AN ACT CONCERNING THE ASSIGNMENT OF POST-LOSS HOMEOWNERS AND COMMERCIAL PROPERTY INSURANCE BENEFITS, CONSUMER BILL OF RIGHTS AND REVISING DISCLOSURE REQUIREMENTS FOR HOME IMPROVEMENT CONTRACTORS AND SALESPERSONS.

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House of Representatives

File No. 747
General Assembly
February Session, 2026 (Reprint of File No. 187)

Substitute House Bill No. 5263
As Amended by House Amendment
Schedule "A"

Approved by the Legislative Commissioner
April 30, 2026

AN ACT CONCERNING THE ASSIGNMENT OF POST-LOSS
HOMEOWNERS AND COMMERCIAL PROPERTY INSURANCE
BENEFITS, CONSUMER BILL OF RIGHTS 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, 2027) (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

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provided such homeowners insurance policy or commercial property 11
insurance policy allows for the assignment, transfer or acquisition of 12
post-loss benefits. "Assignment agreement" does not include any fee 13
collected by a public adjuster licensed pursuant to chapter 701b of the 14
general statutes; 15
(3) "Assignor" means any person who assigns or transfers any post -16
loss benefit under a homeowners insurance policy or commercial 17
property insurance policy to an assignee through an assignment 18
agreement; 19
(4) "Home improvement" has the same meaning as provided in 20
section 20-419 of the general statutes, as amended by this act; 21
(5) "Mortgage" means a mortgage deed, deed of trust or other 22
equivalent consensual security interest on real property securing a loan 23
made primarily for (A) personal, family or household purposes, or (B) 24
commercial purposes; 25
(6) "Mortgagee" means the owner or servicer of the debt secured by a 26
mortgage; 27
(7) "Presuit settlement demand" means any monetary request 28
submitted by an assignee in a written notice of intent to initiate litigation 29
pursuant to subsection (h) of this section; and 30
(8) "Presuit settlement offer" means any monetary proposal, 31
submitted by the insurance company providing homeowners or 32
commercial property insurance coverage for the residential or 33
commercial property, to settle a dispute with an assignee prior to such 34
assignee filing a cause of action against such insurance company. 35
(b) (1) Any assignment agreement that assigns, transfers or acquires 36
any post -loss benefit under a homeowners insurance policy or 37
commercial property insurance policy delivered, issued for delivery, 38
renewed, amended or continued in this state on or after January 1, 2027, 39
shall: 40
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(A) Be in writing and executed by the assignor and assignee of such 41
assignment agreement; 42
(B) Include a provision affording such assignor the right to rescind 43
such assignment agreement, without penalty, by submitting a signed 44
notice of rescission to such assignee (i) not later than fourteen days after 45
the execution of such assignment agreement, (ii) at least thirty days after 46
the date on which post-loss repair, inspection, remediation or mitigation 47
services are scheduled to commence on the residential or commercial 48
property pursuant to the terms of such assignment agreement, provided 49
such assignee has not substantially performed such post-loss services on 50
the residential or commercial property, in accordance with the terms of 51
such assignment agreement, or (iii) at least thirty days after the 52
execution of such assignment agreement, provided such assignment 53
agreement does not contain a date by which such post -loss repair, 54
inspection, remediation or mitigation services on such residential or 55
commercial property are scheduled to commence and such assignee has 56
not substantially performed such post -loss services on such residential 57
or commercial property, in accordance with the terms of such 58
assignment agreement; 59
(C) (i) Include a provision requiring such assignee to deliver a copy 60
of such executed assignment agreement to the insurance company 61
providing homeowners or commercial property insurance coverage for, 62
and to all mortgagees owning or servicing mortgages on, the residential 63
or commercial property not later than (I) three business days after the 64
date on which such assignment agreement is executed, or (II) the date 65
on which post-loss repair, inspection, remediation or mitigation services 66
are scheduled to commence on such residential or commercial property 67
pursuant to the terms of such assignment agreement, whichever is 68
earlier; and 69
(ii) Deliver a copy of such executed assignment agreement pursuant 70
to the provisions of subparagraph (C)(i) of this subdivision by personal 71
service, overnight mail, return receipt requested, to the address 72
designated in the homeowners or commercial property insurance 73
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policy, or mortgage, as applicable, or by electronic means evidenced by 74
a delivery receipt, to the electronic mail address designated in the 75
homeowners or commercial property insurance policy, or mortgage, as 76
applicable; 77
(D) Include an itemized, per unit cost estimate of the post-loss repair, 78
inspection, remediation or mitigation services to be performed by such 79
assignee on such residential or commercial property; 80
(E) Only relate to the post -loss repair, inspection, remediation or 81
mitigation services that such assignee agreed to perform on such 82
residential or commercial property pursuant to the terms of such 83
assignment agreement; 84
(F) Include the following notice in not less than eighteen -point 85
boldface type: 86
"YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU 87
HAVE UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, 88
WHICH MAY RESULT IN LITIGATION AGAINST YOUR INSURER. 89
PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE 90
SIGNING IT. YOU HAVE THE RIGHT TO CANCEL THIS 91
AGREEMENT WITHOUT PENALTY WITHIN 14 DAYS AFTER THE 92
DATE THIS AGREEMENT IS EXECUTED, AT LEAST 30 DAYS AFTER 93
THE DATE WORK ON THE PROPERTY IS SCHEDULED TO 94
COMMENCE IF THE ASSIGNEE HAS NOT SUBSTANTIALLY 95
PERFORMED, OR AT LEAST 30 DAYS AFTER THE EXECUTION OF 96
THE AGREEMENT IF THE AGREEMENT DOES NOT CONTAIN A 97
COMMENCEMENT DATE AND THE ASSIGNEE HAS NOT BEGUN 98
SUBSTANTIAL WORK ON THE PROPERTY. HOWEVER, YOU ARE 99
OBLIGATED FOR PAYMENT OF ANY CONTRACTED WORK 100
PERFORMED BEFORE THE AGREEMENT IS RESCINDED. THIS 101
AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO 102
PERFORM THE DUTIES REQUIRED UNDER YOUR HOMEOWNERS 103
OR COMMERCIAL PROPERTY INSURANCE POLICY."; and 104
(G) Include a provision requiring such assignee to indemnify and 105
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hold harmless such assignor from any liability, damages, losses or costs, 106
including, but not limited to, attorney's fees, arising from such post-loss 107
repair, inspection, remediation or mitigation services performed by 108
such assignee on the residential or commercial property pursuant to the 109
terms of such assignment agreement. 110
(2) No assignment agreement executed in accordance with the 111
provisions of this subsection shall include (A) a bank check or mortgage 112
processing fee, (B) a penalty or fee for cancellation of such assignment 113
agreement by the assignor, or (C) any administrative fee. 114
(3) If, prior to the execution of an assignment agreement pursuant to 115
the provisions of this section, an assignor acts under an urgent or 116
emergency circumstance to protect such assignor's residential or 117
commercial property from damage, the assignee shall not receive an 118
assignment of post -loss benefits under a homeowners or commercial 119
property insurance policy providing insurance coverage for such 120
residential or commercial property in excess of three thousand dollars 121
or one per cent of the coverage limit under such homeowners or 122
commercial property insurance policy that such policy will cover for 123
losses resulting from damage to the policyholder's residential or 124
building structure, or any structure of the policyholder that is attached 125
to such residential or building structure, whichever is greater. For 126
purposes of this section, "urgent or emergency circumstance" means any 127
situation in which a loss to residential or commercial property, if not 128
addressed immediately, will result in additional damage to such 129
residential or commercial property. 130
(4) Any assignment agreement that fails to comply with the 131
provisions of this subsection shall be void and unenforceable. 132
(c) If any insurance claim arises under an assignment agreement for 133
post-loss repair, inspection, remediation or mitigation services, the 134
assignee of such assignment agreement shall have the burden of 135
proving that the insurance company providing homeowners or 136
commercial property insurance coverage for the residential or 137
