Connecticut 2025 Regular Session

Connecticut Senate Bill SB01425 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 1 of 10
	3	+	LCO No. 5341 1 of 13
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 1425
	5	+	General Assembly Raised Bill No. 1425
6	6		January Session, 2025
	7	+	LCO No. 5341
7	8
	9	+
	10	+	Referred to Committee on INSURANCE AND REAL ESTATE
	11	+
	12	+
	13	+	Introduced by:
	14	+	(INS)
8	15
9	16
10	17
11	18
12	19		AN ACT CONCERNING MOTOR VEHICLE PROTECTION PRODUCTS.
13	20		Be it enacted by the Senate and House of Representatives in General
14	21		Assembly convened:
15	22
16	23		Section 1. Section 42-260 of the general statutes is repealed and the 1
17	24		following is substituted in lieu thereof (Effective October 1, 2025): 2
18	25		(a) As used in this section: 3
19	26		(1) "Extended warranty" means a contract or agreement to either 4
20	27		perform or provide indemnification for the repair, replacement or 5
21	28		maintenance of a product because of operational or structural failure of 6
22	29		such product due to a defect in materials, skill or workmanship or 7
23	30		normal wear and tear given for consideration over and above the lease 8
24	31		or purchase price of a product. "Extended warranty" includes, but is not 9
25	32		limited to: (A) The repair or replacement of tires or wheels on a motor 10
26	33		vehicle damaged as a result of coming into contact with road hazards, 11
27	34		including, but not limited to, pot holes, rocks, wood debris, metal parts, 12
28	35		glass, plastic, curbs or composite scraps; (B) the removal of dents, dings 13
29	36		or creases on a motor vehicle using the process of paintless dent removal 14
30	37		without (i) affecting the existing paint finish, (ii) replacing vehicle body 15
	38	+	Raised Bill No. 1425
	39	+
	40	+
	41	+
	42	+	LCO No. 5341 2 of 13
	43	+
31	44		panels, (iii) sanding, (iv) bonding, or (v) painting; (C) the repair of chips 16
32	45		or cracks in, or the replacement of, a motor vehicle windshield as a result 17
33	46		of damage caused by such road hazards; (D) the replacement of a motor 18
34		-	vehicle key or key fob if such key or key fob becomes inoperable, or is 19 Substitute Bill No. 1425
35		-
36		-
37		-	LCO 2 of 10
38		-
	47	+	vehicle key or key fob if such key or key fob becomes inoperable, or is 19
39	48		lost or stolen; or (E) in conjunction with a motor vehicle leased for 20
40	49		personal use, the repair, replacement or maintenance of property or 21
41	50		indemnification for repair, replacement or maintenance, due to excess 22
42	51		wear and use damage for items, including, but not limited to, tires, paint 23
43	52		cracks or chips, interior stains, rips or scratches, exterior dents or 24
44	53		scratches, windshield cracks or chips, missing interior or exterior parts 25
45	54		or excess mileage that result in a lease-end charge, provided any such 26
46	55		charge shall not exceed the purchase price of the motor vehicle. 27
47	56		"Extended warranty" does not include portable electronics insurance, as 28
48	57		defined in section 38a-397. 29
49	58		(2) "Extended warranty provider" means a person who issues, makes, 30
50	59		provides or offers to provide an extended warranty to a buyer and who 31
51	60		is contractually obligated to provide service under such extended 32
52	61		warranty, excluding a retail seller of an extended warranty if such seller: 33
53	62		(A) Is the manufacturer of the product covered under the extended 34
54	63		warranty, or a subsidiary of the manufacturer; (B) sells or offers an 35
55	64		extended warranty for a product obligating the manufacturer, a 36
56	65		subsidiary of the manufacturer, a distributor or an importer to provide 37
57	66		the service or indemnification arising under the extended warranty; or 38
58	67		(C) performs at least ninety per cent of the repair service provided to 39
59	68		buyers pursuant to extended warranties purchased from such seller. 40
60	69		(3) "Buyer" means a person who purchases an extended warranty 41
61	70		from an extended warranty provider. 42
62	71		(4) "Extended warranty reimbursement insurance policy" means a 43
63	72		policy of insurance providing coverage for all obligations and liabilities 44
64	73		incurred by an extended warranty provider under the terms of the 45
65	74		extended warranty sold to a buyer by such provider. 46
66		-	(5) "Vehicle theft protection product" means any device or system 47
67		-	that (A) is installed on or applied to a covered motor vehicle, (B) is 48
68		-	designed to prevent loss or damage to such covered motor vehicle from 49
69		-	theft, and (C) includes a vehicle theft protection product warranty. 50
70		-	(6) "Vehicle theft protection product warranty" means a contract or 51 Substitute Bill No. 1425
	75	+	Raised Bill No. 1425
71	76
72	77
73		-	LCO 3 of 10
74	78
	79	+	LCO No. 5341 3 of 13
	80	+
	81	+	(5) "Vehicle theft protection product" means any device or system 47
	82	+	that (A) is installed on or applied to a covered motor vehicle; (B) is 48
