Connecticut 2021 Regular Session

Connecticut Senate Bill SB00841 Compare Versions

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Version 2 (New)

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4		-	Substitute Senate Bill No. 841
	7	+	General Assembly Substitute Bill No. 841
	8	+	January Session, 2021
5	9
6		-	Public Act No. 21-137
7	10
8	11
9	12		AN ACT CONCERNING TH E INSURANCE DEPARTME NT'S
10	13		RECOMMENDED CHANGES TO THE INSURANCE STA TUTES.
11	14		Be it enacted by the Senate and House of Representatives in General
12	15		Assembly convened:
13	16
14		-	Section 1. Section 38a-1 of the general statutes is repealed and the
15		-	following is substituted in lieu thereof (Effective October 1, 2021):
16		-	Terms used in this title and sections 2 and 4 of this act, unless it
17		-	appears from the context to the contrary, shall have a scope and
18		-	meaning as set forth in this section.
19		-	(1) "Affiliate" or "affiliated" means a person that directly, or indirectly
20		-	through one or more intermediaries, controls, is controlled by or is
21		-	under common control with another person.
22		-	(2) "Alien insurer" means any insurer that has been chartered by or
23		-	organized or constituted within or under the laws of any jurisdiction or
24		-	country without the United States.
25		-	(3) "Annuities" means all agreements to make periodical payments
26		-	where the making or continuance of all or some of the series of the
27		-	payments, or the amount of the payment, is dependent upon the
28		-	continuance of human life or is for a specified term of years. This
29		-	definition does not apply to payments made under a policy of life Substitute Senate Bill No. 841
	17	+	Section 1. Section 38a-1 of the general statutes is repealed and the 1
	18	+	following is substituted in lieu thereof (Effective October 1, 2021): 2
	19	+	Terms used in this title and sections 2 and 4 of this act, unless it 3
	20	+	appears from the context to the contrary, shall have a scope and 4
	21	+	meaning as set forth in this section. 5
	22	+	(1) "Affiliate" or "affiliated" means a person that directly, or indirectly 6
	23	+	through one or more intermediaries, controls, is controlled by or is 7
	24	+	under common control with another person. 8
	25	+	(2) "Alien insurer" means any insurer that has been chartered by or 9
	26	+	organized or constituted within or under the laws of any jurisdiction or 10
	27	+	country without the United States. 11
	28	+	(3) "Annuities" means all agreements to make periodical payments 12
	29	+	where the making or continuance of all or some of the series of the 13
	30	+	payments, or the amount of the payment, is dependent upon the 14
	31	+	continuance of human life or is for a specified term of years. This 15
	32	+	definition does not apply to payments made under a policy of life 16
	33	+	insurance. 17 Substitute Bill No. 841
30	34
31		-	Public Act No. 21-137 2 of 20
32	35
33		-	insurance.
34		-	(4) "Commissioner" means the Insurance Commissioner.
35		-	(5) "Control", "controlled by" or "under common control with" means
36		-	the possession, direct or indirect, of the power to direct or cause the
37		-	direction of the management and policies of a person, whether through
38		-	the ownership of voting securities, by contract other than a commercial
39		-	contract for goods or nonmanagement services, or otherwise, unless the
40		-	power is the result of an official position with the person.
41		-	(6) "Domestic insurer" means any insurer that has been chartered by,
42		-	incorporated, organized or constituted within or under the laws of this
43		-	state.
44		-	(7) "Domestic surplus lines insurer" means any domestic insurer that
45		-	has been authorized by the commissioner to write surplus lines
46		-	insurance.
47		-	(8) "Foreign country" means any jurisdiction not in any state, district
48		-	or territory of the United States.
49		-	(9) "Foreign insurer" means any insurer that has been chartered by or
50		-	organized or constituted within or under the laws of another state or a
51		-	territory of the United States.
52		-	(10) "Insolvency" or "insolvent" means, for any insurer, that it is
53		-	unable to pay its obligations when they are due, or when its admitted
54		-	assets do not exceed its liabilities plus the greater of: (A) Capital and
55		-	surplus required by law for its organization and continued operation;
56		-	or (B) the total par or stated value of its authorized and issued capital
57		-	stock. For purposes of this subdivision "liabilities" shall include but not
58		-	be limited to reserves required by statute or by regulations adopted by
59		-	the commissioner in accordance with the provisions of chapter 54 or
60		-	specific requirements imposed by the commissioner upon a subject Substitute Senate Bill No. 841
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61	39
62		-	Public Act No. 21-137 3 of 20
	40	+	(4) "Commissioner" means the Insurance Commissioner. 18
	41	+	(5) "Control", "controlled by" or "under common control with" means 19
	42	+	the possession, direct or indirect, of the power to direct or cause the 20
	43	+	direction of the management and policies of a person, whether through 21
	44	+	the ownership of voting securities, by contract other than a commercial 22
	45	+	contract for goods or nonmanagement services, or otherwise, unless the 23
	46	+	power is the result of an official position with the person. 24
	47	+	(6) "Domestic insurer" means any insurer that has been chartered by, 25
	48	+	incorporated, organized or constituted within or under the laws of this 26
	49	+	state. 27
	50	+	(7) "Domestic surplus lines insurer" means any domestic insurer that 28
	51	+	has been authorized by the commissioner to write surplus lines 29
	52	+	insurance. 30
	53	+	(8) "Foreign country" means any jurisdiction not in any state, district 31
	54	+	or territory of the United States. 32
	55	+	(9) "Foreign insurer" means any insurer that has been chartered by or 33
	56	+	organized or constituted within or under the laws of another state or a 34
	57	+	territory of the United States. 35
	58	+	(10) "Insolvency" or "insolvent" means, for any insurer, that it is 36
	59	+	unable to pay its obligations when they are due, or when its admitted 37
	60	+	assets do not exceed its liabilities plus the greater of: (A) Capital and 38
	61	+	surplus required by law for its organization and continued operation; 39
	62	+	or (B) the total par or stated value of its authorized and issued capital 40
	63	+	stock. For purposes of this subdivision "liabilities" shall include but not 41
	64	+	be limited to reserves required by statute or by regulations adopted by 42
	65	+	the commissioner in accordance with the provisions of chapter 54 or 43
	66	+	specific requirements imposed by the commissioner upon a subject 44
	67	+	company at the time of admission or subsequent thereto. 45
	68	+	(11) "Insurance" means any agreement to pay a sum of money, 46
	69	+	provide services or any other thing of value on the happening of a 47 Substitute Bill No. 841
63	70
64		-	company at the time of admission or subsequent thereto.
65		-	(11) "Insurance" means any agreement to pay a sum of money,
66		-	provide services or any other thing of value on the happening of a
67		-	particular event or contingency or to provide indemnity for loss in
68		-	respect to a specified subject by specified perils in return for a
69		-	consideration. In any contract of insurance, an insured shall have an
70		-	interest which is subject to a risk of loss through destruction or
71		-	impairment of that interest, which risk is assumed by the insurer and
72		-	such assumption shall be part of a general scheme to distribute losses
73		-	among a large group of persons bearing similar risks in return for a
74		-	ratable contribution or other consideration.
75		-	(12) "Insurer" or "insurance company" includes any person or
76		-	combination of persons doing any kind or form of insurance business
77		-	other than a fraternal benefit society, and shall include a receiver of any
78		-	insurer when the context reasonably permits.
79		-	(13) "Insured" means a person to whom or for whose benefit an
80		-	insurer makes a promise in an insurance policy. The term includes
81		-	policyholders, subscribers, members and beneficiaries. This definition
82		-	applies only to the provisions of this title and does not define the
83		-	meaning of this word as used in insurance policies or certificates.
84		-	(14) "Life insurance" means insurance on human lives and insurances
85		-	pertaining to or connected with human life. The business of life
86		-	insurance includes granting endowment benefits, granting additional
87		-	benefits in the event of death by accident or accidental means, granting
88		-	additional benefits in the event of the total and permanent disability of
89		-	the insured, and providing optional methods of settlement of proceeds.
90		-	Life insurance includes burial contracts to the extent provided by
91		-	section 38a-464.
92		-	(15) "Mutual insurer" means any insurer without capital stock, the Substitute Senate Bill No. 841
93	71
94		-	Public Act No. 21-137 4 of 20
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95	75
96		-	managing directors or officers of which are elected by its members.
97		-	(16) "Person" means an individual, a corporation, a partnership, a
98		-	limited liability company, an association, a joint stock company, a
99		-	business trust, an unincorporated organization or other legal entity.
100		-	(17) "Policy" means any document, including attached endorsements
101		-	and riders, purporting to be an enforceable contract, which
102		-	memorializes in writing some or all of the terms of an insurance
103		-	contract.
104		-	(18) "State" means any state, district, or territory of the United States.
105		-	(19) "Subsidiary" of a specified person means an affiliate controlled
106		-	by the person directly, or indirectly through one or more intermediaries.
107		-	(20) "Unauthorized insurer" or "nonadmitted insurer" means an
108		-	insurer that has not been granted a certificate of authority by the
109		-	commissioner to transact the business of insurance in this state or an
110		-	insurer transacting business not authorized by a valid certificate.
111		-	(21) "United States" means the United States of America, its territories
112		-	and possessions, the Commonwealth of Puerto Rico and the District of
113		-	Columbia.
