Connecticut 2024 Regular Session

Connecticut Senate Bill SB00398 Compare Versions

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

Old	New	Differences
1	1
2	2
3	3	LCO No. 125 1 of 40
4	4
5	5	General Assembly Raised Bill No. 398
6	6	February Session, 2024
7	7	LCO No. 125
8	8
9	9
10	10	Referred to Committee on INSURANCE AND REAL ESTATE
11	11
12	12
13	13	Introduced by:
14	14	(INS)
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16	16
17	17
18	18
19	19	AN ACT CONCERNING THE REGULATION AND TAXATION OF
20	20	TRAVEL INSURANCE AND ASSOCIATED ENTITIES, PRODUCTS AND
21	21	PROFESSIONALS.
22	22	Be it enacted by the Senate and House of Representatives in General
23	23	Assembly convened:
24	24
25	25	Section 1. Section 38a-1 of the general statutes is repealed and the 1
26	26	following is substituted in lieu thereof (Effective October 1, 2024): 2
27	27	Terms used in this title, and sections 3 to 11, inclusive, of this act, 3
28	28	unless it appears from the context to the contrary, shall have a scope and 4
29	29	meaning as set forth in this section. 5
30	30	(1) "Affiliate" or "affiliated" means a person that directly, or indirectly 6
31	31	through one or more intermediaries, controls, is controlled by or is 7
32	32	under common control with another person. 8
33	33	(2) "Alien insurer" means any insurer that has been chartered by or 9
34	34	organized or constituted within or under the laws of any jurisdiction or 10
35	35	country without the United States. 11
36	36	(3) "Annuities" means all agreements to make periodical payments 12 Raised Bill No. 398
37	37
38	38
39	39
40	40	LCO No. 125 2 of 40
41	41
42	42	where the making or continuance of all or some of the series of the 13
43	43	payments, or the amount of the payment, is dependent upon the 14
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 Raised Bill No. 398
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73	73
74	74
75	75	LCO No. 125 3 of 40
76	76
77	77	the commissioner in accordance with the provisions of chapter 54 or 43
78	78	specific requirements imposed by the commissioner upon a subject 44
79	79	company at the time of admission or subsequent thereto. 45
80	80	(11) "Insurance" means any agreement to pay a sum of money, 46
81	81	provide services or any other thing of value on the happening of a 47
82	82	particular event or contingency or to provide indemnity for loss in 48
83	83	respect to a specified subject by specified perils in return for a 49
84	84	consideration. In any contract of insurance, an insured shall have an 50
85	85	interest which is subject to a risk of loss through destruction or 51
86	86	impairment of that interest, which risk is assumed by the insurer and 52
87	87	such assumption shall be part of a general scheme to distribute losses 53
88	88	among a large group of persons bearing similar risks in return for a 54
89	89	ratable contribution or other consideration. 55
90	90	(12) "Insurer" or "insurance company" includes any person or 56
91	91	combination of persons doing any kind or form of insurance business 57
92	92	other than a fraternal benefit society, and shall include a receiver of any 58
93	93	insurer when the context reasonably permits. 59
94	94	(13) "Insured" means a person to whom or for whose benefit an 60
95	95	insurer makes a promise in an insurance policy. The term includes 61
96	96	policyholders, subscribers, members and beneficiaries. This definition 62
97	97	applies only to the provisions of this title and does not define the 63
98	98	meaning of this word as used in insurance policies or certificates. 64
99	99	(14) "Life insurance" means insurance on human lives and insurances 65
100	100	pertaining to or connected with human life. The business of life 66
101	101	insurance includes granting endowment benefits, granting additional 67
102	102	benefits in the event of death by accident or accidental means, granting 68
103	103	additional benefits in the event of the total and permanent disability of 69
104	104	the insured, and providing optional methods of settlement of proceeds. 70
105	105	Life insurance includes burial contracts to the extent provided by 71
106	106	section 38a-464. 72
107	107	(15) "Mutual insurer" means any insurer without capital stock, the 73
108	108	managing directors or officers of which are elected by its members. 74 Raised Bill No. 398
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110	110
111	111
112	112	LCO No. 125 4 of 40
113	113
114	114	(16) "Person" means an individual, a corporation, a partnership, a 75
115	115	limited liability company, an association, a joint stock company, a 76
116	116	business trust, an unincorporated organization or other legal entity. 77
117	117	(17) "Policy" means any document, including attached endorsements 78
118	118	and riders, purporting to be an enforceable contract, which 79
119	119	memorializes in writing some or all of the terms of an insurance 80
120	120	contract. 81
121	121	(18) "State" means any state, district, or territory of the United States. 82
122	122	(19) "Subsidiary" of a specified person means an affiliate controlled 83
123	123	by the person directly, or indirectly through one or more intermediaries. 84
124	124	(20) "Unauthorized insurer" or "nonadmitted insurer" means an 85
125	125	insurer that has not been granted a certificate of authority by the 86
126	126	commissioner to transact the business of insurance in this state or an 87
127	127	insurer transacting business not authorized by a valid certificate. 88
128	128	(21) "United States" means the United States of America, its territories 89
129	129	and possessions, the Commonwealth of Puerto Rico and the District of 90
130	130	Columbia. 91
131	131	Sec. 2. Section 38a-398 of the general statutes is repealed and the 92
132	132	following is substituted in lieu thereof (Effective October 1, 2024): 93
133	133	[(a) As used in] For the purposes of this section and sections 3 to 11, 94
134	134	inclusive, of this act: 95
135	135	[(1) "Travel insurance" means insurance, provided under an 96
136	136	individual or a group or master insurance policy, for the following 97
137	137	personal risks incident to planned travel: (A) Interruption or 98
138	138	cancellation of a trip or an event; (B) loss of baggage or personal effects; 99
139	139	(C) damage to accommodations or rental vehicles; or (D) sickness, 100
140	140	accident, disability or death occurring during travel;] 101
141	141	(1) "Aggregator web site" means an Internet web site that provides 102
142	142	access to information concerning insurance products from more than 103 Raised Bill No. 398
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144	144
145	145
146	146	LCO No. 125 5 of 40
147	147
148	148	one insurer, including, but not limited to, product and insurer 104
149	149	information, for use in insurance product comparison shopping. 105
150	150	(2) "Blanket travel insurance policy" means a policy of travel 106
151	151	insurance issued to an eligible group that provides coverage: (A) For 107
152	152	specific classes of persons defined in such policy of travel insurance; and 108
153	153	(B) to all members of such eligible group without imposing a separate 109
154	154	charge on any individual member of such eligible group. 110
155	155	(3) "Cancellation fee waiver" means a contractual agreement between 111
156	156	a supplier of travel services and a consumer to waive some or all of the 112
157	157	nonrefundable cancellation fee provisions of such supplier's underlying 113
158	158	travel contract regardless of the reason for the cancellation or form of 114
159	159	reimbursement. 115
160	160	(4) "Designated travel retailer" means a travel retailer designated by 116
161	161	a limited lines travel insurance producer to offer and disseminate travel 117
162	162	insurance to residents of this state on behalf of the limited lines travel 118
163	163	insurance producer. 119
164	164	(5) "Eligible group" means, with respect to travel insurance, a group 120
165	165	of two or more persons who are engaged in a common enterprise or 121
166	166	have an economic, educational or social affinity or relationship, 122
167	167	including, but not limited to: (A) Any entity that is engaged in the 123
168	168	business of providing travel or travel services, including, but not limited 124
169	169	to, tour operators, lodging providers, vacation property owners, hotels, 125
170	170	resorts, travel clubs, travel agencies, property managers, cultural 126
171	171	exchange programs and common carriers, including, but not limited to, 127
172	172	airlines, cruise lines, railroads, steamship companies and public bus 128
173	173	carriers, provided all members or customers of such group have a 129
174	174	common exposure to risk attendant to travel with respect to a particular 130
175	175	type of travel or traveler; (B) a college, school or other institution of 131
176	176	learning, provided any group or blanket travel insurance policy issued 132
177	177	to the college, school or other institution of learning provides coverage 133
178	178	for the students, teachers, employees or volunteers of such college, 134
179	179	school or institution of higher learning; (C) an employer, provided any 135 Raised Bill No. 398
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181	181
182	182
183	183	LCO No. 125 6 of 40
184	184
185	185	group or blanket travel insurance policy issued to the employer 136
186	186	provides coverage for a group of employees, volunteers, contractors, 137
187	187	directors, dependents or guests of such employer; (D) a sports team, 138
188	188	camp or sponsor of such sports team or camp, provided any group or 139
189	189	blanket travel insurance policy issued to such team, camp or sponsor 140
190	190	provides coverage for participants, members, campers, employees, 141
191	191	officials, supervisors or volunteers of such team, camp or sponsor; (E) a 142
192	192	religious, charitable, recreational, educational or civic organization, or 143
193	193	branch of such religious, charitable, recreational, educational or civic 144
194	194	organization, provided any group or blanket travel insurance policy 145
195	195	issued to such organization or branch provides coverage for a group of 146
196	196	members, participants or volunteers of such organization or branch; (F) 147
197	197	a financial institution or financial institution vendor, or a parent holding 148
198	198	company, trustee or agent of, or designated by, one or more financial 149
199	199	institutions or financial institution vendors, including, but not limited 150
200	200	to, account holders, credit card holders, debtors, guarantors or 151
201	201	purchasers; (G) an incorporated or unincorporated association, 152
202	202	including, but not limited to, a labor union, that has a common interest, 153
203	203	constitution and bylaws and is maintained, in good faith, for a purpose 154
204	204	other than obtaining insurance for members of, or participants in, such 155
205	205	association covering the members of such association; (H) a trust or the 156
206	206	trustees of a fund subject to approval by the commissioner and 157
207	207	established, created or maintained for the benefit of, and covering, 158
208	208	members, employees or customers of one or more of the associations 159
209	209	described in subparagraph (G) of this subdivision; (I) an entertainment 160
210	210	production company, provided any group or blanket travel insurance 161
211	211	policy issued to the entertainment production company provides 162
212	212	coverage for a group of participants, volunteers, audience members, 163
213	213	contestants or workers of such entertainment production company; (J) a 164
214	214	volunteer fire department, police department, ambulance service, first 165
215	215	aid service, rescue service, court or civil defense organization, or any 166
216	216	similar voluntary group; (K) a preschool, day care institution for 167
217	217	children or adults or a senior citizen club; (L) an automobile or truck 168
218	218	rental or leasing company covering, under a group or blanket travel 169
219	219	insurance policy, a group of individuals who may become renters or 170 Raised Bill No. 398
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221	221
222	222
223	223	LCO No. 125 7 of 40
224	224
225	225	lessees of, or passengers on, a rented or leased automobile or truck due 171
