Connecticut Senate Bill SB01031

Connecticut 2013 Regular Session

• Introduced: 2/28/13
• Refer: 2/28/13
• Report Pass: 3/14/13
• Refer: 3/25/13
• Report Pass: 4/2/13
• Engrossed: 5/21/13
• Report Pass: 5/22/13

Caption

An Act Concerning The Insurance Department's Authority To Protect Consumers.

Impact

The proposed changes would significantly impact state laws related to insurance producer accountability and consumer rights. By implementing stricter regulations on how insurers handle claims and penalties for misconduct, the bill aims to promote transparency and fairness in the insurance industry. This includes establishing a framework that ensures timely payments for claims and holding insurers accountable for their obligations. The amendments are designed to enhance the reliability of the insurance market and protect consumers from potential abuses and negligence by insurers.

Summary

SB01031, also known as an Act Concerning The Insurance Department's Authority To Protect Consumers, seeks to enhance consumer protection within the state's insurance framework. The bill proposes amendments to existing statutes governing the actions that can be taken against insurance producers, including the grounds for revoking licenses or imposing civil penalties. Notably, it stipulates that clear and specific language must be included in life insurance policies that allows consumers to cancel their policies within a specified period, thus empowering consumers with more control over their insurance agreements.

Sentiment

The sentiment around SB01031 appears largely supportive, particularly among consumer advocacy groups and some members of the legislature who see it as a necessary step for increased consumer protection. However, there may be concerns from insurers and some industry stakeholders regarding the operational impact and compliance requirements imposed by these new regulations. The discussions indicate a consensus on the importance of consumer rights while balancing the feasibility of implementation for insurance providers.

Contention

One notable point of contention surrounding SB01031 is the balance between rigorous consumer protection and the operational flexibility required by insurance companies. Some critics argue that the bill's terms may lead to increased administrative burdens and costs for insurers, potentially affecting their ability to operate efficiently. Furthermore, stakeholders may debate the appropriateness of the penalties and enforcement measures proposed, questioning whether they are fair or overly punitive in certain contexts.