114		-	Sec. 2. (NEW) (Effective October 1, 2021) No insurer, health care center
115		-	or fraternal benefit society doing business in this state shall:
116		-	(1) In connection with the issuance, withholding, extension or
117		-	renewal of an annuity or an insurance policy for life, credit life,
118		-	disability, long-term care, accidental injury, specified disease, hospital
119		-	indemnity or credit accident insurance, request, require, purchase or use
120		-	information obtained from an entity providing direct-to-consumer
121		-	genetic testing without the informed written consent of the individual
122		-	who has been tested; or Substitute Senate Bill No. 841
	76	+	particular event or contingency or to provide indemnity for loss in 48
	77	+	respect to a specified subject by specified perils in return for a 49
	78	+	consideration. In any contract of insurance, an insured shall have an 50
	79	+	interest which is subject to a risk of loss through destruction or 51
	80	+	impairment of that interest, which risk is assumed by the insurer and 52
	81	+	such assumption shall be part of a general scheme to distribute losses 53
	82	+	among a large group of persons bearing similar risks in return for a 54
	83	+	ratable contribution or other consideration. 55
	84	+	(12) "Insurer" or "insurance company" includes any person or 56
	85	+	combination of persons doing any kind or form of insurance business 57
	86	+	other than a fraternal benefit society, and shall include a receiver of any 58
	87	+	insurer when the context reasonably permits. 59
	88	+	(13) "Insured" means a person to whom or for whose benefit an 60
	89	+	insurer makes a promise in an insurance policy. The term includes 61
	90	+	policyholders, subscribers, members and beneficiaries. This definition 62
	91	+	applies only to the provisions of this title and does not define the 63
	92	+	meaning of this word as used in insurance policies or certificates. 64
	93	+	(14) "Life insurance" means insurance on human lives and insurances 65
	94	+	pertaining to or connected with human life. The business of life 66
	95	+	insurance includes granting endowment benefits, granting additional 67
	96	+	benefits in the event of death by accident or accidental means, granting 68
	97	+	additional benefits in the event of the total and permanent disability of 69
	98	+	the insured, and providing optional methods of settlement of proceeds. 70
	99	+	Life insurance includes burial contracts to the extent provided by 71
	100	+	section 38a-464. 72
	101	+	(15) "Mutual insurer" means any insurer without capital stock, the 73
	102	+	managing directors or officers of which are elected by its members. 74
	103	+	(16) "Person" means an individual, a corporation, a partnership, a 75
	104	+	limited liability company, an association, a joint stock company, a 76
	105	+	business trust, an unincorporated organization or other legal entity. 77
	106	+	(17) "Policy" means any document, including attached endorsements 78 Substitute Bill No. 841
123	107
124		-	Public Act No. 21-137 5 of 20
125	108
126		-	(2) Condition insurance rates, the provision or renewal of insurance
127		-	coverage or benefit or other conditions of insurance for an individual
128		-	on:
129		-	(A) Any requirement or agreement that the individual undergo
130		-	genetic testing; or
131		-	(B) The results of any genetic testing of a member of the individual's
132		-	family unless the results are contained in the individual's medical
133		-	record.
134		-	Sec. 3. Section 38a-816 of the general statutes is repealed and the
135		-	following is substituted in lieu thereof (Effective October 1, 2021):
136		-	The following are defined as unfair methods of competition and
137		-	unfair and deceptive acts or practices in the business of insurance:
138		-	(1) Misrepresentations and false advertising of insurance policies.
139		-	Making, issuing or circulating, or causing to be made, issued or
140		-	circulated, any estimate, illustration, circular or statement, sales
141		-	presentation, omission or comparison which: (A) Misrepresents the
142		-	benefits, advantages, conditions or terms of any insurance policy; (B)
143		-	misrepresents the dividends or share of the surplus to be received, on
144		-	any insurance policy; (C) makes any false or misleading statements as
145		-	to the dividends or share of surplus previously paid on any insurance
146		-	policy; (D) is misleading or is a misrepresentation as to the financial
147		-	condition of any person, or as to the legal reserve system upon which
148		-	any life insurer operates; (E) uses any name or title of any insurance
149		-	policy or class of insurance policies misrepresenting the true nature
150		-	thereof; (F) is a misrepresentation, including, but not limited to, an
151		-	intentional misquote of a premium rate, for the purpose of inducing or
152		-	tending to induce to the purchase, lapse, forfeiture, exchange,
153		-	conversion or surrender of any insurance policy; (G) is a
154		-	misrepresentation for the purpose of effecting a pledge or assignment of Substitute Senate Bill No. 841
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155	112
156		-	Public Act No. 21-137 6 of 20
	113	+	and riders, purporting to be an enforceable contract, which 79
	114	+	memorializes in writing some or all of the terms of an insurance 80
	115	+	contract. 81
	116	+	(18) "State" means any state, district, or territory of the United States. 82
	117	+	(19) "Subsidiary" of a specified person means an affiliate controlled 83
	118	+	by the person directly, or indirectly through one or more intermediaries. 84
	119	+	(20) "Unauthorized insurer" or "nonadmitted insurer" means an 85
	120	+	insurer that has not been granted a certificate of authority by the 86
	121	+	commissioner to transact the business of insurance in this state or an 87
	122	+	insurer transacting business not authorized by a valid certificate. 88
	123	+	(21) "United States" means the United States of America, its territories 89
	124	+	and possessions, the Commonwealth of Puerto Rico and the District of 90
	125	+	Columbia. 91
	126	+	Sec. 2. (NEW) (Effective October 1, 2021) No insurer, health care center 92
	127	+	or fraternal benefit society doing business in this state shall: 93
	128	+	(1) In connection with the issuance, withholding, extension or 94
	129	+	renewal of an annuity or an insurance policy for life, credit life, 95
	130	+	disability, long-term care, accidental injury, specified disease, hospital 96
	131	+	indemnity or credit accident insurance, request, require, purchase or use 97
	132	+	information obtained from an entity providing direct-to-consumer 98
	133	+	genetic testing without the informed written consent of the individual 99
	134	+	who has been tested; or 100
	135	+	(2) Condition insurance rates, the provision or renewal of insurance 101
	136	+	coverage or benefit or other conditions of insurance for an individual 102
	137	+	on: 103
	138	+	(A) Any requirement or agreement that the individual undergo 104
	139	+	genetic testing; or 105
	140	+	(B) The results of any genetic testing of a member of the individual's 106 Substitute Bill No. 841
157	141
158		-	or effecting a loan against any insurance policy; or (H) misrepresents
159		-	any insurance policy as being shares of stock.
160		-	(2) False information and advertising generally. Making, publishing,
161		-	disseminating, circulating or placing before the public, or causing,
162		-	directly or indirectly, to be made, published, disseminated, circulated or
163		-	placed before the public, in a newspaper, magazine or other publication,
164		-	or in the form of a notice, circular, pamphlet, letter or poster, or over any
165		-	radio or television station, or in any other way, an advertisement,
166		-	announcement or statement containing any assertion, representation or
167		-	statement with respect to the business of insurance or with respect to
168		-	any person in the conduct of his insurance business, which is untrue,
169		-	deceptive or misleading.
170		-	(3) Defamation. Making, publishing, disseminating or circulating,
171		-	directly or indirectly, or aiding, abetting or encouraging the making,
172		-	publishing, disseminating or circulating of, any oral or written
173		-	statement or any pamphlet, circular, article or literature which is false
174		-	or maliciously critical of or derogatory to the financial condition of an
175		-	insurer, and which is calculated to injure any person engaged in the
176		-	business of insurance.
177		-	(4) Boycott, coercion and intimidation. Entering into any agreement
178		-	to commit, or by any concerted action committing, any act of boycott,
179		-	coercion or intimidation resulting in or tending to result in unreasonable
180		-	restraint of, or monopoly in, the business of insurance.
181		-	(5) False financial statements. Filing with any supervisory or other
182		-	public official, or making, publishing, disseminating, circulating or
183		-	delivering to any person, or placing before the public, or causing,
184		-	directly or indirectly, to be made, published, disseminated, circulated or
185		-	delivered to any person, or placed before the public, any false statement
186		-	of financial condition of an insurer with intent to deceive; or making any
187		-	false entry in any book, report or statement of any insurer with intent to Substitute Senate Bill No. 841
188	142
189		-	Public Act No. 21-137 7 of 20
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190	146
191		-	~~deceive any agent or examiner lawfully appointed to examine into its~~
192		-	~~condition or into any of its affairs, or any public official to whom such~~
193		-	~~insurer~~ is ~~required by law to report, or who has authority by law to~~
194		-	~~examine into its condition or into any of its affairs~~, ~~or, with like intent,~~
195		-	~~wilfully omitting to make a true entry~~ of ~~any material fact pertaining to~~
196		-	the business of ~~such insurer in any book, report or statement of such~~
197		-	~~insurer~~.
