Assignment of Benefits, Part 11: Connecticut

Following another reader’s request, in this week’s post on our series on Assignments of Benefits (AOBs) we are looking at Connecticut and how AOBs are managed there.

Connecticut’s Regulations of State Agencies, §38a-334-8, which governs what conditions an insurance carrier can include in their policies, states that a policy may contain “a provision that the insurer’s consent is necessary to any assignment of interest under the policy.”¹ However, where an assignment takes place post loss, the insurer is prohibited from barring an assignee from proceeding on the claim regardless of the presence of an anti-assignment clause.²

Further, the holder of an assignment of benefits may bring suit on both breach of contract and on breach of the covenant of good faith and fair dealing (bad faith).³

If you have any specific questions on AOBs or would like to see your state come up sooner, please comment below, or send me an email at cmathis@merlinlawgroup.com.

As always, I’ll leave you with a (mildly) related tune, here’s Connecticut’s own, (and one my favorites from my teenage years), Spring Heeled Jack U.S.A., with Jolene:

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¹ Regs. Conn. State Agencies § 38a-334-8.
² Peck v. Public Service Mut. Ins. Co., 114 F.Supp.2d 51, 56 (D. Conn. 2000).
³ Id.