	83	+	designed to prevent loss or damage to such covered motor vehicle from 49
	84	+	theft; and (C) includes a vehicle theft protection product warranty; and 50
	85	+	(6) "Vehicle theft protection product warranty" means a contract or 51
75	86		agreement obligating a warrantor to pay to, or on behalf of, the vehicle 52
76	87		theft protection product warranty holder specified incidental costs as a 53
77	88		result of the failure of such vehicle theft protection product to perform 54
78	89		pursuant to the terms of such contract or agreement. 55
79	90		(b) An extended warranty shall obligate the extended warranty 56
80	91		provider to supply to the buyer all services and functional parts that 57
81	92		may be necessary to repair the product for the duration of the extended 58
82	93		warranty without additional charge, except as otherwise expressly 59
83	94		provided. 60
84	95		(c) An extended warranty shall contain all of the following: 61
85	96		(1) A clear description and identification of the product; 62
86	97		(2) The date when the extended warranty commences and its 63
87	98		duration, and, if the extended warranty is for less than one year, the 64
88	99		extended warranty shall include a provision for the automatic extension 65
89	100		of the extended warranty while the product is in the custody of the 66
90	101		extended warranty provider for repair under such warranty; 67
91	102		(3) A description of the limits on transfer or assignment of the 68
92	103		extended warranty if the enforceability of an extended warranty is 69
93	104		limited to the original buyer or is limited to persons other than every 70
94	105		consumer owner of the covered product during the term of the extended 71
95	106		warranty; 72
96	107		(4) A statement of the obligation of the extended warranty provider 73
97	108		including statements of: (A) Any services, parts, components, defects, 74
98	109		malfunctions, conditions, repairs or remedies that are excluded from the 75
	110	+	Raised Bill No. 1425
	111	+
	112	+
	113	+
	114	+	LCO No. 5341 4 of 13
	115	+
99	116		scope of the extended warranty; (B) any limits on the obligations of the 76
100	117		extended warranty provider; (C) any additional services which the 77
101	118		extended warranty provider will supply; (D) whether the buyer has the 78
102	119		responsibility of any other obligations and, if so, the nature and 79
103	120		frequency of such obligations, and the consequences of any 80
104		-	noncompliance; 81 Substitute Bill No. 1425
105		-
106		-
107		-	LCO 4 of 10
108		-
	121	+	noncompliance; 81
109	122		(5) A step-by-step explanation of the procedure which the buyer shall 82
110	123		follow in order to obtain performance of any obligation under the 83
111	124		extended warranty including: (A) The full legal and business name of 84
112	125		the extended warranty provider; (B) the mailing address of the extended 85
113	126		warranty provider; (C) the persons or class of persons that are 86
114	127		authorized to perform service; (D) the name or title and address of any 87
115	128		agent, employee or department of the extended warranty provider that 88
116	129		is responsible for the performance of any obligations; (E) the method of 89
117	130		giving notice to the extended warranty provider of the need for service; 90
118	131		(F) whether in-home service is provided or, if not, whether the costs of 91
119	132		transporting the product for service or repairs will be paid by the 92
120	133		extended warranty provider; (G) if the product must be transported to 93
121	134		the extended warranty provider, either the place where the product may 94
122	135		be delivered for service or repairs or a toll-free telephone number which 95
123	136		the buyer may call to obtain that information; (H) all other steps which 96
124	137		the buyer must take to obtain service; and (I) all fees, charges and other 97
125	138		costs that the buyer must pay to obtain service; 98
126	139		(6) A description of the services the extended warranty provider will 99
127	140		supply under the extended warranty; and 100
128	141		(7) A statement of a right to cancel the warranty if the buyer returns 101
129	142		the product or the product is sold, lost, stolen or destroyed, or a 102
130	143		statement that there is no right to cancel. 103
131	144		(d) (1) An extended warranty shall not be issued, sold or offered for 104
132	145		sale unless the extended warranty provider is insured under an 105
133	146		extended warranty reimbursement insurance policy issued by an 106
	147	+	Raised Bill No. 1425
	148	+
	149	+
	150	+
	151	+	LCO No. 5341 5 of 13
	152	+
134	153		insurer authorized to do business in this state or the extended warranty 107
135	154		provider can demonstrate that reserves for claims contained in the 108
136	155		provider's financial statements are not in excess of one-half of a 109
137	156		provider's audited net worth. If such reserves are in excess of one-half 110