198		-	~~(6) Unfair claim settlement practices. Committing~~ or ~~performing with~~
199		-	~~such frequency as to indicate a general business practice~~ any ~~of the~~
200		-	~~following~~: (A) ~~Misrepresenting pertinent facts or insurance policy~~
201		-	~~provisions relating to coverages at issue~~; (B) ~~failing to acknowledge and~~
202		-	~~act with reasonable promptness upon communications with respect~~ to
203		-	~~claims arising under~~ insurance ~~policies~~; (C) ~~failing to adopt and~~
204		-	~~implement reasonable standards for~~ the ~~prompt investigation~~ of ~~claims~~
205		-	~~arising under insurance policies~~; (D) ~~refusing~~ to ~~pay claims without~~
206		-	~~conducting a reasonable investigation based~~ upon ~~all available~~
207		-	~~information~~; (E) ~~failing to affirm~~ or ~~deny coverage~~ of ~~claims within a~~
208		-	~~reasonable time after proof~~ of ~~loss statements have been completed;~~ ~~(F)~~
209		-	not ~~attempting in good faith~~ to ~~effectuate prompt~~, ~~fair and equitable~~
210		-	~~settlements~~ of ~~claims in which liability has become reasonably clear;~~ ~~(G)~~
211		-	~~compelling insureds~~ to ~~institute litigation~~ to ~~recover amounts due under~~
212		-	an insurance policy ~~by offering substantially less than the amounts~~
213		-	~~ultimately recovered in actions brought by such insureds;~~ ~~(H)~~
214		-	~~attempting to settle~~ a ~~claim for less than the amount to which a~~
215		-	~~reasonable man would have believed he was entitled by reference to~~
216		-	~~written or printed~~ advertising ~~material accompanying or made part of~~
217		-	~~an application;~~ ~~(I) attempting to settle claims on~~ the ~~basis of an~~
218		-	~~application which was altered without notice to,~~ or ~~knowledge~~ or
219		-	~~consent of~~ the ~~insured; (J) making claims payments to insureds~~ or
220		-	~~beneficiaries not accompanied by statements setting forth~~ the ~~coverage~~
221		-	~~under which the payments are being made;~~ ~~(K) making known to~~
222		-	~~insureds~~ or ~~claimants a policy of appealing from arbitration awards in~~ Substitute ~~Senate~~ Bill No. 841
	147	+	family unless the results are contained in the individual's medical 107
	148	+	record. 108
	149	+	Sec. 3. Section 38a-816 of the general statutes is repealed and the 109
	150	+	following is substituted in lieu thereof (Effective October 1, 2021): 110
	151	+	The following are defined as unfair methods of competition and 111
	152	+	unfair and deceptive acts or practices in the business of insurance: 112
	153	+	(1) Misrepresentations and false advertising of insurance policies. 113
	154	+	Making, issuing or circulating, or causing to be made, issued or 114
	155	+	circulated, any estimate, illustration, circular or statement, sales 115
	156	+	presentation, omission or comparison which: (A) Misrepresents the 116
	157	+	benefits, advantages, conditions or terms of any insurance policy; (B) 117
	158	+	misrepresents the dividends or share of the surplus to be received, on 118
	159	+	any insurance policy; (C) makes any false or misleading statements as 119
	160	+	to the dividends or share of surplus previously paid on any insurance 120
	161	+	policy; (D) is misleading or is a misrepresentation as to the financial 121
	162	+	condition of any person, or as to the legal reserve system upon which 122
	163	+	any life insurer operates; (E) uses any name or title of any insurance 123
	164	+	policy or class of insurance policies misrepresenting the true nature 124
	165	+	thereof; (F) is a misrepresentation, including, but not limited to, an 125
	166	+	intentional misquote of a premium rate, for the purpose of inducing or 126
	167	+	tending to induce to the purchase, lapse, forfeiture, exchange, 127
	168	+	conversion or surrender of any insurance policy; (G) is a 128
	169	+	misrepresentation for the purpose of effecting a pledge or assignment of 129
	170	+	or effecting a loan against any insurance policy; or (H) misrepresents 130
	171	+	any insurance policy as being shares of stock. 131
	172	+	(2) False information and advertising generally. Making, publishing, 132
	173	+	disseminating, circulating or placing before the public, or causing, 133
	174	+	directly or indirectly, to be made, published, disseminated, circulated or 134
	175	+	placed before the public, in a newspaper, magazine or other publication, 135
	176	+	or in the form of a notice, circular, pamphlet, letter or poster, or over any 136
	177	+	radio or television station, or in any other way, an advertisement, 137
	178	+	announcement or statement containing any assertion, representation or 138 Substitute Bill No. 841
223	179
224		-	Public Act No. 21-137 8 of 20
225	180
226		-	favor of insureds or claimants for the purpose of compelling them to
227		-	accept settlements or compromises less than the amount awarded in
228		-	arbitration; (L) delaying the investigation or payment of claims by
229		-	requiring an insured, claimant, or the physician of either to submit a
230		-	preliminary claim report and then requiring the subsequent submission
231		-	of formal proof of loss forms, both of which submissions contain
232		-	substantially the same information; (M) failing to promptly settle claims,
233		-	where liability has become reasonably clear, under one portion of the
234		-	insurance policy coverage in order to influence settlements under other
235		-	portions of the insurance policy coverage; (N) failing to promptly
236		-	provide a reasonable explanation of the basis in the insurance policy in
237		-	relation to the facts or applicable law for denial of a claim or for the offer
238		-	of a compromise settlement; (O) using as a basis for cash settlement with
239		-	a first party automobile insurance claimant an amount which is less than
240		-	the amount which the insurer would pay if repairs were made unless
241		-	such amount is agreed to by the insured or provided for by the
242		-	insurance policy.
243		-	(7) Failure to maintain complaint handling procedures. Failure of any
244		-	person to maintain complete record of all the complaints which it has
245		-	received since the date of its last examination. This record shall indicate
246		-	the total number of complaints, their classification by line of insurance,
247		-	the nature of each complaint, the disposition of these complaints, and
248		-	the time it took to process each complaint. For purposes of this
249		-	subsection "complaint" means any written communication primarily
250		-	expressing a grievance.
251		-	(8) Misrepresentation in insurance applications. Making false or
252		-	fraudulent statements or representations on or relative to an application
253		-	for an insurance policy for the purpose of obtaining a fee, commission,
254		-	money or other benefit from any insurer, producer or individual.
255		-	(9) Any violation of any one of sections 38a-358, 38a-446, 38a-447, 38a-
256		-	488, 38a-825, 38a-826, 38a-828 and 38a-829. None of the following Substitute Senate Bill No. 841
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	185	+	statement with respect to the business of insurance or with respect to 139
	186	+	any person in the conduct of his insurance business, which is untrue, 140
	187	+	deceptive or misleading. 141
	188	+	(3) Defamation. Making, publishing, disseminating or circulating, 142
	189	+	directly or indirectly, or aiding, abetting or encouraging the making, 143
	190	+	publishing, disseminating or circulating of, any oral or written 144
	191	+	statement or any pamphlet, circular, article or literature which is false 145
	192	+	or maliciously critical of or derogatory to the financial condition of an 146
	193	+	insurer, and which is calculated to injure any person engaged in the 147
	194	+	business of insurance. 148
	195	+	(4) Boycott, coercion and intimidation. Entering into any agreement 149
	196	+	to commit, or by any concerted action committing, any act of boycott, 150
	197	+	coercion or intimidation resulting in or tending to result in unreasonable 151
	198	+	restraint of, or monopoly in, the business of insurance. 152
	199	+	(5) False financial statements. Filing with any supervisory or other 153
	200	+	public official, or making, publishing, disseminating, circulating or 154
	201	+	delivering to any person, or placing before the public, or causing, 155
	202	+	directly or indirectly, to be made, published, disseminated, circulated or 156
	203	+	delivered to any person, or placed before the public, any false statement 157
	204	+	of financial condition of an insurer with intent to deceive; or making any 158
	205	+	false entry in any book, report or statement of any insurer with intent to 159
	206	+	deceive any agent or examiner lawfully appointed to examine into its 160
	207	+	condition or into any of its affairs, or any public official to whom such 161
	208	+	insurer is required by law to report, or who has authority by law to 162
	209	+	examine into its condition or into any of its affairs, or, with like intent, 163
	210	+	wilfully omitting to make a true entry of any material fact pertaining to 164
	211	+	the business of such insurer in any book, report or statement of such 165
	212	+	insurer. 166
	213	+	(6) Unfair claim settlement practices. Committing or performing with 167
	214	+	such frequency as to indicate a general business practice any of the 168
	215	+	following: (A) Misrepresenting pertinent facts or insurance policy 169
	216	+	provisions relating to coverages at issue; (B) failing to acknowledge and 170 Substitute Bill No. 841
259	217
260		-	practices shall be considered discrimination within the meaning of
261		-	section 38a-446 or 38a-488 or a rebate within the meaning of section 38a-
262		-	825: (A) Paying bonuses to policyholders or otherwise abating their
263		-	premiums in whole or in part out of surplus accumulated from
264		-	nonparticipating insurance, provided any such bonuses or abatement of
265		-	premiums shall be fair and equitable to policyholders and for the best
266		-	interests of the company and its policyholders; (B) in the case of policies
267		-	issued on the industrial debit plan, making allowance to policyholders
268		-	who have continuously for a specified period made premium payments
269		-	directly to an office of the insurer in an amount which fairly represents
270		-	the saving in collection expense; (C) readjustment of the rate of premium
271		-	for a group insurance policy based on loss or expense experience, or
272		-	both, at the end of the first or any subsequent policy year, which may be
273		-	made retroactive for such policy year.
274		-	(10) Notwithstanding any provision of any policy of insurance,
275		-	certificate or service contract, whenever such insurance policy or
276		-	certificate or service contract provides for reimbursement for any
277		-	services which may be legally performed by any practitioner of the
278		-	healing arts licensed to practice in this state, reimbursement under such
279		-	insurance policy, certificate or service contract shall not be denied
280		-	because of race, color or creed nor shall any insurer make or permit any
281		-	unfair discrimination against particular individuals or persons so
282		-	licensed.
