HB 5263 — 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.

747 sHB5263 File No.

747 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 such named insured with respect to any homeowners or commercial property insurance claim;

(k) The commissioner shall adopt regulations, in accordance with the sHB5263provisions /of Filechapter No.54 of the general statutes, to implement the provisions of this section.

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187 provisions of chapter 54 of the general statutes, to implement the provisions of this section.

(1)sHB5263 "Business/ day"File hasNo. the same meaning as provided in section 42- 134a, as amended by this act.

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747 (1) "Business day" has the same meaning as provided in section 42- 134a, as amended by this act.

[(5)] (6) (A) "Home improvement" includes, but is not limited to, the repair, replacement, remodeling, alteration, conversion, modernization, improvement, rehabilitation or sandblasting of, or addition to, any land or building or that portion thereof which is used or designed to be used as a private residence, dwelling place or residential rental property, or the construction, replacement, installation or improvement of alarm systems not requiring electrical work, as defined in section 20-330, driveways, swimming pools, porches, garages, roofs, siding, insulation, sunrooms, flooring, patios, landscaping, fences, doors and windows, waterproofing, water, fire or storm restoration or mold remediation in connection with such land or building or that portion thereof which is used or designed to be used as a private residence, dwelling place or residentialrentalpropertyortheremovalorreplacementofaresidential underground heating oil storage tank system, in which the total price for allwork agreeduponbetweenthecontractorandownerorproposed sHB5263 / File No.

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187747 driveways, swimming pools, porches, garages, roofs, siding, insulation, sunrooms, flooring, patios, landscaping, fences, doors and windows, waterproofing, water, fire or storm restoration or mold remediation in connection with such land or building or that portion thereof which is used or designed to be used as a private residence, dwelling place or residentialrentalpropertyortheremovalorreplacementofaresidential underground heating oil storage tank system, in which the total price for allwork agreeduponbetweenthecontractorandownerorproposed or offered by the contractor exceeds two hundred dollars.

[(9)] (10) "Private residence" means a single family dwelling, a multifamily dwelling consisting of not more than six units, or a unit, sHB5263common /element Fileor No.limited common element in a condominium, as defined in section 47-68a, or in a common interest community, as defined in section 47-202, or any number of condominium units for which a condominium association acts as an agent for such unit owners.

187[(10)] 12(11) "Proprietor" means an individual who (A) has an ownershipinterest inabusinessentity thatholdsor hasheldacertificate of registration issued under this chapter, and (B) has been found by a sHB5263 / File No.

187747 commonsHB5263 elementFile orNo. limited common element in a condominium, as defined in section 47-68a, or in a common interest community, as defined in section 47-202, or any number of condominium units for which a condominium association acts as an agent for such unit owners.

[(10)]747 (11) "Proprietor" means an individual who (A) has an ownershipinterest inabusinessentity thatholdsor hasheldacertificate of registration issued under this chapter, and (B) has been found by a court of competent jurisdiction to have violated any provision of this chapter related to the conduct of a business entity holding a certificate or that has held a certificate issued under this chapter within the two years of the effective date of entering into a contract with an owner harmed by the actions of such individual or business entity.

sHB5263Sec. / File No.

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187 Sec.

Sec.sHB5263 / File No.

747 sHB5263 File No.

747 Sec.

sHB5263(c) /No Fileindividual No.shall act as a home improvement salesman for an unregistered contractor.

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187 (c) No individual shall act as a home improvement salesman for an unregistered contractor.

(e)sHB5263 A/ retailFile establishment,No. which is a business that operates from a fixed location where goods or services are offered for sale, may apply annually for a certificate of registration as a salesperson on behalf of its employees if it employs or otherwise compensates one or more salespersons whose solicitation, negotiation and completion of sales are conducted entirely at the retail establishment or virtually or by phone.

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747 (e) A retail establishment, which is a business that operates from a fixed location where goods or services are offered for sale, may apply annually for a certificate of registration as a salesperson on behalf of its employees if it employs or otherwise compensates one or more salespersons whose solicitation, negotiation and completion of sales are conducted entirely at the retail establishment or virtually or by phone.

If the retail establishment adds or removes sHB5263salespeople, /there Fileshall No.be no refund or supplemental payment.

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187 salespeople, there shall be no refund or supplemental payment.

