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General Assembly Raised Bill No. 5360
February Session, 2020
LCO No. 2217
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING TH E REGULATION AND TAX ATION OF
TRAVEL INSURANCE AND ASSOCIATED ENTITIES, PRODUCTS AND
PROFESSIONALS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 38a-1 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2020): 2
Terms used in this title and sections 3 to 11, inclusive, of this act, 3
unless it appears from the context to the contrary, shall have a scope and 4
meaning as set forth in this section. 5
(1) "Affiliate" or "affiliated" means a person that directly, or indirectly 6
through one or more intermediaries, controls, is controlled by or is 7
under common control with another person. 8
(2) "Alien insurer" means any insurer that has been chartered by or 9
organized or constituted within or under the laws of any jurisdiction or 10
country without the United States. 11
(3) "Annuities" means all agreements to make periodical payments 12 Raised Bill No. 5360
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where the making or continuance of all or some of the series of the 13
payments, or the amount of the payment, is dependent upon the 14
continuance of human life or is for a specified term of years. This 15
definition does not apply to payments made under a policy of life 16
insurance. 17
(4) "Commissioner" means the Insurance Commissioner. 18
(5) "Control", "controlled by" or "under common control with" means 19
the possession, direct or indirect, of the power to direct or cause the 20
direction of the management and policies of a person, whether through 21
the ownership of voting securities, by contract other than a commercial 22
contract for goods or nonmanagement services, or otherwise, unless the 23
power is the result of an official position with the person. 24
(6) "Domestic insurer" means any insurer that has been chartered by, 25
incorporated, organized or constituted within or under the laws of this 26
state. 27
(7) "Domestic surplus lines insurer" means any domestic insurer that 28
has been authorized by the commissioner to write surplus lines 29
insurance. 30
(8) "Foreign country" means any jurisdiction not in any state, district 31
or territory of the United States. 32
(9) "Foreign insurer" means any insurer that has been chartered by or 33
organized or constituted within or under the laws of another state or a 34
territory of the United States. 35
(10) "Insolvency" or "insolvent" means, for any insurer, that it is 36
unable to pay its obligations when they are due, or when its admitted 37
assets do not exceed its liabilities plus the greater of: (A) Capital and 38
surplus required by law for its organization and continued operation; 39
or (B) the total par or stated value of its authorized and issued capital 40
stock. For purposes of this subdivision "liabilities" shall include, but not 41
be limited to, reserves required by statute or by regulations adopted by 42 Raised Bill No. 5360
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the commissioner in accordance with the provisions of chapter 54 or 43
specific requirements imposed by the commissioner upon a subject 44
company at the time of admission or subsequent thereto. 45
(11) "Insurance" means any agreement to pay a sum of money, 46
provide services or any other thing of value on the happening of a 47
particular event or contingency or to provide indemnity for loss in 48
respect to a specified subject by specified perils in return for a 49
consideration. In any contract of insurance, an insured shall have an 50
interest which is subject to a risk of loss through destruction or 51
impairment of that interest, which risk is assumed by the insurer and 52
such assumption shall be part of a general scheme to distribute losses 53
among a large group of persons bearing similar risks in return for a 54
ratable contribution or other consideration. 55
(12) "Insurer" or "insurance company" includes any person or 56
combination of persons doing any kind or form of insurance business 57
other than a fraternal benefit society, and shall include a receiver of any 58
insurer when the context reasonably permits. 59
(13) "Insured" means a person to whom or for whose benefit an 60
insurer makes a promise in an insurance policy. The term includes 61
policyholders, subscribers, members and beneficiaries. This definition 62
applies only to the provisions of this title and does not define the 63
meaning of this word as used in insurance policies or certificates. 64
(14) "Life insurance" means insurance on human lives and insurances 65
pertaining to or connected with human life. The business of life 66
insurance includes granting endowment benefits, granting additional 67
benefits in the event of death by accident or accidental means, granting 68
additional benefits in the event of the total and permanent disability of 69
the insured, and providing optional methods of settlement of proceeds. 70
Life insurance includes burial contracts to the extent provided by 71
section 38a-464. 72
(15) "Mutual insurer" means any insurer without capital stock, the 73
managing directors or officers of which are elected by its members. 74 Raised Bill No. 5360
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(16) "Person" means an individual, a corporation, a partnership, a 75
limited liability company, an association, a joint stock company, a 76
business trust, an unincorporated organization or other legal entity. 77
(17) "Policy" means any document, including attached endorsements 78
and riders, purporting to be an enforceable contract, which 79
memorializes in writing some or all of the terms of an insurance 80
contract. 81
(18) "State" means any state, district, or territory of the United States. 82
(19) "Subsidiary" of a specified person means an affiliate controlled 83
by the person directly, or indirectly through one or more intermediaries. 84
(20) "Unauthorized insurer" or "nonadmitted insurer" means an 85
insurer that has not been granted a certificate of authority by the 86
commissioner to transact the business of insurance in this state or an 87
insurer transacting business not authorized by a valid certificate. 88
(21) "United States" means the United States of America, its territories 89
and possessions, the Commonwealth of Puerto Rico and the District of 90
Columbia. 91
Sec. 2. Section 38a-398 of the general statutes is repealed and the 92
following is substituted in lieu thereof (Effective October 1, 2020): 93
[(a) As used in] For the purposes of this section and sections 3 to 11, 94
inclusive, of this act: 95
[(1) "Travel insurance" means insurance, provided under an 96
individual or a group or master insurance policy, for the following 97
personal risks incident to planned travel: (A) Interruption or 98
cancellation of a trip or an event; (B) loss of baggage or personal effects; 99
(C) damage to accommodations or rental vehicles; or (D) sickness, 100
accident, disability or death occurring during travel;] 101
(1) "Aggregator web site" means an Internet web site that provides 102
access to information concerning insurance products from more than 103 Raised Bill No. 5360
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one insurer, including, but not limited to, product and insurer 104
information, for use in insurance product comparison shopping. 105
(2) "Blanket travel insurance policy" means a policy of travel 106
insurance issued to an eligible group that provides coverage: (A) For 107
specific classes of persons defined in such policy of travel insurance; and 108
(B) to all members of such eligible group without imposing a separate 109
charge on any individual member of such eligible group. 110
(3) "Cancellation fee waiver" means a contractual agreement between 111
a supplier of travel services and a consumer to waive some or all of the 112
nonrefundable cancellation fee provisions of such supplier's underlying 113
travel contract regardless of the reason for the cancellation or form of 114
reimbursement. 115
(4) "Designated travel retailer" means a travel retailer designated by 116
a limited lines travel insurance producer to offer and disseminate travel 117
insurance to residents of this state on behalf of the limited lines travel 118
insurance producer. 119
(5) "Eligible group" means, with respect to travel insurance, a group 120
of two or more persons who are engaged in a common enterprise or 121
have an economic, educational or social affinity or relationship, 122
including, but not limited to: (A) A group of entities that are engaged in 123
the business of providing travel or travel services, including, but not 124
limited to, tour operators, lodging providers, vacation property owners, 125
hotels, resorts, travel clubs, travel agencies, property managers, cultural 126
exchange programs and common carriers, including, but not limited to, 127
airlines, cruise lines, railroads, steamship companies and public bus 128
carriers, provided all members or customers of such group have a 129
common exposure to risk attendant to travel with respect to a particular 130
type of travel or traveler; (B) a college, school or other institution of 131
learning, provided any blanket travel insurance policy issued to the 132
college, school or other institution of learning provides coverage for the 133
students, teachers, employees or volunteers of such college, school or 134
institution of higher learning; (C) an employer, provided any blanket 135 Raised Bill No. 5360
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travel insurance policy issued to the employer provides coverage for a 136
group of employees, volunteers, contractors, directors, dependents or 137
guests of such employer; (D) a sports team, camp or sponsor of such 138
sports team or camp, provided any blanket travel insurance policy 139
issued to such team, camp or sponsor provides coverage for 140
participants, members, campers, employees, officials, supervisors or 141
volunteers of such team, camp or sponsor; (E) a religious, charitable, 142
recreational, educational or civic organization, or branch of such 143
religious, charitable, recreational, educational or civic organization, 144
provided any blanket travel insurance policy issued to such 145
organization or branch provides coverage for a group of members, 146
participants or volunteers of such organization or branch; (F) a financial 147
institution or financial institution vendor, or a parent holding company, 148
trustee or agent of, or designated by, one or more financial institutions 149
or financial institution vendors, including, but not limited to, account 150