283		-	(11) Favored agent or insurer: Coercion of debtors. (A) No person
284		-	may (i) require, as a condition precedent to the lending of money or
285		-	extension of credit, or any renewal thereof, that the person to whom
286		-	such money or credit is extended or whose obligation the creditor is to
287		-	acquire or finance, negotiate any policy or contract of insurance through
288		-	a particular insurer or group of insurers or producer or group of
289		-	producers; (ii) unreasonably disapprove the insurance policy provided
290		-	by a borrower for the protection of the property securing the credit or Substitute Senate Bill No. 841
291	218
292		-	Public Act No. 21-137 10 of 20
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294		-	lien; (iii) require directly or indirectly that any borrower, mortgagor,
295		-	purchaser, insurer or producer pay a separate charge, in connection
296		-	with the handling of any insurance policy required as security for a loan
297		-	on real estate or pay a separate charge to substitute the insurance policy
298		-	of one insurer for that of another; or (iv) use or disclose information
299		-	resulting from a requirement that a borrower, mortgagor or purchaser
300		-	furnish insurance of any kind on real property being conveyed or used
301		-	as collateral security to a loan, when such information is to the
302		-	advantage of the mortgagee, vendor or lender, or is to the detriment of
303		-	the borrower, mortgagor, purchaser, insurer or the producer complying
304		-	with such a requirement.
305		-	(B) (i) Subparagraph (A)(iii) of this subdivision shall not include the
306		-	interest which may be charged on premium loans or premium
307		-	advancements in accordance with the security instrument. (ii) For
308		-	purposes of subparagraph (A)(ii) of this subdivision, such disapproval
309		-	shall be deemed unreasonable if it is not based solely on reasonable
310		-	standards uniformly applied, relating to the extent of coverage required
311		-	and the financial soundness and the services of an insurer. Such
312		-	standards shall not discriminate against any particular type of insurer,
313		-	nor shall such standards call for the disapproval of an insurance policy
314		-	because such policy contains coverage in addition to that required. (iii)
315		-	The commissioner may investigate the affairs of any person to whom
316		-	this subdivision applies to determine whether such person has violated
317		-	this subdivision. If a violation of this subdivision is found, the person in
318		-	violation shall be subject to the same procedures and penalties as are
319		-	applicable to other provisions of section 38a-815, subsections (b) and (e)
320		-	of section 38a-817 and this section. (iv) For purposes of this section,
321		-	"person" includes any individual, corporation, limited liability
322		-	company, association, partnership or other legal entity.
323		-	(12) Refusing to insure, refusing to continue to insure or limiting the
324		-	amount, extent or kind of coverage available to an individual or Substitute Senate Bill No. 841
	223	+	act with reasonable promptness upon communications with respect to 171
	224	+	claims arising under insurance policies; (C) failing to adopt and 172
	225	+	implement reasonable standards for the prompt investigation of claims 173
	226	+	arising under insurance policies; (D) refusing to pay claims without 174
	227	+	conducting a reasonable investigation based upon all available 175
	228	+	information; (E) failing to affirm or deny coverage of claims within a 176
	229	+	reasonable time after proof of loss statements have been completed; (F) 177
	230	+	not attempting in good faith to effectuate prompt, fair and equitable 178
	231	+	settlements of claims in which liability has become reasonably clear; (G) 179
	232	+	compelling insureds to institute litigation to recover amounts due under 180
	233	+	an insurance policy by offering substantially less than the amounts 181
	234	+	ultimately recovered in actions brought by such insureds; (H) 182
	235	+	attempting to settle a claim for less than the amount to which a 183
	236	+	reasonable man would have believed he was entitled by reference to 184
	237	+	written or printed advertising material accompanying or made part of 185
	238	+	an application; (I) attempting to settle claims on the basis of an 186
	239	+	application which was altered without notice to, or knowledge or 187
	240	+	consent of the insured; (J) making claims payments to insureds or 188
	241	+	beneficiaries not accompanied by statements setting forth the coverage 189
	242	+	under which the payments are being made; (K) making known to 190
	243	+	insureds or claimants a policy of appealing from arbitration awards in 191
	244	+	favor of insureds or claimants for the purpose of compelling them to 192
	245	+	accept settlements or compromises less than the amount awarded in 193
	246	+	arbitration; (L) delaying the investigation or payment of claims by 194
	247	+	requiring an insured, claimant, or the physician of either to submit a 195
	248	+	preliminary claim report and then requiring the subsequent submission 196
	249	+	of formal proof of loss forms, both of which submissions contain 197
	250	+	substantially the same information; (M) failing to promptly settle claims, 198
	251	+	where liability has become reasonably clear, under one portion of the 199
	252	+	insurance policy coverage in order to influence settlements under other 200
	253	+	portions of the insurance policy coverage; (N) failing to promptly 201
	254	+	provide a reasonable explanation of the basis in the insurance policy in 202
	255	+	relation to the facts or applicable law for denial of a claim or for the offer 203
	256	+	of a compromise settlement; (O) using as a basis for cash settlement with 204
	257	+	a first party automobile insurance claimant an amount which is less than 205 Substitute Bill No. 841
325	258
326		-	Public Act No. 21-137 11 of 20
327	259
328		-	charging an individual a different rate for the same coverage because of
329		-	physical disability, mental or nervous condition as set forth in section
330		-	38a-488a or intellectual disability, except where the refusal, limitation or
331		-	rate differential is based on sound actuarial principles or is related to
332		-	actual or reasonably anticipated experience.
333		-	(13) Refusing to insure, refusing to continue to insure or limiting the
334		-	amount, extent or kind of coverage available to an individual or
335		-	charging an individual a different rate for the same coverage solely
336		-	because of blindness or partial blindness. For purposes of this
337		-	subdivision, "refusal to insure" includes the denial by an insurer of
338		-	disability insurance coverage on the grounds that the policy defines
339		-	"disability" as being presumed in the event that the insured is blind or
340		-	partially blind, except that an insurer may exclude from coverage any
341		-	disability, consisting solely of blindness or partial blindness, when such
342		-	condition existed at the time the policy was issued. Any individual who
343		-	is blind or partially blind shall be subject to the same standards of sound
344		-	actuarial principles or actual or reasonably anticipated experience as are
345		-	sighted persons with respect to all other conditions, including the
346		-	underlying cause of the blindness or partial blindness.
347		-	(14) Refusing to insure, refusing to continue to insure or limiting the
348		-	amount, extent or kind of coverage available to an individual or
349		-	charging an individual a different rate for the same coverage because of
350		-	exposure to diethylstilbestrol through the female parent.
351		-	(15) (A) Failure by an insurer, or any other entity responsible for
352		-	providing payment to a health care provider pursuant to an insurance
353		-	policy, to pay accident and health claims, including, but not limited to,
354		-	claims for payment or reimbursement to health care providers, within
355		-	the time periods set forth in subparagraph (B) of this subdivision, unless
356		-	the Insurance Commissioner determines that a legitimate dispute exists
357		-	as to coverage, liability or damages or that the claimant has fraudulently
358		-	caused or contributed to the loss. Any insurer, or any other entity Substitute Senate Bill No. 841
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	264	+	the amount which the insurer would pay if repairs were made unless 206
	265	+	such amount is agreed to by the insured or provided for by the 207
	266	+	insurance policy. 208
	267	+	(7) Failure to maintain complaint handling procedures. Failure of any 209
	268	+	person to maintain complete record of all the complaints which it has 210
	269	+	received since the date of its last examination. This record shall indicate 211
	270	+	the total number of complaints, their classification by line of insurance, 212
	271	+	the nature of each complaint, the disposition of these complaints, and 213
	272	+	the time it took to process each complaint. For purposes of this 214
	273	+	subsection "complaint" means any written communication primarily 215
	274	+	expressing a grievance. 216
	275	+	(8) Misrepresentation in insurance applications. Making false or 217
	276	+	fraudulent statements or representations on or relative to an application 218
	277	+	for an insurance policy for the purpose of obtaining a fee, commission, 219
	278	+	money or other benefit from any insurer, producer or individual. 220
	279	+	(9) Any violation of any one of sections 38a-358, 38a-446, 38a-447, 38a-221
	280	+	488, 38a-825, 38a-826, 38a-828 and 38a-829. None of the following 222
	281	+	practices shall be considered discrimination within the meaning of 223
	282	+	section 38a-446 or 38a-488 or a rebate within the meaning of section 38a-224
	283	+	825: (A) Paying bonuses to policyholders or otherwise abating their 225
	284	+	premiums in whole or in part out of surplus accumulated from 226
	285	+	nonparticipating insurance, provided any such bonuses or abatement of 227
	286	+	premiums shall be fair and equitable to policyholders and for the best 228
	287	+	interests of the company and its policyholders; (B) in the case of policies 229
	288	+	issued on the industrial debit plan, making allowance to policyholders 230
	289	+	who have continuously for a specified period made premium payments 231
	290	+	directly to an office of the insurer in an amount which fairly represents 232
	291	+	the saving in collection expense; (C) readjustment of the rate of premium 233
	292	+	for a group insurance policy based on loss or expense experience, or 234
	293	+	both, at the end of the first or any subsequent policy year, which may be 235
	294	+	made retroactive for such policy year. 236
	295	+	(10) Notwithstanding any provision of any policy of insurance, 237 Substitute Bill No. 841
361	296
362		-	responsible for providing payment to a health care provider pursuant
363		-	to an insurance policy, who fails to pay such a claim or request within
364		-	the time periods set forth in subparagraph (B) of this subdivision shall
365		-	pay the claimant or health care provider the amount of such claim plus
366		-	interest at the rate of fifteen per cent per annum, in addition to any other
367		-	penalties which may be imposed pursuant to sections 38a-11, 38a-25,
368		-	38a-41 to 38a-53, inclusive, 38a-57 to 38a-60, inclusive, 38a-62 to 38a-64,
369		-	inclusive, 38a-76, 38a-83, 38a-84, 38a-117 to 38a-124, inclusive, 38a-129
370		-	to 38a-140, inclusive, 38a-146 to 38a-155, inclusive, 38a-283, 38a-288 to
371		-	38a-290, inclusive, 38a-319, 38a-320, 38a-459, 38a-464, 38a-815 to 38a-819,
372		-	inclusive, 38a-824 to 38a-826, inclusive, and 38a-828 to 38a-830,
373		-	inclusive. Whenever the interest due a claimant or health care provider
374		-	pursuant to this section is less than one dollar, the insurer shall deposit
375		-	such amount in a separate interest-bearing account in which all such
376		-	amounts shall be deposited. At the end of each calendar year each such
377		-	insurer shall donate such amount to The University of Connecticut
378		-	Health Center.
