Connecticut 2013 Regular Session

Connecticut Senate Bill SB01093 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	General Assembly Substitute Bill No. 1093
2		-	January Session, 2013 _____SB01093INS___032013____
	1	+	General Assembly Raised Bill No. 1093
	2	+	January Session, 2013 LCO No. 4029
	3	+	04029_______INS
	4	+	Referred to Committee on INSURANCE AND REAL ESTATE
	5	+	Introduced by:
	6	+	(INS)
3	7
4	8		General Assembly
5	9
6		-	~~Substitute~~ Bill No. 1093
	10	+	Raised Bill No. 1093
7	11
8	12		January Session, 2013
9	13
10		-	_____SB01093INS___032013____
	14	+	LCO No. 4029
	15	+
	16	+	04029_______INS
	17	+
	18	+	Referred to Committee on INSURANCE AND REAL ESTATE
	19	+
	20	+	Introduced by:
	21	+
	22	+	(INS)
11	23
12	24		AN ACT CONCERNING REVISIONS TO THE INSURANCE STATUTES.
13	25
14	26		Be it enacted by the Senate and House of Representatives in General Assembly convened:
15	27
16	28		Section 1. Subsection (d) of section 38a-8 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
17	29
18	30		(d) The commissioner shall develop a program of periodic review to ensure compliance by the Insurance Department with the minimum standards established by the National Association of Insurance Commissioners for effective financial surveillance and regulation of insurance companies operating in this state. The commissioner shall adopt regulations, in accordance with the provisions of chapter 54, pertaining to the financial surveillance and solvency regulation of insurance companies and health care centers as are reasonable and necessary to obtain or maintain the accreditation of the Insurance Department by the National Association of Insurance Commissioners. The commissioner shall maintain [,] as confidential [,] any confidential documents or information received from the National Association of Insurance Commissioners, [or] the International Association of Insurance Supervisors, the Bank for International Settlements or the Federal Insurance Office, or any documents or information received from state or federal insurance, banking or securities regulators or similar regulators in a foreign country [which] that are confidential in such jurisdictions. The commissioner may share any information, including confidential information, with the National Association of Insurance Commissioners, the International Association of Insurance Supervisors, the Bank for International Settlements or the Federal Insurance Office, or state or federal insurance, banking or securities regulators or similar regulators in a foreign country, [so long as] provided the commissioner determines that such entities agree to maintain the same level of confidentiality in their [jurisdiction] jurisdictions as is available in this state. [The] At the expense of a domestic, alien or foreign insurer, the commissioner may engage the services of [, at the expense of a domestic, alien or foreign insurer,] attorneys, actuaries, accountants and other experts not otherwise part of the commissioner's staff as may be necessary to assist the commissioner in the financial analysis of the insurer, the review of the insurer's license applications, and the review of transactions within a holding company system involving an insurer domiciled in this state. No duties of a person employed by the Insurance Department on November 1, 2002, shall be performed by such attorney, actuary, accountant or expert.
19	31
20	32		Sec. 2. Subsection (e) of section 38a-14 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
21	33
22	34		(e) (1) Nothing contained in this section shall be construed to limit the commissioner's authority to terminate or suspend any examination in order to pursue legal or regulatory action pursuant to the insurance laws of this state. Findings of fact and conclusions made pursuant to any examination shall be prima facie evidence in any legal or regulatory action.
23	35
24	36		(2) Nothing contained in this section shall be construed to limit the commissioner's authority in such legal or regulatory action to use and, if appropriate, to make public any final or preliminary examination report, any examiner or company workpapers or other documents, or any other information discovered or developed during the course of any examination.