226	226	to their travel status on such rented or leased automobile or truck, 172
227	227	provided the common carrier, operator, owner or lessor of the rented or 173
228	228	leased automobile or truck, or the automobile or truck rental or leasing 174
229	229	company, is the policyholder of the group or blanket travel insurance 175
230	230	policy providing such coverage; or (M) any other group if the 176
231	231	commissioner determines, in the commissioner's discretion, that issuing 177
232	232	a group or blanket travel insurance policy to such group is consistent 178
233	233	with the public interest. 179
234	234	(6) "Fulfillment materials" means documentation sent to a purchaser 180
235	235	of a travel protection plan that (A) confirms purchase of such travel 181
236	236	protection plan, and (B) provides the coverage and assistance details for 182
237	237	such travel protection plan. 183
238	238	(7) "Group travel insurance" means travel insurance issued to an 184
239	239	eligible group. 185
240	240	[(2)] (8) "Limited lines travel insurance producer" means [an 186
241	241	individual who or business entity that is authorized under subsection 187
242	242	(b) of this section to sell, solicit or negotiate travel insurance;] a (A) 188
243	243	licensed managing general agent, as defined in section 38a-90a, or third-189
244	244	party administrator licensed pursuant to section 38a-720j, (B) licensed 190
245	245	insurance producer, including a limited lines producer, designated by 191
246	246	an insurer as the travel insurance supervising entity, or (C) travel 192
247	247	administrator. 193
248	248	[(3) "Offer and disseminate,"] (9) "Offer and disseminate" means, with 194
249	249	respect to travel insurance, [means] the provision of general information 195
250	250	about or general services for travel insurance, including: (A) A 196
251	251	description of the coverage and price of a travel [insurance policy] 197
252	252	protection plan; (B) the processing of an application for a travel 198
253	253	[insurance policy] protection plan; (C) the collection of a premium for a 199
254	254	travel [insurance policy] protection plan; or (D) the performance of other 200
255	255	activities not requiring a license and permitted in this state concerning 201
256	256	a travel [insurance policy;] protection plan. 202 Raised Bill No. 398
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258	258
259	259
260	260	LCO No. 125 8 of 40
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262	262	(10) "Primary certificate holder" means an individual who elects 203
263	263	coverage under and purchases travel insurance provided under a policy 204
264	264	of group travel insurance. 205
265	265	(11) "Primary policyholder" means an individual who elects and 206
266	266	purchases travel insurance provided under an individual policy of 207
267	267	travel insurance. 208
268	268	(12) "Travel administrator" means a person who, directly or 209
269	269	indirectly, underwrites travel insurance, collects charges, collateral or 210
270	270	premiums in connection with travel insurance or adjusts or settles travel 211
271	271	insurance claims for residents of this state, unless such person: (A) 212
272	272	Works for, and to the extent that such person's activities are subject to 213
273	273	the supervision and control of, a travel administrator; (B) is a licensed 214
274	274	insurance producer selling insurance or engaged in administrative and 215
275	275	claims-related activities within the scope of such insurance producer's 216
276	276	license; (C) is a designated travel retailer; (D) is an individual adjusting 217
277	277	or settling claims in such individual's normal course of business or 218
278	278	practice, or a lawyer settling a client's claim and who does not collect 219
279	279	charges or premiums in connection with insurance transactions; or (E) 220
280	280	is a business entity affiliated with a licensed insurer and administering 221
281	281	the direct and assumed travel insurance business of such licensed 222
282	282	affiliated insurer. 223
283	283	(13) "Travel assistance services" means any noninsurance services for 224
284	284	which a consumer is not indemnified based on a fortuitous event and 225
285	285	where providing such noninsurance services does not transfer or shift 226
286	286	any risk in a manner that constitutes the business of insurance, 227
287	287	including, but not limited to: (A) Security advisories; (B) destination 228
288	288	information; (C) vaccination and immunization information services; 229
289	289	(D) travel reservation services; (E) entertainment; (F) activity and event 230
290	290	planning; (G) translation assistance; (H) emergency messaging; (I) 231
291	291	international legal and medical referrals; (J) medical case monitoring; 232
292	292	(K) transportation arrangement coordination; (L) emergency cash 233
293	293	transfer assistance; (M) medical prescription replacement assistance; (N) 234
294	294	passport and other travel document replacement assistance; (O) lost 235 Raised Bill No. 398
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296	296
297	297
298	298	LCO No. 125 9 of 40
299	299
300	300	luggage assistance; (P) concierge services; and (Q) any service furnished 236
301	301	in connection with planned travel. 237
302	302	(14) (A) "Travel insurance" means insurance, provided under an 238
303	303	individual, group or blanket insurance policy, for the following 239
304	304	personal risks incident to planned travel: (i) Interruption or cancellation 240
305	305	of a trip or an event; (ii) loss of baggage or personal effects; (iii) damage 241
306	306	to accommodations or rental vehicles; (iv) sickness, accident, disability 242
307	307	or death occurring during travel; (v) emergency evacuation; (vi) 243
308	308	repatriation of remains; or (vii) any other contractual obligation to 244
309	309	indemnify or pay a specified amount to a traveler upon determinable 245
310	310	contingencies that are related to travel as approved by the 246
311	311	commissioner. 247
312	312	(B) "Travel insurance" does not include: (i) Major medical plans that 248
313	313	provide comprehensive medical protection for a traveler with a trip 249
314	314	lasting longer than six months, including, but not limited to, a traveler 250
315	315	working or residing outside of the United States as an expatriate; (ii) a 251
316	316	product that requires a specific insurance producer license; (iii) a 252
317	317	cancellation fee waiver; or (iv) travel assistance services. 253
318	318	(15) "Travel protection plan" means a plan that includes travel 254
319	319	insurance, travel assistance services or a cancellation fee waiver. 255
320	320	[(4)] (16) "Travel retailer" means a business entity that makes, 256
321	321	arranges or offers travel services. [; and] 257
322	322	[(5) "Designated travel retailer" means a travel retailer designated by 258
323	323	a limited lines travel insurance producer to offer and disseminate travel 259
324	324	insurance to residents of this state on such producer's behalf. 260
325	325	(b) (1) (A) Any individual or business entity that wishes to act as a 261
326	326	limited lines travel insurance producer in this state may apply to the 262
327	327	Insurance Commissioner for authorization to act as a limited lines travel 263
328	328	insurance producer and to sell, solicit or negotiate travel insurance 264
329	329	through an insurance company licensed or authorized to do business in 265
330	330	this state. Such application shall be submitted on such form and in such 266 Raised Bill No. 398
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332	332
333	333
334	334	LCO No. 125 10 of 40
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336	336	manner as prescribed by the commissioner and shall be accompanied 267
337	337	by the fee required under section 38a-11. The commissioner shall not 268
338	338	approve such application unless (i) the applicant has paid all applicable 269
339	339	filing and licensing fees required under this title, and (ii) for an applicant 270
340	340	that is a business entity, the employee designated pursuant to 271
341	341	subparagraph (A) of subdivision (3) of this subsection and the president, 272
342	342	secretary, treasurer and any other officer or individual who directs or 273
343	343	controls the insurance operations of the applicant has complied with 274
344	344	any fingerprinting requirements applicable to insurance producers in 275
345	345	the resident state of the applicant. 276
346	346	(B) The commissioner may approve or deny such application. Any 277
347	347	such authorization shall be in force until the commissioner suspends or 278
348	348	revokes such authorization or the commissioner suspends, revokes or 279
349	349	refuses to renew the individual's or insurance company's license or 280
350	350	authorization to do business in this state. 281
351	351	(2) Each limited lines travel insurance producer that is a business 282
352	352	entity shall, at the time such application is approved by the 283
353	353	commissioner, establish and maintain a registry, on a form prescribed 284
354	354	by the commissioner, of its designated travel retailers. Such producer 285
355	355	shall update the registry annually and shall include: (A) The name, 286
356	356	address and contact information of each designated travel retailer; (B) 287
357	357	the name, address and contact information of an officer or individual 288
358	358	who directs or controls each designated travel retailer's operations; (C) 289
359	359	the federal tax identification number of each designated travel retailer; 290
360	360	and (D) a certification by such producer that the designated travel 291
361	361	retailer has not engaged in conduct prohibited under 18 USC 1033, as 292
362	362	amended from time to time. Upon request by the commissioner, a 293
363	363	limited lines travel insurance producer shall make such registry 294
364	364	available to the commissioner or the commissioner's designee for 295
365	365	inspection and examination during the regular business hours of such 296
366	366	limited lines travel insurance producer. 297
367	367	(3) (A) Each limited lines travel insurance producer that is a business 298
368	368	entity shall designate an employee, who is an insurance producer 299 Raised Bill No. 398
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371	371
372	372	LCO No. 125 11 of 40
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374	374	licensed in this state, as the individual responsible for the limited lines 300
375	375	travel insurance producer's compliance with this section, including 301
376	376	supervision of its designated travel retailers. 302
377	377	(B) Each limited lines travel insurance producer that is a business 303
378	378	entity shall be responsible for the acts of its designated travel retailers 304
379	379	and shall use reasonable means to ensure each designated travel 305
380	380	retailer's compliance with this section. 306
381	381	(4) Each limited lines travel insurance producer that is a business 307
382	382	entity shall require each employee and authorized representative of its 308
383	383	designated travel retailers to receive instruction or training on the offer 309
384	384	and dissemination of travel insurance. Such instruction or training may 310
385	385	be subject to review by the commissioner and shall include, at a 311
386	386	minimum, information about (A) the types of travel insurance offered 312
387	387	through the travel retailer, (B) ethical sales practices, and (C) required 313
388	388	disclosures to prospective insureds. 314
389	389	(5) Each limited lines travel insurance producer that is a business 315
390	390	entity or designated travel retailer shall provide to purchasers of a travel 316
391	391	insurance policy: (A) A description or a copy of the material terms of 317
392	392	such policy; (B) a description of the process for filing a claim under such 318
393	393	policy; (C) a description of the process for the review or cancellation of 319
394	394	such policy; and (D) the identity of and contact information for the 320
395	395	insurance company issuing such policy and the limited lines travel 321
396	396	insurance producer. 322
397	397	(c) (1) A travel retailer that does not employ a licensed insurance 323
