Connecticut 2024 Regular Session

Connecticut Senate Bill SB00403 Compare Versions

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

Old	New	Differences
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2	2
3	3	LCO No. 1363 1 of 7
4	4
5	5	General Assembly Raised Bill No. 403
6	6	February Session, 2024
7	7	LCO No. 1363
8	8
9	9
10	10	Referred to Committee on INSURANCE AND REAL ESTATE
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12	12
13	13	Introduced by:
14	14	(INS)
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17	17
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19	19	AN ACT CONCERNING INSURANCE MARKET CONDUCT AND
20	20	INSURANCE LICENSING.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. Section 38a-8 of the 2024 supplement to the general statutes 1
25	25	is repealed and the following is substituted in lieu thereof (Effective 2
26	26	October 1, 2024): 3
27	27	(a) The commissioner shall see that all laws respecting insurance 4
28	28	companies and health care centers are faithfully executed and shall 5
29	29	administer and enforce the provisions of this title. The commissioner 6
30	30	shall have all powers specifically granted, and all further powers that 7
31	31	are reasonable and necessary to enable the commissioner to protect the 8
32	32	public interest in accordance with the duties imposed by this title, 9
33	33	including, but not limited to, the power to order restitution of any sums 10
34	34	obtained in violation of any provision of this title, or any regulation or 11
35	35	order adopted or issued pursuant to this title by the commissioner, plus 12
36	36	interest at the rate set forth in section 37-3a. The commissioner shall pay 13
37	37	to the Treasurer all the fees that the commissioner receives. The 14
38	38	commissioner may administer oaths in the discharge of the 15 Raised Bill No. 403
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40	40
41	41
42	42	LCO No. 1363 2 of 7
43	43
44	44	commissioner's duties. 16
45	45	(b) The commissioner shall recommend to the General Assembly 17
46	46	changes that, in the commissioner's opinion, should be made in the laws 18
47	47	relating to insurance. 19
48	48	(c) In addition to the specific regulations that the commissioner is 20
49	49	required to adopt, the commissioner may adopt such further 21
50	50	regulations, in accordance with the provisions of chapter 54, as are 22
51	51	reasonable and necessary to implement the provisions of this title. 23
52	52	(d) The commissioner shall develop a program of periodic review to 24
53	53	ensure compliance by the Insurance Department with the minimum 25
54	54	standards established by the National Association of Insurance 26
55	55	Commissioners for effective financial surveillance and regulation of 27
56	56	insurance companies operating in this state. The commissioner shall 28
57	57	adopt regulations, in accordance with the provisions of chapter 54, 29
58	58	pertaining to the financial surveillance and solvency regulation of 30
59	59	insurance companies and health care centers as are reasonable and 31
60	60	necessary to obtain or maintain the accreditation of the Insurance 32
61	61	Department by the National Association of Insurance Commissioners. 33
62	62	The commissioner shall maintain as confidential any confidential 34
63	63	documents or information received from the National Association of 35
64	64	Insurance Commissioners, or the International Association of Insurance 36
65	65	Supervisors, or any documents or information received from state or 37
66	66	federal insurance, banking or securities regulators or similar regulators 38
67	67	in a foreign country that are confidential in such jurisdictions. The 39
68	68	commissioner may share any information, including confidential 40
69	69	information, with the National Association of Insurance 41
70	70	Commissioners, the International Association of Insurance Supervisors, 42
71	71	or state or federal insurance, banking or securities regulators or similar 43
72	72	regulators in a foreign country, provided the commissioner determines 44
73	73	that such entities agree to maintain the same level of confidentiality in 45
74	74	their jurisdictions as is available in this state. At the expense of a 46
75	75	domestic, alien or foreign insurer, the commissioner may engage the 47
76	76	services of attorneys, actuaries, accountants and other experts not 48 Raised Bill No. 403
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80	80	LCO No. 1363 3 of 7
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82	82	otherwise part of the commissioner's staff as may be necessary to assist 49
83	83	the commissioner in the financial analysis of the insurer, the review of 50
84	84	the insurer's license applications, and the review of transactions within 51
85	85	a holding company system involving an insurer domiciled in this state. 52
86	86	No duties of a person employed by the Insurance Department on 53
87	87	November 1, 2002, shall be performed by such attorney, actuary, 54
88	88	accountant or expert. 55
89	89	(e) The commissioner shall establish a program to reduce costs and 56
90	90	increase efficiency through the use of electronic methods to transmit 57
91	91	documents, including policy form and rate filings, to and from insurers 58
92	92	and the Insurance Department. The commissioner may sit as a member 59
93	93	of the board of a consortium organized by or in association with the 60
94	94	National Association of Insurance Commissioners for the purpose of 61
95	95	coordinating a system for electronic rate and form filing among state 62
96	96	insurance departments and insurers. 63
97	97	(f) The commissioner shall maintain as confidential information 64
