Connecticut House Bill HB05629

Connecticut 2013 Regular Session

• Introduced: 1/23/13
• Refer: 1/23/13

Caption

An Act Concerning The Assessment Methodology Used For The Expenditures Of The Insurance Department And The Office Of The Healthcare Advocate.

Impact

If implemented, the bill would primarily affect the financial obligations of small to mid-sized insurance companies in Connecticut. By limiting the assessment to one percent of their expenditures, these companies may experience reduced financial burdens, potentially allowing them to allocate more resources towards customer service, claims processing, and other operational needs. This could enhance their competitiveness and sustainability in the insurance market, thereby benefiting consumers by promoting better service delivery.

Summary

House Bill 05629 aims to amend the assessment methodology for the expenditures of the Insurance Department and the Office of the Healthcare Advocate. The primary focus of the bill is to limit the assessment rate imposed on small and mid-sized property and casualty insurance companies, as well as life insurance companies. Specifically, the bill proposes to set a cap of one percent on the actual expenditures for those companies whose net direct premiums in the state make up at least twenty-five percent of their national net direct premiums. This change is intended to provide financial relief to smaller insurance providers operating within Connecticut.

Contention

While the bill appears to be supportive of small and mid-sized insurance providers, there may be concerns from larger insurers or industry stakeholders regarding the implications of such preferential treatment. Larger insurance companies might argue that limitations on assessments could lead to unequal competition, creating a marketplace where smaller firms receive financial advantages that larger firms do not. Therefore, discussions around the bill may center on balancing the interests of varying sizes of insurance companies while ensuring consumer protections are maintained.