138	157		of a provider's net worth, the reserves shall be held in trust by an 111
139	158		independent trustee and certified annually as adequate by an actuary. 112
140		-	(2) The extended warranty reimbursement insurance policy shall 113 Substitute Bill No. 1425
141		-
142		-
143		-	LCO 5 of 10
144		-
	159	+	(2) The extended warranty reimbursement insurance policy shall 113
145	160		cover the obligations under the extended warranty sold by the extended 114
146	161		warranty provider during the period of time that such provider's 115
147	162		insurance policy is in force. 116
148	163		(3) An insurer authorized to issue an extended warranty 117
149	164		reimbursement insurance policy in this state shall, at the time the policy 118
150	165		is filed with the Insurance Commissioner as set forth in subsection (c) of 119
151	166		section 38a-676 and continuously thereafter: (A) Maintain a surplus as 120
152	167		to policyholders and paid-in capital of not less than fifteen million 121
153	168		dollars; (B) demonstrate to the satisfaction of said commissioner that the 122
154	169		company maintains a ratio of net written premiums, wherever written, 123
155	170		to a surplus as to policyholders and paid-in capital of not greater than 124
156	171		three to one; and (C) annually file with the Insurance Commissioner 125
157	172		copies of such insurer's audited financial statements, its National 126
158	173		Association of Insurance Commissioners' Annual Statement and the 127
159	174		actuarial certification required by and filed in such insurer's state of 128
160	175		domicile. 129
161	176		(e) An extended warranty provider shall submit to the Insurance 130
162	177		Commissioner: (1) A copy of the extended warranty form issued by said 131
163	178		provider; and (2) a copy of said provider's extended warranty 132
164	179		reimbursement insurance policy form issued by an insurer authorized 133
165	180		to do business in this state or a certification by a certified public 134
166	181		accountant attesting to the adequacy of the reserves for claims reported 135
167	182		on said provider's financial statements or contained in said provider's 136
168	183		trust account. 137
	184	+	Raised Bill No. 1425
	185	+
	186	+
	187	+
	188	+	LCO No. 5341 6 of 13
	189	+
169	190		(f) (1) An extended warranty shall contain the name and address of 138
170	191		the insurers insuring the obligations and liabilities of such warranty and 139
171	192		instructions on how the buyer, or successor to the buyer's rights, of the 140
172	193		product may file a claim with the insurer if the extended warranty 141
173	194		provider fails to perform according to the terms of the extended 142
174	195		warranty. 143
175	196		(2) An insurer of an extended warranty shall not refuse to renew any 144
176		-	policy unless such insurer or its agent shall send, by registered or 145 Substitute Bill No. 1425
177		-
178		-
179		-	LCO 6 of 10
180		-
	197	+	policy unless such insurer or its agent shall send, by registered or 145
181	198		certified mail or by mail evidenced by a certificate of mailing or delivery 146
182	199		to the Insurance Commissioner, at least sixty days' advance notice of its 147
183	200		intention not to renew. The notice of intent not to renew shall state or be 148
184	201		accompanied by a statement specifying the reason for such nonrenewal. 149
185	202		(g) The Insurance Commissioner shall develop regulations, in 150
186	203		accordance with chapter 54, implementing an arbitration process to 151
187	204		settle disputes arising from extended warranty contracts between 152
188	205		extended warranty providers and buyers. 153
189	206		(h) Nothing in this section shall apply to a home warranty contract or 154
190	207		home warranty service agreement, as defined in section 38a-320, or 155
191	208		regulated utilities. 156
192	209		(i) No contract or agreement providing any extended warranty or 157
193	210		vehicle theft protection product warranty shall constitute engaging in 158
194	211		the business of insurance in this state. 159
195		-	Sec. 2. Subsection (a) of section 38a-11 of the general statutes is 160
196		-	repealed and the following is substituted in lieu thereof (Effective October 161
197		-	1, 2025): 162
198		-	(a) The commissioner shall demand and receive the following fees: 163
199		-	(1) For the annual fee for each license issued to a domestic insurance 164
200		-	company, two hundred dollars; (2) for receiving and filing annual 165
201		-	reports of domestic insurance companies, fifty dollars; (3) for filing all 166
202		-	documents prerequisite to the issuance of a license to an insurance 167
203		-	company, two hundred twenty dollars, except that the fee for such 168
204		-	filings by any health care center, as defined in section 38a-175, shall be 169
205		-	one thousand three hundred fifty dollars; (4) for filing any additional 170
206		-	paper required by law, thirty dollars; (5) for each certificate of valuation, 171
