House Bill No. 7269
Public Act No. 19-196
AN ACT CONCERNING CO NFORMING, MINOR AND TECHNICAL
CHANGES TO STATUTES CONCERNING INSURANCE AND REAL
ESTATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (2) of subsection (a) of section 8-446 of the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2019):
(2) Funding a program, and any related administrative expense, to
reduce health and safety hazards in residential dwellings in
Connecticut, including, but not limited to, lead, radon and other
contaminants or conditions, through removal, remediation, abatement
and other appropriate methods. For purposes of this subdivision,
"administrative expense" means any administrative or other cost or
expense incurred by the Department of Housing in carrying out the
provisions of this section, including, but not limited to, the hiring of
necessary employees and entering into necessary contracts.
Sec. 2. Subdivision (2) of subsection (a) of section 38a-183 of the
general statutes, as amended by section 7 of public act 18-41, is
repealed and the following is substituted in lieu thereof (Effective
January 1, 2020): House Bill No. 7269
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(2) Premium rates and special enrollment periods offered to
individuals shall be consistent with the requirements set forth in
section 38a-481.
Sec. 3. Section 38a-343a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2019):
(a) (1) The Commissioner of Motor Vehicles may require each
insurer that issues policies in this state to notify said commissioner
monthly, on a date specified by said commissioner, of [the cancellation
or issuance and addition] all additions, cancellations and issuances by
the insurer of [all] such policies that occurred during the preceding
month. Such notice shall include the name of the named insured in
[the] each policy, the policy number of each policy, the vehicle
identification number of each automobile covered by [the] each policy
and the effective date of [the] each policy's [cancellation or issuance or]
addition, cancellation or issuance. Said commissioner shall specify an
acceptable method of notification. The method of notification specified
may include computer tapes or electronic transmission.
(2) Said commissioner may require each insurer that issues policies
in this state to provide monthly, on a date specified by said
commissioner, the policy information required for purposes of the
Online Insurance Verification System, as provided in section 14-112a.
(3) The failure of an insurer to comply with the requirements of this
section shall not affect the cancellation or issuance of any policy.
(b) The Commissioner of Motor Vehicles shall receive or accept all
notices of policy addition, cancellation [or] and issuance [or addition]
or all policy information from insurers, as required pursuant to
subsection (a) of this section. Said commissioner shall review and
analyze the [cancellation or issuance and addition] addition,
cancellation and issuance data or policy information submitted, House Bill No. 7269
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together with such other information as said commissioner may obtain
from the insurers, from the records of the Department of Motor
Vehicles, or from any other public or private agency or firm in
possession of relevant information, for the purpose of determining
whether any registered owner identified in any such notice has failed
to continuously maintain insurance coverage in violation of sections
14-12c and 38a-371. In conducting such an inquiry to determine
insured status, said commissioner may contact registered vehicle
owners by mail and require that such mail inquiries be answered in
not less than thirty days, in a satisfactory manner containing such
information and verification of insurance coverage as said
commissioner deems necessary and acceptable.
Sec. 4. Subsection (b) of section 38a-401 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective
October 1, 2019):
(b) Except as otherwise expressly provided in sections 38a-400 to
38a-425, inclusive, and except where the context otherwise requires, all
provisions of this title [38a] applicable to insurance and insurance
companies generally shall apply to title insurance and title insurance
companies.
Sec. 5. Subdivision (2) of subsection (f) of section 38a-860 of the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2019):
(2) 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) except as set forth in subdivision (3)
of this subsection, 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 House Bill No. 7269
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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 House Bill No. 7269
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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) a portion of a policy or contract to the
extent that the assessments required by section 38a-866 with respect to
the policy or contract are preempted by federal or state law; (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 member
insurer to the enrollee, certificate holder, 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 member insurer without meeting applicable
policy or contract form filing or approval requirements, (iii) a
misrepresentation of or regarding policy or contract 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; (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 that 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 House Bill No. 7269
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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; (O) structured settlement annuity benefits to
which a payee or beneficiary has transferred the pa yee's or
beneficiary's rights in a structured settlement factoring transaction as
defined in 26 USC 5891(c)(3)(A), regardless of whether the transaction
occurred before or after said section became effective; and (P) any
policy or contract providing hospital, medical, prescription drugs or
other health care benefits pursuant to Part C, 42 USC 1395w21 et seq.,
Part D, 42 USC 1395w101 et seq., or 42 USC Chapter 7, Subchapter XIX,
as said parts and subchapter may be amended from time to time, or
any regulations issued thereunder.