25	37
26	38		(3) Not later than sixty days following completion of the examination, the examiner in charge shall file, under oath, with the Insurance Department a verified written report of examination. Upon receipt of the verified report, the Insurance Department shall transmit the report to the [company] entity examined, together with a notice [which] that shall afford the [company] entity examined a reasonable opportunity, not to exceed thirty days, to make a written submission or rebuttal with respect to any matters contained in the examination report. Not later than thirty days after the period allowed for the receipt of written submissions or rebuttals, the commissioner shall fully consider and review the report, together with any written submissions or rebuttals and any relevant portions of the examiner's workpapers and enter an order: (A) Adopting the examination report as filed or with modification or corrections. If the examination report reveals that the [company] entity is operating in violation of any law, regulation or prior order of the commissioner, the commissioner may order the company to take any action the commissioner considers necessary and appropriate to cure such violation; (B) rejecting the examination report with directions to the examiners to reopen the examination for purposes of obtaining additional data, documentation or information, and refiling pursuant to [subparagraph (A) of] this subdivision; or (C) calling for an investigatory hearing with not less than twenty days' notice to the company for purposes of obtaining additional documentation, data, information and testimony.
27	39
28	40		(4) (A) The commissioner shall transmit the examination report adopted pursuant to subparagraph (A) of subdivision (3) of this subsection or a summary thereof to the entity examined, together with any recommendations or written statements from the commissioner or the examiner. The secretary of the board of directors or similar governing body of the entity shall provide a copy of the report or summary to each director and shall certify to the commissioner, in writing, that a copy of the report or summary has been provided to each director.
29	41
30	42		(B) Not later than ninety days after receiving the report or summary, the chief executive officer of the entity examined shall present the report or summary to the entity's board of directors or similar governing body at a regular or special meeting.
31	43
32	44		Sec. 3. Subsection (e) of section 38a-53 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
33	45
34	46		(e) Any insurance company or health care center doing business in this state [which] that fails to file any report or statement required under this section shall pay a late filing fee of one hundred seventy-five dollars per day for each day from the due date of such report or statement to the date of filing. The commissioner may waive the late filing fee if (1) the insurance company or health care center cannot file such report or statement because the governor of such company's or health care center's state of domicile has proclaimed a state of emergency in such state and such state of emergency impairs the company's or health care center's ability to file the report or statement, or (2) the insurance regulatory official of the state of domicile of a foreign insurance company has permitted the company, or the commissioner has permitted a health care center, to file such report or statement late.
35	47
36	48		Sec. 4. Subsection (a) of section 38a-58a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
37	49
38		-	(a) Any insurer [which] that is organized under the laws of any other state and is admitted to do business in this state for the purpose of writing insurance and any alien captive insurance company, as defined in section 38a-~~91aa~~, may become a domestic insurer by complying with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type and by designating its principal place of business at a location in this state. The domestic insurer shall be entitled to like certificates and licenses to transact business in this state and shall be subject to the authority and jurisdiction of this state. The articles of incorporation of the domestic insurer may be amended to provide that the corporation is a continuation of the corporate existence of the original foreign corporation through adoption of this state as its corporate domicile and that the original date of incorporation in its original domiciliary state is the date of incorporation of the domestic insurer.
	50	+	(a) Any insurer [which] that is organized under the laws of any other state and is admitted to do business in this state for the purpose of writing insurance and any alien captive insurance company, as defined in section 38a-591aa, may become a domestic insurer by complying with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type and by designating its principal place of business at a location in this state. The domestic insurer shall be entitled to like certificates and licenses to transact business in this state and shall be subject to the authority and jurisdiction of this state. The articles of incorporation of the domestic insurer may be amended to provide that the corporation is a continuation of the corporate existence of the original foreign corporation through adoption of this state as its corporate domicile and that the original date of incorporation in its original domiciliary state is the date of incorporation of the domestic insurer.
39	51
40	52		Sec. 5. Subdivision (5) of subsection (a) of section 38a-91bb of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
41	53
42	54		(5) No captive insurance company may provide personal risk insurance, as defined in section 38a-663, for private passenger motor vehicle or homeowners insurance coverage or any component thereof;
43	55
44	56		Sec. 6. Subsection (e) of section 38a-91ff of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
45	57
46	58		(e) [A branch captive insurance company may be established in this state to write in this state only insurance or reinsurance of the employee benefit business of its parent and affiliated companies that is subject to the Employee Retirement Income Security Act of 1974, as amended from time to time.] No branch captive insurance company shall do any insurance business in this state unless it maintains [the principal] a place of business for its [branch] operations in this state.