207		-	organization, reciprocity or compliance, forty dollars; (6) for each 172
208		-	certified copy of a license to a company, forty dollars; (7) for each 173
209		-	certified copy of a report or certificate of condition of a company to be 174
210		-	filed in any other state, forty dollars; (8) for amending a certificate of 175
211		-	authority, two hundred dollars; (9) for each license issued to a rating 176
212		-	organization, two hundred dollars. In addition, insurance companies 177 Substitute Bill No. 1425
	212	+	Sec. 2. Section 38a-47 of the general statutes is repealed and the 160
	213	+	following is substituted in lieu thereof (Effective October 1, 2025): 161
	214	+	(a) All domestic insurance companies and other domestic entities 162
	215	+	subject to taxation under chapter 207, and extended warranty providers 163
	216	+	and warrantors of vehicle theft protection products, as such terms are 164
	217	+	defined in section 42-260, as amended by this act, shall, in accordance 165
	218	+	with section 38a-48, as amended by this act, annually pay to the 166
	219	+	Insurance Commissioner, for deposit in the Insurance Fund established 167
	220	+	Raised Bill No. 1425
213	221
214	222
215		-	LCO 7 of 10
216	223
217		-	shall pay any fees imposed under section 12-211; (10) a filing fee of fifty 178
218		-	dollars for each initial application for a license made pursuant to section 179
219		-	38a-769; (11) with respect to insurance agents' appointments: (A) A 180
220		-	filing fee of fifty dollars for each request for any agent appointment, 181
221		-	except that no filing fee shall be payable for a request for agent 182
222		-	appointment by an insurance company domiciled in a state or foreign 183
223		-	country which does not require any filing fee for a request for agent 184
224		-	appointment for a Connecticut insurance company; (B) a fee of one 185
225		-	hundred dollars for each appointment issued to an agent of a domestic 186
226		-	insurance company or for each appointment continued; and (C) a fee of 187
227		-	eighty dollars for each appointment issued to an agent of any other 188
228		-	insurance company or for each appointment continued, except that (i) 189
229		-	no fee shall be payable for an appointment issued to an agent of an 190
230		-	insurance company domiciled in a state or foreign country which does 191
231		-	not require any fee for an appointment issued to an agent of a 192
232		-	Connecticut insurance company, and (ii) the fee shall be twenty dollars 193
233		-	for each appointment issued or continued to an agent of an insurance 194
234		-	company domiciled in a state or foreign country with a premium tax 195
235		-	rate below Connecticut's premium tax rate; (12) with respect to 196
236		-	insurance producers: (A) An examination fee of fifteen dollars for each 197
237		-	examination taken, except when a testing service is used, the testing 198
238		-	service shall pay a fee of fifteen dollars to the commissioner for each 199
239		-	examination taken by an applicant; (B) a fee of eighty dollars for each 200
240		-	license issued; (C) a fee of eighty dollars per year, or any portion thereof, 201
241		-	for each license renewed; and (D) a fee of eighty dollars for any license 202
242		-	renewed under the transitional process established in section 38a-784; 203
243		-	(13) with respect to public adjusters: (A) An examination fee of fifteen 204
244		-	dollars for each examination taken, except when a testing service is 205
245		-	used, the testing service shall pay a fee of fifteen dollars to the 206
246		-	commissioner for each examination taken by an applicant; and (B) a fee 207
247		-	of two hundred fifty dollars for each license issued or renewed; (14) with 208
248		-	respect to casualty claims adjusters: (A) An examination fee of twenty 209
249		-	dollars for each examination taken, except when a testing service is 210
250		-	used, the testing service shall pay a fee of twenty dollars to the 211
251		-	commissioner for each examination taken by an applicant; (B) a fee of 212 Substitute Bill No. 1425
	224	+	LCO No. 5341 7 of 13
	225	+
	226	+	under section 38a-52a, an amount equal to: 168
	227	+	(1) The actual expenditures made by the Insurance Department 169
	228	+	during each fiscal year, and the actual expenditures made by the Office 170
	229	+	of the Healthcare Advocate, including the cost of fringe benefits for 171
	230	+	department and office personnel as estimated by the Comptroller; 172
	231	+	(2) The amount appropriated to the Office of Health Strategy from 173
	232	+	the Insurance Fund for the fiscal year, including the cost of fringe 174
	233	+	benefits for office personnel as estimated by the Comptroller, which 175
	234	+	shall be reduced by the amount of federal reimbursement received for 176
	235	+	allowable Medicaid administrative expenses; 177
	236	+	(3) The expenditures made on behalf of the department and said 178
	237	+	offices from the Capital Equipment Purchase Fund pursuant to section 179
