General Assembly Raised Bill No. 6365
January Session, 2011 LCO No. 2807
*02807_______INS*
Referred to Committee on Insurance and Real Estate
Introduced by:
(INS)
General Assembly
Raised Bill No. 6365
January Session, 2011
LCO No. 2807
*02807_______INS*
Referred to Committee on Insurance and Real Estate
Introduced by:
(INS)
AN ACT CONCERNING INSURANCE FOR MUNICIPALITIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2011) All insurance maintained by a municipality shall, prior to renewal, be submitted for competitive bid.
Sec. 2. Section 38a-707b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):
(a) For purposes of this section, "insurance", "insurance producer" and "insurer" have the same meanings as provided in section 38a-702a, and "municipality" means any town, city or borough, consolidated town and city or consolidated town and borough.
(b) Any insurance producer who sells, solicits or negotiates insurance on behalf of an insurer to a municipality or local or regional board of education shall: [, upon]
(1) Upon request from the municipality or local or regional board of education, fully disclose, in writing, the amount of any fees or compensation such insurance producer receives from the insurer for such services pursuant to the written memorandum required under section 38a-707 or the Investment Advisers Act of 1940, 15 USC 80b-1, et. seq., as amended from time to time; and
(2) List as a separate line item in any insurance policy rate quote provided by such insurance producer the amount of such producer's commission for such policy.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2011 New section
Sec. 2 July 1, 2011 38a-707b
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2011
New section
Sec. 2
July 1, 2011
38a-707b
Statement of Purpose:
To require (1) municipalities that maintain insurance to submit for competitive bidding prior to renewal of such insurance, and (2) insurance producers that sell, solicit or negotiate insurance on behalf of an insurer to a municipality or local or regional board of education to list such producer's commission as a separate line item on any insurance rate quote provided to such municipality or board of education.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]