(g) A contractor or salesperson shall update, through the department's online licensing system, any application information the contractor or salesperson has provided to the department pursuant to this section, including, but not limited to, any contact information, including, but not limited to, a change in business or trade name, residence address or business address for such contractor or salesperson,sHB5263 insurance/ informationFile orNo. criminal history for such contractor or salesperson, or, if such contractor is a business entity, criminal histories of the individual owners of such business entity, not later than thirty days after any change in such information.

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747 salesperson, insurance information or criminal history for such contractor or salesperson, or, if such contractor is a business entity, criminal histories of the individual owners of such business entity, not later than thirty days after any change in such information.

sHB5263(5) /If Filethe No.applicant is not a natural person, the name and contact information of each individual who is a director, officer or principal shareholder of such applicant who either (A) owns more than ten per cent of the business entity, or (B) participates in the operation or management of such business entity;

187(6) 16A statement, attested to by the applicant, disclosing whether (A) the applicant previously held a certificate of registration and, if the applicant previously held such a certificate, (i) the name by which such sHB5263 / File No.

187747 (5)sHB5263 IfFile theNo. applicant is not a natural person, the name and contact information of each individual who is a director, officer or principal shareholder of such applicant who either (A) owns more than ten per cent of the business entity, or (B) participates in the operation or management of such business entity;

(6)747 A statement, attested to by the applicant, disclosing whether (A) the applicant previously held a certificate of registration and, if the applicant previously held such a certificate, (i) the name by which such applicant held such certificate, and (ii) whether such certificate was suspended or revoked, and (B) any judgment or arbitration award has been entered against the applicant;

(b) No personshall:(1) Present or attempt to present,assuch person's own, the certificate of another, (2) knowingly give false evidence of a material nature to the commissioner for the purpose of procuring a certificate, (3) represent himself or herself falsely as, or impersonate, a registeredhomeimprovementcontractororsalesman,(4)useorattempt to use a certificate which has expired or which has been suspended or revoked, (5) offer to make or make any home improvement without having a current certificate of registration under this chapter, (6) represent in any manner that such person's registration constitutes an endorsement of the quality of such person's workmanship or of such person's competency by the commissioner, (7) employ or allow any person to act as a salesman on such person's behalf unless such person is registered as a home improvement salesman, [or] (8) fail to refund the amount paid for a home improvement within ten days of a written request mailed or delivered to the contractor's last-known address, if no sHB5263 / File No.

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187747 revoked, (5) offer to make or make any home improvement without having a current certificate of registration under this chapter, (6) represent in any manner that such person's registration constitutes an endorsement of the quality of such person's workmanship or of such person's competency by the commissioner, (7) employ or allow any person to act as a salesman on such person's behalf unless such person is registered as a home improvement salesman, [or] (8) fail to refund the amount paid for a home improvement within ten days of a written request mailed or delivered to the contractor's last-known address, if no substantial portion of the contracted work has been performed at the time of the request and more than thirty days has elapsed since the starting date specified in the written contract, or more than thirty days has elapsed since the date of the contract if such contract does not specify a starting date, or (9) engage in the activities of a public adjuster, as defined in section 38a-723, except that such person may (A) explain or discuss a bid for construction or repair of property loss or damage covered under a homeowners insurance policy with an owner of such property or the insurer of such property if such person does so for the usual and customary fees applicable to the work to be performed as stated in the home improvement contract between such person and the owner, or (B) except as provided in subsection (c) of section 20-429a, as amendedby thisact, advise orrecommendtoanowner ofsuchproperty that such owner contact (i) such owner's insurer to determine whether any such bid for construction or repair of property loss or damage is covered under a homeowners insurance policy with such owner of such property, or (ii) a public adjuster, when appropriate.

(1) "Prohibited advertisement" means any verbal, written or electronic communication, including, but not limited to, door hangers, business cards, magnets, flyers, pamphlets or electronic mail, delivered by any contractor or salesman to encourage, instruct or induce an owner to sHB5263contact /such Filecontractor, No.salesman or public adjuster, as defined in section 38a-723, to file an insurance claim for roof damage to such owner's property.

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187 contact such contractor, salesman or public adjuster, as defined in section 38a-723, to file an insurance claim for roof damage to such owner's property.

