, common element or limited common element in a 353
condominium, as defined in section 47-68a, or in a common interest 354
community, as defined in section 47-202, which is not owner-occupied. 355
[(13)] (14) "Residential underground heating oil storage tank system" 356
means an underground storage tank system used with or without 357
ancillary components in connection with real property composed of 358
four or less residential units. 359
[(14)] (15) "Underground storage tank system" means an 360
underground tank or combination of tanks, with any underground 361
pipes or ancillary equipment or containment systems connected to such 362
tank or tanks, used to contain an accumulation of petroleum, which 363
volume is ten per cent or more beneath the surface of the ground. 364 Substitute Bill No. 6967
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Sec. 3. (NEW) (Effective October 1, 2025) Notwithstanding any 365
provision of chapter 400 of the general statutes, no contractor shall 366
advertise, offer or promise to provide, directly or indirectly, any 367
allowance, compensation, discount, payment, waiver or rebate to an 368
owner for any portion of the owner's insurance deductible as an 369
inducement for such owner to enter into a home improvement contract 370
with such contractor. 371
Sec. 4. Section 20-420 of the general statutes is repealed and the 372
following is substituted in lieu thereof (Effective October 1, 2025): 373
(a) (1) No person shall hold such person out to be a contractor or 374
salesperson without first (A) obtaining a certificate of registration from 375
the commissioner as provided in this chapter, except [(1)] (i) that an 376
individual or partner, or officer or director of a corporation registered 377
as a contractor shall not be required to obtain a salesperson's certificate, 378
and [(2)] (ii) as provided in subsections (e) and (f) of this section, and (B) 379
presenting evidence of any insurance coverage required by law. 380
(2) No certificate shall be given to any person who holds such person 381
out to be a contractor that performs radon mitigation unless such 382
contractor provides evidence, satisfactory to the commissioner, that the 383
contractor is certified as a radon mitigator by the National Radon Safety 384
Board or the National Environmental Health Association. 385
(3) No certificate shall be given to any person who holds such person 386
out to be a contractor that performs removal or replacement of any 387
residential underground heating oil storage tank system unless such 388
contractor provides evidence, satisfactory to the commissioner, that the 389
contractor (A) has completed a hazardous material training program 390
approved by the Department of Energy and Environmental Protection, 391
and (B) has presented evidence of liability insurance coverage of one 392
million dollars. 393
(b) No contractor shall employ any salesman to procure business 394
from an owner unless the salesman is registered under this chapter. 395 Substitute Bill No. 6967
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(c) No individual shall act as a home improvement salesman for an 396
unregistered contractor. 397
(d) On and after July 1, 2008, a home improvement contractor shall 398
not perform gas hearth product work, as defined in subdivision (22) of 399
section 20-330, unless such home improvement contractor holds a 400
limited contractor or journeyman gas hearth installer license pursuant 401
to section 20-334f. 402
(e) A retail establishment, which is a business that operates from a 403
fixed location where goods or services are offered for sale, may apply 404
annually for a certificate of registration as a salesperson on behalf of its 405
employees if it employs or otherwise compensates one or more 406
salespersons whose solicitation, negotiation and completion of sales are 407
conducted entirely at the retail establishment or virtually or by phone. 408
The retail establishment shall (1) apply for such registration on a form 409
prescribed by the commissioner, (2) maintain a list of all salespersons 410
intended to be covered by the retailer's certificate of registration, and (3) 411
pay a fee equal to the amount that would be due if each person were to 412
apply individually for a certificate of registration, including the amount 413
that would be due under the guaranty fund. The list of salespersons 414
covered by the retailer's certificate of registration shall be made 415
available to the department upon request. If any person covered by the 416
retail establishment's salesperson certificate of registration conducts 417
activity covered by the salesperson credential at a place other than the 418
retail establishment or virtually or by phone, such person shall apply for 419
an individual salesperson certificate of registration using the form 420
prescribed by the commissioner for such registrations and shall pay the 421
corresponding application fee. 422
(f) Certificates of registration for salespersons issued to retail 423
establishments shall not be transferable or assignable, except a retail 424
establishment that is a holder of a salesperson certificate may remove an 425
existing or former employee currently listed on the certification of 426
registration and replace such person with a new or existing employee 427
employed as a salesperson. If the retail establishment adds or removes 428 Substitute Bill No. 6967