holders, credit card holders, debtors, guarantors or purchasers; (G) an 151
incorporated or unincorporated association, including, but not limited 152
to, a labor union, that has a common interest, constitution and bylaws 153
and is maintained, in good faith, for a purpose other than obtaining 154
insurance for members of, or participants in, such association covering 155
the members of such association; (H) a trust or the trustees of a fund 156
approved by the commissioner and established, created or maintained 157
for the benefit of, and covering, members, employees or customers of 158
one or more of the associations described in subparagraph (G) of this 159
subdivision; (I) an entertainment production company, provided any 160
blanket travel insurance policy issued to the entertainment production 161
company provides coverage for a group of participants, volunteers, 162
audience members, contestants or workers of such entertainment 163
production company; (J) a volunteer fire department, police 164
department, ambulance service, first aid service, rescue service, court or 165
civil defense organization, or any similar voluntary group; (K) a 166
preschool, daycare institution for children or adults or a senior citizen 167
club; (L) an automobile or truck rental or leasing company covering, 168
under a blanket travel insurance policy, a group of individuals who may 169
become renters or lessees of, or passengers on, a rented or leased 170 Raised Bill No. 5360
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automobile or truck due to their travel status on such rented or leased 171
automobile or truck, provided the common carrier, operator, owner or 172
lessor of the rented or leased automobile or truck, or the automobile or 173
truck rental or leasing company, is the policyholder of the blanket travel 174
insurance policy providing such coverage; and (M) any other group if 175
the commissioner determines, in the commissioner's discretion, that 176
issuing a blanket travel insurance policy to such group is consistent with 177
the public interest. 178
(6) "Fulfillment materials" means documents sent to a consumer who 179
purchases a travel protection plan that (A) confirms purchase of such 180
travel protection plan, and (B) discloses the coverage and assistance 181
details for such travel protection plan. 182
(7) "Group travel insurance" means travel insurance issued to an 183
eligible group. 184
[(2)] (8) "Limited lines travel insurance producer" means an 185
individual who, or business entity that, is authorized under subsection 186
(b) of [this] section 4 of this act to sell, solicit or negotiate travel 187
insurance. [;] 188
[(3) "Offer and disseminate,"] (9) "Offer and disseminate" means, with 189
respect to travel insurance, [means] the provision of general information 190
about or general services for travel insurance, including: (A) A 191
description of the coverage and price of a policy of travel insurance; 192
[policy;] (B) the processing of an application for a policy of travel 193
insurance; [policy;] (C) the collection of a premium for a policy of travel 194
insurance; [policy;] or (D) the performance of other activities not 195
requiring a license and permitted in this state concerning a policy of 196
travel insurance. [policy;] 197
(10) "Primary certificate holder" means an individual who elects 198
coverage under and purchases travel insurance provided under a policy 199
of group travel insurance. 200
(11) "Primary policyholder" means an individual who elects and 201 Raised Bill No. 5360
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purchases travel insurance provided under an individual policy of 202
travel insurance. 203
(12) "Travel administrator" means a person who, directly or 204
indirectly, underwrites travel insurance, collects charges, collateral or 205
premiums in connection with travel insurance or adjusts or settles travel 206
insurance claims for residents of this state, unless such person: (A) 207
Works for, and to the extent that such person's activities are subject to 208
the supervision and control of, a travel administrator; (B) is a licensed 209
insurance producer selling insurance or engaged in administrative and 210
claims-related activities within the scope of such insurance producer's 211
license; (C) is a designated travel retailer; (D) is a public adjuster, as 212
defined in section 38a-723, or a lawyer settling a client's claim; or (E) is 213
a business entity affiliated with a licensed insurer and administering the 214
direct and assumed travel insurance business of such licensed affiliated 215
insurer. 216
(13) "Travel assistance services" means any noninsurance services for 217
which a consumer is not indemnified based on a fortuitous event and 218
where providing such noninsurance services does not transfer or shift 219
any risk in a manner that constitutes the business of insurance, 220
including, but not limited to: (A) Security advisories; (B) destination 221
information; (C) vaccination and immunization information services; 222
(D) travel reservation services; (E) entertainment; (F) activity and event 223
planning; (G) translation assistance; (H) emergency messaging; (I) 224
international legal and medical referrals; (J) medical case monitoring; 225
(K) transportation arrangement coordination; (L) emergency cash 226
transfer assistance; (M) medical prescription replacement assistance; (N) 227
passport and other travel document replacement assistance; (O) lost 228
luggage assistance; (P) concierge services; and (Q) any service furnished 229
in connection with a planned trip or travel. 230
(14) (A) "Travel insurance" means insurance, provided under an 231
individual, group or blanket insurance policy, for the following 232
personal risks incident to a planned trip or travel: (i) Interruption or 233
cancellation of a trip, travel or an event; (ii) loss of baggage or personal 234 Raised Bill No. 5360
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effects; (iii) damage to accommodations or rental vehicles; (iv) sickness, 235
accident, disability or death occurring during a trip or travel; (v) 236
emergency evacuation; (vi) repatriation of remains; or (vii) any other 237
contractual obligation to indemnify or pay a specified amount to a 238
traveler upon determinable contingencies that are related to travel and 239
prescribed in regulations adopted by the commissioner pursuant to 240
section 11 of this act. 241
(B) "Travel insurance" does not mean: (i) Major medical plans that 242
provide comprehensive medical protection for a traveler with a trip or 243
travel lasting longer than six months, including, but not limited to, a 244
traveler working or residing outside of the United States as an 245
expatriate; (ii) a product that requires a specific insurance producer 246
license; or (iii) a cancellation fee waiver. 247
(15) "Travel protection plan" means a plan that includes travel 248
insurance, travel assistance services or a cancellation fee waiver. 249
[(4)] (16) "Travel retailer" means a business entity that makes, 250
arranges or offers travel services. [; and] 251
[(5) "Designated travel retailer" means a travel retailer designated by 252
a limited lines travel insurance producer to offer and disseminate travel 253
insurance to residents of this state on such producer's behalf. 254
(b) (1) (A) Any individual or business entity that wishes to act as a 255
limited lines travel insurance producer in this state may apply to the 256
Insurance Commissioner for authorization to act as a limited lines travel 257
insurance producer and to sell, solicit or negotiate travel insurance 258
through an insurance company licensed or authorized to do business in 259
this state. Such application shall be submitted on such form and in such 260
manner as prescribed by the commissioner and shall be accompanied 261
by the fee required under section 38a-11. The commissioner shall not 262
approve such application unless (i) the applicant has paid all applicable 263
filing and licensing fees required under this title, and (ii) for an applicant 264
that is a business entity, the employee designated pursuant to 265
subparagraph (A) of subdivision (3) of this subsection and the president, 266 Raised Bill No. 5360
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secretary, treasurer and any other officer or individual who directs or 267
controls the insurance operations of the applicant has complied with 268
any fingerprinting requirements applicable to insurance producers in 269
the resident state of the applicant. 270
(B) The commissioner may approve or deny such application. Any 271
such authorization shall be in force until the commissioner suspends or 272
revokes such authorization or the commissioner suspends, revokes or 273
refuses to renew the individual's or insurance company's license or 274
authorization to do business in this state. 275
(2) Each limited lines travel insurance producer that is a business 276
entity shall, at the time such application is approved by the 277
commissioner, establish and maintain a registry, on a form prescribed 278
by the commissioner, of its designated travel retailers. Such producer 279
shall update the registry annually and shall include: (A) The name, 280
address and contact information of each designated travel retailer; (B) 281
the name, address and contact information of an officer or individual 282
who directs or controls each designated travel retailer's operations; (C) 283
the federal tax identification number of each designated travel retailer; 284
and (D) a certification by such producer that the designated travel 285
retailer has not engaged in conduct prohibited under 18 USC 1033, as 286
amended from time to time. Upon request by the commissioner, a 287
limited lines travel insurance producer shall make such registry 288
available to the commissioner or the commissioner's designee for 289
inspection and examination during the regular business hours of such 290
limited lines travel insurance producer. 291
(3) (A) Each limited lines travel insurance producer that is a business 292
entity shall designate an employee, who is an insurance producer 293
licensed in this state, as the individual responsible for the limited lines 294
travel insurance producer's compliance with this section, including 295
supervision of its designated travel retailers. 296
(B) Each limited lines travel insurance producer that is a business 297
entity shall be responsible for the acts of its designated travel retailers 298 Raised Bill No. 5360
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and shall use reasonable means to ensure each designated travel 299
retailer's compliance with this section. 300
