Connecticut 2021 Regular Session

Connecticut House Bill HB06585 Compare Versions

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

Old	New	Differences
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3	3	LCO No. 3033 1 of 5
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5	5	General Assembly Raised Bill No. 6585
6	6	January Session, 2021
7	7	LCO No. 3033
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10	10	Referred to Committee on INSURANCE AND REAL ESTATE
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12	12
13	13	Introduced by:
14	14	(INS)
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19	19	AN ACT CONCERNING AS SOCIATION HEALTH PLA NS.
20	20	Be it enacted by the Senate and House of Representatives in General
21	21	Assembly convened:
22	22
23	23	Section 1. Section 38a-1 of the general statutes is repealed and the 1
24	24	following is substituted in lieu thereof (Effective October 1, 2021): 2
25	25	Terms used in this title and section 2 of this act, unless it appears from 3
26	26	the context to the contrary, shall have a scope and meaning as set forth 4
27	27	in this section. 5
28	28	(1) "Affiliate" or "affiliated" means a person that directly, or indirectly 6
29	29	through one or more intermediaries, controls, is controlled by or is 7
30	30	under common control with another person. 8
31	31	(2) "Alien insurer" means any insurer that has been chartered by or 9
32	32	organized or constituted within or under the laws of any jurisdiction or 10
33	33	country without the United States. 11
34	34	(3) "Annuities" means all agreements to make periodical payments 12
35	35	where the making or continuance of all or some of the series of the 13
36	36	payments, or the amount of the payment, is dependent upon the 14 Raised Bill No. 6585
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38	38
39	39
40	40	LCO No. 3033 2 of 5
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42	42	continuance of human life or is for a specified term of years. This 15
43	43	definition does not apply to payments made under a policy of life 16
44	44	insurance. 17
45	45	(4) "Commissioner" means the Insurance Commissioner. 18
46	46	(5) "Control", "controlled by" or "under common control with" means 19
47	47	the possession, direct or indirect, of the power to direct or cause the 20
48	48	direction of the management and policies of a person, whether through 21
49	49	the ownership of voting securities, by contract other than a commercial 22
50	50	contract for goods or nonmanagement services, or otherwise, unless the 23
51	51	power is the result of an official position with the person. 24
52	52	(6) "Domestic insurer" means any insurer that has been chartered by, 25
53	53	incorporated, organized or constituted within or under the laws of this 26
54	54	state. 27
55	55	(7) "Domestic surplus lines insurer" means any domestic insurer that 28
56	56	has been authorized by the commissioner to write surplus lines 29
57	57	insurance. 30
58	58	(8) "Foreign country" means any jurisdiction not in any state, district 31
59	59	or territory of the United States. 32
60	60	(9) "Foreign insurer" means any insurer that has been chartered by or 33
61	61	organized or constituted within or under the laws of another state or a 34
62	62	territory of the United States. 35
63	63	(10) "Insolvency" or "insolvent" means, for any insurer, that it is 36
64	64	unable to pay its obligations when they are due, or when its admitted 37
65	65	assets do not exceed its liabilities plus the greater of: (A) Capital and 38
66	66	surplus required by law for its organization and continued operation; 39
67	67	or (B) the total par or stated value of its authorized and issued capital 40
68	68	stock. For purposes of this subdivision "liabilities" shall include but not 41
69	69	be limited to reserves required by statute or by regulations adopted by 42
70	70	the commissioner in accordance with the provisions of chapter 54 or 43
71	71	specific requirements imposed by the commissioner upon a subject 44 Raised Bill No. 6585
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75	75	LCO No. 3033 3 of 5
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77	77	company at the time of admission or subsequent thereto. 45
78	78	(11) "Insurance" means any agreement to pay a sum of money, 46
79	79	provide services or any other thing of value on the happening of a 47
80	80	particular event or contingency or to provide indemnity for loss in 48
81	81	respect to a specified subject by specified perils in return for a 49
82	82	consideration. In any contract of insurance, an insured shall have an 50
83	83	interest which is subject to a risk of loss through destruction or 51
84	84	impairment of that interest, which risk is assumed by the insurer and 52
85	85	such assumption shall be part of a general scheme to distribute losses 53
86	86	among a large group of persons bearing similar risks in return for a 54