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salespeople, there shall be no refund or supplemental payment. The fee 429
shall be based on the number of salespeople at the time of each renewal. 430
(g) A contractor or salesperson shall update, through the 431
department's online licensing system, any application information the 432
contractor or salesperson has provided to the department pursuant to 433
this section, including, but not limited to, any contact information, 434
including, but not limited to, a change in business or trade name, 435
residence address or business address for such contractor or 436
salesperson, insurance information or criminal history for such 437
contractor or salesperson, or, if such contractor is a business entity, 438
criminal histories of the individual owners of such business entity, not 439
later than thirty days after any change in such information. 440
Sec. 5. Subsection (a) of section 20-421 of the general statutes is 441
repealed and the following is substituted in lieu thereof (Effective October 442
1, 2025): 443
(a) Any person seeking a certificate of registration shall apply to the 444
commissioner online, on a form provided by the commissioner. The 445
application shall include, but need not be limited to: 446
(1) [the] The applicant's name [, residence address, business address, 447
business telephone number and electronic mail address, (2) a] and trade 448
name, if the applicant is a natural person, or business name, if the 449
applicant is not a natural person; 450
(2) The applicant's contact information, if the applicant is a natural 451
person, or business address, if the applicant is not a natural person; 452
(3) The applicant's business telephone number, electronic mail 453
address and Internet web site address; 454
(4) The name, trade name and contact information of each business 455
entity in which any individual owner or member of the applicant holds 456
a financial or equitable interest, provided such business entity offers 457
home improvement services in the state; 458 Substitute Bill No. 6967
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(5) If the applicant is not a natural person, the name and contact 459
information of each director, officer or principal shareholder of such 460
applicant; 461
(6) A statement, attested to by the applicant, disclosing whether (A) 462
the applicant previously held a certificate of registration and, if the 463
applicant previously held such a certificate, (i) the name by which such 464
applicant held such certificate, and (ii) whether such certificate was 465
suspended or revoked, and (B) any judgment or arbitration award has 466
been entered against the applicant; 467
(7) A statement by the applicant disclosing whether the applicant has 468
been found guilty or convicted as a result of an act which (A) constitutes 469
a felony under the laws of this state or federal law, or (B) was committed 470
in another jurisdiction but, if committed in this state, would constitute a 471
felony under the laws of this state; [, (3) proof] 472
(8) Proof that the applicant has obtained (A) general liability 473
insurance coverage in an amount not less than twenty thousand dollars, 474
demonstrated by providing the policy number and business name of the 475
insurance provider, and (B) any other insurance coverage required by 476
law; and [(4) such] 477
(9) Such other information as the commissioner may require. 478
Sec. 6. Subsection (b) of section 20-427 of the general statutes is 479
repealed and the following is substituted in lieu thereof (Effective October 480
1, 2025): 481
(b) No person shall: (1) Present or attempt to present, as such person's 482
own, the certificate of another, (2) knowingly give false evidence of a 483
material nature to the commissioner for the purpose of procuring a 484
certificate, (3) represent himself or herself falsely as, or impersonate, a 485
registered home improvement contractor or salesman, (4) use or attempt 486
to use a certificate which has expired or which has been suspended or 487
revoked, (5) offer to make or make any home improvement without 488
having a current certificate of registration under this chapter, (6) 489 Substitute Bill No. 6967
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represent in any manner that such person's registration constitutes an 490
endorsement of the quality of such person's workmanship or of such 491
person's competency by the commissioner, (7) employ or allow any 492
person to act as a salesman on such person's behalf unless such person 493
is registered as a home improvement salesman, [or] (8) fail to refund the 494
amount paid for a home improvement within ten days of a written 495
request mailed or delivered to the contractor's last-known address, if no 496
substantial portion of the contracted work has been performed at the 497
time of the request and more than thirty days has elapsed since the 498
starting date specified in the written contract, or more than thirty days 499
has elapsed since the date of the contract if such contract does not 500
specify a starting date, or (9) engage in the activities of a public adjuster, 501
as defined in section 38a-723, except that such person may (A) explain 502
or discuss a bid for construction or repair of property loss or damage 503
covered under a homeowners insurance policy with an owner of such 504