	238	+	4a-9 for such year, but excluding such estimated expenditures made on 180
	239	+	behalf of the Health Systems Planning Unit of the Office of Health 181
	240	+	Strategy; and 182
	241	+	(4) The amount appropriated to the Department of Aging and 183
	242	+	Disability Services for the fall prevention program established in section 184
	243	+	17a-859 from the Insurance Fund for the fiscal year. 185
	244	+	(b) The expenditures and amounts specified in subdivisions (1) to (4), 186
	245	+	inclusive, of subsection (a) of this section shall exclude expenditures 187
	246	+	paid for by fraternal benefit societies, foreign and alien insurance 188
	247	+	companies and other foreign and alien entities under sections 38a-49 189
	248	+	and 38a-50. 190
	249	+	(c) Payments shall be made by assessment of all such domestic 191
	250	+	insurance companies, [and] other domestic entities, extended warranty 192
	251	+	providers and warrantors of vehicle theft protection products calculated 193
	252	+	and collected in accordance with the provisions of section 38a-48, as 194
	253	+	amended by this act. Any such domestic insurance company, [or] other 195
	254	+	domestic entity, extended warranty provider or warrantor of a vehicle 196
	255	+	theft protection product aggrieved because of any assessment levied 197
	256	+	Raised Bill No. 1425
252	257
253	258
254		-	LCO 8 of 10
255	259
256		-	eighty dollars for each license issued or renewed; and (C) the expense of 213
257		-	any examination administered outside the state shall be the 214
258		-	responsibility of the entity making the request and such entity shall pay 215
259		-	to the commissioner two hundred dollars for such examination and the 216
260		-	actual traveling expenses of the examination administrator to 217
261		-	administer such examination; (15) with respect to motor vehicle 218
262		-	physical damage appraisers: (A) An examination fee of eighty dollars 219
263		-	for each examination taken, except when a testing service is used, the 220
264		-	testing service shall pay a fee of eighty dollars to the commissioner for 221
265		-	each examination taken by an applicant; (B) a fee of eighty dollars for 222
266		-	each license issued or renewed; and (C) the expense of any examination 223
267		-	administered outside the state shall be the responsibility of the entity 224
268		-	making the request and such entity shall pay to the commissioner two 225
269		-	hundred dollars for such examination and the actual traveling expenses 226
270		-	of the examination administrator to administer such examination; (16) 227
271		-	with respect to certified insurance consultants: (A) An examination fee 228
272		-	of twenty-six dollars for each examination taken, except when a testing 229
273		-	service is used, the testing service shall pay a fee of twenty-six dollars to 230
274		-	the commissioner for each examination taken by an applicant; (B) a fee 231
275		-	of two hundred fifty dollars for each license issued; and (C) a fee of two 232
276		-	hundred fifty dollars for each license renewed; (17) with respect to 233
277		-	surplus lines brokers: (A) An examination fee of twenty dollars for each 234
278		-	examination taken, except when a testing service is used, the testing 235
279		-	service shall pay a fee of twenty dollars to the commissioner for each 236
280		-	examination taken by an applicant; and (B) a fee of six hundred twenty-237
281		-	five dollars for each license issued or renewed; (18) with respect to 238
282		-	fraternal agents, a fee of eighty dollars for each license issued or 239
283		-	renewed; (19) a fee of twenty-six dollars for each license certificate 240
284		-	requested, whether or not a license has been issued; (20) with respect to 241
285		-	domestic and foreign benefit societies shall pay: (A) For service of 242
286		-	process, fifty dollars for each person or insurer to be served; (B) for filing 243
287		-	a certified copy of its charter or articles of association, fifteen dollars; (C) 244
288		-	for filing an annual statement or report, twenty dollars; and (D) for filing 245
289		-	any additional paper required by law, fifteen dollars; (21) with respect 246
290		-	to foreign benefit societies: (A) For each certificate of organization or 247 Substitute Bill No. 1425
	260	+	LCO No. 5341 8 of 13
	261	+
	262	+	under this section may appeal therefrom in accordance with the 198
	263	+	provisions of section 38a-52. 199
	264	+	Sec. 3. Section 38a-48 of the general statutes, as amended by section 200
	265	+	31 of public act 24-1 of the June special session, is repealed and the 201
	266	+	following is substituted in lieu thereof (Effective October 1, 2025): 202
	267	+	(a) On or before June thirtieth, annually, the Commissioner of 203
	268	+	Revenue Services shall render to the Insurance Commissioner a 204
	269	+	statement certifying the total amount of taxes reported to the 205
	270	+	Commissioner of Revenue Services on returns filed with said 206