398	398	producer or is not licensed or authorized to transact the business of 324
399	399	insurance in this state may offer and disseminate travel insurance to 325
400	400	residents of this state, if (A) it is a designated travel retailer, and (B) its 326
401	401	travel insurance-related activities are limited to those authorized under 327
402	402	this section. 328
403	403	(2) A travel retailer shall make available to prospective insureds 329
404	404	brochures or other written materials that: (A) Provide the identity of and 330
405	405	contact information for the insurance company issuing the travel 331 Raised Bill No. 398
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407	407
408	408
409	409	LCO No. 125 12 of 40
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411	411	insurance policy and the limited lines travel insurance producer; (B) 332
412	412	explain that the purchase of travel insurance is not required to purchase 333
413	413	any other product or service from the travel retailer; and (C) explain that 334
414	414	such travel retailer is permitted to provide general information about 335
415	415	the travel insurance offered through the travel retailer, including a 336
416	416	description of the coverage and price, but is not qualified or authorized 337
417	417	to answer questions about the terms and conditions of such travel 338
418	418	insurance or evaluate the adequacy of the prospective insured's existing 339
419	419	insurance coverage. 340
420	420	(3) A designated travel retailer may receive compensation from a 341
421	421	limited lines travel insurance producer or the insurance company 342
422	422	issuing a travel insurance policy for services related to the offer and 343
423	423	dissemination of travel insurance as agreed to by such designated travel 344
424	424	retailer and such limited lines travel insurance producer or insurance 345
425	425	company. 346
426	426	(4) An employee or authorized representative of a travel retailer shall 347
427	427	not be required to be licensed as an insurance producer unless such 348
428	428	employee or authorized representative: (A) Evaluates or interprets the 349
429	429	terms, benefits or conditions of travel insurance offered by the travel 350
430	430	retailer; (B) evaluates or provides advice regarding a prospective 351
431	431	insured's existing insurance coverage; or (C) holds himself or herself out 352
432	432	as a licensed insurance producer or an insurance expert. 353
433	433	(d) (1) A violation of this section by a limited lines travel insurance 354
434	434	producer shall be deemed an unfair or deceptive insurance practice 355
435	435	under section 38a-816. 356
436	436	(2) A violation of this section by a travel retailer shall be deemed an 357
437	437	unfair or deceptive trade practice under subsection (a) of section 42-358
438	438	110b.] 359
439	439	Sec. 3. (NEW) (Effective October 1, 2024) (a) Travel insurance shall be 360
440	440	classified and filed in this state, for the purposes of rates and forms, 361
441	441	under an inland marine line of insurance, except if travel insurance 362
442	442	provides coverage for sickness, accident, disability or death occurring 363 Raised Bill No. 398
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444	444
445	445
446	446	LCO No. 125 13 of 40
447	447
448	448	during travel, either exclusively or in conjunction with related 364
449	449	coverages of emergency evacuation or repatriation of remains, or 365
450	450	incidental limited property and casualty benefits such as baggage or trip 366
451	451	cancellation, such travel insurance may be filed in this state under either 367
452	452	an accident and health line of insurance or an inland marine line of 368
453	453	insurance. 369
454	454	(b) Each insurance company licensed to issue travel insurance 370
455	455	policies in this state may develop eligibility and underwriting standards 371
456	456	for travel insurance based on travel protection plans designed for 372
457	457	individual or identified marketing or distribution channels, provided 373
458	458	such standards meet this state's underwriting standards for inland 374
459	459	marine lines of insurance. 375
460	460	Sec. 4. (NEW) (Effective October 1, 2024) (a) (1) Except as provided in 376
461	461	subdivision (2) of this subsection, no individual or business entity shall 377
462	462	act as a limited lines travel insurance producer, and no travel retailer 378
463	463	shall act as a designated travel retailer, in this state except in accordance 379
464	464	with the provisions of this section and sections 5, 7, 9 and 10 of this act. 380
465	465	(2) Notwithstanding any provision of this section, each insurance 381
466	466	producer licensed for a major line of authority in this state shall be 382
467	467	deemed to have been authorized to sell, solicit and negotiate travel 383
468	468	insurance in this state, and no insurance producer licensed for property 384
469	469	and casualty insurance lines in this state shall be required to seek 385
470	470	authorization to sell, solicit or negotiate travel insurance through an 386
471	471	insurer licensed or authorized to do insurance business in this state. 387
472	472	(b) (1) (A) Except as provided in subdivision (2) of subsection (a) of 388
473	473	this section, any individual or business entity that wishes to act as a 389
474	474	limited lines travel insurance producer in this state may apply to the 390
475	475	commissioner for annual authorization to act as a limited lines travel 391
476	476	insurance producer and to sell, solicit or negotiate travel insurance 392
477	477	through an insurer licensed or authorized to do insurance business in 393
478	478	this state. Such application shall be submitted on such form and in such 394
479	479	manner as prescribed by the commissioner and shall be accompanied 395 Raised Bill No. 398
480	480
481	481
482	482
483	483	LCO No. 125 14 of 40
484	484
485	485	by the fee required under section 38a-11 of the general statutes, as 396
486	486	amended by this act. The commissioner shall not approve such 397
487	487	application unless: (i) The applicant has paid (I) all applicable filing fees 398
488	488	and licensing fees required under title 38a of the general statutes, and 399
489	489	(II) the licensing fee under section 38a-11 of the general statutes, as 400
490	490	amended by this act, and (ii) for an applicant that is a business entity, 401
491	491	the employee designated pursuant to subparagraph (A) of subdivision 402
492	492	(3) of this subsection and the president, secretary, treasurer and any 403
493	493	other officer or individual who directs or controls the insurance 404
494	494	operations of the applicant has complied with any fingerprinting 405
495	495	requirements applicable to insurance producers in the resident state of 406
496	496	the applicant. 407
497	497	(B) The commissioner may approve or deny any application 408
498	498	submitted pursuant to subparagraph (A) of this subdivision. Any 409
499	499	authorization approved by the commissioner shall be in force until the 410
500	500	day immediately preceding the anniversary date of such authorization, 411
501	501	the date on which the commissioner suspends or revokes such 412
502	502	authorization in accordance with the provisions of section 9 of this act 413
503	503	or the commissioner suspends, revokes or refuses to renew the license 414
504	504	of the insurer through which the limited lines travel insurance producer 415
505	505	is selling, soliciting or negotiating travel insurance in this state, 416
506	506	whichever first occurs. 417
507	507	(2) Each limited lines travel insurance producer that is a business 418
508	508	entity shall, at the time such application is approved by the 419
509	509	commissioner, establish and maintain a registry, on a form prescribed 420
510	510	by the commissioner, of its designated travel retailers. Such limited lines 421
511	511	travel insurance producer shall update the registry annually and shall 422
512	512	include: (A) The name, address and contact information of each 423
513	513	designated travel retailer; (B) the name, address and contact information 424
514	514	of an officer or individual who directs or controls each designated travel 425
515	515	retailer's operations; (C) the federal tax identification number of each 426
516	516	designated travel retailer; and (D) a certification by such limited lines 427
517	517	travel insurance producer that the designated travel retailer has not 428
518	518	engaged in conduct prohibited under 18 USC 1033, as amended from 429 Raised Bill No. 398
519	519
520	520
521	521
522	522	LCO No. 125 15 of 40
523	523
524	524	time to time. Upon request by the commissioner, a limited lines travel 430
525	525	insurance producer shall make such registry available to the 431
526	526	commissioner or the commissioner's designee for inspection and 432
527	527	examination during the regular business hours of such limited lines 433
528	528	travel insurance producer. 434
529	529	(3) (A) Each limited lines travel insurance producer that is a business 435
530	530	entity shall designate an employee, who is an insurance producer 436
531	531	licensed in this state, as the individual responsible for the limited lines 437
532	532	travel insurance producer's compliance with this section and sections 5, 438
533	533	7, 9 and 10 of this act, including supervision of its designated travel 439
534	534	retailers. 440
535	535	(B) Each limited lines travel insurance producer that is a business 441
536	536	entity shall be responsible for the acts of such limited lines travel 442
537	537	insurance producer's designated travel retailers and shall use 443
538	538	reasonable means to ensure each designated travel retailer's compliance 444
539	539	with this section and sections 5, 7, 9 and 10 of this act. 445
540	540	(4) Each limited lines travel insurance producer that is a business 446
541	541	entity shall require each employee and authorized representative of its 447
542	542	designated travel retailers to receive instruction or training on the offer 448
543	543	and dissemination of travel insurance. Such instruction or training may 449
544	544	be subject to review by the commissioner and shall include, at a 450
545	545	minimum, information about: (A) The types of travel insurance offered 451
546	546	through the designated travel retailer; (B) ethical sales practices; and (C) 452
547	547	required disclosures to consumers. 453
548	548	(5) Each limited lines travel insurance producer that is a business 454
549	549	entity or designated travel retailer shall provide to purchasers of a 455
550	550	policy of travel insurance: (A) A description or a copy of the material 456
551	551	terms of such policy; (B) a description of the process for filing a claim 457
552	552	under such policy; (C) a description of the process for the review or 458
553	553	cancellation of such policy; and (D) the identity of and contact 459
554	554	information for the insurer issuing such policy and the limited lines 460
555	555	travel insurance producer. 461 Raised Bill No. 398
556	556
557	557
558	558
559	559	LCO No. 125 16 of 40
560	560
561	561	(c) (1) A travel retailer that does not employ a licensed insurance 462
562	562	producer or is not licensed or authorized to transact the business of 463
563	563	insurance in this state may offer and disseminate travel insurance to 464
564	564	residents of this state, if: (A) Such travel retailer is a designated travel 465
565	565	retailer, and (B) such designated travel retailer's travel insurance-related 466
566	566	activities are limited to those authorized under this section. 467
567	567	(2) A designated travel retailer shall make available to consumers 468
568	568	brochures or other written materials that: (A) Provide the identity of, 469
569	569	and contact information for, the insurer issuing the policy of travel 470
570	570	insurance and the limited lines travel insurance producer; (B) explain 471
571	571	that the purchase of travel insurance is not required to purchase any 472
572	572	other product or service from the designated travel retailer; and (C) 473
573	573	explain that such designated travel retailer is permitted to provide 474
574	574	general information about the travel insurance offered through such 475
