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General Assembly Raised Bill No. 900
January Session, 2019
LCO No. 4504
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING IN SURANCE AGENTS AND THE INSUR ANCE
AGENT APPOINTMENT FE E.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 38a-702m of the general statutes is repealed and 1
the following is substituted in lieu thereof (Effective January 1, 2020): 2
(a) (1) An insurance producer shall not act as an agent of an insurer, 3
including, but not limited to, an insurer that is part of a group of 4
affiliated insurers within a holding company system, unless the 5
insurance producer [becomes an] is: 6
(A) An employee of the insurer or a business entity that is 7
contractually appointed by such insurer to serve as an agent of such 8
insurer; or 9
(B) Otherwise contractually appointed as an agent of the insurer. 10
(2) An insurance producer who is not acting as an agent of an 11
insurer is not required to become appointed. 12 Raised Bill No. 900
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[(b) To appoint a producer as its agent, the appointing insurer shall 13
file, in a form approved by the commissioner, a notice of appointment 14
not later than fifteen days after the date the agency contract is executed 15
or the first insurance application is submitted. An insurer may elect to 16
appoint a producer to all or some of the affiliated companies within 17
the insurer's holding company system or group by filing a single 18
appointment request, provided the commissioner (1) has implemented 19
an electronic system capable of processing such filings; and (2) has 20
previously notified insurers doing business in this state that such 21
filings are acceptable. An insurer that appoints a producer to more 22
than one affiliated company within the insurer's holding company or 23
system shall pay the fee specified by section 38a-11 for each affiliated 24
company to which the producer is appointed. 25
(c) Upon receipt of the notice of appointment, the commissioner 26
shall verify within a reasonable time not to exceed thirty days that the 27
insurance producer is eligible for appointment. If the insurance 28
producer is determined to be ineligible for appointment, the 29
commissioner shall notify the insurer not later than five days after the 30
commissioner's determination.] 31
[(d) An] (b) Each insurer, and each group of affiliated insurers 32
within a holding company system on behalf of the insurers comprising 33
such system, shall pay an annual agent appointment fee. [,] Such fee 34
shall be in an amount that is equal to the product of (1) the amount set 35
forth in section 38a-11, [for each] and (2) the number of insurance 36
[producer] producers appointed, or employed by business entities 37
appointed, by [the] such insurer or insurers as agents of such insurer 38
or insurers for the calendar year immediately preceding. 39
[(e) An] (c) Each insurer or group of affiliated insurers within a 40
holding company system shall [remit] submit, in a manner prescribed 41
by the commissioner [, a renewal appointment fee in the amount set 42
forth in] and at the time that such insurer or group of insurers pays an 43
annual agent appointment fee pursuant to section 38a-11, a list of all 44
business entities appointed as agents of such insurer or insurers for the 45 Raised Bill No. 900
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calendar year immediately preceding. 46
Sec. 2. Subdivision (1) of section 38a-702a of the general statutes is 47
repealed and the following is substituted in lieu thereof (Effective 48
January 1, 2020): 49
(1) "Agent" or "insurance agent" means an insurance producer or a 50
business entity appointed by an insurer to act on the insurer's behalf 51
pursuant to section 38a-702m, as amended by this act. 52
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2020 38a-702m
Sec. 2 January 1, 2020 38a-702a(1)
Statement of Purpose:
To: (1) Modify (A) the eligibility criteria for persons to serve as
insurance agents in this state, and (B) the manner in which (i)
insurance agents are appointed, and (ii) the insurance agent
appointment fee is calculated; and (2) require each insurer and group
of affiliated insurers within a holding company system to annually
provide the Insurance Commissioner with a list of all business entities
appointed by such insurer or insurers as insurance agents in this state.
[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.]