47	59
48	60		Sec. 7. Subsection (n) of section 38a-91ff of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
49	61
50	62		(n) The provisions of this chapter pertaining to mergers, consolidations, [and] conversions and transfers of domicile shall apply in determining the procedures to be followed by captive insurance companies in carrying out any of the transactions described in this chapter.
51	63
52	64		Sec. 8. Subsection (b) of section 38a-91kk of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
53	65
54	66		(b) A captive insurance company may only take credit for the reinsurance of risks or portions of risks ceded to reinsurers that [complies] comply with the provisions of [section] sections 38a-85 [or 38a-86] to 38a-88, inclusive, unless the commissioner has given prior written approval allowing the captive insurance company to take credit for the reinsurance of risks or portions of risks ceded to reinsurers that do not comply with the provisions of sections 38a-85 to 38a-88, inclusive.
55	67
56	68		Sec. 9. Section 38a-91oo of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
57	69
58	70		(a) Unless otherwise provided in sections 38a-91aa to 38a-91tt, inclusive, no provision of this title shall apply to captive insurance companies, unless expressly included therein, except for the following: [(1)] Sections 38a-8, as amended by this act, 38a-16, 38a-17, 38a-54 to [38a-57, inclusive,] 38a-59, inclusive, 38a-69a, [38a-129 to 38a-140, inclusive, and] 38a-102h and 38a-250 to 38a-266, inclusive, and chapter 704c. [; and (2) section]
59	71
60	72		(b) Sections 38a-73 [which] and 38a-129 to 38a-140, inclusive, shall apply [only] to captive insurance companies formed as risk retention groups, as defined in section 38a-91aa.
61	73
62	74		(c) The commissioner may adopt regulations, in accordance with the provisions of chapter 54, to establish the circumstances under which a captive insurance company will be required to comply with the provisions of sections 38a-73 and 38a-129 to 38a-140, inclusive.
63	75
64	76		Sec. 10. Subsection (b) of section 38a-162 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
65	77
66	78		(b) All licenses issued under the provisions of sections 38a-160 to 38a-170, inclusive, shall expire on the thirtieth day of June following the date of their issuance. At the time of application for an insurance premium finance company license and for every annual renewal thereof there shall be paid to the commissioner the sum of [fifty] three hundred dollars. If a license is not issued the fee shall be returned.
67	79
68	80		Sec. 11. Subsection (a) of section 38a-163 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
69	81
70	82		(a) Each applicant for an insurance premium finance company license or for any renewal of such license shall file with the commissioner a written application in such manner and form as the commissioner shall prescribe together with [said fee of fifty dollars which fee shall be returned to the applicant if such license is not granted] the fee specified in subsection (b) of section 38a-162, as amended by this act.
71	83
72	84		Sec. 12. Section 38a-188 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
73	85
74	86		Each health care center governed by sections 38a-175 to 38a-192, inclusive, shall be exempt from the provisions of the general statutes relating to insurance in the conduct of its operations under said sections and in such other activities as do constitute the business of insurance, unless expressly included therein, and except for the following: Sections 38a-11, 38a-14a, 38a-17, 38a-51, 38a-52, 38a-56, 38a-57, 38a-129 to 38a-140, inclusive, 38a-147 and 38a-815 to 38a-819, inclusive, provided a health care center shall not be deemed in violation of sections 38a-815 to 38a-819, inclusive, solely by virtue of such center selectively contracting with certain providers in one or more specialties, and sections 38a-80, 38a-492b, 38a-518b, 38a-543, 38a-702j, 38a-703 to 38a-718, inclusive, 38a-731 to 38a-735, inclusive, 38a-741 to 38a-745, inclusive, as amended by this act, 38a-769, 38a-770, 38a-772 to 38a-776, inclusive, 38a-786, 38a-790, 38a-792 and 38a-794, provided a health care center organized as a nonprofit, nonstock corporation shall be exempt from sections 38a-146, 38a-702j, 38a-703 to 38a-718, inclusive, 38a-731 to 38a-735, inclusive, 38a-741 to 38a-745, inclusive, as amended by this act, 38a-769, 38a-770, 38a-772 to 38a-776, inclusive, 38a-786, 38a-790, 38a-792 and 38a-794. If a health care center is operated as a line of business, the foregoing provisions shall, where possible, be applied only to that line of business and not to the organization as a whole. The commissioner may adopt regulations, in accordance with chapter 54, stating the circumstances under which the resources of a person which controls a health care center, or operates a health care center as a line of business will be considered in evaluating the financial condition of a health care center. Such regulations, if adopted, shall require as a condition to the consideration of the resources of such person which controls a health care center, or operates a health care center as a line of business to provide satisfactory assurances to the commissioner that such person will assume the financial obligations of the health care center. During the period prior to the effective date of regulations issued under this section, the commissioner shall, upon request, consider the resources of a person which controls a health care center, or operates a health care center as a line of business, if the commissioner receives satisfactory assurances from such person that it will assume the financial obligations of the health care center and determines that such person meets such other requirements as the commissioner determines are necessary. A health care center organized as a nonprofit, nonstock corporation shall be exempt from the sales and use tax and all property of each such corporation shall be exempt from state, district and municipal taxes. Each corporation governed by sections 38a-175 to 38a-192, inclusive, shall be subject to the provisions of sections 38a-903 to 38a-961, inclusive. Nothing in this section shall be construed to override contractual and delivery system arrangements governing a health care center's provider relationships.