(4) Each limited lines travel insurance producer that is a business 301
entity shall require each employee and authorized representative of its 302
designated travel retailers to receive instruction or training on the offer 303
and dissemination of travel insurance. Such instruction or training may 304
be subject to review by the commissioner and shall include, at a 305
minimum, information about (A) the types of travel insurance offered 306
through the travel retailer, (B) ethical sales practices, and (C) required 307
disclosures to prospective insureds. 308
(5) Each limited lines travel insurance producer that is a business 309
entity or designated travel retailer shall provide to purchasers of a travel 310
insurance policy: (A) A description or a copy of the material terms of 311
such policy; (B) a description of the process for filing a claim under such 312
policy; (C) a description of the process for the review or cancellation of 313
such policy; and (D) the identity of and contact information for the 314
insurance company issuing such policy and the limited lines travel 315
insurance producer. 316
(c) (1) A travel retailer that does not employ a licensed insurance 317
producer or is not licensed or authorized to transact the business of 318
insurance in this state may offer and disseminate travel insurance to 319
residents of this state, if (A) it is a designated travel retailer, and (B) its 320
travel insurance-related activities are limited to those authorized under 321
this section. 322
(2) A travel retailer shall make available to prospective insureds 323
brochures or other written materials that: (A) Provide the identity of and 324
contact information for the insurance company issuing the travel 325
insurance policy and the limited lines travel insurance producer; (B) 326
explain that the purchase of travel insurance is not required to purchase 327
any other product or service from the travel retailer; and (C) explain that 328
such travel retailer is permitted to provide general information about 329
the travel insurance offered through the travel retailer, including a 330 Raised Bill No. 5360
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description of the coverage and price, but is not qualified or authorized 331
to answer questions about the terms and conditions of such travel 332
insurance or evaluate the adequacy of the prospective insured's existing 333
insurance coverage. 334
(3) A designated travel retailer may receive compensation from a 335
limited lines travel insurance producer or the insurance company 336
issuing a travel insurance policy for services related to the offer and 337
dissemination of travel insurance as agreed to by such designated travel 338
retailer and such limited lines travel insurance producer or insurance 339
company. 340
(4) An employee or authorized representative of a travel retailer shall 341
not be required to be licensed as an insurance producer unless such 342
employee or authorized representative: (A) Evaluates or interprets the 343
terms, benefits or conditions of travel insurance offered by the travel 344
retailer; (B) evaluates or provides advice regarding a prospective 345
insured's existing insurance coverage; or (C) holds himself or herself out 346
as a licensed insurance producer or an insurance expert. 347
(d) (1) A violation of this section by a limited lines travel insurance 348
producer shall be deemed an unfair or deceptive insurance practice 349
under section 38a-816. 350
(2) A violation of this section by a travel retailer shall be deemed an 351
unfair or deceptive trade practice under subsection (a) of section 42-352
110b.] 353
Sec. 3. (NEW) (Effective October 1, 2020) (a) Travel insurance shall be 354
classified and filed in this state, for the purposes of rates and forms, 355
under an inland marine line of insurance, except if travel insurance 356
provides coverage for sickness, accident, disability or death occurring 357
during a trip or travel, either exclusively or in conjunction with related 358
coverages of emergency evacuation or repatriation of remains, or 359
incidental limited property and casualty benefits such as baggage or trip 360
or travel cancellation, such travel insurance may be filed in this state 361
under either an accident and health line of insurance or an inland 362 Raised Bill No. 5360
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marine line of insurance. 363
(b) The commissioner may prescribe eligibility and underwriting 364
standards for travel insurance, provided such standards are based on 365
travel protection plans designed for individual or identified marketing 366
or distribution channels and meet this state's underwriting standards 367
for inland marine lines of insurance. 368
Sec. 4. (NEW) (Effective October 1, 2020) (a) (1) Except as provided in 369
subdivision (2) of this subsection, no individual or business entity shall 370
act as a limited lines travel insurance producer, and no travel retailer 371
shall act as a designated travel retailer, in this state except in accordance 372
with the provisions of this section and sections 5, 7, 9 and 10 of this act. 373
(2) Notwithstanding any provision of this section, each insurance 374
producer licensed for a major line of authority in this state shall be 375
deemed to have been authorized to sell, solicit and negotiate travel 376
insurance in this state, and no insurance producer licensed for property 377
and casualty insurance lines in this state shall be required to seek 378
authorization to sell, solicit or negotiate travel insurance through an 379
insurer licensed or authorized to do insurance business in this state. 380
(b) (1) (A) Except as provided in subdivision (2) of subsection (a) of 381
this section, any individual or business entity that wishes to act as a 382
limited lines travel insurance producer in this state may apply to the 383
commissioner for annual authorization to act as a limited lines travel 384
insurance producer and to sell, solicit or negotiate travel insurance 385
through an insurer licensed or authorized to do insurance business in 386
this state. Such application shall be submitted on such form and in such 387
manner as prescribed by the commissioner and shall be accompanied 388
by the fee required under section 38a-11 of the general statutes, as 389
amended by this act. The commissioner shall not approve such 390
application unless: (i) The applicant has paid (I) all applicable filing fees 391
and licensing fees required under title 38a of the general statutes, and 392
(II) the licensing fee under section 38a-11 of the general statutes, as 393
amended by this act, and (ii) for an applicant that is a business entity, 394 Raised Bill No. 5360
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the employee designated pursuant to subparagraph (A) of subdivision 395
(3) of this subsection and the president, secretary, treasurer and any 396
other officer or individual who directs or controls the insurance 397
operations of the applicant has complied with any fingerprinting 398
requirements applicable to insurance producers in the resident state of 399
the applicant. 400
(B) The commissioner may approve or deny any application 401
submitted pursuant to subparagraph (A) of this subdivision. Any 402
authorization approved by the commissioner shall be in force until the 403
day immediately preceding the anniversary date of such authorization, 404
the date on which the commissioner suspends or revokes such 405
authorization in accordance with the provisions of section 9 of this act 406
or the commissioner suspends, revokes or refuses to renew the license 407
of the insurer through which the limited lines travel insurance producer 408
is selling, soliciting or negotiating travel insurance in this state, 409
whichever first occurs. 410
(2) Each limited lines travel insurance producer that is a business 411
entity shall, at the time such application is approved by the 412
commissioner, establish and maintain a registry, on a form prescribed 413
by the commissioner, of its designated travel retailers. Such limited lines 414
travel insurance producer shall update the registry annually and shall 415
include: (A) The name, address and contact information of each 416
designated travel retailer; (B) the name, address and contact information 417
of an officer or individual who directs or controls each designated travel 418
retailer's operations; (C) the federal tax identification number of each 419
designated travel retailer; and (D) a certification by such limited lines 420
travel insurance producer that the designated travel retailer has not 421
engaged in conduct prohibited under 18 USC 1033, as amended from 422
time to time. Upon request by the commissioner, a limited lines travel 423
insurance producer shall make such registry available to the 424
commissioner or the commissioner's designee for inspection and 425
examination during the regular business hours of such limited lines 426
travel insurance producer. 427 Raised Bill No. 5360
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(3) (A) Each limited lines travel insurance producer that is a business 428
entity shall designate an employee, who is an insurance producer 429
licensed in this state, as the individual responsible for the limited lines 430
travel insurance producer's compliance with this section and sections 5, 431
7, 9 and 10 of this act, including supervision of its designated travel 432
retailers. 433
(B) Each limited lines travel insurance producer that is a business 434
entity shall be responsible for the acts of such limited lines travel 435
insurance producer's designated travel retailers and shall use 436
reasonable means to ensure each designated travel retailer's compliance 437
with this section and sections 5, 7, 9 and 10 of this act. 438
(4) Each limited lines travel insurance producer that is a business 439
entity shall require each employee and authorized representative of its 440
designated travel retailers to receive instruction or training on the offer 441
and dissemination of travel insurance. Such instruction or training may 442
be subject to review by the commissioner and shall include, at a 443
minimum, information about: (A) The types of travel insurance offered 444
through the designated travel retailer; (B) ethical sales practices; and (C) 445
required disclosures to consumers. 446
(5) Each limited lines travel insurance producer that is a business 447
entity or designated travel retailer shall provide to purchasers of a 448
policy of travel insurance: (A) A description or a copy of the material 449
terms of such policy; (B) a description of the process for filing a claim 450