575	575	designated travel retailer, including, but not limited to, a description of 476
576	576	the coverage and price, but is not qualified or authorized to answer 477
577	577	technical questions about the terms and conditions of such travel 478
578	578	insurance or evaluate the adequacy of the consumer's existing insurance 479
579	579	coverage. 480
580	580	(3) A designated travel retailer may receive compensation from a 481
581	581	limited lines travel insurance producer or the insurer issuing a policy of 482
582	582	travel insurance for services related to the offer and dissemination of 483
583	583	travel insurance as agreed to by such designated travel retailer and such 484
584	584	limited lines travel insurance producer or insurer. 485
585	585	(4) An employee or authorized representative of a travel retailer shall 486
586	586	not be required to be licensed as an insurance producer unless such 487
587	587	employee or authorized representative: (A) Evaluates or interprets the 488
588	588	technical terms, benefits or conditions of travel insurance offered by the 489
589	589	travel retailer; (B) evaluates or provides advice regarding a consumer's 490
590	590	existing insurance coverage; or (C) holds himself or herself out as a 491
591	591	licensed insurer, licensed insurance producer or an insurance expert. 492
592	592	Sec. 5. (NEW) (Effective October 1, 2024) (a) (1) All documents 493 Raised Bill No. 398
593	593
594	594
595	595
596	596	LCO No. 125 17 of 40
597	597
598	598	provided to a consumer prior to the purchase of a policy of travel 494
599	599	insurance, including, but not limited to, sales materials, advertising 495
600	600	materials and marketing materials, shall be consistent with the policy of 496
601	601	travel insurance, including, but not limited to, forms, endorsements, 497
602	602	policies, rate filings and certificates of insurance. 498
603	603	(2) If a policy or certificate of travel insurance contains any 499
604	604	preexisting condition exclusion, information concerning, and an 500
605	605	opportunity to learn more about, such preexisting condition exclusion 501
606	606	shall be provided to a consumer at any time prior to the time that the 502
607	607	consumer purchases such policy or certificate of travel insurance, and 503
608	608	any such preexisting condition exclusion shall be provided to a 504
609	609	consumer in the fulfillment materials for a travel protection plan that 505
610	610	includes travel insurance. 506
611	611	(3) (A) If a consumer purchases a travel protection plan in this state, 507
612	612	the following shall be provided to the consumer as soon as practicable 508
613	613	following the time that such consumer purchases such travel protection 509
614	614	plan: 510
615	615	(i) The fulfillment materials for such travel protection plan; 511
616	616	(ii) A description, or a copy of, the material terms of any travel 512
617	617	insurance coverage included in such travel protection plan; 513
618	618	(iii) A description of the process for filing a claim under any travel 514
619	619	insurance coverage included in such travel protection plan; 515
620	620	(iv) A description of the process for review or cancellation of any 516
621	621	travel insurance coverage included in such travel protection plan; and 517
622	622	(v) The identity of, and contact information for, the insurer issuing 518
623	623	any travel insurance coverage included in such travel protection plan 519
624	624	and the limited lines travel insurance producer. 520
625	625	(B) Unless a consumer insured under travel insurance coverage 521
626	626	included in a travel protection plan departs on a covered trip, or files a 522
627	627	claim under such coverage, the consumer may cancel the policy or 523 Raised Bill No. 398
628	628
629	629
630	630
631	631	LCO No. 125 18 of 40
632	632
633	633	certificate for a full refund of the travel protection plan price from the 524
634	634	date of purchase of the travel protection plan until at least: 525
635	635	(i) Fifteen days following the date of delivery of such travel protection 526
636	636	plan's fulfillment materials by mail; or 527
637	637	(ii) Ten days following the date of delivery of such travel protection 528
638	638	plan's fulfillment materials by any means other than mail. For the 529
639	639	purposes of this clause and subparagraph (B)(i) of subdivision (3) of 530
640	640	subsection (a) of this section, "delivery" means any method of delivery 531
641	641	used in conventional commercial practice, including delivery by hand, 532
642	642	mail, commercial delivery and electronic transmission. 533
643	643	(4) The fulfillment materials for a travel protection plan, and the 534
644	644	documents concerning any travel insurance coverage included in the 535
645	645	travel protection plan, shall disclose whether the travel insurance 536
646	646	coverage included in such travel protection plan is primary or 537
647	647	secondary to other applicable coverage. 538
648	648	(b) No person offering, soliciting or negotiating travel insurance or 539
649	649	travel protection plans to consumers in this state on an individual or 540
650	650	group basis may do so by using a negative option or opt-out, which 541
651	651	would require a consumer to take an affirmative action to deselect travel 542
652	652	insurance coverage, by, for example, unchecking a box on an electronic 543
653	653	form, when the consumer purchases a trip. 544
654	654	Sec. 6. (NEW) (Effective October 1, 2024) (a) No person shall act as, or 545
655	655	hold itself out to be, a travel administrator in this state unless such 546
656	656	person is: 547
657	657	(1) An insurance producer licensed for property and casualty 548
658	658	insurance lines in this state; 549
659	659	(2) A managing general agent, as defined in section 38a-90a of the 550
660	660	general statutes, that is licensed as an insurance producer and holds an 551
661	661	appointment by an insurer in this state; or 552
662	662	(3) A third-party administrator licensed pursuant to section 38a-720j 553 Raised Bill No. 398
663	663
664	664
665	665
666	666	LCO No. 125 19 of 40
667	667
668	668	of the general statutes. 554
669	669	(b) Each insurer shall be responsible for the conduct of each travel 555
670	670	administrator administering travel insurance in this state underwritten 556
671	671	by such insurer, and shall ensure that each such travel administrator 557
672	672	maintains, and makes available to the commissioner upon request, all 558
673	673	books and records relevant to such insurer. 559
674	674	Sec. 7. (NEW) (Effective October 1, 2024) A travel protection plan may 560
675	675	be offered to a consumer in this state for a single price reflecting any 561
676	676	combined features offered by the travel protection plan if: 562
677	677	(1) Such travel protection plan: 563
678	678	(A) Discloses to the consumer, at or before the time of purchase, that 564
679	679	such travel protection plan includes travel insurance, travel assistance 565
680	680	services and cancellation fee waivers, as applicable, and that such 566
681	681	consumer may obtain additional information regarding the individual 567
682	682	features and pricing of such travel insurance, travel assistance services 568
683	683	and cancellation fee waivers, as applicable; and 569
684	684	(B) Provides to the consumer, at or before the time of purchase, an 570
685	685	opportunity to obtain the additional information described in 571
686	686	subparagraph (A) of this subdivision; and 572
687	687	(2) The fulfillment materials for such travel protection plan: 573
688	688	(A) Describe and delineate the travel insurance, travel assistance 574
689	689	services and cancellation fee waivers, if any, in such travel protection 575
690	690	plan; and 576
691	691	(B) Include any required disclosure concerning the travel insurance 577
692	692	coverage included in such travel protection plan, if any, and the contact 578
693	693	information for the persons providing the travel assistance services and 579
694	694	cancellation fee waivers included in such travel protection plan, if any. 580
695	695	Sec. 8. (NEW) (Effective October 1, 2024) (a) (1) Except as provided in 581
696	696	subdivision (2) of this subsection, travel insurance written by a domestic 582 Raised Bill No. 398
697	697
698	698
699	699
700	700	LCO No. 125 20 of 40
701	701
702	702	insurer shall be subject to the tax imposed under section 12-202 of the 583
703	703	general statutes, and travel insurance written by an alien insurer or 584
704	704	foreign insurer shall be subject to the tax imposed under section 12-210 585
705	705	of the general statutes, for travel insurance premiums paid by: 586
706	706	(A) The primary policyholder of an individual policy of travel 587
707	707	insurance if such primary policyholder is a resident of this state; 588
708	708	(B) The primary certificate holder of a policy of group travel 589
709	709	insurance if such primary certificate holder is a resident of this state; or 590
710	710	(C) A policyholder of a blanket travel insurance policy if the 591
711	711	policyholder is a resident of this state, maintains such policyholder's 592
712	712	principal place of business in this state or an affiliate or subsidiary of 593
713	713	such policyholder maintains such affiliate's or subsidiary's principal 594
714	714	place of business in this state. 595
715	715	(2) If a domestic insurer, alien insurer or foreign insurer that writes a 596
716	716	blanket travel insurance policy described in subparagraph (C) of 597
717	717	subdivision (1) of this subsection is subject to rules across multiple 598
718	718	taxing jurisdictions that permit such insurer to allocate premiums across 599
719	719	such jurisdictions on an apportioned basis and in a reasonable and 600
720	720	equitable manner, such insurer's liability under said subparagraph shall 601
721	721	be subject to such premium allocation. 602
722	722	(b) Each domestic insurer, alien insurer and foreign insurer that is 603
723	723	subject to the provisions of subsection (a) of this section shall: 604
724	724	(1) Document the state in which each primary policyholder, primary 605
725	725	certificate holder, policyholder, affiliate or subsidiary described in 606
726	726	subsection (a) of this section maintains such primary policyholder's, 607
727	727	primary certificate holder's, policyholder's, affiliate's or subsidiary's 608
728	728	primary residence or principal place of business, as applicable; and 609
729	729	(2) Report as premium only the amount allocable to travel insurance 610
730	730	and not any amounts received for travel assistance services or 611
731	731	cancellation fee waivers. 612 Raised Bill No. 398
732	732
733	733
734	734
735	735	LCO No. 125 21 of 40
736	736
737	737	Sec. 9. (NEW) (Effective October 1, 2024) (a) The commissioner may 613
738	738	suspend, revoke or refuse to issue or renew authorization to act as a 614
739	739	limited lines travel insurance producer, or prohibit a travel retailer from 615
740	740	acting as a designated travel retailer, in this state or may levy a civil 616
741	741	penalty in accordance with the provisions of title 38a of the general 617
742	742	statutes, or may take any combination of such actions, for any one or 618
743	743	more of the following causes: 619
744	744	(1) For a limited lines travel insurance producer, providing incorrect, 620
745	745	misleading, incomplete or materially untrue information to the 621
746	746	commissioner in an application for authorization to act as a limited lines 622
747	747	travel insurance producer; 623
748	748	(2) Violating any insurance law, or violating any regulation, 624
749	749	subpoena or order of the commissioner or of another state's insurance 625
750	750	commissioner; 626
751	751	(3) For a limited lines travel insurance producer, obtaining or 627
752	752	attempting to obtain authorization from the commissioner to act as a 628
753	753	limited lines travel insurance producer through misrepresentation or 629
754	754	fraud; 630
755	755	(4) Improperly withholding, misappropriating or converting any 631
756	756	moneys or properties received in the course of doing business in this 632
757	757	state; 633
758	758	(5) Intentionally misrepresenting the terms of actual or proposed 634
