On Jul. 8, CT LEG enacted bill on improving auto damage arbitration.
CT LEG passed bill HB 6435 to strengthen arbitration process for disputes in automobile physical and property damage claims with no liability or coverage dispute.
Amends subsection (b) of CT LEG 38a-9 of the Connecticut General Statutes.
Bill Provisions
The Division of Consumer Affairs shall provide an independent arbitration for automobile property damage claims in which liability and coverage are not in dispute.
The arbitration procedure shall apply exclusively to disputes involving private passenger motor vehicles as defined in subsection (e) of CT LEG 38a-363.
In addition, arbitrators must be impartial and selected from a commissioner-approved list, with hearings scheduled by the department and decisions issued within 15 days.
If the decision favors the claimant, it shall provide specific and appropriate remedies including interest at the rate of 15% per cent per year on the arbitration award.
The bill also requires insurers to reimburse arbitration costs if the claimant prevails, unless the claimant rejected a prearbitration offer equal to or greater than the award.
Legislative History
On Jan. 23, 2025, bill introduced in House; on Jun. 3, 2025, bill passed in House.
On Jun. 3, 2025, bill delivered to Senate; on Jun. 4, 2025, bill was passed in Senate.
On Jun. 16, 2025, bill assigned Public act 25-131; on Jul. 8, 2025, governor signed.
Effectiveness
The bill takes effect in part on Oct. 1, 2025, amending subsection (b) of CT LEG 38a-9.