(b) No contractor or salesman shall solicit or otherwise endeavor to procure home improvement work or a home improvement contract fromsHB5263 an/ ownerFile byNo. notifying the owner that a contractor will commence home improvement work unless the owner instructs the contractor not to commence such work by a date determined by the contractor.

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747 from an owner by notifying the owner that a contractor will commence home improvement work unless the owner instructs the contractor not to commence such work by a date determined by the contractor.

No payment by any owner or insurance company to such contractor for roofing services shall constitute compensation for such referral pursuant to the provisions of sHB5263this /subdivision. File No.

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187 this subdivision.

(1)sHB5263 "Home/ solicitationFile sale"No. means a sale, lease, or rental of consumer goods or services, whether under single or multiple contracts, in which the seller or his representative personally solicits the sale, including those in response to or following an invitation by the buyer, and the buyer's agreement or offer to purchase is made at a place other than the place of business of the seller.

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747 (1) "Home solicitation sale" means a sale, lease, or rental of consumer goods or services, whether under single or multiple contracts, in which the seller or his representative personally solicits the sale, including those in response to or following an invitation by the buyer, and the buyer's agreement or offer to purchase is made at a place other than the place of business of the seller.

If in the course of such a visit, the seller sells the buyer the right to receive additional services or goods other than replacement parts necessarily used in performing the sHB5263maintenance /or Filein No.making the repairs, the sale of those additional goods or servicesshallnot come withinthisexclusion;(E)pertaining tothesale or rental of real property, to the sale of insurance, to the sale of newspapers or to the sale of securities or commodities by a broker- dealer registered with the securities and exchange commission;

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187 maintenance or in making the repairs, the sale of those additional goods or servicesshallnot come withinthisexclusion;(E)pertaining tothesale or rental of real property, to the sale of insurance, to the sale of newspapers or to the sale of securities or commodities by a broker- dealer registered with the securities and exchange commission;

Sec.sHB5263 / File No.

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747 Sec.

"Emergency restoration services" includes water extraction and drying, fire damage clean-up and soot removal, removal of damaged carpet and other flooring material, removal of damaged drywall and building materials, removal of smoke odors, sanitizing and sHB5263preventive /activitiesofmoldor Filemold-containment No.matter andtherepair or replacement of damaged materials, provided no structural, electrical, plumbing or air conditioning work is performed.

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187 preventive activitiesofmoldor mold-containment matter andtherepair or replacement of damaged materials, provided no structural, electrical, plumbing or air conditioning work is performed.

(NEW) (Effective from passage) (a) Not later than September 1, 2026, the Insurance Commissioner shall (1) develop, and thereafter revise as necessary, a consumer bill of rights regardingconcerning insurance andcoverage for residential real estate.properties in this state, including, but not limited to, insurance companies' use of third-party drones and satellite sHB5263 / File No.

Such747 billsHB5263 ofFile rightsNo. shall be consistent with applicable federal and state laws and include, but need not be limited to, a statement of the principles and values that form the basis for such bill of rights.

(b)747 Onimagery andandany afterimpact Octoberthat 1,such 2026,use theofthird-party commissionerdronesandsatellite shallimagery postmay thehave consumerconcerning billcoverage, ofcancellation rightsor regardingrenewal of insurance policies, and (2) develop guidance for owners of residential real estateproperty onwho themay Internetbe webexperiencing siteinsurance ofcoverage theissues Insurancerelated Department.to roofing damage following a weather event that results in such damage.

(b) On and after October 1, 2026, the commissioner shall post the consumer bill of rights and guidance described in subsection (a) of this section on the Internet web site of the Insurance Department.

Section 1 January 1, 2027 Section 1 New section Sec.

7 October 1, 2026 20-429a October 1, 2026 Sec.

8 October 1, 2026 42-134a(1) Sec.

10 from passage New section INSsHB5263 Joint/ FavorableFile Subst.No.

sHB5263747 /sHB5263 File No.

187747 22The sHB5263following FileFiscal No.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 purpose.

187 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 purpose.

TheHouse Out"A" Yearsalters Statethe Impact: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 the department has the expertise to meet the requirements.

NoneThe Municipalamendment Impact:additionally makes procedural changes resulting in no fiscal impact to the state.

None sHB5263 / File No.

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187747 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.

