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OLR Bill Analysis
sHB 6967
AN ACT CONCERNING THE ASSIGNMENT OF POST -LOSS
HOMEOWNERS AND COMMERCIAL PROPERTY INSURANCE
BENEFITS AND REVISING DISCLOSURE REQUIREMENTS FOR
HOME IMPROVEMENT CONTRACTORS AND SALESPERSONS.
SUMMARY
This bill addresses (1) matters related to post-loss benefit assignment
agreements (i.e. one that assigns, transfers, or acquires any post-loss
benefit under a residential or commercial property insurance policy)
and (2) changes in laws related to home improvement contracts.
Regarding the post-loss benefit assignment provisions, the bill
establishes a process for assigning post-loss benefits under policies
delivered, issued for delivery, renewed, amended, or continued in the
state on or after January 1, 2026. Among other things, the bill:
1. requires post-loss assignment agreements to be executed in
writing and shared with the insurance company;
2. establishes rights and prohibitions for the assignor (i.e. person
who assigns, transfers, or acquires the benefit) and assignee (i.e.
person who is assigned the benefit) and addresses matters related
to post-loss claims; and
3. makes agreements that do not meet the bill’s requirements void
and unenforceable.
It also requires insurers, starting in 2026, to annually submit post-
loss-related data to the insurance commissioner, which he must evaluate
and report to the Insurance Committee (§ 1).
Regarding the provisions of the bill that affect home improvement
contract-related laws, a section-by-section analysis appears below. 2025HB-06967-R000092-BA.DOCX
Researcher: MK Page 2 3/13/25
Among other things, the bill does the following:
1. specifies that for the purpose of the Home Improvement Act,
“business day” means any calendar day except Sunday or any of
the following nine business holidays: New Year’s Day,
Washington’s Birthday, Memorial Day, Independence Day,
Labor Day, Columbus Day, Veterans Day, Thanksgiving Day,
and Christmas Day (§ 2);
2. prohibits a contractor from using any portion of an owner’s
insurance policy deductible to induce them to enter into a home
improvement contract (§ 3);
3. requires home improvement contractors and salespersons to (a)
notify the Department of Consumer Protection (DCP) of any
changes in their business name, trade name, or addresses and (b)
present evidence of any insurance coverage required by law (§ 4);
4. expands the required content of the DCP application for a home
improvement contractor certificate of registration and requires
applicants to provide proof that they maintain any insurance
coverage required by law (§ 5);
5. restricts home improvement contractors from conducting public
adjuster activities, except for certain acts authorized under the
bill (§ 6);
6. requires home improvement contracts to include certain
provisions, including a right for an owner to cancel a contract (§
7); and
7. precludes home improvement contractors, salesmen, or their
employees from engaging in certain conduct (e.g., prohibited
advertising and soliciting regarding roof repair); requires the
contractor to disclose in any roof repair or replacement contract
what conduct is prohibited; and subjects violators to possible
license revocation or suspension (§ 8).
Lastly, it also makes technical and conforming changes. 2025HB-06967-R000092-BA.DOCX
Researcher: MK Page 3 3/13/25
EFFECTIVE DATE: October 1, 2025, except the post-loss assignment-
related provisions go into effect January 1, 2026.
§ 1 — ASSIGNMENT OF POST-LOSS HOMEOWNERS AND
COMMERCIAL INSURANCE BENEFITS
The bill (1) establishes specific requirements for any assignment
agreement that assigns, transfers, or acquires any post-loss benefit
under a homeowners insurance policy or commercial property
insurance policy delivered, issued for delivery, renewed, amended, or
continued in the state on or after January 1, 2026; (2) provides for when
an assignor acts under an urgent or emergency circumstance to protect
the property; and (3) makes any assignment agreement that fails to
comply with these provisions void and unenforceable.
Post-Loss Benefit Assignment Agreement Requirements
A post-loss benefit assignment agreement covered under the bill,
must (1) be in writing and executed by the assignor and assignee and (2)
only relate to the post-loss repair, inspection, remediation, or mitigation
services that the assignee agreed to perform on the property. It must also
include:
1. a provision affording the assignor the right to rescind the
assignment agreement, without penalty, by submitting notice to
the assignee (see Recission Notice below);
2. a provision requiring the assignee to deliver a copy of the
executed assignment agreement to the insurance company
providing homeowners or commercial property insurance
coverage for the property within a certain timeframe and in a
specified manner (see Delivery of Executed Agreement to Insurer
below);
3. an itemized, per unit cost estimate of the post-loss services to be
performed by the assignee on the property;
4. a specific notice regarding the assignee’s obligations and right to
cancel the agreement (see Required Notice in Agreement below);
and 2025HB-06967-R000092-BA.DOCX
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5. a provision requiring the assignee to indemnify and hold the
assignor harmless from any liability, damages, losses, or costs,
including attorney’s fees, arising from the agreed-upon post-loss
services the assignee performed on the property.
