Connecticut 2023 Regular Session

Connecticut Senate Bill SB01014 Compare Versions

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

Old	New	Differences
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3	3	LCO No. 4014 1 of 6
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5	5	General Assembly Raised Bill No. 1014
6	6	January Session, 2023
7	7	LCO No. 4014
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10	10	Referred to Committee on INSURANCE AND REAL ESTATE
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13	13	Introduced by:
14	14	(INS)
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19	19	AN ACT CONCERNING INSURANCE AND CLIMATE CHANGE.
20	20	Be it enacted by the Senate and House of Representatives in General
21	21	Assembly convened:
22	22
23	23	Section 1. Section 38a-1 of the general statutes is repealed and the 1
24	24	following is substituted in lieu thereof (Effective October 1, 2023): 2
25	25	Terms used in this title and sections 2 and 3 of this act, unless it 3
26	26	appears from the context to the contrary, shall have a scope and 4
27	27	meaning as set forth in this section. 5
28	28	(1) "Affiliate" or "affiliated" means a person that directly, or indirectly 6
29	29	through one or more intermediaries, controls, is controlled by or is 7
30	30	under common control with another person. 8
31	31	(2) "Alien insurer" means any insurer that has been chartered by or 9
32	32	organized or constituted within or under the laws of any jurisdiction or 10
33	33	country without the United States. 11
34	34	(3) "Annuities" means all agreements to make periodical payments 12
35	35	where the making or continuance of all or some of the series of the 13
36	36	payments, or the amount of the payment, is dependent upon the 14 Raised Bill No. 1014
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40	40	LCO No. 4014 2 of 6
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42	42	continuance of human life or is for a specified term of years. This 15
43	43	definition does not apply to payments made under a policy of life 16
44	44	insurance. 17
45	45	(4) "Commissioner" means the Insurance Commissioner. 18
46	46	(5) "Control", "controlled by" or "under common control with" means 19
47	47	the possession, direct or indirect, of the power to direct or cause the 20
48	48	direction of the management and policies of a person, whether through 21
49	49	the ownership of voting securities, by contract other than a commercial 22
50	50	contract for goods or nonmanagement services, or otherwise, unless the 23
51	51	power is the result of an official position with the person. 24
52	52	(6) "Domestic insurer" means any insurer that has been chartered by, 25
53	53	incorporated, organized or constituted within or under the laws of this 26
54	54	state. 27
55	55	(7) "Domestic surplus lines insurer" means any domestic insurer that 28
56	56	has been authorized by the commissioner to write surplus lines 29
57	57	insurance. 30
58	58	(8) "Foreign country" means any jurisdiction not in any state, district 31
59	59	or territory of the United States. 32
60	60	(9) "Foreign insurer" means any insurer that has been chartered by or 33
61	61	organized or constituted within or under the laws of another state or a 34
62	62	territory of the United States. 35
63	63	(10) "Insolvency" or "insolvent" means, for any insurer, that it is 36
64	64	unable to pay its obligations when they are due, or when its admitted 37
65	65	assets do not exceed its liabilities plus the greater of: (A) Capital and 38
66	66	surplus required by law for its organization and continued operation; 39
67	67	or (B) the total par or stated value of its authorized and issued capital 40
68	68	stock. For purposes of this subdivision "liabilities" shall include but not 41
69	69	be limited to reserves required by statute or by regulations adopted by 42
70	70	the commissioner in accordance with the provisions of chapter 54 or 43
71	71	specific requirements imposed by the commissioner upon a subject 44 Raised Bill No. 1014
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75	75	LCO No. 4014 3 of 6
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77	77	company at the time of admission or subsequent thereto. 45
78	78	(11) "Insurance" means any agreement to pay a sum of money, 46
79	79	provide services or any other thing of value on the happening of a 47
80	80	particular event or contingency or to provide indemnity for loss in 48
81	81	respect to a specified subject by specified perils in return for a 49
82	82	consideration. In any contract of insurance, an insured shall have an 50
83	83	interest which is subject to a risk of loss through destruction or 51
84	84	impairment of that interest, which risk is assumed by the insurer and 52
85	85	such assumption shall be part of a general scheme to distribute losses 53
86	86	among a large group of persons bearing similar risks in return for a 54
87	87	ratable contribution or other consideration. 55
88	88	(12) "Insurer" or "insurance company" includes any person or 56
89	89	combination of persons doing any kind or form of insurance business 57
90	90	other than a fraternal benefit society, and shall include a receiver of any 58
91	91	insurer when the context reasonably permits. 59
92	92	(13) "Insured" means a person to whom or for whose benefit an 60
93	93	insurer makes a promise in an insurance policy. The term includes 61
94	94	policyholders, subscribers, members and beneficiaries. This definition 62
95	95	applies only to the provisions of this title and does not define the 63
96	96	meaning of this word as used in insurance policies or certificates. 64
97	97	(14) "Life insurance" means insurance on human lives and insurances 65
98	98	pertaining to or connected with human life. The business of life 66
99	99	insurance includes granting endowment benefits, granting additional 67
100	100	benefits in the event of death by accident or accidental means, granting 68
101	101	additional benefits in the event of the total and permanent disability of 69
