Connecticut Senate Bill SB00841

Connecticut 2021 Regular Session

• Introduced: 2/4/21
• Refer: 2/4/21
• Report Pass: 3/22/21
• Refer: 4/1/21
• Report Pass: 4/8/21
• Refer: 4/28/21
• Report Pass: 5/3/21
• Report Pass: 5/4/21
• Engrossed: 5/19/21
• Report Pass: 5/19/21
• Passed: 6/9/21
• Chaptered: 6/24/21
• Enrolled: 6/28/21
• Passed: 7/7/21

Caption

An Act Concerning The Insurance Department's Recommended Changes To The Insurance Statutes.

Impact

The implementation of SB 841 is projected to significantly improve consumer protections within state insurance laws. Notably, it prohibits insurers from using genetic testing results without informed consent and restricts cancellation of homeowners insurance policies to specific circumstances, thus enhancing stability for policyholders. These adjustments are designed to prevent arbitrary policy cancellations and ensure that consumers are treated equitably throughout the insurance process, encouraging a more responsible insurance environment and potentially reducing litigation due to denied claims.

Summary

Senate Bill No. 841, titled 'An Act Concerning The Insurance Department's Recommended Changes To The Insurance Statutes,' proposes comprehensive reforms aimed at modernizing and enhancing the regulatory framework governing the insurance industry in the state. The bill addresses various aspects of insurance practices, including the treatment of genetic information in policy underwriting, claims processing timelines, and the conditions under which homeowners insurance policies may be canceled. These changes are intended to protect consumers while ensuring a fair and transparent claims process.

Sentiment

The sentiment displayed by stakeholders during discussions surrounding SB 841 was predominantly positive, with many viewing the bill as a necessary evolution of the state's insurance laws to better align them with modern ethical standards and consumer expectations. Proponents emphasized the importance of safeguarding personal information and the rights of policyholders, whilst concerns were voiced about the enforcement mechanisms for these new provisions, highlighting a desire for accountability within the insurance industry.

Contention

Despite the overall support for SB 841, some contention arose regarding the feasibility of implementing the proposed changes, particularly in regulating insurers' claims handling procedures and ensuring that these companies adhere to the new timelines for payment. Critics argued that without stringent enforcement measures, the reforms risk becoming ineffective. The need for a robust oversight framework was stressed, to guarantee that the intended benefits of the bill translate into tangible improvements for consumers.