Bill > HB06435

This bill modifies the Connecticut Insurance Department's automobile damage arbitration process by introducing new requirements for insurance companies. Specifically, the bill mandates that when an arbitration hearing involves automobile physical or property damage claims for private passenger vehicles, the insurance company must reimburse the department's administrative costs if the arbitration award favors the claimant. However, this reimbursement requirement is waived if the claimant previously rejected a pre-arbitration settlement offer from the insurance company that was equal to or greater than the final arbitration award. The bill maintains the existing process where the Division of Consumer Affairs provides an independent arbitration procedure for disputes where liability and coverage are not contested. The arbitration process involves a $20 filing fee from each party, requires the insurance company to pay the undisputed portion of the claim upfront, and ensures that an impartial arbitrator from an approved dispute resolution organization makes a decision within 15 days of the hearing. The bill also stipulates that if the claimant prevails, they can receive interest at 15% per year on the disputed amount, retroactive to the original payment date. The changes are set to take effect on October 1, 2025.

Business and Industry

Insurance and Real Estate Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB06435&which_year=2025