OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-1039
AN ACT CONCERNING THE INSURANCE DEPARTMENT'S
RECOMMENDATIONS REGARDING FINANCIAL REGULATION,
LIFE INSURANCE AND INSURANCE LICENSING REQUIREMENTS
AND TECHNICAL CORRECTIONS TO THE LIFE AND HEALTH
INSURANCE STATUTES.
Primary Analyst: MP 4/2/23
Contributing Analyst(s): NN
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 24 $ FY 25 $
Insurance Dept. GF - Revenue
Gain
104,000 -
154,000
104,000 -
154,000
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill includes various provisions regarding insurance which result
in the impacts discussed by section below.
Section 1 results in an annual revenue gain to the General Fund
beginning in FY 24 of approximately $104,000, by requiring certified
reinsurers and reciprocal jurisdiction reinsurers to pay the Insurance
Department (DOI) $2,000 for each certificate issued and annually
renewed. Currently, there are approximately 17 certified reinsurers and
35 reciprocal jurisdiction reinsurers that would begin paying the fee in
FY 24.
The provision in Section 1 that authorizes DOI to require its fees be
paid electronically is not anticipated to result in a fiscal impact because
most payments are already made electronically. 2023SB-01039-R000385-FN.DOCX Page 2 of 2
Section 2 allows a non-resident person or entity to get a nonresident
state insurance license in Connecticut in certain circumstances, which
results in a potential General Fund revenue gain beginning in FY 24,
which is anticipated to be less than $50,000 annually. The revenue gain
depends on: (1) the number of non-resident persons and entities that
apply to DOI and become licensed, and (2) the specific application,
licensing, and renewal fees that correspond to those application and
license types.
Sections 3-10 make technical corrections to health insurance statutes
that do not result in a fiscal impact. The bill removes requirements that
health insurers and HMOs include dependent coverage in “accident-
only” policies. That type of policy typically only pays a benefit when the
insured sustains injuries or dies due to an accident.
Sections 11 and 12 codify the removal of certain limitations on
medically necessary infertility diagnosis and treatment coverage
previously issued by the Department of Insurance, resulting in no
anticipated fiscal impact to the state or municipal health plans.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number of certified reinsurers,
reciprocal jurisdiction reinsurers, and non-resident persons and entities
paying fees to DOI.