under such policy; (C) a description of the process for the review or 451
cancellation of such policy; and (D) the identity of and contact 452
information for the insurer issuing such policy and the limited lines 453
travel insurance producer. 454
(c) (1) A travel retailer that does not employ a licensed insurance 455
producer or is not licensed or authorized to transact the business of 456
insurance in this state may offer and disseminate travel insurance to 457
residents of this state, if: (A) Such travel retailer is a designated travel 458
retailer, and (B) such designated travel retailer's travel insurance-related 459 Raised Bill No. 5360
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activities are limited to those authorized under this section. 460
(2) A designated travel retailer shall make available to consumers 461
brochures or other written materials that: (A) Provide the identity of, 462
and contact information for, the insurer issuing the policy of travel 463
insurance and the limited lines travel insurance producer; (B) explain 464
that the purchase of travel insurance is not required to purchase any 465
other product or service from the designated travel retailer; and (C) 466
explain that such designated travel retailer is permitted to provide 467
general information about the travel insurance offered through such 468
designated travel retailer, including, but not limited to, a description of 469
the coverage and price, but is not qualified or authorized to answer 470
questions about the terms and conditions of such travel insurance or 471
evaluate the adequacy of the consumer's existing insurance coverage. 472
(3) A designated travel retailer may receive compensation from a 473
limited lines travel insurance producer or the insurer issuing a policy of 474
travel insurance for services related to the offer and dissemination of 475
travel insurance as agreed to by such designated travel retailer and such 476
limited lines travel insurance producer or insurer. 477
(4) An employee or authorized representative of a travel retailer shall 478
not be required to be licensed as an insurance producer unless such 479
employee or authorized representative: (A) Evaluates or interprets the 480
technical terms, benefits or conditions of travel insurance offered by the 481
travel retailer; (B) evaluates or provides advice regarding a consumer's 482
existing insurance coverage; or (C) holds himself or herself out as a 483
licensed insurance producer or an insurance expert. 484
Sec. 5. (NEW) (Effective October 1, 2020) (a) (1) All documents 485
provided to a consumer prior to the purchase of a policy of travel 486
insurance, including, but not limited to, sales materials, advertising 487
materials and marketing materials, shall be consistent with the policy of 488
travel insurance, including, but not limited to, forms, endorsements, 489
policies, rate filings and certificates of insurance. 490
(2) If a policy or certificate of travel insurance contains any 491 Raised Bill No. 5360
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preexisting condition exclusion, information concerning, and an 492
opportunity to learn more about, such preexisting condition exclusion 493
shall be provided to a consumer at any time prior to the time that the 494
consumer purchases such policy or certificate of travel insurance, and 495
any such preexisting condition exclusion shall be provided to a 496
consumer in the fulfillment materials for a travel protection plan that 497
includes travel insurance. 498
(3) (A) If a consumer purchases a travel protection plan in this state, 499
the following shall be provided to the consumer as soon as practicable 500
following the time that such consumer purchases such travel protection 501
plan: 502
(i) The fulfillment materials for such travel protection plan; 503
(ii) A description, or a copy of, the material terms of any travel 504
insurance coverage included in such travel protection plan; 505
(iii) A description of the process for filing a claim under any travel 506
insurance coverage included in such travel protection plan; 507
(iv) A description of the process for review or cancellation of any 508
travel insurance coverage included in such travel protection plan; and 509
(v) The identity of, and contact information for, the insurer issuing 510
any travel insurance coverage included in such travel protection plan. 511
(B) Unless a consumer insured under travel insurance coverage 512
included in a travel protection plan departs on a covered trip or travel, 513
or files a claim under such coverage, the consumer may cancel such 514
travel insurance coverage and receive a full refund of the travel 515
protection plan price from the date that such consumer purchased such 516
travel protection plan until at least: 517
(i) Fifteen days following the date of delivery of such travel protection 518
plan's fulfillment materials by mail; or 519
(ii) Ten days following the date of delivery of such travel protection 520 Raised Bill No. 5360
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plan's fulfillment materials by any means other than mail. 521
(4) The fulfillment materials for a travel protection plan, and the 522
documents concerning any travel insurance coverage included in the 523
travel protection plan, shall disclose whether the travel insurance 524
coverage included in such travel protection plan is primary or 525
secondary to other applicable coverage. 526
(b) No person offering, soliciting or negotiating travel insurance or 527
travel protection plans to consumers in this state on an individual or 528
group basis may do so by using a negative option or opt-out, which 529
would require a consumer to take an affirmative action to deselect travel 530
insurance coverage, by, for example, unchecking a box on an electronic 531
form, when the consumer purchases a trip or travel package. 532
Sec. 6. (NEW) (Effective October 1, 2020) (a) No person shall act as, or 533
hold itself out to be, a travel administrator in this state unless such 534
person is: 535
(1) An insurance producer licensed for property and casualty 536
insurance lines in this state; 537
(2) A managing general agent, as defined in section 38a-90a of the 538
general statutes, that is licensed as an insurance producer and holds an 539
appointment by an insurer in this state; or 540
(3) A third-party administrator licensed pursuant to section 38a-720j 541
of the general statutes. 542
(b) Each insurer shall be responsible for the conduct of each travel 543
administrator administering travel insurance in this state underwritten 544
by such insurer, and shall ensure that each such travel administrator 545
maintains, and makes available to the commissioner upon request, all 546
books and records concerning such insurer. 547
Sec. 7. (NEW) (Effective October 1, 2020) A travel protection plan may 548
be offered to a consumer in this state for a single price reflecting any 549
combined features offered by the travel protection plan if: 550 Raised Bill No. 5360
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(1) Such travel protection plan: 551
(A) Discloses to the consumer, at or before the time of purchase, that 552
such travel protection plan includes travel insurance, travel assistance 553
services and cancellation fee waivers, as applicable, and that such 554
consumer may obtain additional information regarding the individual 555
features and pricing of such travel insurance, travel assistance services 556
and cancellation fee waivers, as applicable; and 557
(B) Provides to the consumer, at or before the time of purchase, an 558
opportunity to obtain the additional information described in 559
subparagraph (A) of this subdivision; and 560
(2) The fulfillment materials for such travel protection plan: 561
(A) Describe and delineate the travel insurance, travel assistance 562
services and cancellation fee waivers, if any, in such travel protection 563
plan; and 564
(B) Include any required disclosure concerning the travel insurance 565
coverage included in such travel protection plan, if any, and the contact 566
information for the persons providing the travel assistance services and 567
cancellation fee waivers included in such travel protection plan, if any. 568
Sec. 8. (NEW) (Effective October 1, 2020) (a) (1) Except as provided in 569
subdivision (2) of this subsection, travel insurance written by a domestic 570
insurer shall be subject to the tax imposed under section 12-202 of the 571
general statutes, and travel insurance written by an alien insurer or 572
foreign insurer shall be subject to the tax imposed under section 12-210 573
of the general statutes, for travel insurance premiums paid by: 574
(A) The primary policyholder of an individual policy of travel 575
insurance if such primary policyholder is a resident of this state; 576
(B) The primary certificate holder of a policy of group travel 577
insurance if such primary certificate holder is a resident of this state; or 578
(C) A policyholder of a blanket travel insurance policy if the 579 Raised Bill No. 5360
LCO No. 2217 20 of 39
policyholder is a resident of this state, maintains such policyholder's 580
principal place of business in this state or an affiliate or subsidiary of 581
such policyholder maintains such affiliate's or subsidiary's principal 582
place of business in this state. 583
(2) If a domestic insurer, alien insurer or foreign insurer that writes a 584
blanket travel insurance policy described in subparagraph (C) of 585
subdivision (1) of this subsection is subject to rules across multiple 586
taxing jurisdictions that permit such insurer to allocate premiums across 587
such jurisdictions on an apportioned basis and in a reasonable and 588
equitable manner, such insurer's liability under said subparagraph shall 589
be subject to such premium allocation. 590
(b) Each domestic insurer, alien insurer and foreign insurer that is 591
subject to the provisions of subsection (a) of this section shall: 592
(1) Document the state in which each primary policyholder, primary 593
certificate holder, policyholder, affiliate or subsidiary described in 594
subsection (a) of this section maintains such primary policyholder's, 595
primary certificate holder's, policyholder's, affiliate's or subsidiary's 596
primary residence or principal place of business, as applicable; and 597
(2) Report as premium only the amount allocable to travel insurance. 598
Sec. 9. (NEW) (Effective October 1, 2020) (a) The commissioner may 599
suspend, revoke or refuse to issue or renew authorization to act as a 600
limited lines travel insurance producer, or prohibit a travel retailer from 601