98	98	obtained, collected or prepared in connection with examinations, 65
99	99	inspections or investigations, and complaints from the public received 66
100	100	by the Insurance Department, if such records are protected from 67
101	101	disclosure under federal law or state statute or, in the opinion of the 68
102	102	commissioner, such records would disclose, or would reasonably lead 69
103	103	to the disclosure of: (1) Investigative information the disclosure of which 70
104	104	would be prejudicial to such investigation, until such time as the 71
105	105	investigation is concluded; or (2) personal, financial or medical 72
106	106	information concerning a person who has filed a complaint or inquiry 73
107	107	with the Insurance Department, without the written consent of the 74
108	108	person or persons to whom the information pertains. 75
109	109	(g) The commissioner may, in the commissioner's discretion, engage 76
110	110	the services of such third-party actuaries, professionals and specialists 77
111	111	that the commissioner deems necessary to assist the commissioner in 78
112	112	reviewing any rate, form or similar filing submitted to the commissioner 79
113	113	pursuant to this title. The cost of such services shall be borne by the 80
114	114	person who submitted such rate, form or similar filing to the 81 Raised Bill No. 403
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118	118	LCO No. 1363 4 of 7
119	119
120	120	commissioner. 82
121	121	(h) The commissioner shall promote the development and growth of, 83
122	122	and employment opportunities within, the insurance industry in the 84
123	123	state. 85
124	124	(i) (1) Whenever the commissioner finds that any person has engaged 86
125	125	in or is about to engage in any act, practice or omission that constitutes, 87
126	126	or will constitute, a violation of any section of this title, or any regulation 88
127	127	or order adopted or issued by the commissioner implementing the 89
128	128	provisions of this title, the Attorney General may, at the request of the 90
129	129	commissioner, bring an action in the superior court for the judicial 91
130	130	district of Hartford for an order: (A) Enjoining such act, practice or 92
131	131	omission. Upon a showing by the commissioner that such person has 93
132	132	engaged in or is about to engage in any such act, practice or omission, 94
133	133	the court may issue a permanent or temporary injunction, restraining 95
134	134	order or other order, as appropriate. The commissioner shall not be 96
135	135	required to post a bond in such action; (B) imposing a penalty not to 97
136	136	exceed one hundred thousand dollars per violation against any such 98
137	137	person found by the commissioner to have violated any such section, 99
138	138	regulation or order; or (C) providing restitution against such person for 100
139	139	any sums shown by the commissioner to have been obtained by such 101
140	140	person in violation of any such section, regulation or order, plus interest 102
141	141	at the rate set forth in section 37-3a. 103
142	142	(2) Whenever the commissioner prevails in any action brought under 104
143	143	this subsection, the court may allow to the state any costs of such action. 105
144	144	Sec. 2. Section 38a-16 of the general statutes is repealed and the 106
145	145	following is substituted in lieu thereof (Effective October 1, 2024): 107
146	146	(a) (1) The Insurance Commissioner or the commissioner's authorized 108
147	147	representative may, as often as the commissioner deems necessary, 109
148	148	conduct investigations and hearings in aid of any investigation on any 110
149	149	matter under the provisions of this title. Pursuant to any such 111
150	150	investigation or hearing, the commissioner or the commissioner's 112
151	151	authorized representative may issue data calls, subpoenas, administer 113 Raised Bill No. 403
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154	154
155	155	LCO No. 1363 5 of 7
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157	157	oaths, compel testimony, order the production of books, records, papers 114
158	158	and documents, and examine books and records. Any person in receipt 115
159	159	of an order from the commissioner or the commissioner's authorized 116
160	160	representative for the production of books, records, papers or 117
161	161	documents shall comply with the order not later than thirty calendar 118
162	162	days after the date of such order. If any person refuses to allow the 119
163	163	examination of books and records, to appear, to testify or to produce 120
164	164	any book, record, paper or document when so ordered, a judge of the 121
165	165	Superior Court, upon application of the commissioner or the 122
166	166	commissioner's authorized representative, may make such order as may 123
167	167	be appropriate to aid in the enforcement of this section. 124
168	168	(2) Data provided in response to a data call under this section shall 125
169	169	not be subject to disclosure under section 1-210. 126
170	170	(b) The Attorney General, at the request of the commissioner, is 127
171	171	authorized to apply in the name of the state of Connecticut to the 128
172	172	Superior Court for an order temporarily or permanently restraining and 129
173	173	enjoining any person from violating any provision of this title. 130
174	174	Sec. 3. Subsection (a) of section 38a-15 of the general statutes is 131
175	175	repealed and the following is substituted in lieu thereof (Effective October 132
176	176	1, 2024): 133
177	177	(a) The commissioner shall, as often as the commissioner deems it 134
178	178	expedient, undertake a market conduct examination of the affairs of any 135
179	179	insurance company, health care center, third-party administrator, as 136