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commercial property is not prejudiced by such assignee's failure to: 138
(1) Maintain records of all post-loss repair, inspection, remediation or 139
mitigation services provided under such assignment agreement; 140
(2) Cooperate with any internal claims investigation conducted by 141
such insurance company; 142
(3) Provide such insurance company with any documents related to 143
post-loss repair, inspection, remediation or mitigation services provided 144
by such assignee; or 145
(4) Deliver a copy of the executed assignment agreement to such 146
insurance company not later than three business days after the date on 147
which such assignment agreement is executed or the date on which such 148
post-loss repair, inspection, remediation or mitigation services 149
commenced, whichever is earlier. 150
(d) Any assignee of such assignment agreement shall: 151
(1) Provide the assignor of such assignment agreement with current 152
cost estimates concerning the scope of such post-loss repair, inspection, 153
remediation or mitigation services to be performed, as such assignee 154
determines that any such additional repair, inspection, remediation or 155
mitigation services are required; 156
(2) Perform such post -loss repair, inspection, remediation or 157
mitigation services in accordance with the State Building Code adopted 158
pursuant to section 29-252 of the general statutes; 159
(3) Not seek payment from such assignor in an amount that exceeds 160
the deductible under the applicable homeowners or commercial 161
property insurance policy, unless such assignor and assignee executed 162
a separate agreement for the performance of home improvement or 163
other services at such assignor's own expense; and 164
(4) Prior to submitting an insurance claim under the applicable 165
homeowners or commercial property insurance policy, and if required 166
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by the homeowners or commercial property insurance company: (A) 167
Submit a sworn statement regarding (i) the post-loss repair, inspection, 168
remediation or mitigation services performed on such residential or 169
commercial property, (ii) the costs of such services, and (iii) the 170
assignment agreement; and (B) agree to, and participate in, any 171
alternative dispute resolution proceedings pursuant to the terms of the 172
applicable homeowners or commercial property insurance policy. 173
(e) Upon the request of the assignor, the assignee or any home 174
improvement contractor may attend any on -site inspection of the 175
residential or commercial property, conducted by an insurance adjuster, 176
to serve as a resource to such assignor during such on -site inspection, 177
provided no such assignee or home improvement contractor shall 178
engage in any negotiation or settlement of any portion of an insurance 179
claim under the applicable homeowners or commercial property 180
insurance policy, unless such assignee or home improvement contractor 181
is a public adjuster licensed pursuant to chapter 701b of the general 182
statutes. 183
(f) Notwithstanding the provisions of section 38a -321 of the general 184
statutes, no assignment agreement executed in accordance with the 185
provisions of this section shall transfer or create any authority to 186
negotiate, adjust or effect the settlement of any portion of any 187
homeowners or commercial property insurance claim to any person or 188
entity not authorized pursuant to chapter 701b of the general statutes to 189
negotiate, adjust or effect such settlement of such insurance claim on 190
behalf of any assignor or claimant. 191
(g) (1) Notwithstanding any provision of the general statutes and 192
except as provided in subdivision (2) of this subsection, no assignee or 193
subcontractor of such assignee, who executes an assignment agreement 194
in accordance with the provisions of this section, shall (A) file any civil 195
or administrative claim against the assignor of such assignment 196
agreement or any named insured under the applicable homeowners or 197
commercial property insurance policy for payment of any post -loss 198
repair, inspection, remediation or mitigation services performed at the 199
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residential or commercial property, (B) collect payment from such 200
assignor of such assignment agreement or any named insured under the 201
applicable homeowners or commercial property insurance policy, (C) 202
claim a lien on the residential or commercial property of such assignor 203
of such assignment agreement or any named insured under the 204
applicable homeowners or commercial property insurance policy, or (D) 205
report such assignor of such assignment agreement or any named 206
insured under the applicable homeowners or commercial property 207
insurance policy to a credit reporting agency for any payment due 208
pursuant to such assignment agreement. 209
(2) Such assignor of such assignment agreement or named insured 210
under the applicable homeowners or commercial property insurance 211
policy shall be responsible for payment of any (A) deductible under the 212
terms of such policy, (B) home improvement or other services 213
performed by the assignee on the residential or commercial property 214
that were approved by such assignor pursuant to subdivision (3) of 215
subsection (d) of this section, or (C) post -loss repair, inspection, 216
remediation or mitigation services performed on the property before 217
such assignor rescinded such assignment agreement pursuant to 218
subparagraph (B) of subdivision (1) of subsection (b) of this section. 219
(h) (1) No assignee of an assignment agreement shall have a cause of 220
action against the homeowners or commercial property insurance 221
company providing coverage for the residential or commercial property 222
for payment of an insurance claim arising from post -loss repair, 223
inspection, remediation or mitigation services performed on the 224
assignor's, or named insured's, residential or commercial property, 225
unless such assignee provides written notice of: 226
(A) Such assignee's intent to bring such cause of action to such named 227
insured under the homeowners or commercial property insurance 228
policy, assignor and insurance company not later than ten business days 229
before filing such cause of action and after such insurance company has 230
made a determination of coverage under such homeowners or 231
commercial property insurance policy; and 232
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(B) The claimed damages in dispute, the amount claimed by such 233
assignee and a presuit settlement demand. As a precondition to filing 234
such cause of action, such assignee shall provide such named insured, 235
such assignor and such insurance company with a written invoice or 236
cost estimate of the post -loss repair, inspection, remediation or 237
mitigation services performed or scheduled to be performed by such 238
assignee, including itemized information identifying equipment, 239
materials, the number of hours worked, and, in circumstances where 240
such post -loss repair, inspection, remediation or mitigation services 241
were performed, proof that such services were performed in accordance 242
with accepted industry standards. Such notice requirements pursuant 243
to this subdivision shall be served by certified mail, return receipt 244
requested, to the name and mailing address designated by the insurance 245
company in the homeowners or commercial property insurance policy, 246
and to the name and mailing address designated by such named insured 247
or assignor in the assignment agreement. 248
(2) Not later than ten business days after receiving such notice 249
pursuant to the provisions of subdivision (1) of this subsection, such 250
insurance company shall submit a presuit settlement offer to such 251
assignee or require such assignee to participate in an appraisal process, 252
as provided in chapter 700 of the general statutes, or any other 253
alternative dispute resolution pursuant to the terms of the applicable 254
homeowners or commercial property insurance policy. Such insurance 255
company shall investigate such assignee's claimed damages, in 256
accordance with the provisions of title 38a of the general statutes. 257
(i) The provisions of this section shall not apply to: 258
(1) Any assignment, transfer or conveyance of residential or 259
commercial property granted to a subsequent purchaser of such 260
residential or commercial property who holds an insurable interest in 261
such residential or commercial property following a loss; 262
(2) A power of attorney, as provided in chapter 15c of the general 263
statutes, that grants to a management company, family member, 264
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guardian or similarly situated person of a named insured under the 265