SUMMARYTABLE ThisOF billCONTENTS: generally (1) addresses matters related to post-loss benefit assignment agreements (those that assign, transfer, or acquire any post- loss benefit under a residential or commercial property insurance policy, if allowed by the policy, excluding public adjusters’ fees) (§ 1);

(2)SUMMARY makes§ changes1 in— lawsASSIGNMENT relatedOF toPOST-LOSS homeHOMEOWNERS improvementAND contractsCOMMERCIAL (§§INSURANCE 2-BENEFITS 9);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;

andprovides (3)for requireswhen thean Insuranceassignor Department(person towho developassigns aor consumertransfers billthe ofbenefit) rightsacts regardingunder insurancean andurgent realor estate,emergency bycircumstance Septemberto 1,protect 2026the (§property; 10).

Regardingmakes theany post-loss benefit assignment provisions,agreement thethat billfails establishesto acomply processwith forthese assigningprovisions post-lossvoid benefitsand underunenforceable; policies delivered, issued for delivery, renewed, amended, or continued in the state on or after January 1, 2027.

Amongrequires otherinsurers, things,starting in 2028, to annually submit post-loss-related data to the billinsurance specifically:commissioner;

1.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 sHB5263 / File No.

requires747 post-losssHB5263 assignmentFile agreementsNo. to be executed in writing and shared with the insurance company and any mortgagee (the mortgage owner or servicer);

2.747 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);

establishesrequires rightsthe contractor to disclose in any roof repair or replacement contract the prohibited conduct and prohibitionsto forstate that they constitute insurance fraud §§ 8 & 9 — HOME IMPROVEMENT CONTRACT FOR EMERGENCY RESTORATION SERVICES Establishes the assignorcircumstances (personunder whowhich assigns,a transfers,home improvement contract requiring urgent or acquiresemergency services may include a provision allowing the benefit)owner andto assigneewaive (personthe whoright isto assignedcancel § 10 — CONSUMER BILL OF RIGHTS Requires the benefit)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 SUMMARY This bill generally (1) addresses matters related to post-loss claims;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);

and(2) 3.makes changes in laws related to home improvement contracts (§§ 2-9);

makesand agreements(3) thatrequires dothe notinsurance meetcommissioner theto bill’sdevelop requirementsa voidconsumer bill of sHB5263 / File No.

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187747 rights and unenforceable.certain insurance coverage guidance for Connecticut homeowners (§ 10).

It also requiresmakes insurers,technical starting in 2028, to annually submit post- loss-relateddatatotheinsurancecommissioner,whichhemustevaluate and reportconforming tochanges. the Insurance and Real Estate Committee (§ 1).

RegardingA the provisions of the bill that make changes to laws on home improvement contracts, a section-by-section analysis appearsfollows. below.

Among*House otherAmendment things,“A” (1) limits the billbill’s doespost-loss benefits provisions to those who assign or transfer the following:benefits, not those who acquire them;

1.(2) modifies the assignee’s requirements before submitting an insurance claim by requiring a sworn statement instead of an examination under oath;

specifies(3) thatremoves underemail theas Homean Improvementoption Act,for “businessthe day”assignee meansto anyprovide calendarnotice dayof excepta Sundaycause orof anyaction ofagainst thean followinginsurer nineunder businessthe holidays:bill;

New(4) Year’sexpands Day,the Washington’sdefinition Birthday,of Memorialprohibited Day,advertisement Independencerelated Day,to Laborhome Day,improvement Columbuscontracts Day,to Veteransinclude Day,certain Thanksgivingverbal Day,communications; and Christmas Day (§ 2);

2.(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;

prohibitsand a(6) contractoradds fromthe usingprovision anythat portionrequires ofthe ancommissioner owner’s insurance policy deductible to inducedevelop the ownerroofing todamage-related enterguidance. 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 their registration certificate before holding themselves out as one (§ 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.

precludes home improvement contractors, salesmen, or their sHB5263 / File No.

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187 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 (§ 7);

and 7.

establishes the circumstances under which a home improvement contract requiring urgent emergency services may include a provision allowing the owner to waive the right to cancel (§§ 8 & 9).

Lastly, it also makes technical and conforming changes.

October 1, 2026, except the provision on the (1)post- post-lossloss assignment is effective January 1, 2027, and (2)the ones on the consumer bill of rights isand roofing damage guidance are effective upon passage.