180	180	defined in section 38a-720, [or] fraternal benefit society doing business 137
181	181	in this state, or any third-party providing administrative, substantive or 138
182	182	other services, including, but not limited to, collecting or providing data 139
183	183	or data models, to an insurance company, health care center or fraternal 140
184	184	benefit society doing business in this state. Any such examination may 141
185	185	be conducted in accordance with the procedures and definitions set 142
186	186	forth in the National Association of Insurance Commissioners' Market 143
187	187	Regulation Handbook. 144
188	188	Sec. 4. Subsection (a) of section 38a-790 of the general statutes is 145 Raised Bill No. 403
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190	190
191	191
192	192	LCO No. 1363 6 of 7
193	193
194	194	repealed and the following is substituted in lieu thereof (Effective October 146
195	195	1, 2024): 147
196	196	(a) No person shall act as an appraiser for motor vehicle physical 148
197	197	damage claims on behalf of any insurance company or firm or 149
198	198	corporation engaged in the adjustment or appraisal of motor vehicle 150
199	199	claims unless such person has first secured a license from the Insurance 151
200	200	Commissioner, and has paid the license fee specified in section 38a-11, 152
201	201	for each two-year period or fraction thereof. The license shall be applied 153
202	202	for as provided in section 38a-769. The commissioner may waive the 154
203	203	requirement for examination in the case of any applicant for a motor 155
204	204	vehicle physical damage appraiser's license who is a nonresident of this 156
205	205	state and who holds an equivalent license from any other state. Any 157
206	206	[such license issued by the commissioner shall be in force until the 158
207	207	thirtieth day of June in each odd-numbered year] initial license issued 159
208	208	by the commissioner to an appraiser for motor vehicle physical damage 160
209	209	claims shall expire two years after the date of the licensee's birthday that 161
210	210	preceded the date the license was issued unless sooner revoked or 162
211	211	suspended. The license may, in the discretion of the commissioner, be 163
212	212	renewed biennially upon payment of the fee specified in section 38a-11. 164
213	213	The commissioner may adopt reasonable regulations concerning 165
214	214	standards for qualification, suspension or revocation of such licenses 166
215	215	and the methods by which licensees shall conduct their business. 167
216	216	Sec. 5. Subsection (a) of section 38a-792 of the general statutes is 168
217	217	repealed and the following is substituted in lieu thereof (Effective October 169
218	218	1, 2024): 170
219	219	(a) (1) No person may act as an adjuster of casualty claims for any 171
220	220	insurance company or firm or corporation engaged in the adjustment of 172
221	221	casualty claims unless such person has first secured a license from the 173
222	222	commissioner, and has paid the license fee specified in section 38a-11, 174
223	223	for each two-year period or fraction thereof. Application for such license 175
224	224	shall be made as provided in section 38a-769. Any [such license issued 176
225	225	by the commissioner shall be in force until June thirtieth in each odd-177
226	226	numbered year] initial license issued to an adjuster of casualty claims 178 Raised Bill No. 403
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230	230	LCO No. 1363 7 of 7
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232	232	shall expire two years after the date of the licensee's birthday that 179
233	233	preceded the date the license was issued unless sooner revoked or 180
234	234	suspended. The [person] licensee may, at the discretion of the 181
235	235	commissioner, renew the license biennially thereafter upon payment of 182
236	236	the fee specified in section 38a-11. 183
237	237	(2) The commissioner may waive the examination required under 184
238	238	section 38a-769, in the case of any applicant for a casualty claims 185
239	239	adjuster's license that (A) is a nonresident of this state or has its principal 186
240	240	place of business in another state, and holds an equivalent license from 187
241	241	any other state, or (B) at any time within two years next preceding the 188
242	242	date of application has been licensed in this state under a license of the 189
243	243	same type as the license applied for. 190
244	244	This act shall take effect as follows and shall amend the following
245	245	sections:
246	246
247	247	Section 1 October 1, 2024 38a-8
248	248	Sec. 2 October 1, 2024 38a-16
249	249	Sec. 3 October 1, 2024 38a-15(a)
250	250	Sec. 4 October 1, 2024 38a-790(a)
251	251	Sec. 5 October 1, 2024 38a-792(a)
252	252
253	253	Statement of Purpose:
254	254	To: (1) Authorize the commissioner to seek legal action for violations of
255	255	title 38a of the general statutes, or regulations or orders adopted or
256	256	issued pursuant to such title; (2) establish new requirements pertaining
257	257	to compliance with investigations or hearings on any matter under the
258	258	provisions of title 38a of the general statutes; (3) authorize the Insurance
259	259	Department to perform market conduct examinations of third parties
260	260	providing services to the insurance industry in this state; and (4) revise
261	261	the renewal date for initial licenses issued to appraisers for motor
262	262	vehicle physical damage claims and adjusters of casualty claims.
263	263	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
264	264	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
265	265	underlined.]
266	266