Recission Notice
Under the bill, the assignor must submit a signed recission notice to
the assignee:
1. within 14 days after the agreement has been executed;
2. at least 30 days after the date on which the post-loss services are
scheduled to begin, provided the assignee has not substantially
performed the agreed-upon post-loss services; or
3. at least 30 days after the agreement’s execution, provided it does
not contain a date by which the agreed-upon post-loss services
are scheduled to begin and the assignee has not substantially
performed them.
Delivery of Executed Agreement to Insurer
The assignee must deliver a copy of the executed agreement to the
insurance company:
1. not later than (a) three business days after the agreement’s
execution, or (b) the date on which post-loss services are
scheduled to begin, whichever is earlier; and
2. by (a) personal service, overnight mail, return receipt requested,
to the address designated in the applicable homeowners or
commercial property insurance policy or (b) email, evidenced by
a delivery receipt, to the email address designated in the
insurance policy, as applicable.
Required Notice in Agreement
Under the bill, each assignment agreement must include the
following notice in at least 18-point boldface type:
“YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU 2025HB-06967-R000092-BA.DOCX
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HAVE UNDER YOUR INSURANCE POLICY TO A THIRD PARTY ,
WHICH MAY RESULT IN LITIGATION AGAINST YOUR INSURER.
PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE
SIGNING IT. YOU HAVE THE RIGHT TO CANCEL THIS
AGREEMENT WITHOUT PENALTY WITHIN 14 DAYS AFTER THE
DATE THIS AGREEMENT IS EXECUTED, AT LEAST 30 DAYS AFTER
THE DATE WORK ON THE PROPERTY IS SCHEDULED TO
COMMENCE IF THE ASSIGNEE HAS NOT SUBSTANTIALLY
PERFORMED, OR AT LEAST 30 DAYS AFTER THE EXECUTION OF
THE AGREEMENT IF THE AGREEMENT DOES NOT CONTAIN A
COMMENCEMENT DATE AND THE ASSIGNEE HAS NOT BEGUN
SUBSTANTIAL WORK ON THE PROPERTY. HOWEVER, YOU ARE
OBLIGATED FOR PAYMENT OF ANY CONTRACTED WORK
PERFORMED BEFORE THE AGREEMENT IS RESCINDED. THIS
AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO
PERFORM THE DUTIES REQUIRED UNDER YOUR HOMEOWNERS
OR COMMERCIAL PROPERTY IN SURANCE POLICY.”
Excluded Fees
Under the bill, assignment agreements may not include (1) a bank
check or mortgage processing fee, (2) a cancellation penalty or fee for
the assignor, or (3) any administrative fee.
Urgent or Emergency Circumstance
If, before an assignment agreement’s execution, an assignor acts
under an urgent or emergency circumstance to protect the property
from damage, the assignee must not receive an assignment of post-loss
benefits under a homeowners or commercial property insurance policy
providing insurance coverage for the property for more than $3,000 or
1% of the coverage limit under the policy that the policy will cover for
losses resulting from damage to the policyholder’s residential or
building structure, or any structure of the policyholder that is attached
to the residential or building structure, whichever is greater.
Under the bill, an “urgent or emergency circumstance” is any
situation in which a loss to residential or commercial property, if not
addressed immediately, will result in additional damage to the 2025HB-06967-R000092-BA.DOCX
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residential or commercial property.
Insurance Claim and Assignee’s Failures
If any insurance claim arises under an assignment agreement for
post-loss services, the assignee has the burden of proving that the
insurance company is not prejudiced by the assignee’s failure to:
1. keep records of all post-loss services provided under the
assignment agreement,
2. cooperate with any internal claims investigation the insurance
company conducted,
3. give the insurance company any documents related to post-loss
services the assignee provided, or
4. deliver a copy of the executed assignment agreement to the
insurance company within the timeframe specified above.