§ 1 — ASSIGNMENT OF POST-LOSS HOMEOWNERS AND COMMERCIAL INSURANCE BENEFITS TheEstablishes bill (1) establishes specific requirements for any assignment agreement that assigns,assigns transfers, or acquirestransfers 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;

(2) 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, 2027;

(2) provides for when an assignor sHB5263 / File No.

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747 (person who assigns or transfers the benefit) acts under an urgent or emergency circumstance to protect the property;

Post-Loss Benefit Assignment Agreement Requirements A post-loss benefit assignment agreement covered under the bill,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 servicesthattheassigneeagreedtoperformontheproperty.Itmustalso include:

a provision giving the assignor the right to rescind the assignment agreement, without penalty, by submitting notice to sHB5263the /assignee File(see No.Recission Notice below);

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187 the assignee (see Recission Notice below);

a provision requiring the assignee to indemnify and hold the assignor harmless from any liability, damages, losses, or costs,costs arising from the agreed-uponagreed upon post-loss services the assignee performed on the property, including attorney’s fees.

Recission Notice UndersHB5263 the/ bill,File theNo. assignor must submit a signed recission notice to the assignee:

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747 Under the bill, the assignor may submit a signed recission notice to the assignee:

at least 30 days after the date on which the post-loss services are scheduled to begin, providedif the assignee has not substantially performed the agreed-uponagreed upon post-loss services;

at least 30 days after the agreement’s execution, providedif it does not contain a date by which the agreed-uponagreed upon post-loss services are scheduled to begin and the assignee has not substantially performed them.

Delivery of Executed Agreement to Insurer and Mortgagee sHB5263The /assignee Filemust No.deliver a copy of the executed agreement to the insurance company and all mortgagees owning or servicing mortgages on the property:

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187 The assignee must deliver a copy of the executed agreement to the insurance company and all mortgagees owning or servicing mortgages on the property:

YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENTsHB5263 WITHOUT/ PENALTYFile WITHINNo. 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.

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747 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.

THIS AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR HOMEOWNERS OR COMMERCIAL PROPERTY INSURANCE POLICY.” Excluded Fees sHB5263Under /the Filebill, No.assignment agreements may not include (1) a bank check or mortgage processing fee, (2) a cancellation penalty or fee for the assignor, or (3) administrative fees.

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187 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) administrative fees.

Insurance Claim and Assignee’s Failures IfsHB5263 any/ insuranceFile claimNo. 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:

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747 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:

keep records of all post-loss services provided under the assignment agreement,agreement; 2.

cooperate2. with any internal claims investigation the insurance company conducted, 3.

givecooperate thewith insurance company any documentsinternal relatedclaims toinvestigation post-loss services the assigneeinsurance provided,company orconducted; 4.

deliver3. a copy of the executed assignment agreement to the insurance company within three days of the agreement’s execution or when the services commenced, whichever is earlier.

sHB5263give /the Fileinsurance No.company any documents related to post-loss services the assignee provided;

187or 294. sHB5263 File No.

187deliver Assignee’sa Requirementscopy Theof billthe requiresexecuted assignment agreement to the assigneeinsurance company within three days of the assignmentagreement’s agreementexecution to:or when the services began, whichever is earlier.

Assignee’s Requirements The bill requires the assignee of the assignment agreement to:

before submitting an insurance claim under the applicable insurance policy, and if required by the insurance company, (a) submit toa answorn examinationstatement underand oath,(b) oragree provideto aand recordedparticipate statementin underany oathalternative conducteddispute byresolution the(ADR) insuranceproceedings companyunder orthe itsapplicable authorizedinsurance agent;policy’s terms.

and (b) participate in any alternative dispute resolution (ADR) proceedings under the applicable insurance policy’s terms.

The examination or recorded statement must be (1) reasonably necessary;

(2) based on the scope of the post-loss repair services performed on the property and the complexity of the insurance claim;

and (3) limited to matters related to services performed, the cost of the services, and the assignment agreement’s terms.

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 to anyone or any entity not authorized to do so on behalf of any assignor or claimant, under the public adjusters’ statutes.