acting as a designated travel retailer, in this state or may levy a civil 602
penalty in accordance with the provisions of title 38a of the general 603
statutes, or may take any combination of such actions, for any one or 604
more of the following causes: 605
(1) For a limited lines travel insurance producer, providing incorrect, 606
misleading, incomplete or materially untrue information to the 607
commissioner in an application for authorization to act as a limited lines 608
travel insurance producer; 609 Raised Bill No. 5360
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(2) Violating any insurance law, or violating any regulation, 610
subpoena or order of the commissioner or of another state's insurance 611
commissioner; 612
(3) For a limited lines travel insurance producer, obtaining or 613
attempting to obtain authorization from the commissioner to act as a 614
limited lines travel insurance producer through misrepresentation or 615
fraud; 616
(4) Improperly withholding, misappropriating or converting any 617
moneys or properties received in the course of doing business in this 618
state; 619
(5) Intentionally misrepresenting the terms of actual or proposed 620
travel insurance coverage or an application for such coverage; 621
(6) Having been convicted of a felony; 622
(7) Having admitted or been found to have committed any insurance 623
unfair trade practice or fraud; 624
(8) Using fraudulent, coercive or dishonest practices, or 625
demonstrating incompetence, untrustworthiness or financial 626
irresponsibility in the conduct of business in this state or elsewhere; 627
(9) For a limited lines travel insurance producer, having 628
authorization to act as a limited lines travel insurance producer, or its 629
equivalent, denied, suspended or revoked in any other state, province, 630
district or territory; 631
(10) Forging another's name to an application for travel insurance 632
coverage or to any document related to a travel insurance transaction; 633
(11) Failing to comply with an administrative or court order imposing 634
a child support obligation; or 635
(12) Failing to pay income tax pursuant to chapter 229 of the general 636
statutes or comply with any administrative or court order directing 637 Raised Bill No. 5360
LCO No. 2217 22 of 39
payment of state income tax. 638
(b) If the action by the commissioner is to refuse to renew 639
authorization to act as a limited lines travel insurance producer or to 640
deny an application for an authorization to act as a limited lines travel 641
insurance producer, the commissioner shall notify the applicant or 642
limited lines travel insurance producer, as applicable, and advise, in 643
writing, the applicant or limited lines travel insurance producer, as 644
applicable, of the reason for the commissioner's denial or refusal to 645
renew such authorization. The applicant or limited lines travel 646
insurance producer, as applicable, may make written demand upon the 647
commissioner, not later than thirty days after the notice, for a hearing 648
before the commissioner to determine the reasonableness of the 649
commissioner's action. The hearing shall be held not later than twenty 650
days after receipt of such request and shall be held in accordance with 651
section 38a-19 of the general statutes. 652
(c) A business entity's authority to act as a limited lines travel 653
insurance producer or designated travel retailer in this state may be 654
suspended, revoked or refused if the commissioner finds, after a 655
hearing, that an individual employee's or authorized representative's 656
violation was known or should have been known by one or more of the 657
partners, officers or managers acting on behalf of the business entity and 658
the violation was neither reported to the commissioner nor was any 659
corrective action taken. 660
(d) The commissioner shall retain the authority to enforce the 661
provisions of, and impose any penalty or remedy authorized by, any 662
provision of title 38a of the general statutes against any person who is 663
under investigation for or charged with a violation of title 38a of the 664
general statutes even if the person's license, authorization, designation 665
or registration has been surrendered or has lapsed by operation of law. 666
Sec. 10. (NEW) (Effective October 1, 2020) (a) Except as provided in 667
subsections (b) and (c) of this section, each of the following shall be 668
deemed an unfair or deceptive insurance practice under section 38a-816 669 Raised Bill No. 5360
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of the general statutes, as amended by this act: 670
(1) Any violation of a provision of section 4, 5, 7 or 9 of this act by a 671
limited lines travel insurance producer if such provision is applicable to 672
the limited lines travel insurance producer; 673
(2) Any violation of a provision of section 6 or 8 of this act by an 674
insurer if such provision is applicable to such insurer; 675
(3) Offering or selling a policy of travel insurance in this state that is 676
never required to pay a claim; and 677
(4) Representing to a consumer that coverage under a blanket travel 678
insurance policy is provided free of charge. 679
(b) Except as provided in subsection (c) of this section, each of the 680
following shall be deemed an unfair or deceptive trade practice under 681
subsection (a) of section 42-110b of the general statutes: 682
(1) Any violation of a provision of section 4, 5, 7 or 9 of this act by a 683
travel retailer or designated travel retailer if such provision is applicable 684
to the travel retailer or designated travel retailer; and 685
(2) Any violation of a provision of section 6 of this act by a travel 686
administrator if such provision is applicable to the travel administrator. 687
(c) It shall not be an unfair or deceptive insurance practice under 688
section 38a-816 of the general statutes, as amended by this act, or an 689
unfair or deceptive trade practice under subsection (a) of section 42-110b 690
of the general statutes: 691
(1) If a consumer's destination jurisdiction requires insurance 692
coverage, to require the consumer to choose one of the following options 693
as a precondition to purchasing a trip or travel package: 694
(A) Purchasing the coverage required by such destination jurisdiction 695
through the designated travel retailer or limited lines travel insurance 696
producer supplying the trip or travel package; or 697 Raised Bill No. 5360
LCO No. 2217 24 of 39
(B) Agreeing to obtain and provide proof of coverage that meets the 698
destination jurisdiction's requirements prior to the time that the 699
consumer departs for such trip or travel; or 700
(2) If travel insurance coverage is directly marketed to a consumer 701
through an insurer's Internet web site or an aggregator web site and the 702
consumer may access all provisions of such travel insurance coverage 703
by electronic means, and an accurate summary or short description of 704
such travel insurance coverage is provided on the insurer's Internet web 705
site or aggregator web site. 706
Sec. 11. (NEW) (Effective October 1, 2020) The commissioner shall 707
adopt regulations, in accordance with chapter 54 of the general statutes, 708
to implement the provisions of section 38a-398 of the general statutes, 709
as amended by this act, and sections 3 to 10, inclusive, of this act. 710
Sec. 12. Subsection (a) of section 38a-11 of the general statutes is 711
repealed and the following is substituted in lieu thereof (Effective October 712
1, 2020): 713
(a) The commissioner shall demand and receive the following fees: 714
(1) For the annual fee for each license issued to a domestic insurance 715
company, two hundred dollars; (2) for receiving and filing annual 716
reports of domestic insurance companies, fifty dollars; (3) for filing all 717
documents prerequisite to the issuance of a license to an insurance 718
company, two hundred twenty dollars, except that the fee for such 719
filings by any health care center, as defined in section 38a-175, shall be 720
one thousand three hundred fifty dollars; (4) for filing any additional 721
paper required by law, thirty dollars; (5) for each certificate of valuation, 722
organization, reciprocity or compliance, forty dollars; (6) for each 723
certified copy of a license to a company, forty dollars; (7) for each 724
certified copy of a report or certificate of condition of a company to be 725
filed in any other state, forty dollars; (8) for amending a certificate of 726
authority, two hundred dollars; (9) for each license issued to a rating 727
organization, two hundred dollars. In addition, insurance companies 728
shall pay any fees imposed under section 12-211; (10) a filing fee of fifty 729 Raised Bill No. 5360
LCO No. 2217 25 of 39
dollars for each initial application for a license made pursuant to section 730
38a-769; (11) with respect to insurance agents' appointments: (A) A 731
filing fee of fifty dollars for each request for any agent appointment, 732
except that no filing fee shall be payable for a request for agent 733
appointment by an insurance company domiciled in a state or foreign 734
country which does not require any filing fee for a request for agent 735
appointment for a Connecticut insurance company; (B) a fee of one 736
hundred dollars for each appointment issued to an agent of a domestic 737
insurance company or for each appointment continued; and (C) a fee of 738
eighty dollars for each appointment issued to an agent of any other 739
insurance company or for each appointment continued, except that (i) 740
no fee shall be payable for an appointment issued to an agent of an 741
insurance company domiciled in a state or foreign country which does 742
not require any fee for an appointment issued to an agent of a 743
Connecticut insurance company, and (ii) the fee shall be twenty dollars 744
for each appointment issued or continued to an agent of an insurance 745
company domiciled in a state or foreign country with a premium tax 746
rate below Connecticut's premium tax rate; (12) with respect to 747
insurance producers: (A) An examination fee of fifteen dollars for each 748
examination taken, except when a testing service is used, the testing 749
service shall pay a fee of fifteen dollars to the commissioner for each 750
examination taken by an applicant; (B) a fee of eighty dollars for each 751
license issued; (C) a fee of eighty dollars per year, or any portion thereof, 752
for each license renewed; and (D) a fee of eighty dollars for any license 753
renewed under the transitional process established in section 38a-784; 754
(13) with respect to public adjusters: (A) An examination fee of fifteen 755