	271	+	commissioner by each domestic insurance company or other domestic 207
	272	+	entity under chapter 207, or by any extended warranty provider or 208
	273	+	warrantor of a vehicle theft protection product, as such terms are 209
	274	+	defined in section 42-260, as amended by this act, on business done in 210
	275	+	this state during the calendar year immediately preceding the prior 211
	276	+	calendar year. For purposes of preparing the annual statement under 212
	277	+	this subsection, the total amount of taxes required to be set forth in such 213
	278	+	statement shall be the amount of tax reported by each domestic 214
	279	+	insurance company or other domestic entity under chapter 207, each 215
	280	+	extended warranty provider and warrantor of a vehicle theft protection 216
	281	+	product to the Commissioner of Revenue Services prior to the 217
	282	+	application of any credits allowable or available under law to each such 218
	283	+	domestic insurance company or other domestic entity under chapter 219
	284	+	207, extended warranty provider or warrantor of a vehicle theft 220
	285	+	protection product. 221
	286	+	(b) On or before July thirty-first, annually, the Insurance 222
	287	+	Commissioner shall render to each domestic insurance company, [or] 223
	288	+	other domestic entity, extended warranty provider or warrantor of a 224
	289	+	vehicle theft protection product liable for payment under section 38a-225
	290	+	47, as amended by this act: 226
	291	+	(1) A statement that includes (A) the amount appropriated to the 227
	292	+	Insurance Department, the Office of the Healthcare Advocate and the 228
	293	+	Raised Bill No. 1425
291	294
292	295
293		-	LCO 9 of 10
294	296
295		-	~~compliance, fifteen dollars;~~ ~~(B) for each certified copy~~ of ~~permit, fifteen 248~~
296		-	~~dollars; and (C) for each copy of a report or certificate of condition of a 249~~
297		-	~~society to be filed in any other state,~~ ~~fifteen dollars;~~ ~~(22) with respect to 250~~
298		-	~~reinsurance intermediaries,~~ ~~a fee~~ of ~~six hundred twenty-five~~ ~~dollars for 251~~
299		-	~~each license issued or renewed;~~ (23) ~~with respect to life settlement 252~~
300		-	~~providers:~~ (A) ~~A filing fee of twenty-six dollars for each initial 253~~
301		-	~~application for a license made pursuant to section 38a-465a;~~ and ~~(B) a 254~~
302		-	~~fee of forty dollars~~ for ~~each license issued or renewed; (24) with respect 255~~
303		-	~~to life settlement brokers:~~ ~~(A) A filing fee~~ of ~~twenty-six dollars for each 256~~
304		-	~~initial application for a license made pursuant to section 38a-465a;~~ and ~~257~~
305		-	~~(B) a fee~~ of ~~forty dollars for each license issued or renewed; (25) with 258~~
306		-	~~respect to preferred provider networks,~~ ~~a fee of two thousand seven 259~~
307		-	~~hundred fifty dollars~~ for ~~each license issued or renewed~~; ~~(26) with 260~~
308		-	~~respect to rental companies,~~ ~~as defined~~ in ~~section 38a-799, a fee of eighty 261~~
309		-	~~dollars for each permit issued or renewed; (27) with respect~~ to ~~medical 262~~
310		-	~~discount plan organizations licensed under section 38a-479rr,~~ a ~~fee~~ of ~~six 263~~
311		-	~~hundred twenty-five dollars for each license issued or renewed;~~ (28) ~~264~~
312		-	~~with respect to pharmacy benefits managers, an application fee~~ of ~~one 265~~
313		-	~~hundred dollars for each registration issued or renewed; (29)~~ with ~~266~~
314		-	~~respect to captive insurance companies~~, ~~as defined in section 38a-91aa, 267~~
315		-	~~a fee~~ of ~~three hundred seventy-five~~ ~~dollars for each license issued or 268~~
316		-	~~renewed; (30) with respect to each duplicate license issued a fee~~ of ~~fifty 269~~
317		-	~~dollars~~ for ~~each license issued;~~ ~~(31) with respect to surety bail bond 270~~
318		-	~~agents, as defined in section 38a-660, (A) a filing fee~~ of ~~one hundred fifty 271~~
319		-	~~dollars for each initial application for a license~~, ~~and (B) a fee of one 272~~
320		-	~~hundred dollars for each license issued or renewed;~~ ~~(32) with respect to 273~~
321		-	~~third-party administrators, as defined in section 38a-720, (A) a fee~~ of ~~five 274~~
322		-	~~hundred dollars for each license issued~~, and ~~(B) a fee of four hundred 275~~
323		-	~~fifty dollars for each license renewed; (33) with respect~~ to ~~portable 276~~
324		-	~~electronics~~ insurance ~~licenses under section 38a-397, (A) a filing fee of 277~~
325		-	~~one hundred dollars for each initial application for a license,~~ ~~(B) a fee of 278~~
326		-	~~five hundred dollars~~ for ~~each license issued,~~ ~~and (C) a fee of four 279~~
327		-	~~hundred fifty dollars~~ for each ~~license renewed;~~ ~~(34) with respect to 280~~
328		-	~~limited lines travel insurance producer licenses under section 38a-398~~, ~~281~~
329		-	~~(A) a filing fee of one hundred dollars for each initial application for a 282 Substitute~~ Bill No. 1425