379		-	(B) Each insurer or other entity responsible for providing payment to
380		-	a health care provider pursuant to an insurance policy subject to this
381		-	section, shall pay claims not later than:
382		-	(i) For claims filed in paper format, sixty days after receipt by the
383		-	insurer of the claimant's proof of loss form or the health care provider's
384		-	request for payment filed in accordance with the insurer's practices or
385		-	procedures, except that when there is a deficiency in the information
386		-	needed for processing a claim, as determined in accordance with section
387		-	38a-477, the insurer shall (I) send written notice to the claimant or health
388		-	care provider, as the case may be, of all alleged deficiencies in
389		-	information needed for processing a claim not later than thirty days
390		-	after the insurer receives a claim for payment or reimbursement under
391		-	the contract, and (II) pay claims for payment or reimbursement under
392		-	the contract not later than thirty days after the insurer receives the Substitute Senate Bill No. 841
393	297
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395	301
396		-	information requested; and
397		-	(ii) For claims filed in electronic format, twenty days after receipt by
398		-	the insurer of the claimant's proof of loss form or the health care
399		-	provider's request for payment filed in accordance with the insurer's
400		-	practices or procedures, except that when there is a deficiency in the
401		-	information needed for processing a claim, as determined in accordance
402		-	with section 38a-477, the insurer shall (I) notify the claimant or health
403		-	care provider, as the case may be, of all alleged deficiencies in
404		-	information needed for processing a claim not later than ten days after
405		-	the insurer receives a claim for payment or reimbursement under the
406		-	contract, and (II) pay claims for payment or reimbursement under the
407		-	contract not later than ten days after the insurer receives the information
408		-	requested.
409		-	(C) As used in this subdivision, "health care provider" means a person
410		-	licensed to provide health care services under chapter 368d, chapter
411		-	368v, chapters 370 to 373, inclusive, 375 to 383c, inclusive, 384a to 384c,
412		-	inclusive, or chapter 400j.
413		-	(16) Failure to pay, as part of any claim for a damaged motor vehicle
414		-	under any automobile insurance policy where the vehicle has been
415		-	declared to be a constructive total loss, an amount equal to the sum of
416		-	(A) the settlement amount on such vehicle plus, whenever the insurer
417		-	takes title to such vehicle, (B) an amount determined by multiplying
418		-	such settlement amount by a percentage equivalent to the current sales
419		-	tax rate established in section 12-408. For purposes of this subdivision,
420		-	"constructive total loss" means the cost to repair or salvage damaged
421		-	property, or the cost to both repair and salvage such property, equals or
422		-	exceeds the total value of the property at the time of the loss.
423		-	(17) Any violation of section 42-260, by an extended warranty
424		-	provider subject to the provisions of said section, including, but not
425		-	limited to: (A) Failure to include all statements required in subsections Substitute Senate Bill No. 841
	302	+	certificate or service contract, whenever such insurance policy or 238
	303	+	certificate or service contract provides for reimbursement for any 239
	304	+	services which may be legally performed by any practitioner of the 240
	305	+	healing arts licensed to practice in this state, reimbursement under such 241
	306	+	insurance policy, certificate or service contract shall not be denied 242
	307	+	because of race, color or creed nor shall any insurer make or permit any 243
	308	+	unfair discrimination against particular individuals or persons so 244
	309	+	licensed. 245
	310	+	(11) Favored agent or insurer: Coercion of debtors. (A) No person 246
	311	+	may (i) require, as a condition precedent to the lending of money or 247
	312	+	extension of credit, or any renewal thereof, that the person to whom 248
	313	+	such money or credit is extended or whose obligation the creditor is to 249
	314	+	acquire or finance, negotiate any policy or contract of insurance through 250
	315	+	a particular insurer or group of insurers or producer or group of 251
	316	+	producers; (ii) unreasonably disapprove the insurance policy provided 252
	317	+	by a borrower for the protection of the property securing the credit or 253
	318	+	lien; (iii) require directly or indirectly that any borrower, mortgagor, 254
	319	+	purchaser, insurer or producer pay a separate charge, in connection 255
	320	+	with the handling of any insurance policy required as security for a loan 256
	321	+	on real estate or pay a separate charge to substitute the insurance policy 257
	322	+	of one insurer for that of another; or (iv) use or disclose information 258
	323	+	resulting from a requirement that a borrower, mortgagor or purchaser 259
	324	+	furnish insurance of any kind on real property being conveyed or used 260
	325	+	as collateral security to a loan, when such information is to the 261
	326	+	advantage of the mortgagee, vendor or lender, or is to the detriment of 262
	327	+	the borrower, mortgagor, purchaser, insurer or the producer complying 263
	328	+	with such a requirement. 264
	329	+	(B) (i) Subparagraph (A)(iii) of this subdivision shall not include the 265
	330	+	interest which may be charged on premium loans or premium 266
	331	+	advancements in accordance with the security instrument. (ii) For 267
	332	+	purposes of subparagraph (A)(ii) of this subdivision, such disapproval 268
	333	+	shall be deemed unreasonable if it is not based solely on reasonable 269
	334	+	standards uniformly applied, relating to the extent of coverage required 270 Substitute Bill No. 841
426	335
427		-	Public Act No. 21-137 14 of 20
428	336
429		-	(c) and (f) of section 42-260 in an issued extended warranty; (B) offering
430		-	an extended warranty without being (i) insured under an adequate
431		-	extended warranty reimbursement insurance policy or (ii) able to
432		-	demonstrate that reserves for claims contained in the provider's
433		-	financial statements are not in excess of one-half the provider's audited
434		-	net worth; (C) failure to submit a copy of an issued extended warranty
435		-	form or a copy of such provider's extended warranty reimbursement
436		-	policy form to the Insurance Commissioner.
437		-	(18) With respect to an insurance company, hospital service
438		-	corporation, health care center or fraternal benefit society providing
439		-	individual or group health insurance coverage of the types specified in
440		-	subdivisions (1), (2), (4), (6), (10), (11) and (12) of section 38a-469,
441		-	refusing to insure, refusing to continue to insure or limiting the amount,
442		-	extent or kind of coverage available to an individual or charging an
443		-	individual a different rate for the same coverage because such
444		-	individual has been a victim of family violence.
445		-	(19) With respect to an insurance company, hospital service
446		-	corporation, health care center or fraternal benefit society providing
447		-	individual or group health insurance coverage of the types specified in
448		-	subdivisions (1), (2), (3), (4), (6), (9), (10), (11) and (12) of section 38a-469,
449		-	refusing to insure, refusing to continue to insure or limiting the amount,
450		-	extent or kind of coverage available to an individual or charging an
451		-	individual a different rate for the same coverage because of genetic
452		-	information. Genetic information indicating a predisposition to a
453		-	disease or condition shall not be deemed a preexisting condition in the
454		-	absence of a diagnosis of such disease or condition that is based on other
455		-	medical information. An insurance company, hospital service
456		-	corporation, health care center or fraternal benefit society providing
457		-	individual health coverage of the types specified in subdivisions (1), (2),
458		-	(3), (4), (6), (9), (10), (11) and (12) of section 38a-469, shall not be
459		-	prohibited from refusing to insure or applying a preexisting condition Substitute Senate Bill No. 841
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	341	+	and the financial soundness and the services of an insurer. Such 271
	342	+	standards shall not discriminate against any particular type of insurer, 272
	343	+	nor shall such standards call for the disapproval of an insurance policy 273
	344	+	because such policy contains coverage in addition to that required. (iii) 274
	345	+	The commissioner may investigate the affairs of any person to whom 275
	346	+	this subdivision applies to determine whether such person has violated 276
	347	+	this subdivision. If a violation of this subdivision is found, the person in 277
	348	+	violation shall be subject to the same procedures and penalties as are 278
	349	+	applicable to other provisions of section 38a-815, subsections (b) and (e) 279
	350	+	of section 38a-817 and this section. (iv) For purposes of this section, 280
	351	+	"person" includes any individual, corporation, limited liability 281
	352	+	company, association, partnership or other legal entity. 282
	353	+	(12) Refusing to insure, refusing to continue to insure or limiting the 283
	354	+	amount, extent or kind of coverage available to an individual or 284
	355	+	charging an individual a different rate for the same coverage because of 285
	356	+	physical disability, mental or nervous condition as set forth in section 286
	357	+	38a-488a or intellectual disability, except where the refusal, limitation or 287
	358	+	rate differential is based on sound actuarial principles or is related to 288
	359	+	actual or reasonably anticipated experience. 289
	360	+	(13) Refusing to insure, refusing to continue to insure or limiting the 290
	361	+	amount, extent or kind of coverage available to an individual or 291
	362	+	charging an individual a different rate for the same coverage solely 292
	363	+	because of blindness or partial blindness. For purposes of this 293
	364	+	subdivision, "refusal to insure" includes the denial by an insurer of 294
	365	+	disability insurance coverage on the grounds that the policy defines 295
	366	+	"disability" as being presumed in the event that the insured is blind or 296
	367	+	partially blind, except that an insurer may exclude from coverage any 297
	368	+	disability, consisting solely of blindness or partial blindness, when such 298
	369	+	condition existed at the time the policy was issued. Any individual who 299
	370	+	is blind or partially blind shall be subject to the same standards of sound 300
	371	+	actuarial principles or actual or reasonably anticipated experience as are 301
	372	+	sighted persons with respect to all other conditions, including the 302
	373	+	underlying cause of the blindness or partial blindness. 303 Substitute Bill No. 841
462	374
463		-	limitation, to the extent permitted by law, to an individual who has been
464		-	diagnosed with a disease or condition based on medical information
465		-	other than genetic information and has exhibited symptoms of such
466		-	disease or condition. For the purposes of this subsection, "genetic
467		-	information" means the information about genes, gene products or
468		-	inherited characteristics that may derive from an individual or family
469		-	member.
