Substitute House Bill No. 6435 proposes significant reforms to the arbitration process for automobile physical and property damage claims in Connecticut. The bill establishes an independent arbitration procedure managed by the Division of Consumer Affairs specifically for disputes involving private passenger motor vehicles where liability and coverage are not contested. Key provisions include a requirement for insurance companies to participate in arbitration, a $20 filing fee for each party, and a mandate that insurers pay claimants the undisputed amount once a complaint is referred to arbitration. Additionally, the commissioner will appoint arbitrators from an approved list, and the bill allows for subpoenas to compel witness attendance and document production.

The bill introduces specific remedies for claimants if the arbitrator's decision is in their favor, such as awarding interest on the disputed amount and requiring insurers to reimburse the Department of Insurance for arbitration costs unless the claimant rejected a pre-arbitration offer of equal or greater value. It also prohibits the Insurance Department from altering any arbitrator's decision and mandates the maintenance of records and annual reporting of dispute statistics to the General Assembly. The bill shifts the financial responsibility for arbitration costs from the Insurance Department to insurers, aiming to streamline the process and encourage fair pre-arbitration offers. The changes are set to take effect on October 1, 2025, with anticipated revenue generation for the Insurance Fund.