Assignee’s Requirements
The bill requires the assignee of the assignment agreement to:
1. provide the assignor with current cost estimates for the scope of
the post-loss services to be performed, including for any
additional services the assignee determines are required;
2. perform the post-loss services in keeping with the State Building
Code;
3. not seek payment from the assignor for more than the policy’s
deductible, unless the assignor and assignee executed a separate
agreement for the home improvement or other services to be
performed at the assignor’s own expense; and
4. before submitting an insurance claim under the applicable
insurance policy, (a) submit to an examination by the insurance
company or its authorized agent, under oath or recorded
statement; and (b) participate in any alternative dispute
resolution (ADR) proceedings under the applicable insurance 2025HB-06967-R000092-BA.DOCX
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policy’s terms.
The examination must be (1) reasonably necessary, (2) based on the
scope and complexity of the post-loss repair services performed on the
property, and (3) limited to the scope and costs of those services under
the agreement’s terms.
Limitations of Assignment Agreement
Regardless of the state’s insurance statutes, an assignment agreement
executed under the bill does not transfer or create any authority to
negotiate, adjust, or effect the settlement of any portion of any insurance
claim to anyone or any entity not authorized to do so or take any action
on behalf of any assignor or public adjuster.
Assignee’s Prohibited Actions
Regardless of state law, under the bill, an assignee or the assignee’s
subcontractor, who executes an assignment agreement in keeping with
the bill, is prohibited from:
1. filing a civil or administrative claim against the assignor or any
named insured under the homeowners or commercial property
insurance policy for payment of any post-loss services performed
at the property,
2. collecting payment from the assignor or any named insured
under the policy,
3. claiming a lien on the property, or
4. reporting the assignor or any named insured under the policy to
a credit reporting agency for any payment due under the
assignment agreement.
These do not apply if an assignor violates his or her responsibilities
under the bill (see below).
Assignor’s Responsibilities
The assignor or named insured under the applicable homeowners or
commercial property insurance policy is responsible for paying the 2025HB-06967-R000092-BA.DOCX
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following, as applicable:
1. deductible under the terms of the policy,
2. home improvement or other services performed by the assignee
on the property and approved by the assignor, and
3. post-loss services performed on the property before the assignor
rescinded the assignment agreement.
Assignee’s Cause of Action Against the Insurance Company
Under the bill, an assignee does not have a cause of action against the
homeowners or commercial property insurance company providing
coverage for the property for payment of an insurance claim arising
from post-loss services performed on the assignor’s, or named insured’s,
property, unless the assignee provides written notice as described
below.
Assignee’s Written Notice
The assignee must give written notice to the named insured under
the homeowners or commercial property insurance policy, assignor,
and insurance company of the intention to bring a cause of action.
Timing and Content. This notice must (1) be provided at least 10
days before filing the action, but after the insurance company has
determined coverage under policy, and (2) specify the claimed damages
in dispute, the amount the assignee claims, and a presuit settlement
demand (i.e. any monetary request submitted by an assignee in a
written notice of intent to initiate litigation).
Filing Precondition. Before filing a cause of action, the assignee must
provide the named insured, assignor, and insurance company with a
written invoice or cost estimate of the post-loss repair, inspection,
remediation, or mitigation services performed or scheduled to be
performed by the assignee, including itemized information identifying
(1) equipment; (2) materials; (3) the number of hours worked; and (4) in
circumstances where the post-loss services were performed, proof that
they were performed in keeping with accepted industry standards. 2025HB-06967-R000092-BA.DOCX
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Service of Written Notice. The bill’s notice requirements must be
served by (1) certified mail, return receipt requested, to the name and
mailing address designated by the insurance company in the insurance
policy, and to the name and mailing address designated by the named
insured or assignor in the agreement; or (2) email, evidenced by a
delivery receipt, to the email address designated by the insurance
company and the named insured or assignor in the above documents.
Insurance Company’s Presuit Settlement Offer
Within 10 business days of receiving the notice described above, the
insurance company must make a presuit settlement offer to the assignee
or require the assignee to participate in an appraisal process in keeping
with state law, or any other ADR under the applicable insurance policy’s
terms. Under the bill, a “presuit settlement offer” is any monetary
proposal submitted by the insurance company to settle a dispute with
an assignee before the assignee files a cause of action against the
insurance company.
The bill requires the insurance company to investigate the assignee’s
claimed damages, in keeping with the state’s insurance laws.