87	87	ratable contribution or other consideration. 55
88	88	(12) "Insurer" or "insurance company" includes any person or 56
89	89	combination of persons doing any kind or form of insurance business 57
90	90	other than a fraternal benefit society, and shall include a receiver of any 58
91	91	insurer when the context reasonably permits. 59
92	92	(13) "Insured" means a person to whom or for whose benefit an 60
93	93	insurer makes a promise in an insurance policy. The term includes 61
94	94	policyholders, subscribers, members and beneficiaries. This definition 62
95	95	applies only to the provisions of this title and does not define the 63
96	96	meaning of this word as used in insurance policies or certificates. 64
97	97	(14) "Life insurance" means insurance on human lives and insurances 65
98	98	pertaining to or connected with human life. The business of life 66
99	99	insurance includes granting endowment benefits, granting additional 67
100	100	benefits in the event of death by accident or accidental means, granting 68
101	101	additional benefits in the event of the total and permanent disability of 69
102	102	the insured, and providing optional methods of settlement of proceeds. 70
103	103	Life insurance includes burial contracts to the extent provided by 71
104	104	section 38a-464. 72
105	105	(15) "Mutual insurer" means any insurer without capital stock, the 73
106	106	managing directors or officers of which are elected by its members. 74
107	107	(16) "Person" means an individual, a corporation, a partnership, a 75 Raised Bill No. 6585
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110	110
111	111	LCO No. 3033 4 of 5
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113	113	limited liability company, an association, a joint stock company, a 76
114	114	business trust, an unincorporated organization or other legal entity. 77
115	115	(17) "Policy" means any document, including attached endorsements 78
116	116	and riders, purporting to be an enforceable contract, which 79
117	117	memorializes in writing some or all of the terms of an insurance 80
118	118	contract. 81
119	119	(18) "State" means any state, district, or territory of the United States. 82
120	120	(19) "Subsidiary" of a specified person means an affiliate controlled 83
121	121	by the person directly, or indirectly through one or more intermediaries. 84
122	122	(20) "Unauthorized insurer" or "nonadmitted insurer" means an 85
123	123	insurer that has not been granted a certificate of authority by the 86
124	124	commissioner to transact the business of insurance in this state or an 87
125	125	insurer transacting business not authorized by a valid certificate. 88
126	126	(21) "United States" means the United States of America, its territories 89
127	127	and possessions, the Commonwealth of Puerto Rico and the District of 90
128	128	Columbia. 91
129	129	Sec. 2. (NEW) (Effective October 1, 2021) (a) For the purposes of this 92
130	130	section: 93
131	131	(1) "Association health plan" means a fully insured group health 94
132	132	insurance policy that is (A) sponsored by a sponsoring association, and 95
133	133	(B) offered or sold to the employer members of the sponsoring 96
134	134	association to provide health benefits as permitted under the Employee 97
135	135	Retirement Income Security Act of 1974, as amended from time to time; 98
136	136	(2) "Employer" means (A) a sole proprietorship in this state, or (B) a 99
137	137	person doing business in this state that employs at least one individual 100
138	138	in this state; and 101
139	139	(3) "Sponsoring association" means an association comprised of one 102
140	140	or more employer members that provides an association health plan to 103
141	141	its employer members and their employees. 104 Raised Bill No. 6585
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145	145	LCO No. 3033 5 of 5
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147	147	(b) Notwithstanding any provision of the general statutes and to the 105
148	148	maximum extent permitted by federal law, a sponsoring association 106
149	149	may provide coverage under an association health plan to the employer 107
150	150	members of the sponsoring association and their employees. 108
151	151	(c) The Insurance Commissioner shall adopt regulations, in 109
152	152	accordance with the provisions of chapter 54 of the general statutes, to 110
153	153	carry out the purposes of this section. 111
154	154	This act shall take effect as follows and shall amend the following
155	155	sections:
156	156
157	157	Section 1 October 1, 2021 38a-1
158	158	Sec. 2 October 1, 2021 New section
159	159
160	160	Statement of Purpose:
161	161	To authorize association health plans in this state to the maximum
162	162	extent permitted under federal law.
163	163	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
164	164	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
165	165	underlined.]
166	166