Sec. 6. Subsection (g) of section 38a-860 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective
October 1, 2019):
(g) The benefits for which the association may become liable shall in
no event exceed the lesser of: (1) The contractual obligations for which
the insurer is liable or would have been liable if it were not an
impaired insurer, or (2) (A) with respect to any one life, regardless of
the number of policies or contracts: (i) Five hundred thousand dollars
in life insurance death benefits, but no more than five hundred
thousand dollars in net cash surrender and net cash withdrawal values
for life insurance; (ii) five hundred thousand dollars in health
insurance benefits, including, but not limited to, any net cash
surrender and net cash withdrawal values; (iii) five hundred thousand House Bill No. 7269
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dollars in the present value of annuity benefits, including, but not
limited to, net cash surrender and net cash withdrawal values; (B) with
respect to each individual participating in a governmental retirement
plan established under Section 401, 403(b) or 457 of the United States
Internal Revenue Code of 1986, or any subsequent internal revenue
code of the United States, as amended from time to time, covered by
an unallocated annuity contract or the beneficiaries of each such
individual if deceased, in the aggregate, five hundred thousand dollars
in present value annuity benefits, including, but not limited to, net
cash surrender and net cash withdrawal values; (C) with respect to
each payee of a structured settlement annuity, or beneficiary or
beneficiaries of the payee if deceased, five hundred thousand dollars in
present value annuity benefits, in the aggregate, including, but not
limited to, net cash surrender and net cash withdrawal values, if any,
provided in no event shall the association be liable to expend (i) more
than the five hundred thousand dollars in the aggregate with respect
to any one individual under subparagraphs (A), (B) and (C) of this
subdivision, and (ii) with respect to one owner of multiple nongroup
policies of life insurance, whether the policy or contract owner is an
individual, firm, corporation or other person, and whether the persons
insured are officers, managers, employees or other persons, more than
five million dollars in benefits, regardless of the number of policies and
contracts held by the owner; and (D) with respect to either (i) one
contract owner provided coverage under subdivision (2) of subsection
(b) of this section, or (ii) one plan sponsor whose plans own directly or
in trust one or more unallocated annuity contracts not included in
subparagraph (B) of subdivision (2) of this subsection, five million
dollars in benefits regardless of the number of contracts with respect to
the contract owner or plan sponsor, except that in the case where one
or more unallocated annuity contracts are covered contracts under
sections 38a-858 to 38a-875, inclusive, and are owned by a trust or
other entity for the benefit of two or more plan sponsors, coverage
shall be afforded by the association if the largest interest in the trust or House Bill No. 7269
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entity owning the contract or contracts is held by a plan sponsor whose
principal place of business is in this state and in no event shall the
association be obligated to cover more than five million dollars in
benefits with respect to all such unallocated contracts. [; and (E) the]
The limits set forth in this subsection are limits on the benefits for
which the association is obligated before taking into account either the
association's subrogation and assignment rights or the extent to which
those benefits could be provided out of the assets of the impaired or
insolvent insurer that are attributable to covered policies. The costs of
the association's obligations under sections 38a-858 to 38a-875,
inclusive, may be met by the use of assets attributable to covered
policies or reimbursed to the association pursuant to the association's
subrogation and assignment rights.
Sec. 7. Subparagraph (C) of subdivision (3) of subsection (h) of
section 20-327b of the general statutes, as amended by section 5 of
public act 19-192, is repealed and the following is substituted in lieu
thereof (Effective October 1, 2019):
(C) NATURE OF REPORT
This report is not a substitute for inspections, tests and other
methods of determining the physical condition of the foundation.
Prospective buyers may have a concrete foundation inspected by a
licensed professional engineer [who is a structural engineer] for
deterioration of the foundation due to the presence of pyrrhotite.
Sec. 8. (Effective from passage) Section 230 of public act 19-117 shall
take effect October 1, 2020.
Sec. 9. (Effective from passage) Sections 231 and 391 of public act 19-
117 shall take effect October 1, 2021.