Connecticut 2021 Regular Session

Connecticut Senate Bill SB01050 Compare Versions

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Version 2 (New)

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7	7		General Assembly Raised Bill No. 1050
8	8		January Session, 2021
9	9		LCO No. 4542
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12	12		Referred to Committee on INSURANCE AND REAL ESTATE
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15	15		Introduced by:
16	16		(INS)
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20	21		AN ACT CONCERNING NO TICES PROVIDED BY LIFE INSURERS.
21	22		Be it enacted by the Senate and House of Representatives in General
22	23		Assembly convened:
23	24
24	25		Section 1. Section 38a-1 of the general statutes is repealed and the 1
25	26		following is substituted in lieu thereof (Effective January 1, 2022): 2
26	27		Terms used in this title and sections 2 and 3 of this act, unless it 3
27	28		appears from the context to the contrary, shall have a scope and 4
28	29		meaning as set forth in this section. 5
29	30		(1) "Affiliate" or "affiliated" means a person that directly, or indirectly 6
30	31		through one or more intermediaries, controls, is controlled by or is 7
31	32		under common control with another person. 8
32	33		(2) "Alien insurer" means any insurer that has been chartered by or 9
33	34		organized or constituted within or under the laws of any jurisdiction or 10
34	35		country without the United States. 11
35	36		(3) "Annuities" means all agreements to make periodical payments 12
36	37		where the making or continuance of all or some of the series of the 13
37	38		payments, or the amount of the payment, is dependent upon the 14 Raised Bill No. 1050
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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. 1050
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80	79		company at the time of admission or subsequent thereto. 45
81	80		(11) "Insurance" means any agreement to pay a sum of money, 46
82	81		provide services or any other thing of value on the happening of a 47
83	82		particular event or contingency or to provide indemnity for loss in 48
84	83		respect to a specified subject by specified perils in return for a 49
85	84		consideration. In any contract of insurance, an insured shall have an 50
86	85		interest which is subject to a risk of loss through destruction or 51
87	86		impairment of that interest, which risk is assumed by the insurer and 52
88	87		such assumption shall be part of a general scheme to distribute losses 53
89	88		among a large group of persons bearing similar risks in return for a 54
90	89		ratable contribution or other consideration. 55
91	90		(12) "Insurer" or "insurance company" includes any person or 56
92	91		combination of persons doing any kind or form of insurance business 57
93	92		other than a fraternal benefit society, and shall include a receiver of any 58
94	93		insurer when the context reasonably permits. 59
95	94		(13) "Insured" means a person to whom or for whose benefit an 60
96	95		insurer makes a promise in an insurance policy. The term includes 61
97	96		policyholders, subscribers, members and beneficiaries. This definition 62
98	97		applies only to the provisions of this title and does not define the 63
99	98		meaning of this word as used in insurance policies or certificates. 64
100	99		(14) "Life insurance" means insurance on human lives and insurances 65
101	100		pertaining to or connected with human life. The business of life 66
102	101		insurance includes granting endowment benefits, granting additional 67
103	102		benefits in the event of death by accident or accidental means, granting 68
104	103		additional benefits in the event of the total and permanent disability of 69
105	104		the insured, and providing optional methods of settlement of proceeds. 70
106	105		Life insurance includes burial contracts to the extent provided by 71
107	106		section 38a-464. 72
108	107		(15) "Mutual insurer" means any insurer without capital stock, the 73
109	108		managing directors or officers of which are elected by its members. 74
110	109		(16) "Person" means an individual, a corporation, a partnership, a 75 Raised Bill No. 1050
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117	115		limited liability company, an association, a joint stock company, a 76
118	116		business trust, an unincorporated organization or other legal entity. 77
119	117		(17) "Policy" means any document, including attached endorsements 78
120	118		and riders, purporting to be an enforceable contract, which 79
121	119		memorializes in writing some or all of the terms of an insurance 80
122	120		contract. 81
123	121		(18) "State" means any state, district, or territory of the United States. 82
124	122		(19) "Subsidiary" of a specified person means an affiliate controlled 83
125	123		by the person directly, or indirectly through one or more intermediaries. 84
126	124		(20) "Unauthorized insurer" or "nonadmitted insurer" means an 85
127	125		insurer that has not been granted a certificate of authority by the 86
128	126		commissioner to transact the business of insurance in this state or an 87
129	127		insurer transacting business not authorized by a valid certificate. 88
130	128		(21) "United States" means the United States of America, its territories 89
131	129		and possessions, the Commonwealth of Puerto Rico and the District of 90
132	130		Columbia. 91
133	131		Sec. 2. (NEW) (Effective January 1, 2022) (a) Each insurer that delivers 92
134	132		or issues for delivery an individual or group life insurance policy in this 93
135	133		state on or after January 1, 2022, shall, at least annually, give written 94
136	134		notice to each beneficiary and owner of, person whose life is insured 95
137	135		under and insurance producer who negotiated and sold such policy 96
138	136		disclosing the status of such policy. 97
139	137		(b) The commissioner may adopt regulations, in accordance with 98
140	138		chapter 54 of the general statutes, to implement the provisions of this 99
141	139		section. 100
142	140		Sec. 3. (NEW) (Effective January 1, 2022) (a) Each insurer that delivers 101
143	141		or issues for delivery an individual or group life insurance policy in this 102
144	142		state on or after January 1, 2022, shall send any notice cancelling such 103
145		-	policy to each owner of such policy. The notice required under this 104 Raised Bill No. 1050
	143	+	policy to each owner of such policy. The notice required under this 104
	144	+	subsection shall be in addition to any notice required under section 38a-105 Raised Bill No. 1050
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152		-	subsection shall be in addition to any notice required under section 38a-105
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153	150		436a or 38a-456 of the general statutes. 106
154	151		(b) The commissioner may adopt regulations, in accordance with 107
155	152		chapter 54 of the general statutes, to implement the provisions of this 108
156	153		section. 109
157	154		This act shall take effect as follows and shall amend the following
158	155		sections:
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160	157		Section 1 January 1, 2022 38a-1
161	158		Sec. 2 January 1, 2022 New section
162	159		Sec. 3 January 1, 2022 New section
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164		-	INS Joint Favorable
	161	+	Statement of Purpose:
	162	+	To require each insurer that delivers or issues an individual or group
	163	+	life insurance policy in this state to: (1) At least annually, give a written
	164	+	policy status notice to each beneficiary and owner of, person whose life
	165	+	is insured under and insurance producer who negotiated and sold such
	166	+	policy; and (2) send any notice cancelling such policy to each owner of
	167	+	such policy.
	168	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	169	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	170	+	underlined.]
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