75	87
76	88		Sec. 13. Subsection (e) of section 38a-363 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
77	89
78		-	(e) "Private passenger motor vehicle" means a: (1) Private passenger type automobile; (2) station-wagon-type automobile; (3) camper-type motor vehicle; (4) high-mileage-type motor vehicle, as defined in section 14-1; (5) truck-type motor vehicle with a load capacity of fifteen hundred pounds or less, registered as a passenger motor vehicle, as defined in said section 14-1, or as a passenger and commercial motor vehicle, as defined in said section 14-1, or used for farming purposes; or (6) a vehicle with a commercial registration, as defined in [subdivision (12) of] said section 14-1. It does not include a motorcycle or motor vehicle used as a public or livery conveyance.
	90	+	(e) "Private passenger motor vehicle" means a: (1) Private passenger type automobile; (2) station-wagon-type automobile; (3) camper-type motor vehicle; (4) high-mileage-type motor vehicle, as defined in section 14-1; (5) truck-type motor vehicle with a load capacity of fifteen hundred pounds or less, registered as a passenger motor vehicle, as defined in said section 14-1, or as a passenger and commercial motor vehicle, as defined in said section 14-1, or used for farming purposes; or (6) a vehicle with a commercial registration, as defined in subdivision (12) of said section 14-1. It does not include a motorcycle or motor vehicle used as a public or livery conveyance.
79	91
80	92		Sec. 14. Section 38a-483b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
81	93
82		-	Except as otherwise provided in this title, each insurer, health care center, hospital service corporation, medical service corporation or other entity delivering, issuing for delivery, renewing, amending or continuing any individual health insurance policy in this state providing coverage of the type specified in subdivisions (1), (2), (4), (11), [and] (12) and (16) of section 38a-469 shall complete any coverage determination with respect to such policy and notify the insured or the insured's health care provider of its decision not later than forty-five days for claims filed in paper format and twenty days for claims filed in electronic format after a request for such determination is received by the insurer, health care center, hospital service corporation, medical service corporation or other entity. In the case of a denial of coverage, such entity shall notify the insured and the insured's health care provider of the reasons for such denial. If the reasons for such denial include that the requested service is not medically necessary or is not a covered benefit under such policy, the entity shall (1) notify the insured that such insured may contact the Office of the Healthcare Advocate if the insured believes the insured has been given erroneous information, and (2) provide to such insured the contact information for said office.
	94	+	Except as otherwise provided in this title, each insurer, health care center, hospital service corporation, medical service corporation or other entity delivering, issuing for delivery, renewing, amending or continuing any individual health insurance policy in this state providing coverage of the type specified in subdivisions (1), (2), (4), (11), [and] (12) and (16) of section 38a-469 shall complete any coverage determination with respect to such policy and notify the insured or the insured's health care provider of its decision not later than [forty-five] sixty days for claims filed in paper format and twenty days for claims filed in electronic format after a request for such determination is received by the insurer, health care center, hospital service corporation, medical service corporation or other entity. In the case of a denial of coverage, such entity shall notify the insured and the insured's health care provider of the reasons for such denial. If the reasons for such denial include that the requested service is not medically necessary or is not a covered benefit under such policy, the entity shall (1) notify the insured that such insured may contact the Office of the Healthcare Advocate if the insured believes the insured has been given erroneous information, and (2) provide to such insured the contact information for said office.