applicable homeowners or commercial property insurance policy the 266
authority to act on behalf of such named insured with respect to any 267
homeowners or commercial property insurance claim; or 268
(3) General liability coverage under a homeowners or commercial 269
property insurance policy. 270
(j) (1) Not later than February 1, 2028, and annually thereafter, each 271
homeowners or commercial property insurance company licensed in 272
this state shall submit a report to the Insurance Commissioner, in a form 273
and manner prescribed by the commissioner, that includes data for any 274
such homeowners or commercial property insurance claim paid 275
pursuant to an assignment agreement executed in accordance with the 276
provisions of this section. 277
(2) Not later than March 1, 2028, and annually thereafter, said 278
commissioner shall submit a report, in accordance with the provisions 279
of section 11-4a of the general statutes, to the joint standing committee 280
of the General Assembly having cognizance of matters relating to 281
insurance. Such report shall include an evaluation of the data submitted 282
to the commissioner pursuant to subdivision (1) of this subsection for 283
the immediately preceding calendar year, including an evaluation of 284
claims adjustments, settlement time frames and claims and litigation 285
trends, categorized by claims litigated, claims settled prior to litigation 286
and loss adjustment expenses. 287
(k) The commissioner shall adopt regulations, in accordance with the 288
provisions of chapter 54 of the general statutes, to implement the 289
provisions of this section. 290
Sec. 2. Section 20 -419 of the general statutes is repealed and the 291
following is substituted in lieu thereof (Effective October 1, 2026): 292
As used in this chapter and section 3 of this act , unless the context 293
otherwise requires: 294
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(1) "Business day" has the same meaning as provided in section 42 -295
134a, as amended by this act. 296
[(1)] (2) "Business entity" means an association, corporation, limited 297
liability company, limited liability partnership or partnership. 298
[(2)] (3) "Certificate" means a certificate of registration issued under 299
section 20-422. 300
[(3)] (4) "Commissioner" means (A) the Commissioner of Consumer 301
Protection, and (B) any person designated by the commissioner to 302
administer and enforce this chapter. 303
[(4)] (5) (A) "Contractor" means any person who (i) owns and operates 304
a home improvement business, or (ii) undertakes, offers to undertake or 305
agrees to perform any home improvement. 306
(B) "Contractor" does not include a person for whom the total price 307
of all of such person's home improvement contracts with all of such 308
person's customers does not exceed one thousand dollars during any 309
period of twelve consecutive months. 310
[(5)] (6) (A) "Home improvement" includes, but is not limited to, the 311
repair, replacement, remodeling, alteration, conversion, modernization, 312
improvement, rehabilitation or sandblasting of, or addition to, any land 313
or building or that portion thereof which is used or designed to be used 314
as a private residence, dwelling place or residential rental property, or 315
the construction, replacement, installation or improvement of alarm 316
systems not requiring electrical work, as defined in section 20 -330, 317
driveways, swimming pools, porches, garages, roofs, siding, insulation, 318
sunrooms, flooring, patios, landscaping, fences, doors and windows, 319
waterproofing, water, fire or storm restoration or mold remediation in 320
connection with such land or building or that portion thereof which is 321
used or designed to be used as a private residence, dwelling place or 322
residential rental property or the removal or replacement of a residential 323
underground heating oil storage tank system, in which the total price 324
for all work agreed upon between the contractor and owner or proposed 325
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or offered by the contractor exceeds two hundred dollars. 326
(B) "Home improvement" does not include (i) the construction of a 327
new home, (ii) the sale of goods or materials by a seller who neither 328
arranges to perform nor performs, directly or indirectly, any work or 329
labor in connection with the installation or application of the goods or 330
materials, (iii) the sale of goods or services furnished for commercial or 331
business use or for resale, provided commercial or business use does not 332
include use as residential rental property, (iv) the sale of appliances, 333
such as stoves, refrigerators, freezers, room air conditioners and others, 334
which are designed for and are easily removable from the premises 335
without material alteration thereof, (v) tree or shrub cutting or the 336
grinding of tree stumps, and (vi) any work performed without 337
compensation by the owner on such owner's own private residence or 338
residential rental property. 339
[(6)] (7) "Home improvement contract" means an agreement between 340
a contractor and an owner for the performance of a home improvement. 341
[(7)] (8) "Owner" means a person who owns or resides in a private 342
residence and includes any agent thereof, including, but not limited to, 343
a condominium association. An owner of a private residence shall not 344
be required to reside in such residence to be deemed an owner under 345
this subdivision. 346
[(8)] (9) "Person" means an individual or a business entity. 347
[(9)] (10) "Private residence" means a single family dwelling, a 348
multifamily dwelling consisting of not more than six units, or a unit, 349
common element or limited common element in a condominium, as 350
defined in section 47 -68a, or in a common interest community, as 351
defined in section 47 -202, or any number of condominium units for 352
which a condominium association acts as an agent for such unit owners. 353
[(10)] (11) "Proprietor" means an individual who (A) has an 354
ownership interest in a business entity that holds or has held a certificate 355
of registration issued under this chapter, and (B) has been found by a 356
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court of competent jurisdiction to have violated any provision of this 357
chapter related to the conduct of a business entity holding a certificate 358
or that has held a certificate issued under this chapter within the two 359
years of the effective date of entering into a contract with an owner 360
harmed by the actions of such individual or business entity. 361
[(11)] (12) "Salesman" means any individual who (A) negotiates or 362
offers to negotiate a home improvement contract with an owner, or (B) 363
solicits or otherwise endeavors to procure by any means whatsoever, 364
directly or indirectly, a home improvement contract from an owner on 365
behalf of a contractor. 366
[(12)] (13) "Residential rental property" means a single family 367
dwelling, a multifamily dwelling consisting of not more than six units, 368
or a unit, common element or limited common element in a 369
condominium, as defined in section 47 -68a, or in a common interest 370
community, as defined in section 47-202, which is not owner-occupied. 371
[(13)] (14) "Residential underground heating oil storage tank system" 372
means an underground storage tank system used with or without 373
ancillary components in connection with real property composed of 374
four or less residential units. 375
[(14)] (15) "Underground storage tank system" means an 376
underground tank or combination of tanks, with any underground 377
pipes or ancillary equipment or containment systems connected to such 378
tank or tanks, used to contain an accumulation of petroleum, which 379
volume is ten per cent or more beneath the surface of the ground. 380
Sec. 3. (NEW) ( Effective October 1, 2026 ) Notwithstanding any 381
provision of chapter 400 of the general statutes, no contractor shall 382
advertise, offer or promise to provide, directly or indirectly, any 383
allowance, compensation, discount, payment, waiver or rebate to an 384
owner for any portion of the owner's insurance deductible as an 385
inducement for such owner to enter into a home improvement contract 386
with such contractor. 387
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Sec. 4. Section 20 -420 of the general statutes is repealed and the 388
following is substituted in lieu thereof (Effective October 1, 2026): 389
(a) (1) No person shall hold such person out to be a contractor or 390
salesperson without first (A) obtaining a certificate of registration from 391
the commissioner as provided in this chapter, except [(1)] (i) that an 392
individual or partner, or officer or director of a corporation registered 393
as a contractor shall not be required to obtain a salesperson's certificate, 394
and [(2)] (ii) as provided in subsections (e) and (f) of this section, and (B) 395