dollars for each examination taken, except when a testing service is 756
used, the testing service shall pay a fee of fifteen dollars to the 757
commissioner for each examination taken by an applicant; and (B) a fee 758
of two hundred fifty dollars for each license issued or renewed; (14) with 759
respect to casualty claims adjusters: (A) An examination fee of twenty 760
dollars for each examination taken, except when a testing service is 761
used, the testing service shall pay a fee of twenty dollars to the 762
commissioner for each examination taken by an applicant; (B) a fee of 763
eighty dollars for each license issued or renewed; and (C) the expense of 764 Raised Bill No. 5360
LCO No. 2217 26 of 39
any examination administered outside the state shall be the 765
responsibility of the entity making the request and such entity shall pay 766
to the commissioner two hundred dollars for such examination and the 767
actual traveling expenses of the examination administrator to 768
administer such examination; (15) with respect to motor vehicle 769
physical damage appraisers: (A) An examination fee of eighty dollars 770
for each examination taken, except when a testing service is used, the 771
testing service shall pay a fee of eighty dollars to the commissioner for 772
each examination taken by an applicant; (B) a fee of eighty dollars for 773
each license issued or renewed; and (C) the expense of any examination 774
administered outside the state shall be the responsibility of the entity 775
making the request and such entity shall pay to the commissioner two 776
hundred dollars for such examination and the actual traveling expenses 777
of the examination administrator to administer such examination; (16) 778
with respect to certified insurance consultants: (A) An examination fee 779
of twenty-six dollars for each examination taken, except when a testing 780
service is used, the testing service shall pay a fee of twenty-six dollars to 781
the commissioner for each examination taken by an applicant; (B) a fee 782
of two hundred fifty dollars for each license issued; and (C) a fee of two 783
hundred fifty dollars for each license renewed; (17) with respect to 784
surplus lines brokers: (A) An examination fee of twenty dollars for each 785
examination taken, except when a testing service is used, the testing 786
service shall pay a fee of twenty dollars to the commissioner for each 787
examination taken by an applicant; and (B) a fee of six hundred twenty-788
five dollars for each license issued or renewed; (18) with respect to 789
fraternal agents, a fee of eighty dollars for each license issued or 790
renewed; (19) a fee of twenty-six dollars for each license certificate 791
requested, whether or not a license has been issued; (20) with respect to 792
domestic and foreign benefit societies shall pay: (A) For service of 793
process, fifty dollars for each person or insurer to be served; (B) for filing 794
a certified copy of its charter or articles of association, fifteen dollars; (C) 795
for filing an annual statement or report, twenty dollars; and (D) for filing 796
any additional paper required by law, fifteen dollars; (21) with respect 797
to foreign benefit societies: (A) For each certificate of organization or 798
compliance, fifteen dollars; (B) for each certified copy of permit, fifteen 799 Raised Bill No. 5360
LCO No. 2217 27 of 39
dollars; and (C) for each copy of a report or certificate of condition of a 800
society to be filed in any other state, fifteen dollars; (22) with respect to 801
reinsurance intermediaries, a fee of six hundred twenty-five dollars for 802
each license issued or renewed; (23) with respect to life settlement 803
providers: (A) A filing fee of twenty-six dollars for each initial 804
application for a license made pursuant to section 38a-465a; and (B) a 805
fee of forty dollars for each license issued or renewed; (24) with respect 806
to life settlement brokers: (A) A filing fee of twenty-six dollars for each 807
initial application for a license made pursuant to section 38a-465a; and 808
(B) a fee of forty dollars for each license issued or renewed; (25) with 809
respect to preferred provider networks, a fee of two thousand seven 810
hundred fifty dollars for each license issued or renewed; (26) with 811
respect to rental companies, as defined in section 38a-799, a fee of eighty 812
dollars for each permit issued or renewed; (27) with respect to medical 813
discount plan organizations licensed under section 38a-479rr, a fee of six 814
hundred twenty-five dollars for each license issued or renewed; (28) 815
with respect to pharmacy benefits managers, an application fee of one 816
hundred dollars for each registration issued or renewed; (29) with 817
respect to captive insurance companies, as defined in section 38a-91aa, 818
a fee of three hundred seventy-five dollars for each license issued or 819
renewed; (30) with respect to each duplicate license issued a fee of fifty 820
dollars for each license issued; (31) with respect to surety bail bond 821
agents, as defined in section 38a-660, (A) a filing fee of one hundred fifty 822
dollars for each initial application for a license, and (B) a fee of one 823
hundred dollars for each license issued or renewed; (32) with respect to 824
third-party administrators, as defined in section 38a-720, (A) a fee of five 825
hundred dollars for each license issued, and (B) a fee of four hundred 826
fifty dollars for each license renewed; (33) with respect to portable 827
electronics insurance licenses under section 38a-397, (A) a filing fee of 828
one hundred dollars for each initial application for a license, (B) a fee of 829
five hundred dollars for each license issued, and (C) a fee of four 830
hundred fifty dollars for each license renewed; and (34) with respect to 831
limited lines travel insurance producer [licenses] authorizations under 832
section [38a-398] 4 of this act, (A) a filing fee of one hundred dollars for 833
each initial application for [a license] authorization, (B) a fee of six 834 Raised Bill No. 5360
LCO No. 2217 28 of 39
hundred fifty dollars for each [license] authorization issued, and (C) a 835
fee of six hundred fifty dollars for each [license] authorization renewed. 836
Sec. 13. Subsection (d) of section 38a-792 of the general statutes is 837
repealed and the following is substituted in lieu thereof (Effective October 838
1, 2020): 839
(d) The provisions of this section shall not apply to any: 840
(1) (A) Individual who, for purposes of claims for portable electronics 841
insurance, as defined in section 38a-397, only (i) collects claim 842
information from or furnishes claim information to insureds or 843
claimants, and (ii) conducts data entry, including data entry into an 844
automated claims adjudication system, provided (I) such individual is 845
an employee of a casualty insurance company licensed in this state, an 846
employee of a casualty claims adjuster licensed in this state or an 847
employee of an affiliate of such insurance company or adjuster, and (II) 848
not more than twenty-five such individuals are under the supervision 849
of a casualty claims adjuster licensed in this state or an insurance 850
producer who adjusts portable electronics insurance claims and is 851
licensed in this state. A licensed insurance producer who adjusts 852
portable electronics insurance claims or supervises individuals 853
pursuant to this subparagraph shall not be required to be licensed as a 854
casualty claims adjuster. 855
(B) For purposes of this subdivision, "automated claims adjudication 856
system" means a preprogrammed computer system, designed for the 857
collection, data entry, calculation and final resolution of portable 858
electronics insurance claims, that (i) is used only by a supervised 859
individual, a casualty claims adjuster licensed in this state or an 860
insurance producer licensed in this state, in accordance with 861
subparagraph (A) of this subdivision, and (ii) complies with all 862
applicable claims payment requirements under this title; [or] 863
(2) Member of the bar of this state in good standing who is engaged 864
in the general practice of the law; [.] or 865 Raised Bill No. 5360
LCO No. 2217 29 of 39
(3) Travel administrator, as defined in section 2 of this act, or 866
employee of a travel administrator for travel insurance, as defined in 867
said section 2 of this act, administered by such travel administrator. 868
Sec. 14. Section 38a-816 of the 2020 supplement to the general statutes 869
is repealed and the following is substituted in lieu thereof (Effective 870
October 1, 2020): 871
The following are defined as unfair methods of competition and 872
unfair and deceptive acts or practices in the business of insurance: 873
(1) Misrepresentations and false advertising of insurance policies. 874
Making, issuing or circulating, or causing to be made, issued or 875
circulated, any estimate, illustration, circular or statement, sales 876
presentation, omission or comparison which: (A) Misrepresents the 877
benefits, advantages, conditions or terms of any insurance policy; (B) 878
misrepresents the dividends or share of the surplus to be received, on 879
any insurance policy; (C) makes any false or misleading statements as 880
to the dividends or share of surplus previously paid on any insurance 881
policy; (D) is misleading or is a misrepresentation as to the financial 882
condition of any person, or as to the legal reserve system upon which 883
any life insurer operates; (E) uses any name or title of any insurance 884
policy or class of insurance policies misrepresenting the true nature 885
thereof; (F) is a misrepresentation, including, but not limited to, an 886
intentional misquote of a premium rate, for the purpose of inducing or 887
tending to induce to the purchase, lapse, forfeiture, exchange, 888
conversion or surrender of any insurance policy; (G) is a 889
misrepresentation for the purpose of effecting a pledge or assignment of 890
or effecting a loan against any insurance policy; or (H) misrepresents 891
any insurance policy as being shares of stock. 892
(2) False information and advertising generally. Making, publishing, 893
disseminating, circulating or placing before the public, or causing, 894
directly or indirectly, to be made, published, disseminated, circulated or 895
placed before the public, in a newspaper, magazine or other publication, 896
or in the form of a notice, circular, pamphlet, letter or poster, or over any 897 Raised Bill No. 5360
LCO No. 2217 30 of 39
radio or television station, or in any other way, an advertisement, 898
announcement or statement containing any assertion, representation or 899