83	95
84	96		Sec. 15. Section 38a-513a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
85	97
86		-	Except as otherwise provided in this title, each insurer, health care center, hospital service corporation, medical service corporation or other entity delivering, issuing for delivery, renewing, amending or continuing any group health insurance policy in this state providing coverage of the type specified in subdivisions (1), (2), (4), (11), [and] (12) and (16) of section 38a-469 shall complete any coverage determination with respect to such policy and notify the insured or the insured's health care provider of its decision not later than forty-five days for claims filed in paper format and twenty days for claims filed in electronic format after a request for such determination is received by the insurer, health care center, hospital service corporation, medical service corporation or other entity. In the case of a denial of coverage, such entity shall notify the insured and the insured's health care provider of the reasons for such denial. If the reasons for such denial include that the requested service is not medically necessary or is not a covered benefit under such policy, the entity shall (1) notify the insured that such insured may contact the Office of the Healthcare Advocate if the insured believes the insured has been given erroneous information, and (2) provide to such insured the contact information for said office.
	98	+	Except as otherwise provided in this title, each insurer, health care center, hospital service corporation, medical service corporation or other entity delivering, issuing for delivery, renewing, amending or continuing any group health insurance policy in this state providing coverage of the type specified in subdivisions (1), (2), (4), (11), [and] (12) and (16) of section 38a-469 shall complete any coverage determination with respect to such policy and notify the insured or the insured's health care provider of its decision not later than [forty-five] sixty days for claims filed in paper format and twenty days for claims filed in electronic format after a request for such determination is received by the insurer, health care center, hospital service corporation, medical service corporation or other entity. In the case of a denial of coverage, such entity shall notify the insured and the insured's health care provider of the reasons for such denial. If the reasons for such denial include that the requested service is not medically necessary or is not a covered benefit under such policy, the entity shall (1) notify the insured that such insured may contact the Office of the Healthcare Advocate if the insured believes the insured has been given erroneous information, and (2) provide to such insured the contact information for said office.
87	99
88	100		Sec. 16. Subdivision (3) of subsection (k) of section 38a-660 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
89	101
90	102		(3) There is established an account to be known as the "surety bail bond agent examination account", which shall be a separate, nonlapsing account within the Insurance Fund established under section 38a-52a. The account shall contain any moneys required by law to be deposited in the account and any such moneys remaining in the account at the [close of the fiscal] end of each calendar year shall be transferred to the General Fund.
91	103
92	104		Sec. 17. Subdivision (11) of section 38a-720 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
93	105
94	106		(11) "Third-party administrator" means any person who directly or indirectly underwrites, collects premiums or charges from, or adjusts or settles claims on, residents of this state in connection with life, annuity or health coverage. [offered or provided by an insurer.] "Third-party administrator" does not include:
95	107
96	108		(A) An employer administering its employee benefit plan or the benefit plan of an affiliated employer under common management and control;
97	109
98	110		(B) A union administering a benefit plan on behalf of its members;
99	111
100	112		(C) An insurer that is licensed in this state or is acting as an authorized insurer with respect to insurance lawfully issued to cover a Connecticut resident, and sales representatives thereof;
101	113
102	114		(D) An insurance producer who is licensed to sell life, annuity or health coverage in this state, whose activities are limited exclusively to the sale of insurance;
103	115
104	116		(E) A creditor acting on behalf of its debtors with respect to insurance covering a debt between the creditor and its debtors;
105	117
106	118		(F) A trust and its trustees, agents and employees acting pursuant to such trust established in conformity with 29 USC Section 186, as amended from time to time;