759	759	travel insurance coverage or an application for such coverage; 635
760	760	(6) Having been convicted of a felony; 636
761	761	(7) Having admitted or been found to have committed any insurance 637
762	762	unfair trade practice or fraud; 638
763	763	(8) Using fraudulent, coercive or dishonest practices, or 639
764	764	demonstrating incompetence, untrustworthiness or financial 640
765	765	irresponsibility in the conduct of business in this state or elsewhere; 641 Raised Bill No. 398
766	766
767	767
768	768
769	769	LCO No. 125 22 of 40
770	770
771	771	(9) For a limited lines travel insurance producer, having 642
772	772	authorization to act as a limited lines travel insurance producer, or its 643
773	773	equivalent, denied, suspended or revoked in any other state, province, 644
774	774	district or territory; 645
775	775	(10) Forging another's name to an application for travel insurance 646
776	776	coverage or to any document related to a travel insurance transaction; 647
777	777	(11) Failing to comply with an administrative or court order imposing 648
778	778	a child support obligation; or 649
779	779	(12) Failing to pay income tax pursuant to chapter 229 of the general 650
780	780	statutes or comply with any administrative or court order directing 651
781	781	payment of state income tax. 652
782	782	(b) If the action by the commissioner is to refuse to renew 653
783	783	authorization to act as a limited lines travel insurance producer or to 654
784	784	deny an application for an authorization to act as a limited lines travel 655
785	785	insurance producer, the commissioner shall notify the applicant or 656
786	786	limited lines travel insurance producer, as applicable, and advise, in 657
787	787	writing, the applicant or limited lines travel insurance producer, as 658
788	788	applicable, of the reason for the commissioner's denial or refusal to 659
789	789	renew such authorization. The applicant or limited lines travel 660
790	790	insurance producer, as applicable, may make written demand upon the 661
791	791	commissioner, not later than thirty days after the notice, for a hearing 662
792	792	before the commissioner to determine the reasonableness of the 663
793	793	commissioner's action. The hearing shall be held not later than twenty 664
794	794	days after receipt of such request and shall be held in accordance with 665
795	795	section 38a-19 of the general statutes. 666
796	796	(c) A business entity's authority to act as a limited lines travel 667
797	797	insurance producer or designated travel retailer in this state may be 668
798	798	suspended, revoked or refused if the commissioner finds, after a 669
799	799	hearing, that an individual employee's or authorized representative's 670
800	800	violation was known or should have been known by one or more of the 671
801	801	partners, officers or managers acting on behalf of the business entity and 672
802	802	the violation was neither reported to the commissioner nor was any 673 Raised Bill No. 398
803	803
804	804
805	805
806	806	LCO No. 125 23 of 40
807	807
808	808	corrective action taken. 674
809	809	(d) The commissioner shall retain the authority to enforce the 675
810	810	provisions of, and impose any penalty or remedy authorized by, any 676
811	811	provision of title 38a of the general statutes against any person who is 677
812	812	under investigation for or charged with a violation of title 38a of the 678
813	813	general statutes even if the person's license, authorization, designation 679
814	814	or registration has been surrendered or has lapsed by operation of law. 680
815	815	Sec. 10. (NEW) (Effective October 1, 2024) (a) Except as provided in 681
816	816	subsections (b) and (c) of this section, each of the following shall be 682
817	817	deemed an unfair or deceptive insurance practice under section 38a-816 683
818	818	of the general statutes, as amended by this act: 684
819	819	(1) Any violation of a provision of section 4, 5, 7 or 9 of this act by a 685
820	820	limited lines travel insurance producer if such provision is applicable to 686
821	821	the limited lines travel insurance producer; 687
822	822	(2) Any violation of a provision of section 6 or 8 of this act by an 688
823	823	insurer if such provision is applicable to such insurer; 689
824	824	(3) Offering or selling a policy of travel insurance in this state that is 690
825	825	never required to pay a claim; and 691
826	826	(4) Marketing that coverage under a blanket travel insurance policy 692
827	827	is provided free of charge. 693
828	828	(b) Except as provided in subsection (c) of this section, each of the 694
829	829	following shall be deemed an unfair or deceptive trade practice under 695
830	830	subsection (a) of section 42-110b of the general statutes: 696
831	831	(1) Any violation of a provision of section 4, 5, 7 or 9 of this act by a 697
832	832	travel retailer or designated travel retailer if such provision is applicable 698
833	833	to the travel retailer or designated travel retailer; and 699
834	834	(2) Any violation of a provision of section 6 of this act by a travel 700
835	835	administrator if such provision is applicable to the travel administrator. 701 Raised Bill No. 398
836	836
837	837
838	838
839	839	LCO No. 125 24 of 40
840	840
841	841	(c) It shall not be an unfair or deceptive insurance practice under 702
842	842	section 38a-816 of the general statutes, as amended by this act, or an 703
843	843	unfair or deceptive trade practice under subsection (a) of section 42-110b 704
844	844	of the general statutes: 705
845	845	(1) If a consumer's destination jurisdiction requires insurance 706
846	846	coverage, to require the consumer to choose one of the following options 707
847	847	as a condition to purchasing a trip or travel package: 708
848	848	(A) Purchasing the coverage required by such destination jurisdiction 709
849	849	through the designated travel retailer or limited lines travel insurance 710
850	850	producer supplying the trip or travel package; or 711
851	851	(B) Agreeing to obtain and provide proof of coverage that meets the 712
852	852	destination jurisdiction's requirements prior to the time that the 713
853	853	consumer departs for such trip or travel; or 714
854	854	(2) If travel insurance coverage is directly marketed to a consumer 715
855	855	through an insurer's Internet web site or an aggregator web site and the 716
856	856	consumer may access all provisions of such travel insurance coverage 717
857	857	by electronic means, and an accurate summary or short description of 718
858	858	such travel insurance coverage is provided on the insurer's Internet web 719
859	859	site or aggregator web site. 720
860	860	Sec. 11. (NEW) (Effective October 1, 2024) The commissioner may 721
861	861	adopt regulations, in accordance with chapter 54 of the general statutes, 722
862	862	to implement the provisions of section 38a-398 of the general statutes, 723
863	863	as amended by this act, and sections 3 to 10, inclusive, of this act. 724
864	864	Sec. 12. Subsection (a) of section 38a-11 of the 2024 supplement to the 725
865	865	general statutes is repealed and the following is substituted in lieu 726
866	866	thereof (Effective October 1, 2024): 727
867	867	(a) The commissioner shall demand and receive the following fees: 728
868	868	(1) For the annual fee for each license issued to a domestic insurance 729
869	869	company, two hundred dollars; (2) for receiving and filing annual 730
870	870	reports of domestic insurance companies, fifty dollars; (3) for filing all 731 Raised Bill No. 398
871	871
872	872
873	873
874	874	LCO No. 125 25 of 40
875	875
876	876	documents prerequisite to the issuance of a license to an insurance 732
877	877	company, two hundred twenty dollars, except that the fee for such 733
878	878	filings by any health care center, as defined in section 38a-175, shall be 734
879	879	one thousand three hundred fifty dollars; (4) for filing any additional 735
880	880	paper required by law, thirty dollars; (5) for each certificate of valuation, 736
881	881	organization, reciprocity or compliance, forty dollars; (6) for each 737
882	882	certified copy of a license to a company, forty dollars; (7) for each 738
883	883	certified copy of a report or certificate of condition of a company to be 739
884	884	filed in any other state, forty dollars; (8) for amending a certificate of 740
885	885	authority, two hundred dollars; (9) for each license issued to a rating 741
886	886	organization, two hundred dollars. In addition, insurance companies 742
887	887	shall pay any fees imposed under section 12-211; (10) a filing fee of fifty 743
888	888	dollars for each initial application for a license made pursuant to section 744
889	889	38a-769; (11) with respect to insurance agents' appointments: (A) A 745
890	890	filing fee of fifty dollars for each request for any agent appointment, 746
891	891	except that no filing fee shall be payable for a request for agent 747
892	892	appointment by an insurance company domiciled in a state or foreign 748
893	893	country which does not require any filing fee for a request for agent 749
894	894	appointment for a Connecticut insurance company; (B) a fee of one 750
895	895	hundred dollars for each appointment issued to an agent of a domestic 751
896	896	insurance company or for each appointment continued; and (C) a fee of 752
897	897	eighty dollars for each appointment issued to an agent of any other 753
898	898	insurance company or for each appointment continued, except that (i) 754
899	899	no fee shall be payable for an appointment issued to an agent of an 755
900	900	insurance company domiciled in a state or foreign country which does 756
901	901	not require any fee for an appointment issued to an agent of a 757
902	902	Connecticut insurance company, and (ii) the fee shall be twenty dollars 758
903	903	for each appointment issued or continued to an agent of an insurance 759
904	904	company domiciled in a state or foreign country with a premium tax 760
905	905	rate below Connecticut's premium tax rate; (12) with respect to 761
906	906	insurance producers: (A) An examination fee of fifteen dollars for each 762
907	907	examination taken, except when a testing service is used, the testing 763
908	908	service shall pay a fee of fifteen dollars to the commissioner for each 764
909	909	examination taken by an applicant; (B) a fee of eighty dollars for each 765
910	910	license issued; (C) a fee of eighty dollars per year, or any portion thereof, 766 Raised Bill No. 398
911	911
912	912
913	913
914	914	LCO No. 125 26 of 40
915	915
916	916	for each license renewed; and (D) a fee of eighty dollars for any license 767
917	917	renewed under the transitional process established in section 38a-784; 768
918	918	(13) with respect to public adjusters: (A) An examination fee of fifteen 769
919	919	dollars for each examination taken, except when a testing service is 770
920	920	used, the testing service shall pay a fee of fifteen dollars to the 771
921	921	commissioner for each examination taken by an applicant; and (B) a fee 772
922	922	of two hundred fifty dollars for each license issued or renewed; (14) with 773
923	923	respect to casualty claims adjusters: (A) An examination fee of twenty 774
924	924	dollars for each examination taken, except when a testing service is 775
925	925	used, the testing service shall pay a fee of twenty dollars to the 776
926	926	commissioner for each examination taken by an applicant; (B) a fee of 777
927	927	eighty dollars for each license issued or renewed; and (C) the expense of 778
928	928	any examination administered outside the state shall be the 779
929	929	responsibility of the entity making the request and such entity shall pay 780
930	930	to the commissioner two hundred dollars for such examination and the 781
931	931	actual traveling expenses of the examination administrator to 782
932	932	administer such examination; (15) with respect to motor vehicle 783
933	933	physical damage appraisers: (A) An examination fee of eighty dollars 784
934	934	for each examination taken, except when a testing service is used, the 785
935	935	testing service shall pay a fee of eighty dollars to the commissioner for 786
936	936	each examination taken by an applicant; (B) a fee of eighty dollars for 787
937	937	each license issued or renewed; and (C) the expense of any examination 788
