Connecticut Senate Bill SB00920

Connecticut 2011 Regular Session

• Introduced: 2/8/11
• Refer: 2/8/11
• Report Pass: 3/15/11
• Refer: 3/25/11
• Report Pass: 3/31/11

Caption

An Act Concerning Revisions To The Insurance Statutes.

Impact

If passed, SB00920 would significantly impact regulations governing insurance companies operating in Connecticut. By enforcing more stringent guidelines on financial surveillance and requiring insurance companies to base their Medicare supplement premiums on community rates, the bill seeks to protect vulnerable populations, particularly the elderly. The bill would also enhance the Insurance Commissioner's powers by allowing for greater scrutiny of insurance practices, thereby promoting a more transparent and accountable insurance market in the state.

Summary

SB00920, titled 'An Act Concerning Revisions to the Insurance Statutes', was introduced to amend various provisions in the Connecticut insurance statutes. The bill aims to enhance financial oversight of insurance companies and streamline regulatory frameworks to ensure better consumer protection. Key changes include the establishment of clearer compliance standards and the introduction of non-discriminatory practices in premium ratings for Medicare supplement policies, ensuring that rates are not based on factors such as age, gender, or medical history. This demonstrates a commitment to maintaining equitable insurance practices within the state.

Sentiment

The sentiment around SB00920 appears to be mixed but generally skewed towards support among consumer advocacy groups and insurance reform advocates. Supporters argue that the bill will lead to fairer insurance pricing and improved consumer rights, effectively addressing longstanding issues within the insurance sector. Conversely, some industry representatives have raised concerns over the potential financial burden these regulations could impose on insurance companies, arguing that stringent compliance measures might limit their operational flexibility and increase costs.

Contention

Notable points of contention surrounding SB00920 include debates over the balance between regulatory oversight and market freedom. While proponents emphasize the need for robust consumer protections against discriminatory practices, critics within the industry highlight the risk of unintended consequences, such as reduced competition and potential increases in overall insurance costs. The passage of this bill would fundamentally reshape how insurance companies operate in relation to consumer interactions and compliance, indicating a shift towards prioritizing consumer rights over traditional business practices in the insurance sector.