Post-Loss Benefit Assignment Provisions Do Not Apply
The bill’s post-loss benefit assignment provisions do not apply to:
1. any assignment, transfer, or conveyance of residential or
commercial property granted to a subsequent purchaser who
holds an insurable interest in the property after a loss;
2. a power of attorney (as provided under the Connecticut Uniform
Power of Attorney Act and the Connecticut Uniform Recognition
of Substitute Decision-Making Documents Act) that grants to a
management company, family member, guardian, or similarly
situated person of a named insured under the applicable
homeowners or commercial property insurance policy the
authority to act on behalf of the named insured with respect to
any insurance claim; or
3. general liability coverage under a homeowners or commercial 2025HB-06967-R000092-BA.DOCX
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property insurance policy.
Reports and Regulations
The bill establishes annual reporting requirements related to
assignment agreements-related data.
Starting by February 1, 2026, each homeowners or commercial
property insurance company licensed in the state must annually submit
a report to the insurance commissioner, in a way he determines, that
includes data for claims paid under an assignment agreement executed
in keeping with the bill.
Starting by March 1, 2026, the commissioner must annually report to
the Insurance Committee on his evaluation of the submitted data for the
immediately preceding calendar year. The report must include an
evaluation of (1) claims adjustments; (2) settlement timeframes; and (3)
claims and litigation trends, categorized by claims litigated, claims
settled prior to litigation, and loss adjustment expenses.
The commissioner must adopt regulations implementing the
section’s provisions.
§ 3 — INSURANCE DEDU CTIBLES AND HOME IMPROVEMEN T
CONTRACTS
Regardless of the state’s home improvement contractor laws, the bill
prohibits contractors from directly or indirectly advertising, offering, or
promising any allowance, compensation, discount, payment, waiver, or
rebate for a homeowner’s insurance deductible in order to induce the
owner to sign a home improvement contract.
§ 4 — CONTRACTOR’S AND SA LESPERSON’S NAME AND
ADDRESS CHANGES
By law, a DCP-issued certificate of registration is required for a
person to be a home improvement contractor or salesperson. Under the
bill, before the person can hold himself or herself out to be a contractor
or salesperson, he or she must also present evidence of any insurance
coverage required by law. 2025HB-06967-R000092-BA.DOCX
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The bill also specifically requires contractors and salespersons to
notify DCP, through the online licensing system, of any changes in their
business name, trade name, residential address, or business address,
within 30 days after the change. Existing law already requires them to
report any changes to their contact information within this timeframe.
§ 5 — CERTIFICATE OF REGISTRATION REQUIRED INFORMATIO N
The bill expands the required information on DCP’s certificate of
registration application form for home improvement contractors and
salespersons; and makes certain distinctions depending on whether or
not the applicant is a natural person.
Applicant’s Information
Under current law, the application form must include the applicant’s
name. The bill specifies that the trade name is required if the applicant
is a natural person and, if not, the business name is required.
Current law also requires the form to include the applicant’s
residential address and business address. Instead, the bill requires (1) a
natural person to provide his or her contact information and (2) all other
applicants to provide a business address.
Under existing law, unchanged by the bill, the form must include the
applicant’s business telephone number and email address. The bill
additionally requires the form to include the applicant’s web address.
Information on Additional Persons
Under the bill, the form must also include the name, trade name, and
contact information of each business entity in which any individual
owner or member of the applicant holds a financial or equitable interest.
This applies only if the business entity offers home improvement
services in the state.
Additionally, if the applicant is not a natural person, the form must
include the name and contact information of the applicant’s directors,
officers, and principal shareholders.
2025HB-06967-R000092-BA.DOCX
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Attestations
Under the bill, the application must also include a statement by the
applicant attesting to whether the applicant previously had a certificate
of registration and, if so, the name on it and whether it was suspended
or revoked. The applicant must also attest to whether any judgment or
arbitration award has been entered against the applicant.
Proof of Insurance
Existing law requires applicants to prove they have at least $20,000 of
general insurance coverage by providing the policy number and
insurance provider. The bill requires the applicant to also prove they
have obtained any other insurance coverage required by law.
§ 6 — PUBLIC ADJUSTER ACTIVITIES PROHIBITED
The bill expands the list of unlawful acts for home improvement
contractors by prohibiting them from engaging in the activities of a
public adjuster, except as described below. By law, a “public adjuster”
(1) prepares, documents, and submits a first-party property claim to an
insurance company for loss or damage by a covered peril under a
personal or commercial risk insurance policy, issued by an insurance
company; (2) negotiates, adjusts, or effects the settlement of the claim;
and (3) advertises or solicits business as a public adjuster (CGS § 38a-
723).
