2015 Connecticut General Statutes
Title 38a - Insurance
Chapter 700 - Property and Casualty Insurance
Section 38a-313a - Notice to insured and contract or document re repair, remediation or mitigation work under a personal or commercial risk policy.

(a)(1) Prior to commencing any repair, remediation or mitigation pursuant to a loss occurring on or after October 1, 2013, under a personal risk insurance policy, as defined in section 38a-663, or a commercial risk policy, as defined in section 38a-663, the person who will perform the repair, remediation or mitigation shall:

(A) Provide an insured with a written notice that indicates the scope of the work to be completed and the estimated total price. Such notice shall not be required for (i) any repair of an automobile that is subject to this chapter, or (ii) any repair that is subject to chapter 400; and

(B) Include, in any contract or document in connection with such repair, remediation or mitigation that authorizes an insurer to make a payment directly to the person performing such repair, remediation or mitigation, a provision that discloses to the signatory, in not less than twelve-point type immediately above the signature line, that the insured has the right to be named as a joint payee on the payment instrument.

(2) No such contract or document shall include any provision that creates a power of attorney or waives the signatory’s or insured’s legal rights against the person performing such repair, remediation or mitigation.

(b) If the person performing the repair, remediation or mitigation or a contract or document in connection with such repair, remediation or mitigation fails to comply with the requirements set forth in subsection (a) of this section, any contract between such person and such insured for, or document in connection with, such repair, remediation or mitigation shall be void.

(c) As used in this section, “remediation” includes, but is not limited to, cleaning services.

(P.A. 04-108, S. 1; P.A. 11-106, S. 1; P.A. 12-162, S. 2; P.A. 13-148, S. 2.)

History: P.A. 11-106 designated existing provisions as Subsecs. (a) and (c), inserted Subsec. (b) re penalty for failure to provide written notice, and made technical changes; P.A. 12-162 replaced “October 1, 2011” with “July 1, 2012” in Subsec. (a) and amended Subsecs. (a) and (b) to add “or mitigation”, effective July 1, 2012; P.A. 13-148 amended Subsec. (a) by designating existing provisions as Subdiv. (1) and Subpara. (A), replacing “July 1, 2012, and covered” with “October 1, 2013,” in redesignated Subdiv. (1), adding Subpara. (B) re disclosure to signatory re direct payment authorization, adding Subdiv. (2) re prohibition on power of attorney or waiver of rights provision in contract or document, and making conforming changes, and amended Subsec. (b) by making conforming changes.