presenting evidence of such certificate of registration. 396
(2) No certificate shall be given to any person who holds such person 397
out to be a contractor that performs radon mitigation unless such 398
contractor provides evidence, satisfactory to the commissioner, that the 399
contractor is certified as a radon mitigator by the National Radon Safety 400
Board or the National Environmental Health Association. 401
(3) No certificate shall be given to any person who holds such person 402
out to be a contractor that performs removal or replacement of any 403
residential underground heating oil storage tank system unless such 404
contractor provides evidence, satisfactory to the commissioner, that the 405
contractor (A) has completed a hazardous material training program 406
approved by the Department of Energy and Environmental Protection, 407
and (B) has presented evidence of liability insurance coverage of one 408
million dollars. 409
(b) No contractor shall employ any salesman to procure business 410
from an owner unless the salesman is registered under this chapter. 411
(c) No individual shall act as a home improvement salesman for an 412
unregistered contractor. 413
(d) On and after July 1, 2008, a home improvement contractor shall 414
not perform gas hearth product work, as defined in subdivision (22) of 415
section 20 -330, unless such home improvement contractor holds a 416
limited contractor or journeyman gas hearth installer license pursuant 417
to section 20-334f. 418
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(e) A retail establishment, which is a business that operates from a 419
fixed location where goods or services are offered for sale, may apply 420
annually for a certificate of registration as a salesperson on behalf of its 421
employees if it employs or otherwise compensates one or more 422
salespersons whose solicitation, negotiation and completion of sales are 423
conducted entirely at the retail establishment or virtually or by phone. 424
The retail establishment shall (1) apply for such registration on a form 425
prescribed by the commissioner, (2) maintain a list of all salespersons 426
intended to be covered by the retailer's certificate of registration, and (3) 427
pay a fee equal to the amount that would be due if each person were to 428
apply individually for a certificate of registration, including the amount 429
that would be due under the guaranty fund. The list of salespersons 430
covered by the retailer's certificate of registration shall be made 431
available to the department upon request. If any person covered by the 432
retail establishment's salesperson certificate of registration conducts 433
activity covered by the salesperson credential at a place other than the 434
retail establishment or virtually or by phone, such person shall apply for 435
an individual salesperson certificate of registration using the form 436
prescribed by the commissioner for such registrations and shall pay the 437
corresponding application fee. 438
(f) Certificates of registration for salespersons issued to retail 439
establishments shall not be transferable or assignable, except a retail 440
establishment that is a holder of a salesperson certificate may remove an 441
existing or former employee currently listed on the certification of 442
registration and replace such person with a new or existing employee 443
employed as a salesperson. If the retail establishment adds or removes 444
salespeople, there shall be no refund or supplemental payment. The fee 445
shall be based on the number of salespeople at the time of each renewal. 446
(g) A contractor or salesperson shall update, through the 447
department's online licensing system, any application information the 448
contractor or salesperson has provided to the department pursuant to 449
this section, including, but not limited to, any contact information , 450
including, but not limited to, a change in business or trade name, 451
residence address or business address for such contractor or 452
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salesperson, insurance information or criminal history for such 453
contractor or salesperson, or, if such contractor is a business entity, 454
criminal histories of the individual owners of such business entity, not 455
later than thirty days after any change in such information. 456
Sec. 5. Subsection (a) of section 20 -421 of the general statutes is 457
repealed and the following is substituted in lieu thereof (Effective October 458
1, 2026): 459
(a) Any person seeking a certificate of registration shall apply to the 460
commissioner online, on a form provided by the commissioner. The 461
application shall include, but need not be limited to: 462
(1) [the] The applicant's name [, residence address, business address, 463
business telephone number and electronic mail address, (2) a] and trade 464
name, if the applicant is a natural person, or business name, if the 465
applicant is not a natural person; 466
(2) The applicant's contact information, if the applicant is a natural 467
person, or business address, if the applicant is not a natural person; 468
(3) The applicant's business telephone number, electronic mail 469
address and Internet web site address; 470
(4) The name, trade name and contact information of each business 471
entity in which any individual owner or member of the applicant holds 472
a financial or equitable interest, provided such business entity offers 473
home improvement services in the state; 474
(5) If the applicant is not a natural person, the name and contact 475
information of each individual who is a director, officer or principal 476
shareholder of such applicant who either (A) owns more than ten per 477
cent of the business entity, or (B) participates in the operation or 478
management of such business entity; 479
(6) A statement, attested to by the applicant, disclosing whether (A) 480
the applicant previously held a certificate of registration and, if the 481
applicant previously held such a certificate, (i) the name by which such 482
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applicant held such certificate, and (ii) whether such certificate was 483
suspended or revoked, and (B) any judgment or arbitration award has 484
been entered against the applicant; 485
(7) A statement by the applicant disclosing whether the applicant has 486
been found guilty or convicted as a result of an act which (A) constitutes 487
a felony under the laws of this state or federal law, or (B) was committed 488
in another jurisdiction but, if committed in this state, would constitute a 489
felony under the laws of this state; [, (3) proof] 490
(8) Proof that the applicant has obtained (A) general liability 491
insurance coverage in an amount not less than twenty thousand dollars, 492
demonstrated by providing the policy number and business name of the 493
insurance provider, and (B) any other insurance coverage required by 494
law; and [(4) such] 495
(9) Such other information as the commissioner may require. 496
Sec. 6. Subsection (b) of section 20-427 of the 2026 supplement to the 497
general statutes is repealed and the following is substituted in lieu 498
thereof (Effective October 1, 2026): 499
(b) No person shall: (1) Present or attempt to present, as such person's 500
own, the certificate of another, (2) knowingly give false evidence of a 501
material nature to the commissioner for the purpose of procuring a 502
certificate, (3) represent himself or herself falsely as, or impersonate, a 503
registered home improvement contractor or salesman, (4) use or attempt 504
to use a certificate which has expired or which has been suspended or 505
revoked, (5) offer to make or make any home improvement without 506
having a current certificate of registration under this chapter, (6) 507
represent in any manner that such person's registration constitutes an 508
endorsement of the quality of such person's workmanship or of such 509
person's competency by the commissioner, (7) employ or allow any 510
person to act as a salesman on such person's behalf unless such person 511
is registered as a home improvement salesman, [or] (8) fail to refund the 512
amount paid for a home improvement within ten days of a written 513
request mailed or delivered to the contractor's last-known address, if no 514
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substantial portion of the contracted work has been performed at the 515
time of the request and more than thirty days has elapsed since the 516
starting date specified in the written contract, or more than thirty days 517
has elapsed since the date of the contract if such contract does not 518
specify a starting date, or (9) engage in the activities of a public adjuster, 519
as defined in section 38a -723, except that such person may (A) explain 520
or discuss a bid for construction or repair of property loss or damage 521