470		-	(20) Any violation of sections 38a-465 to 38a-465q, inclusive.
471		-	(21) With respect to a managed care organization, as defined in
472		-	section 38a-478, failing to establish a confidentiality procedure for
473		-	medical record information, as required by section 38a-999.
474		-	(22) Any violation of sections 38a-591d to 38a-591f, inclusive.
475		-	(23) Any violation of section 38a-472j.
476		-	(24) Any violation of section 2 of this act.
477		-	Sec. 4. (NEW) (Effective July 1, 2021) (a) (1) Except as provided in
478		-	subsection (b) of this section, no insurer that delivers, issues for delivery,
479		-	renews, amends or endorses a homeowners insurance policy in this
480		-	state on or after July 1, 2021, that is subject to the requirements of
481		-	sections 38a-663 to 38a-696, inclusive, of the general statutes shall cancel
482		-	such policy unless:
483		-	(A) If such policy is not a renewal policy and has been in effect for
484		-	fewer than sixty days, such insurer sends a written cancellation notice
485		-	to the named insured:
486		-	(i) At least ten days before the effective date of such cancellation for
487		-	nonpayment of premium disclosing:
488		-	(I) Such cancellation; Substitute Senate Bill No. 841
489	375
490		-	Public Act No. 21-137 16 of 20
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491	379
492		-	(II) That the named insured may avoid such cancellation and
493		-	continue coverage under such policy by paying, before the effective date
494		-	of such cancellation, such unpaid premium; and
495		-	(III) That any excess premium, if not tendered by the insurer, shall be
496		-	refunded to the named insured upon demand by the named insured; or
497		-	(ii) At least thirty days before the effective date of such cancellation
498		-	for any reason other than nonpayment of premium disclosing:
499		-	(I) Such cancellation;
500		-	(II) The reason for such cancellation;
501		-	(III) The effective date of such cancellation; and
502		-	(IV) That any excess premium, if not tendered by the insurer, shall be
503		-	refunded to the named insured upon demand by the named insured; or
504		-	(B) If such policy is not a renewal policy and has been in effect for at
505		-	least sixty days, or if such policy is an effective renewal policy, such
506		-	insurer sends a written cancellation notice to the named insured:
507		-	(i) At least ten days before the effective date of such cancellation for
508		-	nonpayment of premium disclosing:
509		-	(I) Such cancellation;
510		-	(II) That the named insured may avoid such cancellation and
511		-	continue coverage under such policy by paying, before the effective date
512		-	of such cancellation, such unpaid premium; and
513		-	(III) That any excess premium, if not tendered by the insurer, shall be
514		-	refunded to the named insured upon demand by the named insured; or
515		-	(ii) At least thirty days before the effective date of such cancellation
516		-	for fraud or misrepresentation of any material fact made by the named Substitute Senate Bill No. 841
	380	+	(14) Refusing to insure, refusing to continue to insure or limiting the 304
	381	+	amount, extent or kind of coverage available to an individual or 305
	382	+	charging an individual a different rate for the same coverage because of 306
	383	+	exposure to diethylstilbestrol through the female parent. 307
	384	+	(15) (A) Failure by an insurer, or any other entity responsible for 308
	385	+	providing payment to a health care provider pursuant to an insurance 309
	386	+	policy, to pay accident and health claims, including, but not limited to, 310
	387	+	claims for payment or reimbursement to health care providers, within 311
	388	+	the time periods set forth in subparagraph (B) of this subdivision, unless 312
	389	+	the Insurance Commissioner determines that a legitimate dispute exists 313
	390	+	as to coverage, liability or damages or that the claimant has fraudulently 314
	391	+	caused or contributed to the loss. Any insurer, or any other entity 315
	392	+	responsible for providing payment to a health care provider pursuant 316
	393	+	to an insurance policy, who fails to pay such a claim or request within 317
	394	+	the time periods set forth in subparagraph (B) of this subdivision shall 318
	395	+	pay the claimant or health care provider the amount of such claim plus 319
	396	+	interest at the rate of fifteen per cent per annum, in addition to any other 320
	397	+	penalties which may be imposed pursuant to sections 38a-11, 38a-25, 321
	398	+	38a-41 to 38a-53, inclusive, 38a-57 to 38a-60, inclusive, 38a-62 to 38a-64, 322
	399	+	inclusive, 38a-76, 38a-83, 38a-84, 38a-117 to 38a-124, inclusive, 38a-129 323
	400	+	to 38a-140, inclusive, 38a-146 to 38a-155, inclusive, 38a-283, 38a-288 to 324
	401	+	38a-290, inclusive, 38a-319, 38a-320, 38a-459, 38a-464, 38a-815 to 38a-819, 325
	402	+	inclusive, 38a-824 to 38a-826, inclusive, and 38a-828 to 38a-830, 326
	403	+	inclusive. Whenever the interest due a claimant or health care provider 327
	404	+	pursuant to this section is less than one dollar, the insurer shall deposit 328
	405	+	such amount in a separate interest-bearing account in which all such 329
	406	+	amounts shall be deposited. At the end of each calendar year each such 330
	407	+	insurer shall donate such amount to The University of Connecticut 331
	408	+	Health Center. 332
	409	+	(B) Each insurer or other entity responsible for providing payment to 333
	410	+	a health care provider pursuant to an insurance policy subject to this 334
	411	+	section, shall pay claims not later than: 335
	412	+	(i) For claims filed in paper format, sixty days after receipt by the 336 Substitute Bill No. 841
517	413
518		-	Public Act No. 21-137 17 of 20
519	414
520		-	insured in obtaining coverage under such policy that, if discovered by
521		-	such insurer, would have caused such insurer not to issue or renew such
522		-	policy, as applicable, or any physical change in the covered property
523		-	that materially increases a hazard insured against under such policy
524		-	disclosing:
525		-	(I) The effective date of such cancellation; and
526		-	(II) That any excess premium, if not tendered by the insurer, shall be
527		-	refunded to the named insured upon demand by the named insured.
528		-	(2) No insurer may cancel a homeowners insurance policy described
529		-	in subparagraph (B) of subdivision (1) of this subsection for any reason
530		-	other than:
531		-	(A) Nonpayment of premium;
532		-	(B) Fraud or misrepresentation of any material fact made by the
533		-	named insured in obtaining coverage under such policy that, if
534		-	discovered by the insurer, would have caused the insurer not to issue or
535		-	renew such policy, as applicable; or
536		-	(C) Any physical change in the covered property that materially
537		-	increases a hazard insured against under such policy.
538		-	(3) No notice of cancellation required under subdivision (1) of this
539		-	subsection shall be effective unless such notice is sent to the named
540		-	insured by registered mail, certified mail or mail evidenced by a
541		-	certificate of mailing, or, if agreed by the insurer and the named insured,
542		-	by electronic means evidenced by a delivery receipt.