107	119
108	120		(G) A trust exempt from taxation under Section 501(a) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and its trustees and employees acting pursuant to such trust, or a custodian and the custodian's agents and employees acting pursuant to a custodian account that meets the requirements of Section 401(f) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time;
109	121
110	122		(H) A credit union or a financial institution that is subject to supervision or examination by federal or state banking authorities, or a mortgage lender, to the extent such credit union, financial institution or mortgage lender collects or remits premiums to licensed insurance producers or limited lines producers or to authorized insurers, in connection with loan payments;
111	123
112	124		(I) A credit card issuing company that advances or collects premiums or charges from its credit cardholders who have authorized collection;
113	125
114	126		(J) An attorney-at-law who adjusts or settles claims in the normal course of such attorney's practice or employment and who does not collect premiums or charges in connection with life, annuity or health coverage;
115	127
116	128		(K) An adjuster who is licensed in this state or is not subject to the licensure requirements of chapter 702 and whose activities are limited to adjusting claims;
117	129
118	130		(L) An insurance producer who is licensed in this state and acting as a managing general agent, as defined in section 38a-90a, whose activities are limited exclusively to those specified in said section;
119	131
120	132		(M) A business entity that is affiliated with an insurer licensed in this state and that undertakes activities as a third-party administrator only for the direct and assumed insurance business of the affiliated insurer;
121	133
122	134		(N) A consortium of federally qualified health centers funded by the state, providing services only to the recipients of programs administered by the Department of Social Services;
123	135
124	136		(O) A pharmacy benefits manager registered under section 38a-479bbb;
125	137
126	138		(P) An entity providing administrative services to the Health Reinsurance Association established under section 38a-556; or
127	139
128	140		(Q) A nonprofit association or one of its direct subsidiaries that provides access to insurance as part of the benefits or services such association or subsidiary makes available to its members.
129	141
130	142		Sec. 18. Subsection (b) of section 38a-720a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
131	143
132	144		(b) (1) Any insurer licensed in this state that [directly or indirectly underwrites, collects premiums or charges from, or adjusts or settles claims for other than its policyholders, subscribers and certificate holders] also acts as a third-party administrator shall be exempt from subsections (c) to (e), inclusive, of this section and sections [38a-720] 38a-720b to 38a-720n, inclusive, provided such activities extend only [involve the lines of insurance] to life, annuity or health coverage for which such [insurer] entity is licensed as an insurer in this state. Any such [insurer] entity shall (A) be subject to the provisions of chapter 704, (B) respond to all complaint inquiries received from the Insurance Department, not later than ten calendar days after the date a complaint is received by the insurer, and (C) with respect to any advertising that mentions any customer, obtain such customer's prior written consent.
133	145
134	146		(2) Nothing in this section shall authorize the commissioner to regulate a self-insured health plan subject to the Employee Retirement Income Security Act of 1974. The commissioner is authorized to regulate those activities an insurer, acting as a third-party administrator, undertakes for the administration of a self-insured health plan that do not relate to the health benefit plan and that comport with the commissioner's statutory authority to regulate insurance and the business of insurance as provided for in 29 USC 1144, as amended from time to time.
135	147
136	148		Sec. 19. Subdivision (1) of subsection (b) of section 38a-741 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
137	149
138	150		(b) (1) When any policy of insurance is procured 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 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 that the amount of insurance procured from an unauthorized insurer or insurers is only the excess over the amount so procurable from authorized insurers. Such licensee shall file such affidavits in electronic format with the commissioner [not later than forty-five days after such policies have been procured] on February first, May first, August first and November first of each year.