	297	+	LCO No. 5341 9 of 13
	298	+
	299	+	Office of Health Strategy from the Insurance Fund established under 229
	300	+	section 38a-52a for the fiscal year beginning July first of the same year, 230
	301	+	(B) the cost of fringe benefits for department and office personnel for 231
	302	+	such year, as estimated by the Comptroller, (C) the estimated 232
	303	+	expenditures on behalf of the department and the offices from the 233
	304	+	Capital Equipment Purchase Fund pursuant to section 4a-9 for such 234
	305	+	year, not including such estimated expenditures made on behalf of the 235
	306	+	Health Systems Planning Unit of the Office of Health Strategy, and (D) 236
	307	+	the amount appropriated to the Department of Aging and Disability 237
	308	+	Services for the fall prevention program established in section 17a-859 238
	309	+	from the Insurance Fund for the fiscal year; 239
	310	+	(2) A statement of the total amount of taxes reported in the annual 240
	311	+	statement rendered to the Insurance Commissioner pursuant to 241
	312	+	subsection (a) of this section; and 242
	313	+	(3) The proposed assessment against [that] such company, [or] entity, 243
	314	+	extended warranty provider or warrantor of vehicle theft protection 244
	315	+	products calculated in accordance with the provisions of subsection (c) 245
	316	+	of this section, provided for the purposes of this calculation the amount 246
	317	+	appropriated to the Insurance Department, the Office of the Healthcare 247
	318	+	Advocate and the Office of Health Strategy from the Insurance Fund 248
	319	+	plus the cost of fringe benefits for department and office personnel and 249
	320	+	the estimated expenditures on behalf of the department and said offices 250
	321	+	from the Capital Equipment Purchase Fund pursuant to section 4a-9, 251
	322	+	not including such expenditures made on behalf of the Health Systems 252
	323	+	Planning Unit of the Office of Health Strategy shall be deemed to be the 253
	324	+	actual expenditures of the department and said offices, and the amount 254
	325	+	appropriated to the Department of Aging and Disability Services from 255
	326	+	the Insurance Fund for the fiscal year for the fall prevention program 256
	327	+	established in section 17a-859 shall be deemed to be the actual 257
	328	+	expenditures for the program. 258
	329	+	(c) (1) The proposed assessments for each domestic insurance 259
	330	+	company, [or] other domestic entity, extended warranty provider or 260
	331	+	Raised Bill No. 1425
330	332
331	333
332		-	LCO 10 of 10
333	334
334		-	license, (B) a fee of six hundred fifty dollars for each license issued, and 283
335		-	(C) a fee of six hundred fifty dollars for each license renewed; (35) with 284
336		-	respect to certified reinsurers, as certified by the commissioner pursuant 285
337		-	to regulations adopted pursuant to section 38a-85, a fee of two thousand 286
338		-	dollars for each certificate issued and renewed; [and] (36) with respect 287
339		-	to reciprocal jurisdiction reinsurers, as defined in regulations adopted 288
340		-	pursuant to section 38a-85, a fee of two thousand dollars for each 289
341		-	certificate issued and renewed; (37) with respect to extended warranty 290
342		-	providers, as defined in section 42-260, as amended by this act, a fee of 291
343		-	one thousand five hundred dollars when filing (A) a rate request with a 292
344		-	filing for any merger, acquisition or change of control, (B) a rate request, 293
345		-	or (C) for any merger, acquisition or change of control; and (38) with 294
346		-	respect to warrantors of vehicle theft protection products, as defined in 295
347		-	section 42-260, as amended by this act, a fee of one thousand five 296
348		-	hundred dollars when filing (A) a rate request with a filing for any 297
349		-	merger, acquisition or change of control, (B) a rate request, or (C) for any 298
350		-	merger, acquisition or change of control. 299
	335	+	LCO No. 5341 10 of 13
	336	+
	337	+	warrantor of a vehicle theft protection product shall be calculated by (A) 261
	338	+	allocating twenty per cent of the amount to be paid under section 38a-262
	339	+	47, as amended by this act, among the domestic entities organized under 263
	340	+	sections 38a-199 to 38a-209, inclusive, and 38a-214 to 38a-225, inclusive, 264
	341	+	in proportion to their respective shares of the total amount of taxes 265
	342	+	reported in the annual statement rendered to the Insurance 266
	343	+	Commissioner pursuant to subsection (a) of this section, and (B) 267
	344	+	allocating eighty per cent of the amount to be paid under section 38a-47, 268
	345	+	as amended by this act, among all domestic insurance companies, [and] 269
	346	+	domestic entities other than those organized under sections 38a-199 to 270
	347	+	38a-209, inclusive, and 38a-214 to 38a-225, inclusive, extended warranty 271
	348	+	providers and warrantors of vehicle theft protection products, in 272