543		-	(b) No notice of cancellation is required under subsection (a) of this
544		-	section if the homeowners insurance policy is transferred from the
545		-	insurer to an affiliate of such insurer for another policy with no
546		-	interruption of coverage and the same terms, conditions and provisions, Substitute Senate Bill No. 841
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547	418
548		-	Public Act No. 21-137 18 of 20
	419	+	insurer of the claimant's proof of loss form or the health care provider's 337
	420	+	request for payment filed in accordance with the insurer's practices or 338
	421	+	procedures, except that when there is a deficiency in the information 339
	422	+	needed for processing a claim, as determined in accordance with section 340
	423	+	38a-477, the insurer shall (I) send written notice to the claimant or health 341
	424	+	care provider, as the case may be, of all alleged deficiencies in 342
	425	+	information needed for processing a claim not later than thirty days 343
	426	+	after the insurer receives a claim for payment or reimbursement under 344
	427	+	the contract, and (II) pay claims for payment or reimbursement under 345
	428	+	the contract not later than thirty days after the insurer receives the 346
	429	+	information requested; and 347
	430	+	(ii) For claims filed in electronic format, twenty days after receipt by 348
	431	+	the insurer of the claimant's proof of loss form or the health care 349
	432	+	provider's request for payment filed in accordance with the insurer's 350
	433	+	practices or procedures, except that when there is a deficiency in the 351
	434	+	information needed for processing a claim, as determined in accordance 352
	435	+	with section 38a-477, the insurer shall (I) notify the claimant or health 353
	436	+	care provider, as the case may be, of all alleged deficiencies in 354
	437	+	information needed for processing a claim not later than ten days after 355
	438	+	the insurer receives a claim for payment or reimbursement under the 356
	439	+	contract, and (II) pay claims for payment or reimbursement under the 357
	440	+	contract not later than ten days after the insurer receives the information 358
	441	+	requested. 359
	442	+	(C) As used in this subdivision, "health care provider" means a person 360
	443	+	licensed to provide health care services under chapter 368d, chapter 361
	444	+	368v, chapters 370 to 373, inclusive, 375 to 383c, inclusive, 384a to 384c, 362
	445	+	inclusive, or chapter 400j. 363
	446	+	(16) Failure to pay, as part of any claim for a damaged motor vehicle 364
	447	+	under any automobile insurance policy where the vehicle has been 365
	448	+	declared to be a constructive total loss, an amount equal to the sum of 366
	449	+	(A) the settlement amount on such vehicle plus, whenever the insurer 367
	450	+	takes title to such vehicle, (B) an amount determined by multiplying 368
	451	+	such settlement amount by a percentage equivalent to the current sales 369 Substitute Bill No. 841
549	452
550		-	including policy limits, as the transferred policy, except that the insurer
551		-	to which the policy is transferred shall not be prohibited from applying
552		-	such insurer's rates and rating plans at the time of renewal.
553		-	(c) The named insured under a homeowners insurance policy
554		-	described in subsection (a) of this section may cancel such policy at any
555		-	time by sending to the insurer that delivered, issued for delivery,
556		-	renewed, amended or endorsed such policy a written notice disclosing
557		-	the effective date of such cancellation.
558		-	Sec. 5. Section 38a-646 of the general statutes is repealed and the
559		-	following is substituted in lieu thereof (Effective October 1, 2021):
560		-	As used in sections 38a-645 to 38a-658, inclusive, except as otherwise
561		-	provided herein:
562		-	(1) "Credit life insurance" means insurance on the life of a debtor
563		-	pursuant to or in connection with a specific loan or other credit
564		-	transaction;
565		-	(2) "Credit accident and health insurance" means insurance on a
566		-	debtor to provide indemnity for payments becoming due on a specific
567		-	loan or other credit transaction while the debtor is disabled as defined
568		-	in the policy;
569		-	(3) "Creditor" means the lender of money or vendor or lessor of
570		-	goods, services, property, rights or privileges for which payment is
571		-	arranged through a credit transaction or any successor to the right, title
572		-	or interest of any such lender, vendor or lessor, and an affiliate, associate
573		-	or subsidiary of any of them or any director, officer or employee of any
574		-	of them or any other person in any way associated with any of them;
575		-	(4) "Debtor" means a borrower of money or a purchaser or lessee of
576		-	goods, services, property, rights or privileges for which payment is
577		-	arranged through a credit transaction; Substitute Senate Bill No. 841
578	453
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581		-	(5) "Indebtedness" means the total amount payable by a debtor to a
582		-	creditor in connection with a loan or other credit transaction; [.] and
583		-	(6) "Loss ratio" means annual incurred claims divided by earned
584		-	premiums.
585		-	Sec. 6. Subsection (b) of section 38a-651 of the general statutes is
586		-	repealed and the following is substituted in lieu thereof (Effective October
587		-	1, 2021):
588		-	(b) The commissioner shall adopt regulations in accordance with the
589		-	provisions of chapter 54, establishing a procedure for review of such
590		-	policies, certificates of insurance, notices of proposed insurance,
591		-	applications for insurance, endorsements and riders, and shall
592		-	disapprove any such form at any time if: [the]
593		-	(1) The schedule of premium rates charged or to be charged is, by
594		-	reasonable assumptions and as determined according to benchmark
595		-	loss ratio calculations, excessive in relation to the benefits provided; or
596		-	[if it contains]
597		-	(2) Such form:
598		-	(A) Has a prima facie loss ratio of less than fifty per cent for any single
599		-	or joint credit life insurance or credit accident and health insurance
600		-	policy unless the commissioner approves a premium rate deviation for
601		-	such policy; or
602		-	(B) Contains provisions which (i) are unjust, unfair, inequitable,
603		-	misleading, deceptive, [or which] (ii) encourage misrepresentation of
604		-	the coverage, or [which] (iii) are contrary to any provision of the
605		-	insurance laws or of any rule or regulation promulgated thereunder.
606		-	Sec. 7. Subsection (e) of section 38a-702e of the general statutes is
607		-	repealed and the following is substituted in lieu thereof (Effective October Substitute Senate Bill No. 841
	458	+	tax rate established in section 12-408. For purposes of this subdivision, 370
	459	+	"constructive total loss" means the cost to repair or salvage damaged 371
	460	+	property, or the cost to both repair and salvage such property, equals or 372
	461	+	exceeds the total value of the property at the time of the loss. 373
	462	+	(17) Any violation of section 42-260, by an extended warranty 374
	463	+	provider subject to the provisions of said section, including, but not 375
	464	+	limited to: (A) Failure to include all statements required in subsections 376
	465	+	(c) and (f) of section 42-260 in an issued extended warranty; (B) offering 377
	466	+	an extended warranty without being (i) insured under an adequate 378
	467	+	extended warranty reimbursement insurance policy or (ii) able to 379
	468	+	demonstrate that reserves for claims contained in the provider's 380
	469	+	financial statements are not in excess of one-half the provider's audited 381
	470	+	net worth; (C) failure to submit a copy of an issued extended warranty 382
	471	+	form or a copy of such provider's extended warranty reimbursement 383
	472	+	policy form to the Insurance Commissioner. 384
	473	+	(18) With respect to an insurance company, hospital service 385
	474	+	corporation, health care center or fraternal benefit society providing 386
	475	+	individual or group health insurance coverage of the types specified in 387
	476	+	subdivisions (1), (2), (4), (6), (10), (11) and (12) of section 38a-469, 388
	477	+	refusing to insure, refusing to continue to insure or limiting the amount, 389
	478	+	extent or kind of coverage available to an individual or charging an 390
	479	+	individual a different rate for the same coverage because such 391
	480	+	individual has been a victim of family violence. 392
	481	+	(19) With respect to an insurance company, hospital service 393
	482	+	corporation, health care center or fraternal benefit society providing 394
	483	+	individual or group health insurance coverage of the types specified in 395
	484	+	subdivisions (1), (2), (3), (4), (6), (9), (10), (11) and (12) of section 38a-469, 396
	485	+	refusing to insure, refusing to continue to insure or limiting the amount, 397
	486	+	extent or kind of coverage available to an individual or charging an 398
	487	+	individual a different rate for the same coverage because of genetic 399
	488	+	information. Genetic information indicating a predisposition to a 400
	489	+	disease or condition shall not be deemed a preexisting condition in the 401
	490	+	absence of a diagnosis of such disease or condition that is based on other 402 Substitute Bill No. 841
608	491
609		-	Public Act No. 21-137 20 of 20
610	492
611		-	1, 2021):
612		-	(e) Each applicant for an insurance producer license shall, before
613		-	being admitted to an examination under subsection (a) of this section,
614		-	prove to the satisfaction of the commissioner that such applicant meets
615		-	one of the following prerequisites: (1) Successful completion of a course
616		-	approved by the commissioner requiring not less than [forty] twenty
617		-	hours for each line of insurance for which the applicant is applying to
618		-	be licensed; or (2) equivalent experience or training as determined by
619		-	the commissioner.