covered under a homeowners insurance policy with an owner of such 522
property or the insurer of such property if such person does so for the 523
usual and customary fees applicable to the work to be performed as 524
stated in the home improvement contract between such person and the 525
owner, or (B) except as provided in subsection (c) of section 20 -429a, as 526
amended by this act, advise or recommend to an owner of such property 527
that such owner contact (i) such owner's insurer to determine whether 528
any such bid for construction or repair of property loss or damage is 529
covered under a homeowners insurance policy with such owner of such 530
property, or (ii) a public adjuster, when appropriate. 531
Sec. 7. Section 20 -429a of the general statutes is repealed and the 532
following is substituted in lieu thereof (Effective October 1, 2026): 533
(a) As used in this section: 534
(1) "Prohibited advertisement" means any verbal, written or 535
electronic communication, including, but not limited to, door hangers, 536
business cards, magnets, flyers, pamphlets or electronic mail, delivered 537
by any contractor or salesman to encourage, instruct or induce an owner 538
to contact such contractor, salesman or public adjuster, as defined in 539
section 38a -723, to file an insurance claim for roof damage to such 540
owner's property. 541
(2) "Soliciting" means to make direct contact with any person through 542
mail, telephone, electronic mail, in-person communication or any other 543
means for the purpose of inducing such person to make a transaction. 544
(b) No contractor or salesman shall solicit or otherwise endeavor to 545
procure home improvement work or a home improvement contract 546
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from an owner by notifying the owner that a contractor will commence 547
home improvement work unless the owner instructs the contractor not 548
to commence such work by a date determined by the contractor. 549
(c) No contractor or salesman, or any agent or employee of such 550
contractor or salesman shall, directly or indirectly: 551
(1) Solicit any owner through a prohibited advertisement, unless such 552
prohibited advertisement provides, in not less than twelve -point font, 553
the following information: "You are responsible for payment of any 554
insurance deductible for roof repair costs performed on your property. 555
Intentionally filing an insurance claim containing any false, incomplete 556
or misleading information constitutes insurance fraud punishable as a 557
class D felony pursuant to section 53a-215."; 558
(2) Offer any rebate, gift, gift card, cash, coupon, waiver of any 559
insurance deductible or any other item of value to any owner in 560
exchange for (A) allowing such contractor to conduct an inspection of 561
such owner's roof; and (B) such owner, contractor, salesman or any 562
agent or employee of such contractor submitting an insurance claim for 563
damage to such owner's roof; and 564
(3) Offer, deliver, receive or accept any compensation, inducement or 565
reward for the referral of any home improvement work for which 566
property insurance proceeds are payable. No payment by any owner or 567
insurance company to such contractor for roofing services shall 568
constitute compensation for such referral pursuant to the provisions of 569
this subdivision. 570
(d) Any contract between a contractor and an owner for home 571
improvement services to repair or replace such owner's roof shall 572
include a notice that such contractor is prohibited from engaging in the 573
practices described in subdivision (2) of subsection (c) of this section. 574
Sec. 8. Subdivision (1) of section 42 -134a of the 2026 supplement to 575
the general statutes is repealed and the following is substituted in lieu 576
thereof (Effective October 1, 2026): 577
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(1) "Home solicitation sale" means a sale, lease, or rental of consumer 578
goods or services, whether under single or multiple contracts, in which 579
the seller or his representative personally solicits the sale, including 580
those in response to or following an invitation by the buyer, and the 581
buyer's agreement or offer to purchase is made at a place other than the 582
place of business of the seller. The term "home solicitation sale" does not 583
include a transaction: (A) Made pursuant to prior negotiations in the 584
course of a visit by the buyer to a retail business establishment having a 585
fixed, permanent location where goods are exhibited or the services are 586
offered for sale on a continuing basis; (B) except as provided in 587
subsection (d) of section 42 -137, as amended by this act, in which the 588
buyer has initiated the contact and the goods or services are needed to 589
meet a bona fide immediate personal emergency of the buyer, and the 590
buyer furnishes the seller with a separate dated and signed personal 591
statement in the buyer's handwriting describing the situation requiring 592
immediate remedy and expressly acknowledging and waiving the right 593
to cancel the sale within three business days; (C) conducted and 594
consummated entirely by mail or telephone and without any other 595
contact between the buyer and the seller or its representative prior to 596
delivery of the goods or performance of the services; (D) in which the 597
buyer has initiated the contact and specifically requested the seller to 598
visit his home for the purpose of repairing or performing maintenance 599
upon the buyer's personal property. If in the course of such a visit, the 600
seller sells the buyer the right to receive additional services or goods 601
other than replacement parts necessarily used in performing the 602
maintenance or in making the repairs, the sale of those additional goods 603
or services shall not come within this exclusion; (E) pertaining to the sale 604
or rental of real property, to the sale of insurance, to the sale of 605
newspapers or to the sale of securities or commodities by a broker -606
dealer registered with the securities and exchange commission; (F) 607
made pursuant to a home party plan sales and demonstration; or (G) in 608
the case of consumer goods, other than magazine sales or subscriptions, 609
where the purchase price, whether under single or multiple contracts, 610
does not exceed twenty-five dollars. 611
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Sec. 9. Section 42 -137 of the general statutes is amended by adding 612
subsection (d) as follows (Effective October 1, 2026): 613
(NEW) (d) Notwithstanding the provisions of section 42 -134a, as 614
amended by this act, a home improvement contract that requires the 615
performance of emergency restoration services may include a provision 616
that allows the owner to waive such owner's right to cancel such 617
contract not later than three business days after the owner and 618
contractor signed such contract, provided such contract (1) is subject to 619
the requirements of chapter 740, and (2) requires the performance of 620
such emergency restoration services to remedy an urgent or emergency 621
circumstance, as defined in section 1 of this act. Such owner may waive 622
such right to cancel such contract by providing to the contractor a 623
separate statement, dated and signed by the owner in electronic or 624
paper form, that describes the urgent or emergency circumstance 625
requiring immediate remedy and expressly acknowledges and waives 626
such owner's right to cancel such contract not later than three business 627
days after the owner and contractor signed such contract. For the 628
purposes of this subsection, "emergency restoration services" means the 629
performance of services designed to mitigate and restore damage to any 630
land or building or that portion thereof which is used or designed to be 631
used as a private residence, dwelling place or residential rental 632
property. "Emergency restoration services" includes water extraction 633
and drying, fire damage clean -up and soot removal, removal of 634
damaged carpet and other flooring material, removal of damaged 635
drywall and building materials, removal of smoke odors, sanitizing and 636
preventive activities of mold or mold-containment matter and the repair 637
or replacement of damaged materials, provided no structural, electrical, 638
plumbing or air conditioning work is performed. "Emergency 639
restoration services" does not include repair to or replacement of a roof. 640
Sec. 10. (NEW) (Effective from passage) (a) Not later than September 1, 641
2026, the Insurance Commissioner shall (1) develop, and thereafter 642
revise as necessary, a consumer bill of rights concerning insurance 643
coverage for residential real properties in this state, including, but not 644
limited to, insurance companies' use of third -party drones and satellite 645
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sHB5263 / File No. 747 22

