Connecticut 2021 Regular Session

Connecticut Senate Bill SB01047 Compare Versions

Version 1 (Old)

Version 2 (New)

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7	7		General Assembly Raised Bill No. 1047
8	8		January Session, 2021
9	9		LCO No. 4467
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12	12		Referred to Committee on INSURANCE AND REAL ESTATE
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14	14
15	15		Introduced by:
16	16		(INS)
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20	20		AN ACT CONCERNING IN SURANCE AND CLIMATE CHANGE.
21	21		Be it enacted by the Senate and House of Representatives in General
22	22		Assembly convened:
23	23
24	24		Section 1. Section 38a-1 of the general statutes is repealed and the 1
25	25		following is substituted in lieu thereof (Effective October 1, 2021): 2
26	26		Terms used in this title and sections 2 and 3 of this act, unless it 3
27	27		appears from the context to the contrary, shall have a scope and 4
28	28		meaning as set forth in this section. 5
29	29		(1) "Affiliate" or "affiliated" means a person that directly, or indirectly 6
30	30		through one or more intermediaries, controls, is controlled by or is 7
31	31		under common control with another person. 8
32	32		(2) "Alien insurer" means any insurer that has been chartered by or 9
33	33		organized or constituted within or under the laws of any jurisdiction or 10
34	34		country without the United States. 11
35	35		(3) "Annuities" means all agreements to make periodical payments 12
36	36		where the making or continuance of all or some of the series of the 13
37	37		payments, or the amount of the payment, is dependent upon the 14 Raised Bill No. 1047
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44	44		continuance of human life or is for a specified term of years. This 15
45	45		definition does not apply to payments made under a policy of life 16
46	46		insurance. 17
47	47		(4) "Commissioner" means the Insurance Commissioner. 18
48	48		(5) "Control", "controlled by" or "under common control with" means 19
49	49		the possession, direct or indirect, of the power to direct or cause the 20
50	50		direction of the management and policies of a person, whether through 21
51	51		the ownership of voting securities, by contract other than a commercial 22
52	52		contract for goods or nonmanagement services, or otherwise, unless the 23
53	53		power is the result of an official position with the person. 24
54	54		(6) "Domestic insurer" means any insurer that has been chartered by, 25
55	55		incorporated, organized or constituted within or under the laws of this 26
56	56		state. 27
57	57		(7) "Domestic surplus lines insurer" means any domestic insurer that 28
58	58		has been authorized by the commissioner to write surplus lines 29
59	59		insurance. 30
60	60		(8) "Foreign country" means any jurisdiction not in any state, district 31
61	61		or territory of the United States. 32
62	62		(9) "Foreign insurer" means any insurer that has been chartered by or 33
63	63		organized or constituted within or under the laws of another state or a 34
64	64		territory of the United States. 35
65	65		(10) "Insolvency" or "insolvent" means, for any insurer, that it is 36
66	66		unable to pay its obligations when they are due, or when its admitted 37
67	67		assets do not exceed its liabilities plus the greater of: (A) Capital and 38
68	68		surplus required by law for its organization and continued operation; 39
69	69		or (B) the total par or stated value of its authorized and issued capital 40
70	70		stock. For purposes of this subdivision "liabilities" shall include but not 41
71	71		be limited to reserves required by statute or by regulations adopted by 42
72	72		the commissioner in accordance with the provisions of chapter 54 or 43
73	73		specific requirements imposed by the commissioner upon a subject 44 Raised Bill No. 1047
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80	80		company at the time of admission or subsequent thereto. 45
81	81		(11) "Insurance" means any agreement to pay a sum of money, 46
82	82		provide services or any other thing of value on the happening of a 47
83	83		particular event or contingency or to provide indemnity for loss in 48
84	84		respect to a specified subject by specified perils in return for a 49
85	85		consideration. In any contract of insurance, an insured shall have an 50
86	86		interest which is subject to a risk of loss through destruction or 51
87	87		impairment of that interest, which risk is assumed by the insurer and 52
88	88		such assumption shall be part of a general scheme to distribute losses 53
89	89		among a large group of persons bearing similar risks in return for a 54
90	90		ratable contribution or other consideration. 55
91	91		(12) "Insurer" or "insurance company" includes any person or 56
92	92		combination of persons doing any kind or form of insurance business 57
93	93		other than a fraternal benefit society, and shall include a receiver of any 58
94	94		insurer when the context reasonably permits. 59
95	95		(13) "Insured" means a person to whom or for whose benefit an 60
96	96		insurer makes a promise in an insurance policy. The term includes 61
97	97		policyholders, subscribers, members and beneficiaries. This definition 62
98	98		applies only to the provisions of this title and does not define the 63
99	99		meaning of this word as used in insurance policies or certificates. 64
100	100		(14) "Life insurance" means insurance on human lives and insurances 65