139	151
140	152		Sec. 20. Subsection (f) of section 38a-860 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
141	153
142	154		(f) (1) Sections 38a-858 to 38a-875, inclusive, shall provide coverage to the persons specified in subsections (a) to (d), inclusive, of this section for direct, nongroup life, health or annuity policies or contracts and supplemental contracts to such policies or contracts, for certificates under direct group policies and contracts, and for unallocated annuity contracts issued by member insurers, except as limited by said sections. Annuity contracts and certificates under group annuity contracts include, but are not limited to, guaranteed investment contracts, deposit administration contracts, unallocated funding agreements, allocated funding agreements, structured settlement annuities, annuities issued to or in connection with government lotteries and any immediate or deferred annuity contracts. (2) Said sections 38a-858 to 38a-875, inclusive, shall not provide coverage for: (A) Any portion of a policy or contract not guaranteed by the insurer, or under which the risk is borne by the policy or contract holder; (B) any policy or contract of reinsurance, unless assumption certificates have been issued; (C) any portion of a policy or contract to the extent that the rate of interest on which it is based or the interest rate, crediting rate or similar factor determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value (i) averaged over the period of four years prior to the date on which the member insurer becomes an impaired or insolvent insurer under sections 38a-858 to 38a-875, inclusive, exceeds the rate of interest determined by subtracting two percentage points from Moody's corporate bond yield average averaged for that same four-year period or for such lesser period if the policy or contract was issued less than four years before the member insurer becomes an impaired or insolvent insurer under sections 38a-858 to 38a-875, inclusive, whichever is earlier; and (ii) on and after the date on which the member insurer becomes an impaired or insolvent insurer under sections 38a-858 to 38a-875, inclusive, whichever is earlier, exceeds the rate of interest determined by subtracting three percentage points from Moody's corporate bond yield average as most recently available; (D) a portion of a policy or contract issued to any plan or program of an employer, association or similar entity to provide life, health or annuity benefits to its employees or members to the extent that such plan or program is self-funded or uninsured, including, but not limited to, benefits payable by an employer, association or similar entity under (i) a multiple employer welfare arrangement as defined in Section 514 of the federal Employee Retirement Income Security Act of 1974, as amended from time to time; (ii) a minimum premium group insurance plan; or (iii) an administrative services only contract; (E) any stop-loss or excess loss insurance policy or contract providing for the indemnification of or payment to a policy owner, a contract owner, a plan or another person obligated to pay life, health or annuity benefits; (F) any portion of a policy or contract to the extent that it provides dividends, experience rating credits, voting rights or provides that any fees or allowances be paid to any person, including, but not limited to, the policy or contract holder, in connection with the service to or administration of such policy or contract; (G) any policy or contract issued in this state by a member insurer at a time when it was not licensed or did not have a certificate of authority to issue such policy or contract in this state; (H) any unallocated annuity contract issued to an employee benefit plan protected under the federal Pension Benefit Guaranty Corporation, regardless of whether the federal Pension Benefit Guaranty Corporation has yet become liable to make any payments with respect to the benefit plan; (I) any portion of an unallocated annuity contract that is not issued to, or in connection with a specific employee, union or association of natural persons benefit plan or a government lottery; (J) any subscriber contract issued by a health care center; (K) a contractual agreement that establishes the insurer's obligation by reference to a portfolio of assets that is not owned or possessed by the insurance company; (L) an obligation that does not arise under the express written terms of the policy or contract issued by the insurer to the contract owner or policy owner, including, but not limited to: (i) A claim based on marketing materials; (ii) a claim based on side letters, riders or other documents that were issued by the insurer without meeting applicable policy form filing or approval requirements; (iii) a misrepresentation of or regarding policy benefits; (iv) an extra-contractual claim; or (v) a claim for penalties or consequential or incidental damages; (M) a contractual agreement that establishes the member insurer's obligations to provide a book value accounting guaranty for defined contribution benefit plan participants by reference to a portfolio of assets that is owned by the benefit plan or its trustee, which in each case is not an affiliate of the member insurer; [and] (N) a portion of a policy or contract to the extent it provides for interest or other changes in value to be determined by the use of an index or other external reference stated in the policy or contract, but which have not been credited to the policy or contract, or as to which the policy or contract owner's rights are subject to forfeiture, as of the date the member insurer becomes an impaired or insolvent insurer under sections 38a-858 to 38a-875, inclusive, whichever is earlier. If a policy's or contract's interest or changes in value are credited less frequently than annually, then for purposes of determining the values that have been credited and are not subject to forfeiture under this subparagraph, the interest or change in value determined by using the procedures defined in the policy or contract shall be credited as if the contractual date of crediting interest or changing values was the date of impairment or insolvency, whichever is earlier, and shall not be subject to forfeiture; and (O) any policy or contract providing hospital, medical, prescription drugs or other health care benefits pursuant to Part C or Part D of Subchapter XVIII of 42 USC 7, as amended from time to time, or any regulations issued thereunder.