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620	496
	497	+	medical information. An insurance company, hospital service 403
	498	+	corporation, health care center or fraternal benefit society providing 404
	499	+	individual health coverage of the types specified in subdivisions (1), (2), 405
	500	+	(3), (4), (6), (9), (10), (11) and (12) of section 38a-469, shall not be 406
	501	+	prohibited from refusing to insure or applying a preexisting condition 407
	502	+	limitation, to the extent permitted by law, to an individual who has been 408
	503	+	diagnosed with a disease or condition based on medical information 409
	504	+	other than genetic information and has exhibited symptoms of such 410
	505	+	disease or condition. For the purposes of this subsection, "genetic 411
	506	+	information" means the information about genes, gene products or 412
	507	+	inherited characteristics that may derive from an individual or family 413
	508	+	member. 414
	509	+	(20) Any violation of sections 38a-465 to 38a-465q, inclusive. 415
	510	+	(21) With respect to a managed care organization, as defined in 416
	511	+	section 38a-478, failing to establish a confidentiality procedure for 417
	512	+	medical record information, as required by section 38a-999. 418
	513	+	(22) Any violation of sections 38a-591d to 38a-591f, inclusive. 419
	514	+	(23) Any violation of section 38a-472j. 420
	515	+	(24) Any violation of section 2 of this act. 421
	516	+	Sec. 4. (NEW) (Effective July 1, 2021) (a) (1) Except as provided in 422
	517	+	subsection (b) of this section, no insurer that delivers, issues for delivery, 423
	518	+	renews, amends or endorses a homeowners insurance policy in this 424
	519	+	state on or after July 1, 2021, that is subject to the requirements of 425
	520	+	sections 38a-663 to 38a-696, inclusive, of the general statutes shall cancel 426
	521	+	such policy unless: 427
	522	+	(A) If such policy is not a renewal policy and has been in effect for 428
	523	+	fewer than sixty days, such insurer sends a written cancellation notice 429
	524	+	to the named insured: 430
	525	+	(i) At least ten days before the effective date of such cancellation for 431 Substitute Bill No. 841
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	531	+
	532	+	nonpayment of premium disclosing: 432
	533	+	(I) Such cancellation; 433
	534	+	(II) That the named insured may avoid such cancellation and 434
	535	+	continue coverage under such policy by paying, before the effective date 435
	536	+	of such cancellation, such unpaid premium; and 436
	537	+	(III) That any excess premium, if not tendered by the insurer, shall be 437
	538	+	refunded to the named insured upon demand by the named insured; or 438
	539	+	(ii) At least thirty days before the effective date of such cancellation 439
	540	+	for any reason other than nonpayment of premium disclosing: 440
	541	+	(I) Such cancellation; 441
	542	+	(II) The reason for such cancellation; 442
	543	+	(III) The effective date of such cancellation; and 443
	544	+	(IV) That any excess premium, if not tendered by the insurer, shall be 444
	545	+	refunded to the named insured upon demand by the named insured; or 445
	546	+	(B) If such policy is not a renewal policy and has been in effect for at 446
	547	+	least sixty days, or if such policy is an effective renewal policy, such 447
	548	+	insurer sends a written cancellation notice to the named insured: 448
	549	+	(i) At least ten days before the effective date of such cancellation for 449
	550	+	nonpayment of premium disclosing: 450
	551	+	(I) Such cancellation; 451
	552	+	(II) That the named insured may avoid such cancellation and 452
	553	+	continue coverage under such policy by paying, before the effective date 453
	554	+	of such cancellation, such unpaid premium; and 454
	555	+	(III) That any excess premium, if not tendered by the insurer, shall be 455
	556	+	refunded to the named insured upon demand by the named insured; or 456 Substitute Bill No. 841
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	562	+
	563	+	(ii) At least thirty days before the effective date of such cancellation 457
	564	+	for fraud or misrepresentation of any material fact made by the named 458
	565	+	insured in obtaining coverage under such policy that, if discovered by 459
	566	+	such insurer, would have caused such insurer not to issue or renew such 460
	567	+	policy, as applicable, or any physical change in the covered property 461
	568	+	that materially increases a hazard insured against under such policy 462
	569	+	disclosing: 463
	570	+	(I) The effective date of such cancellation; and 464
	571	+	(II) That any excess premium, if not tendered by the insurer, shall be 465
	572	+	refunded to the named insured upon demand by the named insured. 466
	573	+	(2) No insurer may cancel a homeowners insurance policy described 467
	574	+	in subparagraph (B) of subdivision (1) of this subsection for any reason 468
	575	+	other than: 469
	576	+	(A) Nonpayment of premium; 470
	577	+	(B) Fraud or misrepresentation of any material fact made by the 471
	578	+	named insured in obtaining coverage under such policy that, if 472
	579	+	discovered by the insurer, would have caused the insurer not to issue or 473
	580	+	renew such policy, as applicable; or 474
	581	+	(C) Any physical change in the covered property that materially 475
	582	+	increases a hazard insured against under such policy. 476
	583	+	(3) No notice of cancellation required under subdivision (1) of this 477
	584	+	subsection shall be effective unless such notice is sent to the named 478
	585	+	insured by registered mail, certified mail or mail evidenced by a 479
	586	+	certificate of mailing, or, if agreed by the insurer and the named insured, 480
	587	+	by electronic means evidenced by a delivery receipt. 481
	588	+	(b) No notice of cancellation is required under subsection (a) of this 482
	589	+	section if the homeowners insurance policy is transferred from the 483
	590	+	insurer to an affiliate of such insurer for another policy with no 484
	591	+	interruption of coverage and the same terms, conditions and provisions, 485 Substitute Bill No. 841
	592	+
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	597	+
	598	+	including policy limits, as the transferred policy, except that the insurer 486
	599	+	to which the policy is transferred shall not be prohibited from applying 487
	600	+	such insurer's rates and rating plans at the time of renewal. 488
	601	+	(c) The named insured under a homeowners insurance policy 489
	602	+	described in subsection (a) of this section may cancel such policy at any 490
	603	+	time by sending to the insurer that delivered, issued for delivery, 491
	604	+	renewed, amended or endorsed such policy a written notice disclosing 492
	605	+	the effective date of such cancellation. 493
	606	+	Sec. 5. Section 38a-646 of the general statutes is repealed and the 494
	607	+	following is substituted in lieu thereof (Effective October 1, 2021): 495
	608	+	As used in sections 38a-645 to 38a-658, inclusive, except as otherwise 496
	609	+	provided herein: 497
	610	+	(1) "Credit life insurance" means insurance on the life of a debtor 498
	611	+	pursuant to or in connection with a specific loan or other credit 499
	612	+	transaction; 500
	613	+	(2) "Credit accident and health insurance" means insurance on a 501
	614	+	debtor to provide indemnity for payments becoming due on a specific 502
	615	+	loan or other credit transaction while the debtor is disabled as defined 503
	616	+	in the policy; 504
	617	+	(3) "Creditor" means the lender of money or vendor or lessor of 505
	618	+	goods, services, property, rights or privileges for which payment is 506
	619	+	arranged through a credit transaction or any successor to the right, title 507
	620	+	or interest of any such lender, vendor or lessor, and an affiliate, associate 508
	621	+	or subsidiary of any of them or any director, officer or employee of any 509
	622	+	of them or any other person in any way associated with any of them; 510
	623	+	(4) "Debtor" means a borrower of money or a purchaser or lessee of 511
	624	+	goods, services, property, rights or privileges for which payment is 512
	625	+	arranged through a credit transaction; 513
	626	+	(5) "Indebtedness" means the total amount payable by a debtor to a 514 Substitute Bill No. 841
	627	+
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	632	+
	633	+	creditor in connection with a loan or other credit transaction; [.] and 515
	634	+	(6) "Loss ratio" means annual incurred claims divided by earned 516
	635	+	premiums. 517
	636	+	Sec. 6. Subsection (b) of section 38a-651 of the general statutes is 518
	637	+	repealed and the following is substituted in lieu thereof (Effective October 519
	638	+	1, 2021): 520
	639	+	(b) The commissioner shall adopt regulations in accordance with the 521
	640	+	provisions of chapter 54, establishing a procedure for review of such 522
	641	+	policies, certificates of insurance, notices of proposed insurance, 523
	642	+	applications for insurance, endorsements and riders, and shall 524
	643	+	disapprove any such form at any time if: [the] 525
	644	+	(1) The schedule of premium rates charged or to be charged is, by 526
	645	+	reasonable assumptions and as determined according to benchmark 527
	646	+	loss ratio calculations, excessive in relation to the benefits provided; or 528
	647	+	[if it contains] 529
	648	+	(2) Such form: 530
	649	+	(A) Has a prima facie loss ratio of less than fifty per cent for any single 531
	650	+	or joint credit life insurance or credit accident and health insurance 532
	651	+	policy unless the commissioner approves a premium rate deviation for 533
	652	+	such policy; or 534
	653	+	(B) Contains provisions which (i) are unjust, unfair, inequitable, 535
	654	+	misleading, deceptive, [or which] (ii) encourage misrepresentation of 536
	655	+	the coverage, or [which] (iii) are contrary to any provision of the 537
	656	+	insurance laws or of any rule or regulation promulgated thereunder. 538
	657	+	Sec. 7. Subsection (e) of section 38a-702e of the general statutes is 539
	658	+	repealed and the following is substituted in lieu thereof (Effective October 540
	659	+	1, 2021): 541
	660	+	(e) Each applicant for an insurance producer license shall, before 542 Substitute Bill No. 841
	661	+
	662	+
	663	+	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00841-
	664	+	R02-SB.docx }
	665	+	19 of 19
	666	+
	667	+	being admitted to an examination under subsection (a) of this section, 543
	668	+	prove to the satisfaction of the commissioner that such applicant meets 544
	669	+	one of the following prerequisites: (1) Successful completion of a course 545
	670	+	approved by the commissioner requiring not less than [forty] twenty 546
	671	+	hours for each line of insurance for which the applicant is applying to 547
	672	+	be licensed; or (2) equivalent experience or training as determined by 548
	673	+	the commissioner. 549
	674	+	This act shall take effect as follows and shall amend the following
	675	+	sections:
	676	+
	677	+	Section 1 October 1, 2021 38a-1
	678	+	Sec. 2 October 1, 2021 New section
	679	+	Sec. 3 October 1, 2021 38a-816
	680	+	Sec. 4 July 1, 2021 New section
	681	+	Sec. 5 October 1, 2021 38a-646
	682	+	Sec. 6 October 1, 2021 38a-651(b)
	683	+	Sec. 7 October 1, 2021 38a-702e(e)
	684	+
	685	+
	686	+	INS Joint Favorable Subst. -LCO
	687	+	JUD Joint Favorable
621	688