Connecticut HB 5263: AN ACT ESTABLISHING A SERVICE RIBBON FOR MEMBERS OF THE ARMED FORCES PROVIDING HONOR GUARD DETAIL.

Bill Text

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General Assembly Substitute Bill No. 5263
February Session, 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
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

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(3) "Assignor" means any person who assigns, transfers or acquires 16
any post-loss benefit under a homeowners insurance policy or 17
commercial property insurance policy to an assignee through an 18
assignment 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
(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

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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 subparagr