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General Assembly Raised Bill No. 6434
January Session, 2025
LCO No. 3569
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING THE LEGISLATIVE COMMISSIONERS'
RECOMMENDATIONS FOR TECHNICAL REVISIONS TO THE
INSURANCE-RELATED STATUTES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (a) of section 38a-16 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective from 2
passage): 3
(a) (1) The Insurance Commissioner or the commissioner's authorized 4
representative may, as often as the commissioner deems necessary, 5
conduct investigations and hearings in aid of any investigation on any 6
matter under the provisions of this title. Pursuant to any such 7
investigation or hearing, the commissioner or the commissioner's 8
authorized representative may issue data calls [,] and subpoenas, 9
administer oaths, compel testimony, order the production of books, 10
records, papers and documents [,] and examine books and records. Any 11
person in receipt of an order from the commissioner or the 12
commissioner's authorized representative for the production of books, 13
records, papers or documents shall comply with the order not later than 14 Raised Bill No. 6434
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thirty calendar days after the date of such order. If any person refuses 15
to allow the examination of books and records, to appear, to testify or to 16
produce any book, record, paper or document when so ordered, a judge 17
of the Superior Court, upon application of the commissioner or the 18
commissioner's authorized representative, may make such order as may 19
be appropriate to aid in the enforcement of this section. 20
(2) Data provided in response to a data call under this section shall 21
not be subject to disclosure under section 1-210. 22
Sec. 2. Subsection (a) of section 38a-297 of the general statutes is 23
repealed and the following is substituted in lieu thereof (Effective from 24
passage): 25
(a) For the purposes of sections 38a-295 to 38a-300, inclusive, a policy 26
shall be deemed readable if: (1) The text achieves a minimum score of 27
forty-five on the Flesch reading ease test as computed in section 38a-298 28
or an equivalent score on any other test comparable in result and 29
approved by the commissioner, (2) it is printed, except for specification 30
pages, schedules and tables, in not less than ten-point type, one-point 31
leaded, of a height and style specified by the commissioner in 32
regulations adopted in accordance with the provisions of chapter 54, (3) 33
it uses layout and spacing which separate the paragraphs from each 34
other and from the border of the paper, (4) it has section titles captioned 35
in boldface type or which otherwise stand out significantly from the 36
text, (5) it avoids the use of unnecessarily long, complicated or obscure 37
words, sentences, paragraphs or constructions, (6) the style, 38
arrangement and overall appearance of the policy give no undue 39
prominence to any portion of the text of the policy or to any 40
endorsements or riders, and (7) it contains a table of contents or an index 41
of the principal sections of the policy, if the policy has more than three 42
thousand words or if the policy has more than three pages. To be 43
deemed readable, each policy of individual health insurance shall 44
include a separate outline of coverage showing the major coverage, 45
benefit, exclusion and renewal provisions of the policy in readily 46
understandable terms, provided the policy shall take precedence over 47 Raised Bill No. 6434
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the outline of coverage. 48
Sec. 3. Subdivision (1) of subsection (b) of section 38a-556 of the 49
general statutes is repealed and the following is substituted in lieu 50
thereof (Effective from passage): 51
(b) (1) The board of directors of the association shall be made up of 52
nine individuals selected by participating members, subject to approval 53
by the commissioner, two of whom shall be appointed by the 54
commissioner on or before July 1, 1993, to represent health care centers. 55
To select the initial board of directors, and to initially organize the 56
association, the commissioner shall give notice to all members of the 57
time and place of the organizational meeting. In determining voting 58
rights at the organizational meeting, each member shall be entitled to 59
vote in person or by proxy. The vote shall be a weighted vote based 60
upon the net health insurance premium derived from this state in the 61
previous calendar year. If the board of directors is not selected within 62
sixty days after notice of the organizational meeting, the commissioner 63
may appoint the initial board. In approving or selecting members of the 64
board, the commissioner may consider, among other things, whether all 65
members are fairly represented. Members of the board may be 66
reimbursed from the moneys of the association for expenses incurred by 67
them as members, but shall not otherwise be compensated by the 68
association for their services. 69
Sec. 4. Subsection (d) of section 38a-790 of the general statutes is 70
repealed and the following is substituted in lieu thereof (Effective from 71
passage): 72
(d) For purposes of this section and section 38a-769: 73
(1) "Motor vehicle" has the same meaning as provided in section 14-74
1; and 75
(2) "Motor vehicle physical damage appraiser" means any person, 76
partnership, association, limited liability company or corporation that 77
practices as a business the appraising of damages to motor vehicles 78 Raised Bill No. 6434
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insured under automobile physical damage policies or on behalf of 79
[third party] third-party claimants. 80
Sec. 5. Subsection (c) of section 38a-792 of the general statutes is 81
repealed and the following is substituted in lieu thereof (Effective from 82
passage): 83
(c) Any person who violates any provision of this section shall be 84
fined not more than two thousand dollars or imprisoned not more than 85
one year, or both. 86
Sec. 6. Section 14-67h of the general statutes is repealed and the 87
following is substituted in lieu thereof (Effective from passage): 88
As used in this part, sections 14-103a, 14-149, 14-152, [and] 14-184 [,] 89
and subsection (b) of section 14-196, [and section 38a-356,] "major 90
component parts" has the same meaning as provided in subdivision (2) 91
of subsection (a) of section 14-149a. 92
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 38a-16(a)
Sec. 2 from passage 38a-297(a)
Sec. 3 from passage 38a-556(b)(1)
Sec. 4 from passage 38a-790(d)
Sec. 5 from passage 38a-792(c)
Sec. 6 from passage 14-67h
INS Joint Favorable