property or the insurer of such property if such person does so for the 505
usual and customary fees applicable to the work to be performed as 506
stated in the home improvement contract between such person and the 507
owner, or (B) except as provided in subsection (c) of section 20-429a, as 508
amended by this act, recommend to an owner of such property that such 509
owner contact such owner's insurer to determine whether any such bid 510
for construction or repair of property loss or damage is covered under a 511
homeowners insurance policy with such owner of such property. 512
Sec. 7. Section 20-429 of the general statutes is repealed and the 513
following is substituted in lieu thereof (Effective October 1, 2025): 514
(a) (1) (A) No home improvement contract shall be valid or 515
enforceable against an owner unless it: (i) Is in writing, (ii) is signed by 516
the owner and the contractor, (iii) contains the entire agreement 517
between the owner and the contractor, (iv) contains the date of the 518
transaction, (v) contains the name and address of the contractor and the 519
contractor's registration number, (vi) contains a notice of the owner's 520
cancellation rights in accordance with the provisions of chapter 740, (vii) 521
contains a starting date and completion date, (viii) is entered into by a 522
registered salesman or registered contractor, and (ix) includes a 523 Substitute Bill No. 6967
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provision disclosing each corporation, limited liability company, 524
partnership, sole proprietorship or other legal entity, which is or has 525
been a home improvement contractor pursuant to the provisions of this 526
chapter or a new home construction contractor pursuant to the 527
provisions of chapter 399a, in which the owner or owners of the home 528
improvement contractor are or have been a shareholder, member, 529
partner, or owner during the previous five years. 530
(B) (i) Each contract shall provide the owner with a right to cancel 531
such contract and include a statement, in substantially the following 532
form, in not less than ten-point boldface type located immediately above 533
the place provided in such contract for the owner's signature: 534
"You may cancel this contract not later than midnight on the third 535
business day after both you and the contractor signed this contract or 536
you received notice from your insurer denying any part of your claim 537
for the cost of the home improvements to be performed pursuant to this 538
contract, whichever last occurs. Please see the attached notice of 539
cancellation forms for additional information." 540
(ii) Each contract shall contain not fewer than two cancellation forms 541
in substantially the following form and in not less than ten-point 542
boldface type, attached to, and easily detachable from, such contract: 543
"NOTICE OF CANCELLATION 544
You may cancel this contract not later than midnight on the third 545
business day after both you and the contractor sign this contract or you 546
receive notice from your insurer denying any part of your claim for the 547
cost of the home improvements to be performed pursuant to this 548
contract, whichever last occurs. In order to cancel this contract, you 549
must sign, date and deliver, mail or electronically mail this notice to 550
(insert name of contractor) at (insert principal business address and 551
business electronic mail address of contractor) by the end of the three-552
day period described in this notice. If you cancel this contract, the 553
contractor shall return all payments that you have made to the 554
contractor pursuant to this contract, less the reasonable cost of any and 555 Substitute Bill No. 6967
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all home improvements that the contractor performed pursuant to this 556
contract prior to cancellation, and cancel the contractor's security 557
interest, if any, in any home improvements performed prior to 558
cancellation not later than ten business days after the contractor receives 559
this notice. You should retain a copy of this notice for your records. 560
I HEREBY CANCEL THIS TRANSACTION: 561
Signature 562
(Insert date)" 563
[(B)] (C) Each change in the terms and conditions of a contract shall 564
be in writing and shall be signed by the owner and contractor, except 565
that the commissioner may, by regulation, dispense with the necessity 566
for complying with the requirement that each change in a home 567
improvement contract shall be in writing and signed by the owner and 568
contractor. 569
(2) A contract for repair, remediation or mitigation as set forth in 570
section 38a-313a shall conform to the requirements set forth in 571
subparagraph (A) of subdivision (1) of this subsection and section 38a-572
313a. 573
(b) No home improvement contract shall be valid if it includes any 574
provision obligating the owner to instruct the home improvement 575
contractor, by a date determined by such contractor, that periodic home 576
improvements are not to be performed unless it also includes a 577
provision requiring the contractor to remind the owner of that 578
obligation by means of a card or letter mailed to the owner and 579
postmarked not earlier than twenty days, and not later than ten days, 580
prior to such date. 581
(c) The contractor shall provide and deliver to the owner, without 582