938	938	administered outside the state shall be the responsibility of the entity 789
939	939	making the request and such entity shall pay to the commissioner two 790
940	940	hundred dollars for such examination and the actual traveling expenses 791
941	941	of the examination administrator to administer such examination; (16) 792
942	942	with respect to certified insurance consultants: (A) An examination fee 793
943	943	of twenty-six dollars for each examination taken, except when a testing 794
944	944	service is used, the testing service shall pay a fee of twenty-six dollars to 795
945	945	the commissioner for each examination taken by an applicant; (B) a fee 796
946	946	of two hundred fifty dollars for each license issued; and (C) a fee of two 797
947	947	hundred fifty dollars for each license renewed; (17) with respect to 798
948	948	surplus lines brokers: (A) An examination fee of twenty dollars for each 799
949	949	examination taken, except when a testing service is used, the testing 800
950	950	service shall pay a fee of twenty dollars to the commissioner for each 801 Raised Bill No. 398
951	951
952	952
953	953
954	954	LCO No. 125 27 of 40
955	955
956	956	examination taken by an applicant; and (B) a fee of six hundred twenty-802
957	957	five dollars for each license issued or renewed; (18) with respect to 803
958	958	fraternal agents, a fee of eighty dollars for each license issued or 804
959	959	renewed; (19) a fee of twenty-six dollars for each license certificate 805
960	960	requested, whether or not a license has been issued; (20) with respect to 806
961	961	domestic and foreign benefit societies shall pay: (A) For service of 807
962	962	process, fifty dollars for each person or insurer to be served; (B) for filing 808
963	963	a certified copy of its charter or articles of association, fifteen dollars; (C) 809
964	964	for filing an annual statement or report, twenty dollars; and (D) for filing 810
965	965	any additional paper required by law, fifteen dollars; (21) with respect 811
966	966	to foreign benefit societies: (A) For each certificate of organization or 812
967	967	compliance, fifteen dollars; (B) for each certified copy of permit, fifteen 813
968	968	dollars; and (C) for each copy of a report or certificate of condition of a 814
969	969	society to be filed in any other state, fifteen dollars; (22) with respect to 815
970	970	reinsurance intermediaries, a fee of six hundred twenty-five dollars for 816
971	971	each license issued or renewed; (23) with respect to life settlement 817
972	972	providers: (A) A filing fee of twenty-six dollars for each initial 818
973	973	application for a license made pursuant to section 38a-465a; and (B) a 819
974	974	fee of forty dollars for each license issued or renewed; (24) with respect 820
975	975	to life settlement brokers: (A) A filing fee of twenty-six dollars for each 821
976	976	initial application for a license made pursuant to section 38a-465a; and 822
977	977	(B) a fee of forty dollars for each license issued or renewed; (25) with 823
978	978	respect to preferred provider networks, a fee of two thousand seven 824
979	979	hundred fifty dollars for each license issued or renewed; (26) with 825
980	980	respect to rental companies, as defined in section 38a-799, a fee of eighty 826
981	981	dollars for each permit issued or renewed; (27) with respect to medical 827
982	982	discount plan organizations licensed under section 38a-479rr, a fee of six 828
983	983	hundred twenty-five dollars for each license issued or renewed; (28) 829
984	984	with respect to pharmacy benefits managers, an application fee of one 830
985	985	hundred dollars for each registration issued or renewed; (29) with 831
986	986	respect to captive insurance companies, as defined in section 38a-91aa, 832
987	987	a fee of three hundred seventy-five dollars for each license issued or 833
988	988	renewed; (30) with respect to each duplicate license issued a fee of fifty 834
989	989	dollars for each license issued; (31) with respect to surety bail bond 835
990	990	agents, as defined in section 38a-660, (A) a filing fee of one hundred fifty 836 Raised Bill No. 398
991	991
992	992
993	993
994	994	LCO No. 125 28 of 40
995	995
996	996	dollars for each initial application for a license, and (B) a fee of one 837
997	997	hundred dollars for each license issued or renewed; (32) with respect to 838
998	998	third-party administrators, as defined in section 38a-720, (A) a fee of five 839
999	999	hundred dollars for each license issued, and (B) a fee of four hundred 840
1000	1000	fifty dollars for each license renewed; (33) with respect to portable 841
1001	1001	electronics insurance licenses under section 38a-397, (A) a filing fee of 842
1002	1002	one hundred dollars for each initial application for a license, (B) a fee of 843
1003	1003	five hundred dollars for each license issued, and (C) a fee of four 844
1004	1004	hundred fifty dollars for each license renewed; (34) with respect to 845
1005	1005	limited lines travel insurance producer [licenses] authorizations under 846
1006	1006	section [38a-398] 4 of this act, (A) a filing fee of one hundred dollars for 847
1007	1007	each initial application for [a license] authorization, (B) a fee of six 848
1008	1008	hundred fifty dollars for each [license] authorization issued, and (C) a 849
1009	1009	fee of six hundred fifty dollars for each [license] authorization renewed; 850
1010	1010	(35) with respect to certified reinsurers, as certified by the commissioner 851
1011	1011	pursuant to regulations adopted pursuant to section 38a-85, a fee of two 852
1012	1012	thousand dollars for each certificate issued and renewed; and (36) with 853
1013	1013	respect to reciprocal jurisdiction reinsurers, as defined in regulations 854
1014	1014	adopted pursuant to section 38a-85, a fee of two thousand dollars for 855
1015	1015	each certificate issued and renewed. 856
1016	1016	Sec. 13. Subsection (d) of section 38a-792 of the general statutes is 857
1017	1017	repealed and the following is substituted in lieu thereof (Effective October 858
1018	1018	1, 2024): 859
1019	1019	(d) The provisions of this section shall not apply to any: 860
1020	1020	(1) (A) Individual who, for purposes of claims for portable electronics 861
1021	1021	insurance, as defined in section 38a-397, only (i) collects claim 862
1022	1022	information from or furnishes claim information to insureds or 863
1023	1023	claimants, and (ii) conducts data entry, including data entry into an 864
1024	1024	automated claims adjudication system, provided (I) such individual is 865
1025	1025	an employee of a casualty insurance company licensed in this state, an 866
1026	1026	employee of a casualty claims adjuster licensed in this state or an 867
1027	1027	employee of an affiliate of such insurance company or adjuster, and (II) 868
1028	1028	not more than twenty-five such individuals are under the supervision 869 Raised Bill No. 398
1029	1029
1030	1030
1031	1031
1032	1032	LCO No. 125 29 of 40
1033	1033
1034	1034	of a casualty claims adjuster licensed in this state or an insurance 870
1035	1035	producer who adjusts portable electronics insurance claims and is 871
1036	1036	licensed in this state. A licensed insurance producer who adjusts 872
1037	1037	portable electronics insurance claims or supervises individuals 873
1038	1038	pursuant to this subparagraph shall not be required to be licensed as a 874
1039	1039	casualty claims adjuster. 875
1040	1040	(B) For purposes of this subdivision, "automated claims adjudication 876
1041	1041	system" means a preprogrammed computer system, designed for the 877
1042	1042	collection, data entry, calculation and final resolution of portable 878
1043	1043	electronics insurance claims, that (i) is used only by a supervised 879
1044	1044	individual, a casualty claims adjuster licensed in this state or an 880
1045	1045	insurance producer licensed in this state, in accordance with 881
1046	1046	subparagraph (A) of this subdivision, and (ii) complies with all 882
1047	1047	applicable claims payment requirements under this title; [or] 883
1048	1048	(2) Member of the bar of this state in good standing who is engaged 884
1049	1049	in the general practice of the law; or 885
1050	1050	(3) Travel administrator, as defined in section 38a-398, as amended 886
1051	1051	by this act, or employee of a travel administrator for travel insurance, as 887
1052	1052	defined in said section, administered by such travel administrator. 888
1053	1053	Sec. 14. Section 38a-816 of the general statutes is repealed and the 889
1054	1054	following is substituted in lieu thereof (Effective October 1, 2024): 890
1055	1055	The following are defined as unfair methods of competition and 891
1056	1056	unfair and deceptive acts or practices in the business of insurance: 892
1057	1057	(1) Misrepresentations and false advertising of insurance policies. 893
1058	1058	Making, issuing or circulating, or causing to be made, issued or 894
1059	1059	circulated, any estimate, illustration, circular or statement, sales 895
1060	1060	presentation, omission or comparison which: (A) Misrepresents the 896
1061	1061	benefits, advantages, conditions or terms of any insurance policy; (B) 897
1062	1062	misrepresents the dividends or share of the surplus to be received, on 898
1063	1063	any insurance policy; (C) makes any false or misleading statements as 899
1064	1064	to the dividends or share of surplus previously paid on any insurance 900 Raised Bill No. 398
1065	1065
1066	1066
1067	1067
1068	1068	LCO No. 125 30 of 40
1069	1069
1070	1070	policy; (D) is misleading or is a misrepresentation as to the financial 901
1071	1071	condition of any person, or as to the legal reserve system upon which 902
1072	1072	any life insurer operates; (E) uses any name or title of any insurance 903
1073	1073	policy or class of insurance policies misrepresenting the true nature 904
1074	1074	thereof; (F) is a misrepresentation, including, but not limited to, an 905
1075	1075	intentional misquote of a premium rate, for the purpose of inducing or 906
1076	1076	tending to induce to the purchase, lapse, forfeiture, exchange, 907
1077	1077	conversion or surrender of any insurance policy; (G) is a 908
1078	1078	misrepresentation for the purpose of effecting a pledge or assignment of 909
1079	1079	or effecting a loan against any insurance policy; or (H) misrepresents 910
1080	1080	any insurance policy as being shares of stock. 911
1081	1081	(2) False information and advertising generally. Making, publishing, 912
1082	1082	disseminating, circulating or placing before the public, or causing, 913
1083	1083	directly or indirectly, to be made, published, disseminated, circulated or 914
1084	1084	placed before the public, in a newspaper, magazine or other publication, 915
1085	1085	or in the form of a notice, circular, pamphlet, letter or poster, or over any 916
1086	1086	radio or television station, or in any other way, an advertisement, 917
1087	1087	announcement or statement containing any assertion, representation or 918
1088	1088	statement with respect to the business of insurance or with respect to 919
1089	1089	any person in the conduct of his insurance business, which is untrue, 920
1090	1090	deceptive or misleading. 921
1091	1091	(3) Defamation. Making, publishing, disseminating or circulating, 922
1092	1092	directly or indirectly, or aiding, abetting or encouraging the making, 923
1093	1093	publishing, disseminating or circulating of, any oral or written 924
1094	1094	statement or any pamphlet, circular, article or literature which is false 925
1095	1095	or maliciously critical of or derogatory to the financial condition of an 926
1096	1096	insurer, and which is calculated to injure any person engaged in the 927
1097	1097	business of insurance. 928
1098	1098	(4) Boycott, coercion and intimidation. Entering into any agreement 929
1099	1099	to commit, or by any concerted action committing, any act of boycott, 930
1100	1100	coercion or intimidation resulting in or tending to result in unreasonable 931
1101	1101	restraint of, or monopoly in, the business of insurance. 932 Raised Bill No. 398
1102	1102
1103	1103
1104	1104
1105	1105	LCO No. 125 31 of 40
1106	1106
1107	1107	(5) False financial statements. Filing with any supervisory or other 933
