Connecticut 2019 Regular Session

Connecticut Senate Bill SB00900 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 4504 1 of 3
4	4
5	5	General Assembly Raised Bill No. 900
6	6	January Session, 2019
7	7	LCO No. 4504
8	8
9	9
10	10	Referred to Committee on INSURANCE AND REAL ESTATE
11	11
12	12
13	13	Introduced by:
14	14	(INS)
15	15
16	16
17	17
18	18
19	19	AN ACT CONCERNING IN SURANCE AGENTS AND THE INSUR ANCE
20	20	AGENT APPOINTMENT FE E.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. Section 38a-702m of the general statutes is repealed and 1
25	25	the following is substituted in lieu thereof (Effective January 1, 2020): 2
26	26	(a) (1) An insurance producer shall not act as an agent of an insurer, 3
27	27	including, but not limited to, an insurer that is part of a group of 4
28	28	affiliated insurers within a holding company system, unless the 5
29	29	insurance producer [becomes an] is: 6
30	30	(A) An employee of the insurer or a business entity that is 7
31	31	contractually appointed by such insurer to serve as an agent of such 8
32	32	insurer; or 9
33	33	(B) Otherwise contractually appointed as an agent of the insurer. 10
34	34	(2) An insurance producer who is not acting as an agent of an 11
35	35	insurer is not required to become appointed. 12 Raised Bill No. 900
36	36
37	37
38	38
39	39	LCO No. 4504 2 of 3
40	40
41	41	[(b) To appoint a producer as its agent, the appointing insurer shall 13
42	42	file, in a form approved by the commissioner, a notice of appointment 14
43	43	not later than fifteen days after the date the agency contract is executed 15
44	44	or the first insurance application is submitted. An insurer may elect to 16
45	45	appoint a producer to all or some of the affiliated companies within 17
46	46	the insurer's holding company system or group by filing a single 18
47	47	appointment request, provided the commissioner (1) has implemented 19
48	48	an electronic system capable of processing such filings; and (2) has 20
49	49	previously notified insurers doing business in this state that such 21
50	50	filings are acceptable. An insurer that appoints a producer to more 22
51	51	than one affiliated company within the insurer's holding company or 23
52	52	system shall pay the fee specified by section 38a-11 for each affiliated 24
53	53	company to which the producer is appointed. 25
54	54	(c) Upon receipt of the notice of appointment, the commissioner 26
55	55	shall verify within a reasonable time not to exceed thirty days that the 27
56	56	insurance producer is eligible for appointment. If the insurance 28
57	57	producer is determined to be ineligible for appointment, the 29
58	58	commissioner shall notify the insurer not later than five days after the 30
59	59	commissioner's determination.] 31
60	60	[(d) An] (b) Each insurer, and each group of affiliated insurers 32
61	61	within a holding company system on behalf of the insurers comprising 33
62	62	such system, shall pay an annual agent appointment fee. [,] Such fee 34
63	63	shall be in an amount that is equal to the product of (1) the amount set 35
64	64	forth in section 38a-11, [for each] and (2) the number of insurance 36
65	65	[producer] producers appointed, or employed by business entities 37
66	66	appointed, by [the] such insurer or insurers as agents of such insurer 38
67	67	or insurers for the calendar year immediately preceding. 39
68	68	[(e) An] (c) Each insurer or group of affiliated insurers within a 40
69	69	holding company system shall [remit] submit, in a manner prescribed 41
70	70	by the commissioner [, a renewal appointment fee in the amount set 42
71	71	forth in] and at the time that such insurer or group of insurers pays an 43
72	72	annual agent appointment fee pursuant to section 38a-11, a list of all 44
73	73	business entities appointed as agents of such insurer or insurers for the 45 Raised Bill No. 900
74	74
75	75
76	76
77	77	LCO No. 4504 3 of 3
78	78
79	79	calendar year immediately preceding. 46
80	80	Sec. 2. Subdivision (1) of section 38a-702a of the general statutes is 47
81	81	repealed and the following is substituted in lieu thereof (Effective 48
82	82	January 1, 2020): 49
83	83	(1) "Agent" or "insurance agent" means an insurance producer or a 50
84	84	business entity appointed by an insurer to act on the insurer's behalf 51
85	85	pursuant to section 38a-702m, as amended by this act. 52
86	86	This act shall take effect as follows and shall amend the following
87	87	sections:
88	88
89	89	Section 1 January 1, 2020 38a-702m
90	90	Sec. 2 January 1, 2020 38a-702a(1)
91	91
92	92	Statement of Purpose:
93	93	To: (1) Modify (A) the eligibility criteria for persons to serve as
94	94	insurance agents in this state, and (B) the manner in which (i)
95	95	insurance agents are appointed, and (ii) the insurance agent
96	96	appointment fee is calculated; and (2) require each insurer and group
97	97	of affiliated insurers within a holding company system to annually
98	98	provide the Insurance Commissioner with a list of all business entities
99	99	appointed by such insurer or insurers as insurance agents in this state.
100	100	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
101	101	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
102	102	not underlined.]
103	103