General Assembly Raised Bill No. 6379
January Session, 2013 LCO No. 2801
*02801_______INS*
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
General Assembly
Raised Bill No. 6379
January Session, 2013
LCO No. 2801
*02801_______INS*
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING SURPLUS LINES INSURANCE BROKERS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 38a-741 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) The commissioner shall maintain on a current basis a list of those lines of insurance or their components for which coverages are believed by the commissioner to be generally unavailable from licensed insurers. The commissioner shall republish the list and make it available to all licensees every six months. Any person may request in writing that the commissioner add or remove a line of insurance or its component from the current list at the next publication of the list. The commissioner's determinations of lines of insurance or their components to be added to or removed from the list shall not be subject to chapter 54 provided prior to making determinations, the commissioner shall provide opportunity for comments from interested persons.
(b) (1) When any policy of insurance is procured or renewed under the authority of such license providing a line of insurance or its component that does not, on the effective date of coverage, appear on the current published list, both the licensee and the insured shall [execute affidavits] write signed statements setting forth facts showing that such licensee and such insured were unable after diligent effort to procure, from any authorized insurer or insurers, the full amount of insurance required to protect the interest of such insured, and further showing (A) that the amount of insurance procured from an unauthorized insurer or insurers is only the excess over the amount so procurable from authorized insurers, (B) the type of policy, and (C) if such policy is for real property, the location of such property. Such licensee shall file such [affidavits] signed statements with the commissioner not later than forty-five days after such policies have been procured or renewed.
(2) The provisions of subdivision (1) of this subsection shall not apply to any policy of insurance procured under the authority of such license for an insured that is an exempt commercial purchaser, as defined in Section 527 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111-203, as amended from time to time, provided (A) the surplus lines broker has disclosed to such exempt commercial purchaser that such insurance may or may not be available from an authorized insurer, that may provide greater protection with more regulatory oversight, and (B) such exempt commercial purchaser has subsequently requested such broker, in writing, to procure such policy from an unauthorized insurer.
Sec. 2. Section 38a-777 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
Any licensee under sections 38a-741 to 38a-744, inclusive, as amended by this act, or section 38a-794 who negotiates, continues or renews any contract for insurance in any unauthorized company, and who [neglects] fails to make and file the [affidavit and] statements required [by said sections] under section 38a-741, as amended by this act, or who wilfully makes a false [affidavit or] statement, or who negotiates, continues or renews any such contract of insurance after the revocation or during the suspension of the licensee's license, shall forfeit the license if not previously revoked and shall be fined not more than four thousand dollars or imprisoned not more than six months, or both.
This act shall take effect as follows and shall amend the following sections:
Section 1 from passage 38a-741
Sec. 2 from passage 38a-777
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage
38a-741
Sec. 2
from passage
38a-777
Statement of Purpose:
To allow surplus lines brokers and insureds to write signed statements in lieu of executing affidavits when such brokers and insureds are unable to procure insurance from an authorized insurer, and to require additional information in such signed statements.
[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.]