102	102	the insured, and providing optional methods of settlement of proceeds. 70
103	103	Life insurance includes burial contracts to the extent provided by 71
104	104	section 38a-464. 72
105	105	(15) "Mutual insurer" means any insurer without capital stock, the 73
106	106	managing directors or officers of which are elected by its members. 74
107	107	(16) "Person" means an individual, a corporation, a partnership, a 75 Raised Bill No. 1014
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111	111	LCO No. 4014 4 of 6
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113	113	limited liability company, an association, a joint stock company, a 76
114	114	business trust, an unincorporated organization or other legal entity. 77
115	115	(17) "Policy" means any document, including attached endorsements 78
116	116	and riders, purporting to be an enforceable contract, which 79
117	117	memorializes in writing some or all of the terms of an insurance 80
118	118	contract. 81
119	119	(18) "State" means any state, district, or territory of the United States. 82
120	120	(19) "Subsidiary" of a specified person means an affiliate controlled 83
121	121	by the person directly, or indirectly through one or more intermediaries. 84
122	122	(20) "Unauthorized insurer" or "nonadmitted insurer" means an 85
123	123	insurer that has not been granted a certificate of authority by the 86
124	124	commissioner to transact the business of insurance in this state or an 87
125	125	insurer transacting business not authorized by a valid certificate. 88
126	126	(21) "United States" means the United States of America, its territories 89
127	127	and possessions, the Commonwealth of Puerto Rico and the District of 90
128	128	Columbia. 91
129	129	Sec. 2. (NEW) (Effective October 1, 2023) (a) (1) Not later than February 92
130	130	1, 2024, the commissioner shall develop and implement criteria for each 93
131	131	insurer doing business in this state to submit, not less than annually, to 94
132	132	the commissioner, a report disclosing: 95
133	133	(A) Such insurer's investments in fossil fuels; 96
134	134	(B) The degree to which such insurer's investments are exposed to 97
135	135	climate risks; and 98
136	136	(C) Information concerning such insurer's gross premium 99
137	137	underwriting for insureds involved in the fossil fuel industry and 100
138	138	related industries. 101
139	139	(2) The criteria developed by the commissioner pursuant to 102
140	140	subdivision (1) of this subsection shall enable the commissioner to post 103 Raised Bill No. 1014
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144	144	LCO No. 4014 5 of 6
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146	146	the information reported to the commissioner pursuant to subsection (b) 104
147	147	of this section on the Insurance Department's Internet web site. 105
148	148	(b) Not later than April 1, 2024, and annually thereafter, each insurer 106
149	149	doing business in this state shall submit a report to the commissioner 107
150	150	disclosing the information set forth in subdivision (1) of subsection (a) 108
151	151	of this section for the preceding calendar year. 109
152	152	(c) Not later than May 1, 2024, and annually thereafter, the 110
153	153	commissioner shall post the information reported to the commissioner 111
154	154	pursuant to subsection (b) of this section on the Insurance Department's 112
155	155	Internet web site. 113
156	156	(d) The commissioner may adopt regulations, in accordance with the 114
157	157	provisions of chapter 54 of the general statutes, to implement the 115
158	158	provisions of this section. 116
159	159	Sec. 3. (NEW) (Effective October 1, 2023) Not later than May 1, 2024, 117
160	160	and annually thereafter, the commissioner shall submit a report, in 118
161	161	accordance with the provisions of section 11-4a of the general statutes, 119
162	162	to the joint standing committee of the General Assembly having 120
163	163	cognizance of matters relating to insurance. The report shall disclose, for 121
164	164	the preceding calendar year, the Insurance Department's: 122
165	165	(1) Efforts, if any, to: 123
166	166	(A) Integrate climate-related risks into the Insurance Department's 124
167	167	regulation and supervision of insurers, including, but not limited to: 125
168	168	(i) Risk-based capital requirements; 126
169	169	(ii) Regular supervisory examinations; and 127
170	170	(iii) Own risk and solvency assessments; and 128
171	171	(B) Align insurer investment and underwriting activities with the 129
172	172	goal expressed by the parties to the United Nations Framework 130
173	173	Convention on Climate Change in the Paris Agreement to limit the 131 Raised Bill No. 1014
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177	177	LCO No. 4014 6 of 6
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179	179	increase in the global average temperature to not more than one and 132
180	180	one-half degrees Celsius above preindustrial levels; and 133
181	181	(2) Regulatory and supervisory actions, if any, to bolster the resilience 134
182	182	of insurers to the physical impacts of climate change. 135
183	183	This act shall take effect as follows and shall amend the following
184	184	sections:
185	185
186	186	Section 1 October 1, 2023 38a-1
187	187	Sec. 2 October 1, 2023 New section
188	188	Sec. 3 October 1, 2023 New section
189	189
190	190	Statement of Purpose:
191	191	To require: (1) The Insurance Commissioner to (A) develop and
192	192	implement criteria for each insurer doing business in this state to
193	193	annually submit a report to the commissioner concerning climate risk,
194	194	and (B) annually submit a report to the joint standing committee of the
195	195	General Assembly having cognizance of matters relating to insurance;
196	196	and (2) each insurer doing business in this state to annually submit a
197	197	report to the commissioner concerning climate risk.
198	198	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
199	199	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
200	200	underlined.]
201	201