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187747 Assignees and Contractors Attendance at On-site Inspection The billswornstatement allowsmust include the assignee(1)post-lossrepair,inspection, remediation, or amitigation homeservices improvementperformed contractoron to attend any on-site inspection of the propertyproperty; the insurance adjuster does, if:

(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:

the assignee andor contractor dodoes 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,subcontractor who executes an assignment agreement in keeping with the bill,bill is generally prohibited from:

collecting payment from the assignor or any named insured under the policy, 3.sHB5263 / File No.

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747 3.

sHB52631. / File No.

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187 1.

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 the claimed damages in dispute, the amount the assignee claims, and a presuitpre-suit settlement demandsHB5263 (any/ monetaryFile requestNo. submitted by an assignee in a written notice of intent to initiate litigation).

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747 demand (any monetary request submitted by an assignee in a written notice of intent to initiate litigation).

The bill’s notice requirements must be sHB5263served /by Filecertified No.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.

187Insurance 32Company’s sHB5263Pre-suit FileSettlement No.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.

187 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 in the policy and the named insured or assignor in the assignment agreement.

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 withstatelaw,oranyotherADRundertheapplicableinsurancepolicy’s terms.

2.sHB5263 / File No.

747 33 sHB5263 File No.

747 2.

or sHB52633. / File No.

187 33 sHB5263 File No.

187 3.

Reports and Regulations The bill sets annual reporting requirements relatedfor to assignment agreements-related data.

Starting by February 1, 2028, 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 agreementagreements executed in keeping with the bill.

Starting by March 1, 2028, the commissioner must annually report to the Insurance and Real Estate Committee on his evaluation of the submitted data for the immediately preceding calendar year.

and (3) claims and litigation trends, categorized by claims litigated, claims settled prior to litigation, andandloss loss adjustment expenses.

The commissioner must adopt regulations implementingto implement the section’sbill’s provisions.provisions on the assignment of post-loss homeowners and commercial insurance benefits.

§ 32 — INSURANCEBUSINESS DEDUCTIBLESDAY ANDDEFINED HOMESpecifies IMPROVEMENTthe CONTRACTSdays Regardlessthat ofare thenot state’sconsidered homebusiness improvementdays contractorunder laws, the billHome prohibitsImprovement contractorsAct fromThe directlybill orspecifies indirectlythat advertising,under offering,the orHome promisingImprovement anyAct, allowance,“business compensation,day” discount,means payment,any waiver,calendar orday rebateexcept forSunday aor homeowner’sany insuranceof deductible in order to induce the ownerfollowing tosHB5263 sign/ aFile homeNo. improvement contract.

§747 434 —sHB5263 CONTRACTOR’SFile ANDNo. SALESPERSON’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.

Under747 thenine bill,business beforeholidays: the person can hold himself or herself out to be a contractor or salesperson, he or she must also present evidence of their registration sHB5263 / File No.

187New 34Year’s sHB5263Day, FileWashington’s No.Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.

187§ certificate.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.

§ 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;salespersons and makes certain distinctions depending on whether or sHB5263 / File No.

and747 makes35 certainsHB5263 distinctionsFile dependingNo. on whether or not the applicant is a natural person.

747 not the applicant is a natural person.

Additionally, if the applicant is not a natural person, the form must include the names and contact information of the applicant’s directors, sHB5263officers, /and Fileprincipal No.shareholders who (1) own more than 10% of the business entity or (2) participate in the business’s operation or management.

187 35 sHB5263 File No.

187 officers, and principal shareholders who (1) own more than 10% of the business entity or (2) participate in the business’ operation or management.

Proof of Insurance ExistingsHB5263 law/ requiresFile applicantsNo. to prove they have at least $20,000 of general insurance coverage by providing the policy number and insurance provider.

747 36 sHB5263 File No.

747 Existing law requires applicants to prove they have at least $20,000 of general insurance coverage by providing the policy number and insurance provider.

§ 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.

whenappropriate, advise or recommend thattheproperty owner sHB5263contact /(a) Filethe No.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 thebill (see § 7 below).

187§ 367 sHB5263— FilePROHIBITED No.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);

187requires contact (a) the insurercontractor to determinedisclose whetherin aany bidroof for construction or repair of property loss or damagereplacement iscontract covered under the homeowners insurance policy or (b) a public adjuster, except as provided under the prohibited advertisingconduct and solicitingto practicesstate underthat existingthey lawconstitute andinsurance thebillfraud (seesHB5263 §/ 7File below).No.