1108	1108	public official, or making, publishing, disseminating, circulating or 934
1109	1109	delivering to any person, or placing before the public, or causing, 935
1110	1110	directly or indirectly, to be made, published, disseminated, circulated or 936
1111	1111	delivered to any person, or placed before the public, any false statement 937
1112	1112	of financial condition of an insurer with intent to deceive; or making any 938
1113	1113	false entry in any book, report or statement of any insurer with intent to 939
1114	1114	deceive any agent or examiner lawfully appointed to examine into its 940
1115	1115	condition or into any of its affairs, or any public official to whom such 941
1116	1116	insurer is required by law to report, or who has authority by law to 942
1117	1117	examine into its condition or into any of its affairs, or, with like intent, 943
1118	1118	wilfully omitting to make a true entry of any material fact pertaining to 944
1119	1119	the business of such insurer in any book, report or statement of such 945
1120	1120	insurer. 946
1121	1121	(6) Unfair claim settlement practices. Committing or performing with 947
1122	1122	such frequency as to indicate a general business practice any of the 948
1123	1123	following: (A) Misrepresenting pertinent facts or insurance policy 949
1124	1124	provisions relating to coverages at issue; (B) failing to acknowledge and 950
1125	1125	act with reasonable promptness upon communications with respect to 951
1126	1126	claims arising under insurance policies; (C) failing to adopt and 952
1127	1127	implement reasonable standards for the prompt investigation of claims 953
1128	1128	arising under insurance policies; (D) refusing to pay claims without 954
1129	1129	conducting a reasonable investigation based upon all available 955
1130	1130	information; (E) failing to affirm or deny coverage of claims within a 956
1131	1131	reasonable time after proof of loss statements have been completed; (F) 957
1132	1132	not attempting in good faith to effectuate prompt, fair and equitable 958
1133	1133	settlements of claims in which liability has become reasonably clear; (G) 959
1134	1134	compelling insureds to institute litigation to recover amounts due under 960
1135	1135	an insurance policy by offering substantially less than the amounts 961
1136	1136	ultimately recovered in actions brought by such insureds; (H) 962
1137	1137	attempting to settle a claim for less than the amount to which a 963
1138	1138	reasonable man would have believed he was entitled by reference to 964
1139	1139	written or printed advertising material accompanying or made part of 965
1140	1140	an application; (I) attempting to settle claims on the basis of an 966 Raised Bill No. 398
1141	1141
1142	1142
1143	1143
1144	1144	LCO No. 125 32 of 40
1145	1145
1146	1146	application which was altered without notice to, or knowledge or 967
1147	1147	consent of the insured; (J) making claims payments to insureds or 968
1148	1148	beneficiaries not accompanied by statements setting forth the coverage 969
1149	1149	under which the payments are being made; (K) making known to 970
1150	1150	insureds or claimants a policy of appealing from arbitration awards in 971
1151	1151	favor of insureds or claimants for the purpose of compelling them to 972
1152	1152	accept settlements or compromises less than the amount awarded in 973
1153	1153	arbitration; (L) delaying the investigation or payment of claims by 974
1154	1154	requiring an insured, claimant, or the physician of either to submit a 975
1155	1155	preliminary claim report and then requiring the subsequent submission 976
1156	1156	of formal proof of loss forms, both of which submissions contain 977
1157	1157	substantially the same information; (M) failing to promptly settle claims, 978
1158	1158	where liability has become reasonably clear, under one portion of the 979
1159	1159	insurance policy coverage in order to influence settlements under other 980
1160	1160	portions of the insurance policy coverage; (N) failing to promptly 981
1161	1161	provide a reasonable explanation of the basis in the insurance policy in 982
1162	1162	relation to the facts or applicable law for denial of a claim or for the offer 983
1163	1163	of a compromise settlement; or (O) using as a basis for cash settlement 984
1164	1164	with a first party automobile insurance claimant an amount which is less 985
1165	1165	than the amount which the insurer would pay if repairs were made 986
1166	1166	unless such amount is agreed to by the insured or provided for by the 987
1167	1167	insurance policy. 988
1168	1168	(7) Failure to maintain complaint handling procedures. Failure of any 989
1169	1169	person to maintain complete record of all the complaints which it has 990
1170	1170	received since the date of its last examination. This record shall indicate 991
1171	1171	the total number of complaints, their classification by line of insurance, 992
1172	1172	the nature of each complaint, the disposition of these complaints, and 993
1173	1173	the time it took to process each complaint. For purposes of this 994
1174	1174	subdivision "complaint" means any written communication primarily 995
1175	1175	expressing a grievance. 996
1176	1176	(8) Misrepresentation in insurance applications. Making false or 997
1177	1177	fraudulent statements or representations on or relative to an application 998
1178	1178	for an insurance policy for the purpose of obtaining a fee, commission, 999
1179	1179	money or other benefit from any insurer, producer or individual. 1000 Raised Bill No. 398
1180	1180
1181	1181
1182	1182
1183	1183	LCO No. 125 33 of 40
1184	1184
1185	1185	(9) Any violation of any one of sections 38a-358, 38a-446, 38a-447, 38a-1001
1186	1186	488, 38a-825, 38a-826, 38a-828 and 38a-829. None of the following 1002
1187	1187	practices shall be considered discrimination within the meaning of 1003
1188	1188	section 38a-446 or 38a-488 or a rebate within the meaning of section 38a-1004
1189	1189	825: (A) Paying bonuses to policyholders or otherwise abating their 1005
1190	1190	premiums in whole or in part out of surplus accumulated from 1006
1191	1191	nonparticipating insurance, provided any such bonuses or abatement of 1007
1192	1192	premiums shall be fair and equitable to policyholders and for the best 1008
1193	1193	interests of the company and its policyholders; (B) in the case of policies 1009
1194	1194	issued on the industrial debit plan, making allowance to policyholders 1010
1195	1195	who have continuously for a specified period made premium payments 1011
1196	1196	directly to an office of the insurer in an amount which fairly represents 1012
1197	1197	the saving in collection expense; and (C) readjustment of the rate of 1013
1198	1198	premium for a group insurance policy based on loss or expense 1014
1199	1199	experience, or both, at the end of the first or any subsequent policy year, 1015
1200	1200	which may be made retroactive for such policy year. 1016
1201	1201	(10) Notwithstanding any provision of any policy of insurance, 1017
1202	1202	certificate or service contract, whenever such insurance policy or 1018
1203	1203	certificate or service contract provides for reimbursement for any 1019
1204	1204	services which may be legally performed by any practitioner of the 1020
1205	1205	healing arts licensed to practice in this state, reimbursement under such 1021
1206	1206	insurance policy, certificate or service contract shall not be denied 1022
1207	1207	because of race, color or creed nor shall any insurer make or permit any 1023
1208	1208	unfair discrimination against particular individuals or persons so 1024
1209	1209	licensed. 1025
1210	1210	(11) Favored agent or insurer: Coercion of debtors. (A) No person 1026
1211	1211	may (i) require, as a condition precedent to the lending of money or 1027
1212	1212	extension of credit, or any renewal thereof, that the person to whom 1028
1213	1213	such money or credit is extended or whose obligation the creditor is to 1029
1214	1214	acquire or finance, negotiate any policy or contract of insurance through 1030
1215	1215	a particular insurer or group of insurers or producer or group of 1031
1216	1216	producers; (ii) unreasonably disapprove the insurance policy provided 1032
1217	1217	by a borrower for the protection of the property securing the credit or 1033
1218	1218	lien; (iii) require directly or indirectly that any borrower, mortgagor, 1034 Raised Bill No. 398
1219	1219
1220	1220
1221	1221
1222	1222	LCO No. 125 34 of 40
1223	1223
1224	1224	purchaser, insurer or producer pay a separate charge, in connection 1035
1225	1225	with the handling of any insurance policy required as security for a loan 1036
1226	1226	on real estate or pay a separate charge to substitute the insurance policy 1037
1227	1227	of one insurer for that of another; or (iv) use or disclose information 1038
1228	1228	resulting from a requirement that a borrower, mortgagor or purchaser 1039
1229	1229	furnish insurance of any kind on real property being conveyed or used 1040
1230	1230	as collateral security to a loan, when such information is to the 1041
1231	1231	advantage of the mortgagee, vendor or lender, or is to the detriment of 1042
1232	1232	the borrower, mortgagor, purchaser, insurer or the producer complying 1043
1233	1233	with such a requirement. 1044
1234	1234	(B) (i) Subparagraph (A)(iii) of this subdivision shall not include the 1045
1235	1235	interest which may be charged on premium loans or premium 1046
1236	1236	advancements in accordance with the security instrument. (ii) For 1047
1237	1237	purposes of subparagraph (A)(ii) of this subdivision, such disapproval 1048
1238	1238	shall be deemed unreasonable if it is not based solely on reasonable 1049
1239	1239	standards uniformly applied, relating to the extent of coverage required 1050
1240	1240	and the financial soundness and the services of an insurer. Such 1051
1241	1241	standards shall not discriminate against any particular type of insurer, 1052
1242	1242	nor shall such standards call for the disapproval of an insurance policy 1053
1243	1243	because such policy contains coverage in addition to that required. (iii) 1054
1244	1244	The commissioner may investigate the affairs of any person to whom 1055
1245	1245	this subdivision applies to determine whether such person has violated 1056
1246	1246	this subdivision. If a violation of this subdivision is found, the person in 1057
1247	1247	violation shall be subject to the same procedures and penalties as are 1058
1248	1248	applicable to other provisions of section 38a-815, subsections (b) and (e) 1059
1249	1249	of section 38a-817 and this section. (iv) For purposes of this section, 1060
1250	1250	"person" includes any individual, corporation, limited liability 1061
1251	1251	company, association, partnership or other legal entity. 1062
1252	1252	(12) Refusing to insure, refusing to continue to insure or limiting the 1063
1253	1253	amount, extent or kind of coverage available to an individual or 1064
1254	1254	charging an individual a different rate for the same coverage because of 1065
1255	1255	physical disability, mental or nervous condition as set forth in section 1066
1256	1256	38a-488a or intellectual disability, except where the refusal, limitation or 1067
1257	1257	rate differential is based on sound actuarial principles or is related to 1068 Raised Bill No. 398
1258	1258
1259	1259
1260	1260
1261	1261	LCO No. 125 35 of 40
1262	1262
1263	1263	actual or reasonably anticipated experience. 1069
1264	1264	(13) Refusing to insure, refusing to continue to insure or limiting the 1070
1265	1265	amount, extent or kind of coverage available to an individual or 1071
1266	1266	charging an individual a different rate for the same coverage solely 1072
1267	1267	because of blindness or partial blindness. For purposes of this 1073
1268	1268	subdivision, "refusal to insure" includes the denial by an insurer of 1074
1269	1269	disability insurance coverage on the grounds that the policy defines 1075
1270	1270	"disability" as being presumed in the event that the insured is blind or 1076
1271	1271	partially blind, except that an insurer may exclude from coverage any 1077
1272	1272	disability, consisting solely of blindness or partial blindness, when such 1078
1273	1273	condition existed at the time the policy was issued. Any individual who 1079