imagery and any impact that such use of third-party drones and satellite 646
imagery may have concerning coverage, cancellation or renewal of 647
insurance policies, and (2) develop guidance for owners of residential 648
real property who may be experiencing insurance coverage issues 649
related to roofing damage following a weather event that results in such 650
damage. 651
(b) On and after October 1, 2026, the commissioner shall post the 652
consumer bill of rights and guidance described in subsection (a) of this 653
section on the Internet web site of the Insurance Department. 654
This act shall take effect as follows and shall amend the following
sections:

Section 1 January 1, 2027 New section
Sec. 2 October 1, 2026 20-419
Sec. 3 October 1, 2026 New section
Sec. 4 October 1, 2026 20-420
Sec. 5 October 1, 2026 20-421(a)
Sec. 6 October 1, 2026 20-427(b)
Sec. 7 October 1, 2026 20-429a
Sec. 8 October 1, 2026 42-134a(1)
Sec. 9 October 1, 2026 42-137(d)
Sec. 10 from passage New section

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sHB5263 / File No. 747 23

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any pur pose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact: None
Municipal Impact: None
Explanation
The bill makes various changes regarding post -loss benefit
assignment agreements and home improvement contractors resulting in
no fiscal impact to the state.
Section 1 makes various changes to post -loss benefit assignment
agreements resulting in no fiscal impact to the state or municipalities.
Sections 2 -9 make various changes to statutes concerning home
improvement contractors resulting in no fiscal impact to the state
because the Department of Consumer Protection oversees home
improvement contractors and has the resources and expertise to meet
the requirements of the bill.
Section 10 requires the Insurance Department to develop a consumer
bill of rights and results in no fiscal impact as the department has the
expertise to meet the requirements of the bill.
House "A" alters the original bill by making procedural changes,
specifying certain inclusions to the bill of rights, and requiring the
Insurance Department to develop guidance regarding roof damage
coverage issues for homeowners, resulting in no fiscal impact as t he
department has the expertise to meet the requirements. The amendment
additionally makes procedural changes resulting in no fiscal impact to
the state.
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sHB5263 / File No. 747 24

OLR Bill Analysis
sHB 5263 (as amended by House "A")*

AN ACT CONCERNING THE ASSIGNMENT OF POST -LOSS
HOMEOWNERS AND COMMERCIAL PROPERTY INSURANCE
BENEFITS, CONSUMER BILL OF RIGHTS AND REVISING
DISCLOSURE REQUIREMENTS FOR HOME IMPROVEMENT
CONTRACTORS AND SALESPERSONS.