§747 737 —sHB5263 PROHIBITEDFile ADVERTISINGNo. 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.

Definitions747 UnderThe thebill bill,precludes “prohibitedhome advertisement”improvement meanscontractors, anysalesmen, written or electronictheir communication,agents includingand dooremployees hangers,from businessengaging cards,in magnets,certain flyers,conduct pamphlets, or emails, delivered by any contractor or salesman to encourage, instruct, or induce anowners owner to contactenter theinto contractor,home salesman,improvement orcontracts. public adjuster to file an insurance claim for roof damage to the owner’s property.

“Soliciting”Definitions Under the bill, “prohibited advertisement” means toany makeverbal, directwritten, contactor withelectronic anyonecommunication, throughincluding mail,door telephone,hangers, email,business in-personcards,magnets,flyers,pamphlets,oremails,deliveredbyanycontractor communication,or salesman to encourage, instruct, or anyinduce otheran meansowner to inducecontact the personcontractor, salesman, or public adjuster to makefile aan transaction.insurance claim for roof damage to the owner’s property.

Prohibited“Soliciting” Actionsmeans Themaking billdirect prohibitscontact contractorswith oranyone salespersons,through ormail, theirtelephone, agentsemail, in-person communication, or employeesany from,other directlymeans orto indirectly:induce the person to make a transaction.

Prohibited Actions The bill prohibits contractors or salespersons, or their agents or employees, from, directly or indirectly:

soliciting any owner through a prohibited advertisement, unless it provides,provides the following in at least 12-point font:

offering any rebate, gift, gift card, cash, coupon, waiver of any sHB5263insurance /deductible, Fileor No.other item of value to any owner in exchange for (a) allowing the contractor to inspect the roof;

187and 37(b) sHB5263the Fileowner, No.contractor, salesman, or their agents or employees submitting an insurance claim for damage to the owner’s roof;

187 insurance deductible, or any 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;

offering, delivering, receiving, or accepting any compensation, inducement,sHB5263 or/ rewardFile forNo. referring any home improvement work for which property insurance proceeds are payable.

747 38 sHB5263 File No.

747 inducement, or reward for referring any home improvement work for which property insurance proceeds are payable.

§§ 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 andor emergency circumstances as described below.

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 daysaftertheownerandcontractorsigned it.Underthebill,thecontract 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 sHB5263residential /or Filecommercial No.property, if not addressed immediately, will result in additional damage to the property (“urgent or emergency circumstance”).

187 38 sHB5263 / File No.

187747 residential39 orsHB5263 commercialFile property,No. if not addressed immediately, will result in additional damage to the property (“urgent or emergency circumstance”).

747 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 andandsignedbythe signed by the owner ininelectronicorpaper electronicform orthat paperdescribes form, describing the circumstance requiring immediate remedy and that expressly acknowledges and waives the owner’s right to cancel as described above.

damaged carpet and other flooring material removal;damageddrywallandbuildingmaterialsremoval,smokeodor removalremoval, or sanitizing;

§ 10 — CONSUMER BILL OF RIGHTS TheRequires bill requires the Insuranceinsurance Commissionercommissioner to (1) by September 1, 2026, develop a consumer bill of rights regardingfor homeowners in Connecticut and guidance on insurance coverage issues about weather-related roofing damage and real(2) estate,post them on the department’s website starting on October 1, 2026 The bill requires the insurance commissioner, by September 1, 2026;2026, to develop:

(2)1. post it on the department’s website, by October 1, 2026;

anda (3)consumer bill of rights regarding insurance coverage for residential real property in Connecticut, and revise it as necessary after that.that;

The bill of rights must be consistent with applicable federal and state2. laws and must include a statement of the principles and values it is based on.

sHB5263guidance /for Fileresidential No.real property owners who may be experiencing insurance coverage issues related to roofing damage caused by a weather event.

187The 39commissioner must post the consumer bill of rights and the sHB5263 / File No.

187747 COMMITTEE40 ACTION Insurance and Real Estate Committee Joint Favorable Substitute Yea 13 Nay 0 (03/12/2026) sHB5263 / File No.

187747 40guidance 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) sHB5263 / File No.

747 41