Big I CT Presses Legislation To Protect Consumers, Reform Legal System
Big I Connecticut this week stepped up efforts to enact stronger consumer protections regarding home repairs after a loss. Assistant Vice-President of Government Relations Travis Wattie wrote to legislative leaders, urging them to approve House Bill 5263.
The bill, produced by the General Assembly’s Insurance and Real Estate Committee, would place new safeguards for homeowners and the insurance industry around the use of “assignment of benefits” (AOB) agreements. AOBs are contracts that roofing and home improvement contractors sometimes use when property owners’ buildings have suffered insured damage. Under these contracts, the property owner assigns their insurance proceeds to the contractor in return for the contractor making the repairs.
In his letters, Wattie told the leaders that some contractors take unfair advantage of property owners and insurers with AOBs.
“With promises of ‘free’ roofs, embellished claims, and little recourse for a homeowner to cancel an AOB,” he warned, “Connecticut could be heading down the path of other states, such as Florida, where abusive practices and runaway litigation drove insurance costs ever higher.”
The bill proceeding through the House of Representatives would require AOBs to be in writing, give property owners certain rights and prominent notifications, and give them time to change their minds.
We are gearing up for a similar grassroots advocacy campaign in the state Senate.
Our efforts to achieve legal system reform recently hit a roadblock. Lawmakers in the House removed a measure authorizing the Department of Insurance to study the effects of third-party litigation funding (TPLF) from a larger bill. We will continue, along with other business groups, to press the case for regulating TPLF arrangements. However, this action demonstrates that our work will be difficult.
At the same time, Big I CT members and staff are on Capitol Hill in Washington this week, urging action on bills that would require disclosure of TPLF arrangements in court and eliminate tax advantages from their use.
Watch your email and this website for updates as we continue to work for changes to help your clients and you.
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