TABLE OF CONTENTS:
SUMMARY
§ 1 — ASSIGNMENT OF POST-LOSS HOMEOWNERS AND
COMMERCIAL INSURANCE BENEFITS
Establishes specific requirements for any assignment agreement that
assigns or transfers 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, 2027; provides for when an assignor (person who
assigns or transfers the benefit) acts under an urgent or emergency
circumstance to protect the property; makes any assignment
agreement that fails to comply with these provision s void and
unenforceable; requires insurers, starting in 2028, to annually submit
post-loss-related data to the insurance commissioner; requires the
commissioner to evaluate the data, report on it to the legislature, and
adopt implementing regulations
§ 2 — BUSINESS DAY DEFINED
Specifies the days that are not considered business days under the
Home Improvement Act
§ 3 — INSURANCE DEDUCTIBLES AND HOME IMPROVEMENT
CONTRACTS
Prohibits a contractor from using any portion of an owner’s insurance
policy deductible to induce the owner to enter into a home
improvement contract
§ 4 — CONTRACTOR’S AND SALESPERSON’S NAME AND ADDRESS
CHANGES
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Requires home improvement contractors and salespersons to (1)
notify DCP of any changes in their business name, trade name, or
addresses and (2) present evidence of their registration certificate
before holding themselves out as a contractor or salesperson
§ 5 — CERTIFICATE OF REGISTRATION REQUIRED INFORMATION
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
§ 6 — PUBLIC ADJUSTER ACTIVITIES PROHIBITED
Restricts home improvement contractors from conducting public
adjuster activities, except for certain acts authorized under the bill
§ 7 — PROHIBITED ADVERTISING AND SOLICITING
Precludes home improvement contractors, salesmen, or their
employees from engaging in certain conduct (for example, prohibited
advertising and soliciting regarding roof repair); requires the
contractor to disclose in any roof repair or replacement contract the
prohibited conduct and to state that they constitute insurance fraud
§§ 8 & 9 — HOME IMPROVEMENT CONTRACT FOR EMERGENCY
RESTORATION SERVICES
Establishes the circumstances under which a home improvement
contract requiring urgent or emergency services may include a
provision allowing the owner to waive the right to cancel
§ 10 — CONSUMER BILL OF RIGHTS
Requires the insurance commissioner to (1) by September 1, 2026,
develop a consumer bill of rights for homeowners in Connecticut and
guidance on insurance coverage issues about weather-related roofing
damage and (2) post them on the department’s website st arting on
October 1, 2026

SUMMARY
This bill generally (1) addresses matters related to post -loss benefit
assignment agreements (those that assign or transfer any post -loss
benefit under a residential or commercial property insurance policy, if
allowed by the policy, excluding public adjusters’ fees) (§ 1); (2) makes
changes in laws related to home improvement contracts (§§ 2-9); and (3)
requires the insurance commissioner to develop a consumer bill of
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rights and certain insurance coverage guidance for Connecticut
homeowners (§ 10). It also makes technical and conforming changes. A
section-by-section analysis follows.
*House Amendment “A” (1) limits the bill’s post -loss benefits
provisions to those who assign or transfer the benefits, not those who
acquire them; (2) modifies the assignee’s requirements before
submitting an insurance claim by requiring a sworn statement instead
of an examin ation under oath; (3) removes email as an option for the
assignee to provide notice of a cause of action against an insurer under
the bill; (4) expands the definition of prohibited advertisement related
to home improvement contracts to include certain verbal
communications; (5) requires the homeowners’ bill of rights to include
the impact of insurance companies’ use of drones and satellite imagery
and deletes the requirement to state its principles and values; and (6)
adds the provision that requires the commissioner to develop the
roofing damage-related guidance.
EFFECTIVE DATE: October 1, 2026, except the provision on the post-
loss assignment is effective January 1, 2027, and the ones on the
consumer bill of rights and roofing damage guidance are effective upon
passage.
§ 1 — ASSIGNMENT OF POST -LOSS HOMEOWNERS AND
COMMERCIAL INSURANCE BENEFITS
Establishes specific requirements for any assignment agreement that assigns or transfers
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, 2027; provides for when an assignor (person who assigns or
transfers the benefit) acts under an urgent or emergency circumstance to protect the
property; makes any assignment agreement that fails to comply with these provisions void
and unenforceable; requires insurers, starting in 2028, to annually submit post-loss-
related data to the insurance commissioner; requires the commissioner to evaluate the
data, report on it to the legislature, and adopt implementing regulations
The bill (1) establishes specific requirements for assignment
agreements that assign or transfer 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, 202 7; (2) provides for when an assignor
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sHB5263 / File No. 747 27

(person who assigns or transfers the benefit) acts under an urgent or
emergency circumstance to protect the property; and (3) makes any
assignment agreement that fails to comply with the se 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 giving 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 , and mortgagees owning or servicing
mortgages on the property, within a certain timeframe and in a
specified way (see Delivery of Executed Agreement to Insurer and
Mortgagee 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 n otice about the assignee’s obligations and right to
cancel the agreement (see Required Notice in Agreement below);
and
5. a provision requiring the assignee to indemnify and hold the
assignor harmless from any liability, damages, losses , or costs
arising from the agreed upon post-loss services the assignee
performed on the property, including attorney’s fees.
Recission Notice
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Under the bill, the assignor may submit a signed recission notice to
the assignee:
1. within 14 days of the agreement’s execution;
2. at least 30 days after the date on which the post-loss services are
scheduled to begin, if the assignee has not substantially
performed the agreed upon post-loss services; or
3. at least 30 days after the agreement’s execution, if 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 and Mortgagee
The assignee must deliver a copy of the executed agreement to the
insurance company and all mortgagees owning or servicing mortgages
on the property:
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 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
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
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sHB5263 / File No. 747 29