143	155
144	156
145	157
146	158
147	159		This act shall take effect as follows and shall amend the following sections:
148	160		Section 1 from passage 38a-8(d)
149	161		Sec. 2 October 1, 2013 38a-14(e)
150	162		Sec. 3 October 1, 2013 38a-53(e)
151	163		Sec. 4 October 1, 2013 38a-58a(a)
152	164		Sec. 5 October 1, 2013 38a-91bb(a)(5)
153	165		Sec. 6 October 1, 2013 38a-91ff(e)
154	166		Sec. 7 October 1, 2013 38a-91ff(n)
155	167		Sec. 8 October 1, 2013 38a-91kk(b)
156	168		Sec. 9 October 1, 2013 38a-91oo
157	169		Sec. 10 October 1, 2013 38a-162(b)
158	170		Sec. 11 October 1, 2013 38a-163(a)
159	171		Sec. 12 October 1, 2013 38a-188
160	172		Sec. 13 October 1, 2013 38a-363(e)
161	173		Sec. 14 October 1, 2013 38a-483b
162	174		Sec. 15 October 1, 2013 38a-513a
163	175		Sec. 16 from passage 38a-660(k)(3)
164	176		Sec. 17 from passage 38a-720(11)
165	177		Sec. 18 from passage 38a-720a(b)
166	178		Sec. 19 from passage 38a-741(b)(1)
167	179		Sec. 20 October 1, 2013 38a-860(f)
168	180
169	181		This act shall take effect as follows and shall amend the following sections:
170	182
171	183		Section 1
172	184
173	185		from passage
174	186
175	187		38a-8(d)
176	188
177	189		Sec. 2
178	190
179	191		October 1, 2013
180	192
181	193		38a-14(e)
182	194
183	195		Sec. 3
184	196
185	197		October 1, 2013
186	198
187	199		38a-53(e)
188	200
189	201		Sec. 4
190	202
191	203		October 1, 2013
192	204
193	205		38a-58a(a)
194	206
195	207		Sec. 5
196	208
197	209		October 1, 2013
198	210
199	211		38a-91bb(a)(5)
200	212
201	213		Sec. 6
202	214
203	215		October 1, 2013
204	216
205	217		38a-91ff(e)
206	218
207	219		Sec. 7
208	220
209	221		October 1, 2013
210	222
211	223		38a-91ff(n)
212	224
213	225		Sec. 8
214	226
215	227		October 1, 2013
216	228
217	229		38a-91kk(b)
218	230
219	231		Sec. 9
220	232
221	233		October 1, 2013
222	234
223	235		38a-91oo
224	236
225	237		Sec. 10
226	238
227	239		October 1, 2013
228	240
229	241		38a-162(b)
230	242
231	243		Sec. 11
232	244
233	245		October 1, 2013
234	246
235	247		38a-163(a)
236	248
237	249		Sec. 12
238	250
239	251		October 1, 2013
240	252
241	253		38a-188
242	254
243	255		Sec. 13
244	256
245	257		October 1, 2013
246	258
247	259		38a-363(e)
248	260
249	261		Sec. 14
250	262
251	263		October 1, 2013
252	264
253	265		38a-483b
254	266
255	267		Sec. 15
256	268
257	269		October 1, 2013
258	270
259	271		38a-513a
260	272
261	273		Sec. 16
262	274
263	275		from passage
264	276
265	277		38a-660(k)(3)
266	278
267	279		Sec. 17
268	280
269	281		from passage
270	282
271	283		38a-720(11)
272	284
273	285		Sec. 18
274	286
275	287		from passage
276	288
277	289		38a-720a(b)
278	290
279	291		Sec. 19
280	292
281	293		from passage
282	294
283	295		38a-741(b)(1)
284	296
285	297		Sec. 20
286	298
287	299		October 1, 2013
288	300
289	301		38a-860(f)
290	302
	303	+	Statement of Purpose:
291	304
	305	+	To revise various insurance statutes to enhance the Insurance Department's regulatory authority.
292	306
293		-	INS Joint Favorable Subst.
294		-
295		-	INS
296		-
297		-	Joint Favorable Subst.
	307	+	[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.]