The bill allows a home improvement contractor to:
1. explain or discuss a bid for construction or repair of property loss
or damage covered under a homeowners insurance policy with
the property owner or the insurer if the contractor generally does
the work included in the contract for the usual and customary
fees, and
2. recommend that the property owner contact the insurer to
determine whether a bid for construction or repair of property
loss or damage is covered under the homeowners insurance
policy, except as provided under the prohibited advertising and
soliciting practices under existing law and the bill (see § 8 below). 2025HB-06967-R000092-BA.DOCX
Researcher: MK Page 13 3/13/25
§ 7 — NOTICE OF CANC ELLATION IN HOME IMPROVEMENT
CONTRACTS
The bill requires each home improvement contract to give the owner
the right to cancel the contract and include a specified statement
immediately above the place provided in the contract for the owner’s
signature. The statement must be in at least 10-point boldface type in
substantially the following form:
“You may cancel this contract not later than midnight on the third
business day after both you and the contractor signed this contract or
you received notice from your insurer denying any part of your claim
for the cost of the home improvements to be performed pursuant to this
contract, whichever last occurs. Please see the attached notice of
cancellation forms for additional information.”
Cancellation Form
Under the bill, each contract must have at least two cancellation
forms, attached to, and easily detachable from, the contract and in not
less than 10-point boldface type. The form must be substantially as
follows:
“NOTICE OF CANCELLATION
You may cancel this contract not later than midnight on the third
business day after both you and the contractor sign this contract or you
receive notice from your insurer denying any part of your claim for the
cost of the home improvements to be performed pursuant to this
contract, whichever last occurs. In order to cancel this contract, you
must sign, date and deliver, mail or electronically mail this notice to
(insert name of contractor) at (insert principal business address and
business electronic mail address of contractor) by the end of the three-
day period described in this notice. If you cancel this contract, the
contractor shall return all payments that you have made to the
contractor pursuant to this contract, less the reasonable cost of any and
all home improvements that the contractor performed pursuant to this
contract prior to cancellation, and cancel the contractor’s security
interest, if any, in any home improvements performed prior to 2025HB-06967-R000092-BA.DOCX
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cancellation not later than ten business days after the contractor receives
this notice. You should retain a copy of this notice for your records.
I HEREBY CANCEL THIS TRANSACTION:
Signature
(Insert date)”
§ 8 — PROHIBITED ADVERTISING AND SOLICITING
The bill precludes home improvement contractors, salesmen, or their
agents and employees from engaging in certain conduct to induce
owners to enter into home improvement contracts.
Definitions
Under the bill, “prohibited advertisement” means any written or
electronic communication, including door hangers, business cards,
magnets, flyers, pamphlets, or email, delivered by any contractor or
salesman to encourage, instruct, or induce an owner to contact the
contractor, salesman, or public adjuster to file an insurance claim for
roof damage to the owner’s property.
“Soliciting” means to make direct contact with anyone through mail,
telephone, email, in-person communication, or any other means to
induce the person to make a transaction.
Prohibited Actions
The bill prohibits contractors or salespersons, or their agents or
employees from, directly or indirectly:
1. soliciting any owner through a prohibited advertisement, unless
it provides, in not less than 12-point font, that (a) the owner is
responsible for paying any insurance deductible for roof repair
costs performed on the owner’s property, and (b) intentionally
filing an insurance claim containing any false, incomplete or
misleading information constitutes insurance fraud, a class D
felony punishable by a fine up to $5,000, up to five years in
prison, or both; 2025HB-06967-R000092-BA.DOCX
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2. offering any rebate, gift, gift card, cash, coupon, waiver of any
insurance deductible, or any other item of value to any owner in
exchange for (a) allowing the contractor to inspect the roof; or (b)
the owner, contractor, salesman, or their agents or employees,
submitting an insurance claim for damage to the owner’s roof;
and
3. offering, delivering, receiving, or accepting any compensation,
inducement, or reward for referring any home improvement
work for which property insurance proceeds are payable. Under
the bill, payment by an owner or insurance company to the
contractor for roofing services does not constitute compensation
for the referral.
Required Notice
Under the bill, any contract between a contractor and an owner for
home improvement services to repair or replace the owner’s roof must
include a notice that the contractor is prohibited from engaging in the
practices described above.
Penalty for Violations
The bill subjects any contractor who violates the prohibited actions
or notice requirements described above to possible revocation or
suspension of the contractor’s certificate of registration.
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable
Yea 11 Nay 2 (02/25/2025)