101	101		pertaining to or connected with human life. The business of life 66
102	102		insurance includes granting endowment benefits, granting additional 67
103	103		benefits in the event of death by accident or accidental means, granting 68
104	104		additional benefits in the event of the total and permanent disability of 69
105	105		the insured, and providing optional methods of settlement of proceeds. 70
106	106		Life insurance includes burial contracts to the extent provided by 71
107	107		section 38a-464. 72
108	108		(15) "Mutual insurer" means any insurer without capital stock, the 73
109	109		managing directors or officers of which are elected by its members. 74
110	110		(16) "Person" means an individual, a corporation, a partnership, a 75 Raised Bill No. 1047
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117	117		limited liability company, an association, a joint stock company, a 76
118	118		business trust, an unincorporated organization or other legal entity. 77
119	119		(17) "Policy" means any document, including attached endorsements 78
120	120		and riders, purporting to be an enforceable contract, which 79
121	121		memorializes in writing some or all of the terms of an insurance 80
122	122		contract. 81
123	123		(18) "State" means any state, district, or territory of the United States. 82
124	124		(19) "Subsidiary" of a specified person means an affiliate controlled 83
125	125		by the person directly, or indirectly through one or more intermediaries. 84
126	126		(20) "Unauthorized insurer" or "nonadmitted insurer" means an 85
127	127		insurer that has not been granted a certificate of authority by the 86
128	128		commissioner to transact the business of insurance in this state or an 87
129	129		insurer transacting business not authorized by a valid certificate. 88
130	130		(21) "United States" means the United States of America, its territories 89
131	131		and possessions, the Commonwealth of Puerto Rico and the District of 90
132	132		Columbia. 91
133	133		Sec. 2. (NEW) (Effective October 1, 2021) (a) (1) Not later than January 92
134	134		1, 2022, the commissioner shall develop and implement criteria for each 93
135	135		insurer doing business in this state to submit, at least annually, to the 94
136	136		commissioner a report disclosing: 95
137	137		(A) Such insurer's investments in fossil fuels; 96
138	138		(B) The degree to which such insurer's investments are exposed to 97
139	139		climate risks; and 98
140	140		(C) Information concerning such insurer's gross premium 99
141	141		underwriting for insureds involved in the fossil fuel industry and 100
142	142		related industries. 101
143	143		(2) The criteria developed by the commissioner pursuant to 102
144	144		subdivision (1) of this subsection shall enable the commissioner to post 103 Raised Bill No. 1047
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151	151		the information reported to the commissioner pursuant to subsection (b) 104
152	152		of this section on the Insurance Department's Internet web site. 105
153	153		(b) Not later than March 1, 2022, and annually thereafter, each insurer 106
154	154		doing business in this state shall submit a report to the commissioner 107
155	155		disclosing the information set forth in subdivision (1) of subsection (a) 108
156	156		of this section for the preceding calendar year. 109
157	157		(c) Not later than April 1, 2022, and annually thereafter, the 110
158	158		commissioner shall post the information reported to the commissioner 111
159	159		pursuant to subsection (b) of this section on the Insurance Department's 112
160	160		Internet web site. 113
161	161		(d) The commissioner may adopt regulations, in accordance with 114
162	162		chapter 54 of the general statutes, to carry out the purposes of this 115
163	163		section. 116
164	164		Sec. 3. (NEW) (Effective October 1, 2021) Not later than April 1, 2022, 117
165	165		and annually thereafter, the commissioner shall submit a report, in 118
166	166		accordance with section 11-4a of the general statutes, to the joint 119
167	167		standing committee of the General Assembly having cognizance of 120
168	168		matters relating to insurance. The report shall disclose, for the preceding 121
169	169		calendar year, the Insurance Department's: 122
170	170		(1) Efforts, if any, to: 123
171	171		(A) Integrate climate-related risks into the department's regulation 124
172	172		and supervision of insurers, including, but not limited to: 125
173	173		(i) Risk-based capital requirements; 126
174	174		(ii) Regular supervisory examinations; and 127
175	175		(iii) Own risk and solvency assessments; and 128
176	176		(B) Align insurer investment and underwriting activities with the 129
177	177		goal expressed by the parties to the United Nations Framework 130
178	178		Convention on Climate Change in the Paris Agreement to limit the 131 Raised Bill No. 1047
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185	185		increase in the global average temperature to one and one-half degrees 132
186	186		Celsius above preindustrial levels; and 133
187	187		(2) Regulatory and supervisory actions, if any, to bolster the resilience 134
188	188		of insurers to the physical impacts of climate change. 135
189	189		This act shall take effect as follows and shall amend the following
190	190		sections:
191	191
192	192		Section 1 October 1, 2021 38a-1
193	193		Sec. 2 October 1, 2021 New section
194	194		Sec. 3 October 1, 2021 New section
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196	196		INS Joint Favorable
197		-	APP Joint Favorable
198	197