1274	1274	is blind or partially blind shall be subject to the same standards of sound 1080
1275	1275	actuarial principles or actual or reasonably anticipated experience as are 1081
1276	1276	sighted persons with respect to all other conditions, including the 1082
1277	1277	underlying cause of the blindness or partial blindness. 1083
1278	1278	(14) Refusing to insure, refusing to continue to insure or limiting the 1084
1279	1279	amount, extent or kind of coverage available to an individual or 1085
1280	1280	charging an individual a different rate for the same coverage because of 1086
1281	1281	exposure to diethylstilbestrol through the female parent. 1087
1282	1282	(15) (A) Failure by an insurer, or any other entity responsible for 1088
1283	1283	providing payment to a health care provider pursuant to an insurance 1089
1284	1284	policy, to pay accident and health claims, including, but not limited to, 1090
1285	1285	claims for payment or reimbursement to health care providers, within 1091
1286	1286	the time periods set forth in subparagraph (B) of this subdivision, unless 1092
1287	1287	the Insurance Commissioner determines that a legitimate dispute exists 1093
1288	1288	as to coverage, liability or damages or that the claimant has fraudulently 1094
1289	1289	caused or contributed to the loss. Any insurer, or any other entity 1095
1290	1290	responsible for providing payment to a health care provider pursuant 1096
1291	1291	to an insurance policy, who fails to pay such a claim or request within 1097
1292	1292	the time periods set forth in subparagraph (B) of this subdivision shall 1098
1293	1293	pay the claimant or health care provider the amount of such claim plus 1099
1294	1294	interest at the rate of fifteen per cent per annum, in addition to any other 1100
1295	1295	penalties which may be imposed pursuant to sections 38a-11, as 1101 Raised Bill No. 398
1296	1296
1297	1297
1298	1298
1299	1299	LCO No. 125 36 of 40
1300	1300
1301	1301	amended by this act, 38a-25, 38a-41 to 38a-53, inclusive, 38a-57 to 38a-1102
1302	1302	60, inclusive, 38a-62 to 38a-64, inclusive, 38a-76, 38a-83, 38a-84, 38a-117 1103
1303	1303	to 38a-124, inclusive, 38a-129 to 38a-140, inclusive, 38a-146 to 38a-155, 1104
1304	1304	inclusive, 38a-283, 38a-288 to 38a-290, inclusive, 38a-319, 38a-320, 38a-1105
1305	1305	459, 38a-464, 38a-815 to 38a-819, inclusive, 38a-824 to 38a-826, inclusive, 1106
1306	1306	and 38a-828 to 38a-830, inclusive. Whenever the interest due a claimant 1107
1307	1307	or health care provider pursuant to this section is less than one dollar, 1108
1308	1308	the insurer shall deposit such amount in a separate interest-bearing 1109
1309	1309	account in which all such amounts shall be deposited. At the end of each 1110
1310	1310	calendar year each such insurer shall donate such amount to The 1111
1311	1311	University of Connecticut Health Center. 1112
1312	1312	(B) Each insurer or other entity responsible for providing payment to 1113
1313	1313	a health care provider pursuant to an insurance policy subject to this 1114
1314	1314	section, shall pay claims not later than: 1115
1315	1315	(i) For claims filed in paper format, sixty days after receipt by the 1116
1316	1316	insurer of the claimant's proof of loss form or the health care provider's 1117
1317	1317	request for payment filed in accordance with the insurer's practices or 1118
1318	1318	procedures, except that when there is a deficiency in the information 1119
1319	1319	needed for processing a claim, as determined in accordance with section 1120
1320	1320	38a-477, the insurer shall (I) send written notice to the claimant or health 1121
1321	1321	care provider, as the case may be, of all alleged deficiencies in 1122
1322	1322	information needed for processing a claim not later than thirty days 1123
1323	1323	after the insurer receives a claim for payment or reimbursement under 1124
1324	1324	the contract, and (II) pay claims for payment or reimbursement under 1125
1325	1325	the contract not later than thirty days after the insurer receives the 1126
1326	1326	information requested; and 1127
1327	1327	(ii) For claims filed in electronic format, twenty days after receipt by 1128
1328	1328	the insurer of the claimant's proof of loss form or the health care 1129
1329	1329	provider's request for payment filed in accordance with the insurer's 1130
1330	1330	practices or procedures, except that when there is a deficiency in the 1131
1331	1331	information needed for processing a claim, as determined in accordance 1132
1332	1332	with section 38a-477, the insurer shall (I) notify the claimant or health 1133
1333	1333	care provider, as the case may be, of all alleged deficiencies in 1134 Raised Bill No. 398
1334	1334
1335	1335
1336	1336
1337	1337	LCO No. 125 37 of 40
1338	1338
1339	1339	information needed for processing a claim not later than ten days after 1135
1340	1340	the insurer receives a claim for payment or reimbursement under the 1136
1341	1341	contract, and (II) pay claims for payment or reimbursement under the 1137
1342	1342	contract not later than ten days after the insurer receives the information 1138
1343	1343	requested. 1139
1344	1344	(C) As used in this subdivision, "health care provider" means a person 1140
1345	1345	licensed to provide health care services under chapter 368d, chapter 1141
1346	1346	368v, chapters 370 to 373, inclusive, 375 to 383c, inclusive, 384a to 384c, 1142
1347	1347	inclusive, or chapter 400j. 1143
1348	1348	(16) Failure to pay, as part of any claim for a damaged motor vehicle 1144
1349	1349	under any automobile insurance policy where the vehicle has been 1145
1350	1350	declared to be a constructive total loss, an amount equal to the sum of 1146
1351	1351	(A) the settlement amount on such vehicle plus, whenever the insurer 1147
1352	1352	takes title to such vehicle, (B) an amount determined by multiplying 1148
1353	1353	such settlement amount by a percentage equivalent to the current sales 1149
1354	1354	tax rate established in section 12-408. For purposes of this subdivision, 1150
1355	1355	"constructive total loss" means the cost to repair or salvage damaged 1151
1356	1356	property, or the cost to both repair and salvage such property, equals or 1152
1357	1357	exceeds the total value of the property at the time of the loss. 1153
1358	1358	(17) Any violation of section 42-260, by an extended warranty 1154
1359	1359	provider subject to the provisions of said section, including, but not 1155
1360	1360	limited to: (A) Failure to include all statements required in subsections 1156
1361	1361	(c) and (f) of section 42-260 in an issued extended warranty; (B) offering 1157
1362	1362	an extended warranty without being (i) insured under an adequate 1158
1363	1363	extended warranty reimbursement insurance policy or (ii) able to 1159
1364	1364	demonstrate that reserves for claims contained in the provider's 1160
1365	1365	financial statements are not in excess of one-half the provider's audited 1161
1366	1366	net worth; (C) failure to submit a copy of an issued extended warranty 1162
1367	1367	form or a copy of such provider's extended warranty reimbursement 1163
1368	1368	policy form to the Insurance Commissioner. 1164
1369	1369	(18) With respect to an insurance company, hospital service 1165
1370	1370	corporation, health care center or fraternal benefit society providing 1166 Raised Bill No. 398
1371	1371
1372	1372
1373	1373
1374	1374	LCO No. 125 38 of 40
1375	1375
1376	1376	individual or group health insurance coverage of the types specified in 1167
1377	1377	subdivisions (1), (2), (4), (5), (6), (10), (11) and (12) of section 38a-469, 1168
1378	1378	refusing to insure, refusing to continue to insure or limiting the amount, 1169
1379	1379	extent or kind of coverage available to an individual or charging an 1170
1380	1380	individual a different rate for the same coverage because such 1171
1381	1381	individual has been a victim of domestic violence, as defined in section 1172
1382	1382	17b-112a. 1173
1383	1383	(19) With respect to a property and casualty insurer delivering, 1174
1384	1384	issuing for delivery, renewing, amending, continuing or endorsing a 1175
1385	1385	property or casualty insurance policy, making any distinction or 1176
1386	1386	discrimination against an individual in delivering, issuing for delivery, 1177
1387	1387	renewing, amending, continuing, endorsing, offering, withholding, 1178
1388	1388	cancelling or setting premiums for such policy, or in the terms of such 1179
1389	1389	policy, because the individual has been a victim of domestic violence, as 1180
1390	1390	defined in section 17b-112a. 1181
1391	1391	(20) With respect to an insurance company, hospital service 1182
1392	1392	corporation, health care center or fraternal benefit society providing 1183
1393	1393	individual or group health insurance coverage of the types specified in 1184
1394	1394	subdivisions (1), (2), (3), (4), (6), (9), (10), (11) and (12) of section 38a-469, 1185
1395	1395	refusing to insure, refusing to continue to insure or limiting the amount, 1186
1396	1396	extent or kind of coverage available to an individual or charging an 1187
1397	1397	individual a different rate for the same coverage because of genetic 1188
1398	1398	information. Genetic information indicating a predisposition to a 1189
1399	1399	disease or condition shall not be deemed a preexisting condition in the 1190
1400	1400	absence of a diagnosis of such disease or condition that is based on other 1191
1401	1401	medical information. An insurance company, hospital service 1192
1402	1402	corporation, health care center or fraternal benefit society providing 1193
1403	1403	individual health coverage of the types specified in subdivisions (1), (2), 1194
1404	1404	(3), (4), (6), (9), (10), (11) and (12) of section 38a-469, shall not be 1195
1405	1405	prohibited from refusing to insure or applying a preexisting condition 1196
1406	1406	limitation, to the extent permitted by law, to an individual who has been 1197
1407	1407	diagnosed with a disease or condition based on medical information 1198
1408	1408	other than genetic information and has exhibited symptoms of such 1199
1409	1409	disease or condition. For the purposes of this subdivision, "genetic 1200 Raised Bill No. 398
1410	1410
1411	1411
1412	1412
1413	1413	LCO No. 125 39 of 40
1414	1414
1415	1415	information" means the information about genes, gene products or 1201
1416	1416	inherited characteristics that may derive from an individual or family 1202
1417	1417	member. 1203
1418	1418	(21) Any violation of sections 38a-465 to 38a-465q, inclusive. 1204
1419	1419	(22) With respect to a managed care organization, as defined in 1205
1420	1420	section 38a-478, failing to establish a confidentiality procedure for 1206
1421	1421	medical record information, as required by section 38a-999. 1207
1422	1422	(23) Any violation of sections 38a-591d to 38a-591f, inclusive. 1208
1423	1423	(24) Any violation of section 38a-472j. 1209
1424	1424	(25) Any violation of section 38a-833. 1210
1425	1425	(26) Any violation of section 38a-834. 1211
1426	1426	(27) Any violation described in subsection (a) of section 10 of this act. 1212
1427	1427	This act shall take effect as follows and shall amend the following
1428	1428	sections:
1429	1429
1430	1430	Section 1 October 1, 2024 38a-1
1431	1431	Sec. 2 October 1, 2024 38a-398
1432	1432	Sec. 3 October 1, 2024 New section
1433	1433	Sec. 4 October 1, 2024 New section
1434	1434	Sec. 5 October 1, 2024 New section
1435	1435	Sec. 6 October 1, 2024 New section
1436	1436	Sec. 7 October 1, 2024 New section
1437	1437	Sec. 8 October 1, 2024 New section
1438	1438	Sec. 9 October 1, 2024 New section
1439	1439	Sec. 10 October 1, 2024 New section
1440	1440	Sec. 11 October 1, 2024 New section
1441	1441	Sec. 12 October 1, 2024 38a-11(a)
1442	1442	Sec. 13 October 1, 2024 38a-792(d)
1443	1443	Sec. 14 October 1, 2024 38a-816
1444	1444
1445	1445	Statement of Purpose:
1446	1446	To provide for the regulation and taxation of travel insurance, and
1447	1447	associated entities, products and professionals, in this state. Raised Bill No. 398
1448	1448
1449	1449
1450	1450
1451	1451	LCO No. 125 40 of 40
1452	1452
1453	1453	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
1454	1454	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
1455	1455	underlined.]
1456	1456