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 DOE S NOT CHANGE YOUR OBLIGATION TO
PERFORM THE DUTIES REQUIRED UNDER YOUR HOMEOWNERS
OR COMMERCIAL PROPERTY INSURANCE POLICY.”
Excluded Fees
Under the bill, a ssignment agreement s may not include (1) a bank
check or mortgage processing fee, ( 2) a cancellation penalty or fee for
the assignor, or (3) administrative fees.
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
residential or commercial property.
Insurance Claim and Assignee’s Failures
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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 three days of the agreement’s
execution or when the services began, whichever is earlier.
Assignee’s Requirements
The bill requires the assignee of the assignment agreement to:
1. give the assignor current cost estimates for the scope of the post-
loss services to be performed, including for any additional
services the assignee determines are needed;
2. perform the post-loss services as the State Building Code
requires;
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, and if required by the insurance company, (a)
submit a sworn statement and (b) agree to and participate in any
alternative dispute resolution (ADR) proceedings under the
applicable insurance policy’s terms.
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The sworn statement must include the (1) post-loss repair, inspection,
remediation, or mitigation services performed on the property; (2) cost
of the services, and (3) assignment agreement.
Limitations of Assignment Agreement
Regardless of the law on an insurer’s liability under a liability policy,
an assignment agreement executed under the bill does not transfer or
create any authority to negotiate, adjust , or settle any portion of any
homeowners or commercial property insurance claim for anyone or any
entity not authorized to do so on behalf of any assignor or claimant,
under the public adjusters’ statutes.
Assignees’ and Contractors’ Attendance at On-site Inspection
The bill allows the assignee or a home improvement contractor to
attend any on -site inspection of the property the insurance adjuster
does, if:
1. requested by the assignor for them to serve as a resource to the
assignor during the on-site inspection and
2. the assignee or contractor does not engage in negotiating or
settling of any portion of an insurance claim under the applicable
insurance policy, unless they are a licensed 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 generally 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,
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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
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 gives 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 given at least 10 days
before filing the action, but after the insurance company has determined
coverage under the policy, and (2) specify t he claimed damages in
dispute, the amount the assignee claims, and a pre -suit settlement
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demand (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
give the named insured, assignor , and insurance company 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.
Service of Written Notice. The bill’s notice requirements must be
served by 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.
Insurance Company’s Pre-suit Settlement Offer
Within 10 business days of receiving the notice described above, the
insurance company must make a pre-suit 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 fil es 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.
Inapplicability of Post-Loss Benefit Assignment Provisions
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;
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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
property insurance policy.
Reports and Regulations
The bill sets annual reporting requirements for assignment
agreements-related data.
Starting by February 1, 202 8, 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 assignment agreements executed in
keeping with the bill.
Starting by March 1, 2028, the commissioner must annually report to
the I nsurance and Real Estate 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 to implement the bill’s
provisions on the assignment of post-loss homeowners and commercial
insurance benefits.
§ 2 — BUSINESS DAY DEFINED
Specifies the days that are not considered business days under the Home Improvement Act
The bill specifies that under the Home Improvement Act, “b usiness
day” means any calendar day except Sunday or any of the following
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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.
§ 3 — INSURANCE DEDUCTIBLES AND HOME IMPROVEMENT
CONTRACTS
Prohibits a contractor from using any portion of an owner’s insurance policy deductible to
induce the owner to enter into a home improvement contract
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 SALESPERSON’S NAME AND
ADDRESS CHANGES
Requires home improvement contractors and salespersons to (1) notify DCP of any
changes in their business name, trade name, or addresses and (2) present evidence of their
registration certificate before holding themselves out as a contractor or salesperson
By law, a Department of Consumer Protection (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 present evidence of their registration certificate.
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 INFORMATION
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
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
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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 names and contact information of the applicant’s directors,
officers, and principal shareholders who (1) own more than 10% of the
business entity or (2) participate in the business’s operation or
management.
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
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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
Restricts home improvement contractors from conducting public adjuster activities,
except for certain acts authorized under the bill
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 explicitly 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. when appropriate, advise or recommend that the property owner
contact (a) the insurer to determine whether a bid for
construction or repair of property loss or damage is covered
under the homeowners insurance policy or (b) a public adjuster,
except as provided under the prohibited advertising and
soliciting practices under existing law and the bill (see § 7 below).
§ 7 — PROHIBITED ADVERTISING AND SOLICITING
Precludes home improvement contractors, salesmen, or their employees from engaging in
certain conduct (for example, prohibited advertising and soliciting regarding roof repair);
requires the contractor to disclose in any roof repair or replacement contract the prohibited
conduct and to state that they constitute insurance fraud
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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 verbal,
written, or electronic communication, including door hangers, business
cards, magnets, flyers, pamphlets, or emails, 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 making 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 the following in at least 12-point font : “You are
responsible for paying any insurance deductible for roof repair
costs performed on your property. I ntentionally filing an
insurance claim containing any false, incomplete or misleading
information constitutes insurance fraud punishable as a class D
felony pursuant to CGS § 53a-215” (a class D felony is punishable
by a fine up to $5,000, up to five years in prison, or both);
2. offering any rebate, gift, gift card, cash, coupon, waiver of any
insurance deductible, or other item of value to any owner in
exchange for (a) allowing the contractor to inspect the roof; and
(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,
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inducement, or reward for referring any home improvement
work for which property insurance proceeds are payable.
The bill specifies that 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.
§§ 8 & 9 — HOME IMPROVEMENT CONTRACT FOR EMERGENCY
RESTORATION SERVICES
Establishes the circumstances under which a home improvement contract requiring
urgent or emergency services may include a provision allowing the owner to waive the
right to cancel
Waiving Right to Cancel
Under the Home Solicitation Sales Act, a transaction in which the
buyer initiates a contract due to an emergency is not considered a home
solicitation sale. The bill makes an exception in home improvement
contracts involving urgent or emergency circumstanc es as described
below.
Permitted Circumstances. The bill establishes two circumstances
under which a home improvement contract involving emergency
restoration services may include a provision that allows the owner to
waive his or her right to cancel the contract not later than three business
days after the owner and contractor signed it. Under the bill, the contract
may include this cancellation waiver if the contract (1) is subject to the
requirements of Home Solicitation Sales Act , and (2) the emergency
restoration services are required to remedy a situation in which a loss to
residential or commercial property, if not addressed immediately, will
result in additional damage to the property (“urgent or emergency
circumstance”).
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Owner’s Statement. Under the bill, the owner may waive his or her
right to cancel the contract by giving the contractor a separate statement
dated and signed by the owner in electronic or paper form that describes
the circumstance requiring immediate remedy and expressly
acknowledges and waives the owner’s right to cancel as described
above.
Emergency Restoration Services
Under the bill , “emergency restoration services ” are services
designed to mitigate and restore damage to any land or building used
or designed to be used as a private residence, dwelling place , or
residential rental property , but it does not include roof repair or
replacement services.
The bill expressly includes water extraction and drying; fire damage
clean-up and soot removal; damaged carpet and other flooring material
removal; damaged drywall and building materials removal, smoke odor
removal, or sanitizing; mold prevention and containment; and the
repair or replacement of damaged materials, if no structural, electrical,
plumbing, or air conditioning work is done.
§ 10 — CONSUMER BILL OF RIGHTS
Requires the insurance commissioner to (1) by September 1, 2026, develop a consumer bill
of rights for homeowners in Connecticut and guidance on insurance coverage issues about
weather-related roofing damage and (2) post them on the department’s website starting on
October 1, 2026
The bill requires the insurance commissioner, by September 1, 2026,
to develop:
1. a consumer bill of rights regarding insurance coverage for
residential real property in Connecticut, and revise it as
necessary after that; and
2. guidance for residential real property owners who may be
experiencing insurance coverage issues related to roofing
damage caused by a weather event.
The commissioner must post the consumer bill of rights and the
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guidance on the department’s website starting on October 1, 2026.
The bill of rights must at least cover insurance companies’ use of
third-party drones and satellite imagery and any impact their use may
have on insurance policy coverage, cancellation, or renewal.
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable Substitute
Yea 13 Nay 0 (03/12/2026)