charge, a completed copy of the home improvement contract at the time 583
such contract is executed. 584
(d) The commissioner may, by regulation, require the inclusion of 585 Substitute Bill No. 6967
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additional contractual provisions. 586
(e) Each home improvement contract entered into shall be considered 587
a home solicitation sale pursuant to chapter 740 and shall be subject to 588
the requirements of said chapter regardless of the location of the 589
transaction or of the signing of the contract. Each home improvement 590
contract in which the owner agrees to repay the contractor an amount 591
loaned or advanced to the owner by the contractor for the purposes of 592
paying for the goods and services provided in such contract, or which 593
contains a finance charge, (1) shall set forth the information required to 594
be disclosed pursuant to the Truth-in-Lending Act, sections 36a-675 to 595
36a-685, inclusive, (2) shall allow the owner to pay off in advance the 596
full amount due and obtain a partial refund of any unearned finance 597
charge, and (3) may contain a finance charge set at a rate of not more 598
than the rate allowed for loans pursuant to section 37-4. As used in this 599
subsection, "finance charge" means the amount in excess of the cash 600
price for goods and services under the home improvement contract to 601
be paid by the owner for the privilege of paying the contract price in 602
installments over a period of time. 603
(f) Nothing in this section shall preclude a contractor who has 604
complied with subparagraphs (A)(i), (ii), (vi), (vii) and (viii) of 605
subdivision (1) of subsection (a) of this section from the recovery of 606
payment for work performed based on the reasonable value of services 607
which were requested by the owner, provided the court determines that 608
it would be inequitable to deny such recovery. 609
Sec. 8. Section 20-429a of the general statutes is repealed and the 610
following is substituted in lieu thereof (Effective October 1, 2025): 611
(a) As used in this section: 612
(1) "Prohibited advertisement" means any written or electronic 613
communication, including, but not limited to, door hangers, business 614
cards, magnets, flyers, pamphlets or electronic mail, delivered by any 615
contractor or salesman to encourage, instruct or induce an owner to 616
contact such contractor, salesman or public adjuster, as defined in 617 Substitute Bill No. 6967
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section 38a-723, to file an insurance claim for roof damage to such 618
owner's property. 619
(2) "Soliciting" means to make direct contact with any person through 620
mail, telephone, electronic mail, in-person communication or any other 621
means for the purpose of inducing such person to make a transaction. 622
(b) No contractor or salesman shall solicit or otherwise endeavor to 623
procure home improvement work or a home improvement contract 624
from an owner by notifying the owner that a contractor will commence 625
home improvement work unless the owner instructs the contractor not 626
to commence such work by a date determined by the contractor. 627
(c) No contractor or salesman, or any agent or employee of such 628
contractor or salesman shall, directly or indirectly: 629
(1) Solicit any owner through a prohibited advertisement, unless such 630
prohibited advertisement provides, in not less than twelve-point font, 631
that (A) such owner is responsible for payment of any insurance 632
deductible for roof repair costs performed on such owner's property, 633
and (B) intentionally filing an insurance claim containing any false, 634
incomplete or misleading information constitutes insurance fraud 635
punishable as a class D felony pursuant to section 53a-215; 636
(2) Offer any rebate, gift, gift card, cash, coupon, waiver of any 637
insurance deductible or any other item of value to any owner in 638
exchange for (A) allowing such contractor to conduct an inspection of 639
such owner's roof; or (B) such owner, contractor, salesman, or any agent 640
or employee of such contractor submitting an insurance claim for 641
damage to such owner's roof; and 642
(3) Offer, deliver, receive or accept any compensation, inducement or 643
reward for the referral of any home improvement work for which 644
property insurance proceeds are payable. No payment by any owner or 645
insurance company to such contractor for roofing services shall 646
constitute compensation for such referral pursuant to the provisions of 647
this subdivision. 648 Substitute Bill No. 6967
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(d) Any contract between a contractor and an owner for home 649
improvement services to repair or replace such owner's roof shall 650
include a notice that such contractor is prohibited from engaging in the 651
practices described in subdivision (2) of subsection (c) of this section. 652
(e) Any contractor who violates the provisions of subsection (c) or (d) 653
of this section shall be subject to revocation or suspension pursuant to 654
the provisions of section 20-426. 655
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 Legislative Commissioners:
In Section 1(b)(3), "commercial insurance policy" was changed to
"commercial property insurance policy," for accuracy, and the title was
changed.
INS Joint Favorable Subst. -LCO