statement with respect to the business of insurance or with respect to 900
any person in the conduct of his insurance business, which is untrue, 901
deceptive or misleading. 902
(3) Defamation. Making, publishing, disseminating or circulating, 903
directly or indirectly, or aiding, abetting or encouraging the making, 904
publishing, disseminating or circulating of, any oral or written 905
statement or any pamphlet, circular, article or literature which is false 906
or maliciously critical of or derogatory to the financial condition of an 907
insurer, and which is calculated to injure any person engaged in the 908
business of insurance. 909
(4) Boycott, coercion and intimidation. Entering into any agreement 910
to commit, or by any concerted action committing, any act of boycott, 911
coercion or intimidation resulting in or tending to result in unreasonable 912
restraint of, or monopoly in, the business of insurance. 913
(5) False financial statements. Filing with any supervisory or other 914
public official, or making, publishing, disseminating, circulating or 915
delivering to any person, or placing before the public, or causing, 916
directly or indirectly, to be made, published, disseminated, circulated or 917
delivered to any person, or placed before the public, any false statement 918
of financial condition of an insurer with intent to deceive; or making any 919
false entry in any book, report or statement of any insurer with intent to 920
deceive any agent or examiner lawfully appointed to examine into its 921
condition or into any of its affairs, or any public official to whom such 922
insurer is required by law to report, or who has authority by law to 923
examine into its condition or into any of its affairs, or, with like intent, 924
wilfully omitting to make a true entry of any material fact pertaining to 925
the business of such insurer in any book, report or statement of such 926
insurer. 927
(6) Unfair claim settlement practices. Committing or performing with 928
such frequency as to indicate a general business practice any of the 929 Raised Bill No. 5360
LCO No. 2217 31 of 39
following: (A) Misrepresenting pertinent facts or insurance policy 930
provisions relating to coverages at issue; (B) failing to acknowledge and 931
act with reasonable promptness upon communications with respect to 932
claims arising under insurance policies; (C) failing to adopt and 933
implement reasonable standards for the prompt investigation of claims 934
arising under insurance policies; (D) refusing to pay claims without 935
conducting a reasonable investigation based upon all available 936
information; (E) failing to affirm or deny coverage of claims within a 937
reasonable time after proof of loss statements have been completed; (F) 938
not attempting in good faith to effectuate prompt, fair and equitable 939
settlements of claims in which liability has become reasonably clear; (G) 940
compelling insureds to institute litigation to recover amounts due under 941
an insurance policy by offering substantially less than the amounts 942
ultimately recovered in actions brought by such insureds; (H) 943
attempting to settle a claim for less than the amount to which a 944
reasonable man would have believed he was entitled by reference to 945
written or printed advertising material accompanying or made part of 946
an application; (I) attempting to settle claims on the basis of an 947
application which was altered without notice to, or knowledge or 948
consent of the insured; (J) making claims payments to insureds or 949
beneficiaries not accompanied by statements setting forth the coverage 950
under which the payments are being made; (K) making known to 951
insureds or claimants a policy of appealing from arbitration awards in 952
favor of insureds or claimants for the purpose of compelling them to 953
accept settlements or compromises less than the amount awarded in 954
arbitration; (L) delaying the investigation or payment of claims by 955
requiring an insured, claimant, or the physician of either to submit a 956
preliminary claim report and then requiring the subsequent submission 957
of formal proof of loss forms, both of which submissions contain 958
substantially the same information; (M) failing to promptly settle claims, 959
where liability has become reasonably clear, under one portion of the 960
insurance policy coverage in order to influence settlements under other 961
portions of the insurance policy coverage; (N) failing to promptly 962
provide a reasonable explanation of the basis in the insurance policy in 963
relation to the facts or applicable law for denial of a claim or for the offer 964 Raised Bill No. 5360
LCO No. 2217 32 of 39
of a compromise settlement; (O) using as a basis for cash settlement with 965
a first party automobile insurance claimant an amount which is less than 966
the amount which the insurer would pay if repairs were made unless 967
such amount is agreed to by the insured or provided for by the 968
insurance policy. 969
(7) Failure to maintain complaint handling procedures. Failure of any 970
person to maintain complete record of all the complaints which it has 971
received since the date of its last examination. This record shall indicate 972
the total number of complaints, their classification by line of insurance, 973
the nature of each complaint, the disposition of these complaints, and 974
the time it took to process each complaint. For purposes of this 975
subsection "complaint" means any written communication primarily 976
expressing a grievance. 977
(8) Misrepresentation in insurance applications. Making false or 978
fraudulent statements or representations on or relative to an application 979
for an insurance policy for the purpose of obtaining a fee, commission, 980
money or other benefit from any insurer, producer or individual. 981
(9) Any violation of any one of sections 38a-358, 38a-446, 38a-447, 38a-982
488, 38a-825, 38a-826, 38a-828 and 38a-829. None of the following 983
practices shall be considered discrimination within the meaning of 984
section 38a-446 or 38a-488 or a rebate within the meaning of section 38a-985
825: (A) Paying bonuses to policyholders or otherwise abating their 986
premiums in whole or in part out of surplus accumulated from 987
nonparticipating insurance, provided any such bonuses or abatement of 988
premiums shall be fair and equitable to policyholders and for the best 989
interests of the company and its policyholders; (B) in the case of policies 990
issued on the industrial debit plan, making allowance to policyholders 991
who have continuously for a specified period made premium payments 992
directly to an office of the insurer in an amount which fairly represents 993
the saving in collection expense; (C) readjustment of the rate of premium 994
for a group insurance policy based on loss or expense experience, or 995
both, at the end of the first or any subsequent policy year, which may be 996
made retroactive for such policy year. 997 Raised Bill No. 5360
LCO No. 2217 33 of 39
(10) Notwithstanding any provision of any policy of insurance, 998
certificate or service contract, whenever such insurance policy or 999
certificate or service contract provides for reimbursement for any 1000
services which may be legally performed by any practitioner of the 1001
healing arts licensed to practice in this state, reimbursement under such 1002
insurance policy, certificate or service contract shall not be denied 1003
because of race, color or creed nor shall any insurer make or permit any 1004
unfair discrimination against particular individuals or persons so 1005
licensed. 1006
(11) Favored agent or insurer: Coercion of debtors. (A) No person 1007
may (i) require, as a condition precedent to the lending of money or 1008
extension of credit, or any renewal thereof, that the person to whom 1009
such money or credit is extended or whose obligation the creditor is to 1010
acquire or finance, negotiate any policy or contract of insurance through 1011
a particular insurer or group of insurers or producer or group of 1012
producers; (ii) unreasonably disapprove the insurance policy provided 1013
by a borrower for the protection of the property securing the credit or 1014
lien; (iii) require directly or indirectly that any borrower, mortgagor, 1015
purchaser, insurer or producer pay a separate charge, in connection 1016
with the handling of any insurance policy required as security for a loan 1017
on real estate or pay a separate charge to substitute the insurance policy 1018
of one insurer for that of another; or (iv) use or disclose information 1019
resulting from a requirement that a borrower, mortgagor or purchaser 1020
furnish insurance of any kind on real property being conveyed or used 1021
as collateral security to a loan, when such information is to the 1022
advantage of the mortgagee, vendor or lender, or is to the detriment of 1023
the borrower, mortgagor, purchaser, insurer or the producer complying 1024
with such a requirement. 1025
(B) (i) Subparagraph (A)(iii) of this subdivision shall not include the 1026
interest which may be charged on premium loans or premium 1027
advancements in accordance with the security instrument. (ii) For 1028
purposes of subparagraph (A)(ii) of this subdivision, such disapproval 1029
shall be deemed unreasonable if it is not based solely on reasonable 1030
standards uniformly applied, relating to the extent of coverage required 1031 Raised Bill No. 5360
LCO No. 2217 34 of 39
and the financial soundness and the services of an insurer. Such 1032
standards shall not discriminate against any particular type of insurer, 1033
nor shall such standards call for the disapproval of an insurance policy 1034
because such policy contains coverage in addition to that required. (iii) 1035
The commissioner may investigate the affairs of any person to whom 1036
this subdivision applies to determine whether such person has violated 1037
this subdivision. If a violation of this subdivision is found, the person in 1038
violation shall be subject to the same procedures and penalties as are 1039
applicable to other provisions of section 38a-815, subsections (b) and (e) 1040
of section 38a-817 and this section. (iv) For purposes of this section, 1041
"person" includes any individual, corporation, limited liability 1042
company, association, partnership or other legal entity. 1043
(12) Refusing to insure, refusing to continue to insure or limiting the 1044
amount, extent or kind of coverage available to an individual or 1045
charging an individual a different rate for the same coverage because of 1046
physical disability, mental or nervous condition as set forth in section 1047
