Big I CT Supports Home Repair, Legal System Reform Measures
Big I Connecticut in recent weeks has announced support for proposed laws to protect consumers and study a growing trend in civil litigation.
Travis Wattie, AVP of Government Relations, gave written testimony at hearings of the State General Assembly’s Insurance and Real Estate Committee on February 24 and March 3. The testimony concerned two bills under consideration:
- House Bill 5263 which would restrict home repair contractors from using assignment of benefits (AOB) contracts to take unfair advantage of property owners.
- House Bill 5375 which would direct the state insurance commissioner to study how third-party litigation financing (TPLF) affects lawsuit settlement tactics, litigation costs, liability insurance premiums, and claim severity.
Wattie warned the committee that Connecticut may be repeating other states’ mistakes with contractors’ abuses of AOB contracts. “With promises of ‘free’ roofs, embellished claims, and little recourse for a homeowner to cancel an AOB,” he testified, “Connecticut could be heading down the path of other states, such as Florida, where abusive practices and runaway litigation drove insurance costs ever higher.”
He called the measures in H.B. 5263 “common-sense guardrails” that would give property owners rights. It would also require contractors to give property owners certain notifications, put AOB agreements in writing and share them with insurance carriers, and permit property owners an opportunity to cancel them.
TPLF is an arrangement in which a non-party to a lawsuit helps a plaintiff or defendant finance its cost. In return, the non-party receives a share of any damages awarded by a jury or settlement.
Calling these arrangements susceptible to fraud and abuse, Wattie raised several concerns with the committee. TPLF, he said, may give incentives to file meritless lawsuits; raise litigation costs and the liability insurance premiums that pay for them; make investor returns a higher priority than achieving justice; give investors undue influence over defense and settlement decisions; and reduce compensation to wounded plaintiffs.
The study required by H.B. 5375, he said, will “help policymakers better understand this rapidly growing industry and implement critical safeguards to protect consumers, preserve the integrity of the state’s insurance marketplace, and prevent courts and the insurance system from being treated as profit centers for hedge fund investors.” He also suggested that lawmakers review a model bill adopted by the National Council of Insurance Legislators (NCOIL) in 2025.
How To Get Involved
We invite all Big I CT members who are interested in these and other reform measures to attend the annual Morning At The Capitol at the Legislative Office Building in Hartford on March 31 from 9:00 to noon. This is an opportunity to meet with lawmakers and the state’s new insurance commissioner, Josh Hershman. You can reserve a seat by March 24 here. Send any questions you may have to Travis Wattie.
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