38a-488a or intellectual disability, except where the refusal, limitation or 1048
rate differential is based on sound actuarial principles or is related to 1049
actual or reasonably anticipated experience. 1050
(13) Refusing to insure, refusing to continue to insure or limiting the 1051
amount, extent or kind of coverage available to an individual or 1052
charging an individual a different rate for the same coverage solely 1053
because of blindness or partial blindness. For purposes of this 1054
subdivision, "refusal to insure" includes the denial by an insurer of 1055
disability insurance coverage on the grounds that the policy defines 1056
"disability" as being presumed in the event that the insured is blind or 1057
partially blind, except that an insurer may exclude from coverage any 1058
disability, consisting solely of blindness or partial blindness, when such 1059
condition existed at the time the policy was issued. Any individual who 1060
is blind or partially blind shall be subject to the same standards of sound 1061
actuarial principles or actual or reasonably anticipated experience as are 1062
sighted persons with respect to all other conditions, including the 1063
underlying cause of the blindness or partial blindness. 1064 Raised Bill No. 5360
LCO No. 2217 35 of 39
(14) Refusing to insure, refusing to continue to insure or limiting the 1065
amount, extent or kind of coverage available to an individual or 1066
charging an individual a different rate for the same coverage because of 1067
exposure to diethylstilbestrol through the female parent. 1068
(15) (A) Failure by an insurer, or any other entity responsible for 1069
providing payment to a health care provider pursuant to an insurance 1070
policy, to pay accident and health claims, including, but not limited to, 1071
claims for payment or reimbursement to health care providers, within 1072
the time periods set forth in subparagraph (B) of this subdivision, unless 1073
the Insurance Commissioner determines that a legitimate dispute exists 1074
as to coverage, liability or damages or that the claimant has fraudulently 1075
caused or contributed to the loss. Any insurer, or any other entity 1076
responsible for providing payment to a health care provider pursuant 1077
to an insurance policy, who fails to pay such a claim or request within 1078
the time periods set forth in subparagraph (B) of this subdivision shall 1079
pay the claimant or health care provider the amount of such claim plus 1080
interest at the rate of fifteen per cent per annum, in addition to any other 1081
penalties which may be imposed pursuant to sections 38a-11, as 1082
amended by this act, 38a-25, 38a-41 to 38a-53, inclusive, 38a-57 to 38a-1083
60, inclusive, 38a-62 to 38a-64, inclusive, 38a-76, 38a-83, 38a-84, 38a-117 1084
to 38a-124, inclusive, 38a-129 to 38a-140, inclusive, 38a-146 to 38a-155, 1085
inclusive, 38a-283, 38a-288 to 38a-290, inclusive, 38a-319, 38a-320, 38a-1086
459, 38a-464, 38a-815 to 38a-819, inclusive, 38a-824 to 38a-826, inclusive, 1087
and 38a-828 to 38a-830, inclusive. Whenever the interest due a claimant 1088
or health care provider pursuant to this section is less than one dollar, 1089
the insurer shall deposit such amount in a separate interest-bearing 1090
account in which all such amounts shall be deposited. At the end of each 1091
calendar year each such insurer shall donate such amount to The 1092
University of Connecticut Health Center. 1093
(B) Each insurer or other entity responsible for providing payment to 1094
a health care provider pursuant to an insurance policy subject to this 1095
section, shall pay claims not later than: 1096
(i) For claims filed in paper format, sixty days after receipt by the 1097 Raised Bill No. 5360
LCO No. 2217 36 of 39
insurer of the claimant's proof of loss form or the health care provider's 1098
request for payment filed in accordance with the insurer's practices or 1099
procedures, except that when there is a deficiency in the information 1100
needed for processing a claim, as determined in accordance with section 1101
38a-477, the insurer shall (I) send written notice to the claimant or health 1102
care provider, as the case may be, of all alleged deficiencies in 1103
information needed for processing a claim not later than thirty days 1104
after the insurer receives a claim for payment or reimbursement under 1105
the contract, and (II) pay claims for payment or reimbursement under 1106
the contract not later than thirty days after the insurer receives the 1107
information requested; and 1108
(ii) For claims filed in electronic format, twenty days after receipt by 1109
the insurer of the claimant's proof of loss form or the health care 1110
provider's request for payment filed in accordance with the insurer's 1111
practices or procedures, except that when there is a deficiency in the 1112
information needed for processing a claim, as determined in accordance 1113
with section 38a-477, the insurer shall (I) notify the claimant or health 1114
care provider, as the case may be, of all alleged deficiencies in 1115
information needed for processing a claim not later than ten days after 1116
the insurer receives a claim for payment or reimbursement under the 1117
contract, and (II) pay claims for payment or reimbursement under the 1118
contract not later than ten days after the insurer receives the information 1119
requested. 1120
(C) As used in this subdivision, "health care provider" means a person 1121
licensed to provide health care services under chapter 368d, chapter 1122
368v, chapters 370 to 373, inclusive, 375 to 383c, inclusive, 384a to 384c, 1123
inclusive, or chapter 400j. 1124
(16) Failure to pay, as part of any claim for a damaged motor vehicle 1125
under any automobile insurance policy where the vehicle has been 1126
declared to be a constructive total loss, an amount equal to the sum of 1127
(A) the settlement amount on such vehicle plus, whenever the insurer 1128
takes title to such vehicle, (B) an amount determined by multiplying 1129
such settlement amount by a percentage equivalent to the current sales 1130 Raised Bill No. 5360
LCO No. 2217 37 of 39
tax rate established in section 12-408. For purposes of this subdivision, 1131
"constructive total loss" means the cost to repair or salvage damaged 1132
property, or the cost to both repair and salvage such property, equals or 1133
exceeds the total value of the property at the time of the loss. 1134
(17) Any violation of section 42-260, by an extended warranty 1135
provider subject to the provisions of said section, including, but not 1136
limited to: (A) Failure to include all statements required in subsections 1137
(c) and (f) of section 42-260 in an issued extended warranty; (B) offering 1138
an extended warranty without being (i) insured under an adequate 1139
extended warranty reimbursement insurance policy or (ii) able to 1140
demonstrate that reserves for claims contained in the provider's 1141
financial statements are not in excess of one-half the provider's audited 1142
net worth; (C) failure to submit a copy of an issued extended warranty 1143
form or a copy of such provider's extended warranty reimbursement 1144
policy form to the Insurance Commissioner. 1145
(18) With respect to an insurance company, hospital service 1146
corporation, health care center or fraternal benefit society providing 1147
individual or group health insurance coverage of the types specified in 1148
subdivisions (1), (2), (4), (6), (10), (11) and (12) of section 38a-469, 1149
refusing to insure, refusing to continue to insure or limiting the amount, 1150
extent or kind of coverage available to an individual or charging an 1151
individual a different rate for the same coverage because such 1152
individual has been a victim of family violence. 1153
(19) With respect to an insurance company, hospital service 1154
corporation, health care center or fraternal benefit society providing 1155
individual or group health insurance coverage of the types specified in 1156
subdivisions (1), (2), (3), (4), (6), (9), (10), (11) and (12) of section 38a-469, 1157
refusing to insure, refusing to continue to insure or limiting the amount, 1158
extent or kind of coverage available to an individual or charging an 1159
individual a different rate for the same coverage because of genetic 1160
information. Genetic information indicating a predisposition to a 1161
disease or condition shall not be deemed a preexisting condition in the 1162
absence of a diagnosis of such disease or condition that is based on other 1163 Raised Bill No. 5360
LCO No. 2217 38 of 39
medical information. An insurance company, hospital service 1164
corporation, health care center or fraternal benefit society providing 1165
individual health coverage of the types specified in subdivisions (1), (2), 1166
(3), (4), (6), (9), (10), (11) and (12) of section 38a-469, shall not be 1167
prohibited from refusing to insure or applying a preexisting condition 1168
limitation, to the extent permitted by law, to an individual who has been 1169
diagnosed with a disease or condition based on medical information 1170
other than genetic information and has exhibited symptoms of such 1171
disease or condition. For the purposes of this subsection, "genetic 1172
information" means the information about genes, gene products or 1173
inherited characteristics that may derive from an individual or family 1174
member. 1175
(20) Any violation of sections 38a-465 to 38a-465q, inclusive. 1176
(21) With respect to a managed care organization, as defined in 1177
section 38a-478, failing to establish a confidentiality procedure for 1178
medical record information, as required by section 38a-999. 1179
(22) Any violation of sections 38a-591d to 38a-591f, inclusive. 1180
(23) Any violation of section 38a-472j. 1181
(24) Any violation described in subsection (a) of section 10 of this act, 1182
except as provided in subsection (c) of section 10 of this act. 1183
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2020 38a-1
Sec. 2 October 1, 2020 38a-398
Sec. 3 October 1, 2020 New section
Sec. 4 October 1, 2020 New section
Sec. 5 October 1, 2020 New section
Sec. 6 October 1, 2020 New section
Sec. 7 October 1, 2020 New section
Sec. 8 October 1, 2020 New section
Sec. 9 October 1, 2020 New section
Sec. 10 October 1, 2020 New section Raised Bill No. 5360
LCO No. 2217 39 of 39
Sec. 11 October 1, 2020 New section
Sec. 12 October 1, 2020 38a-11(a)
Sec. 13 October 1, 2020 38a-792(d)
Sec. 14 October 1, 2020 38a-816
Statement of Purpose:
To provide for the regulation and taxation of travel insurance, and
associated entities, products and professionals, 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.]