	349	+	proportion to their respective shares of the total amount of taxes 273
	350	+	reported in the annual statement rendered to the Insurance 274
	351	+	Commissioner pursuant to subsection (a) of this section, provided if 275
	352	+	there are no domestic entities organized under sections 38a-199 to 38a-276
	353	+	209, inclusive, and 38a-214 to 38a-225, inclusive, at the time of 277
	354	+	assessment, one hundred per cent of the amount to be paid under 278
	355	+	section 38a-47, as amended by this act, shall be allocated among such 279
	356	+	domestic insurance companies, [and] domestic entities, extended 280
	357	+	warranty providers and warrantors of vehicle theft protection products. 281
	358	+	(2) When the amount any such company , [or] entity, extended 282
	359	+	warranty provider or warrantor of a vehicle theft protection product is 283
	360	+	assessed pursuant to this section exceeds twenty-five per cent of the 284
	361	+	actual expenditures of the Insurance Department, the Office of the 285
	362	+	Healthcare Advocate and the Office of Health Strategy from the 286
	363	+	Insurance Fund, such excess amount shall not be paid by such company, 287
	364	+	[or] entity, extended warranty provider or warrantor of a vehicle theft 288
	365	+	protection product, but rather shall be assessed against and paid by all 289
	366	+	other such companies, [and] entities, extended warranty providers or 290
	367	+	warrantors of vehicle theft protection products in proportion to their 291
	368	+	respective shares of the total amount of taxes reported in the annual 292
	369	+	statement rendered to the Insurance Commissioner pursuant to 293
	370	+	Raised Bill No. 1425
	371	+
	372	+
	373	+
	374	+	LCO No. 5341 11 of 13
	375	+
	376	+	subsection (a) of this section, except that for purposes of any assessment 294
	377	+	made to fund payments to the Department of Public Health to purchase 295
	378	+	vaccines, such company or entity shall be responsible for its share of the 296
	379	+	costs, notwithstanding whether its assessment exceeds twenty-five per 297
	380	+	cent of the actual expenditures of the Insurance Department, the Office 298
	381	+	of the Healthcare Advocate and the Office of Health Strategy from the 299
	382	+	Insurance Fund. The provisions of this subdivision shall not be 300
	383	+	applicable to any corporation that has converted to a domestic mutual 301
	384	+	insurance company pursuant to section 38a-155 upon the effective date 302
	385	+	of any public act that amends said section to modify or remove any 303
	386	+	restriction on the business such a company may engage in, for purposes 304
	387	+	of any assessment due from such company on and after such effective 305
	388	+	date. 306
	389	+	(d) Each annual payment determined under section 38a-47, as 307
	390	+	amended by this act, and each annual assessment determined under this 308
	391	+	section shall be calculated based on the total amount of taxes reported 309
	392	+	in the annual statement rendered to the Insurance Commissioner 310
	393	+	pursuant to subsection (a) of this section. 311
	394	+	(e) On or before September first, annually, for each fiscal year, the 312
	395	+	Insurance Commissioner, after receiving any objections to the proposed 313
	396	+	assessments and making such adjustments as in the commissioner's 314
	397	+	opinion may be indicated, shall assess each such domestic insurance 315
	398	+	company, [or] other domestic entity, extended warranty provider or 316
	399	+	warrantor of a vehicle theft protection product an amount equal to its 317
	400	+	proposed assessment as so adjusted. Each domestic insurance company, 318
	401	+	[or] other domestic entity, extended warranty provider or warrantor of 319
	402	+	a vehicle theft protection product shall pay to the Insurance 320
	403	+	Commissioner (1) on or before June thirtieth, annually, an estimated 321
	404	+	payment against its assessment for the following year equal to twenty-322
	405	+	five per cent of its assessment for the fiscal year ending such June 323
	406	+	thirtieth, (2) on or before September thirtieth, annually, twenty-five per 324
	407	+	cent of its assessment adjusted to reflect any credit or amount due from 325
	408	+	the preceding fiscal year as determined by the commissioner under 326
	409	+	Raised Bill No. 1425
	410	+
	411	+
	412	+
	413	+	LCO No. 5341 12 of 13
	414	+
	415	+	subsection (f) of this section, and (3) on or before the following 327
	416	+	December thirty-first and March thirty-first, annually, each domestic 328
	417	+	insurance company, [or] other domestic entity, extended warranty 329
	418	+	provider or warrantor of a vehicle theft protection product shall pay to 330
	419	+	the Insurance Commissioner the remaining fifty per cent of its proposed 331
	420	+	assessment to the department in two equal installments. 332
	421	+	(f) If the actual expenditures for the fall prevention program 333
	422	+	established in section 17a-859 are less than the amount allocated, the 334
	423	+	Commissioner of Aging and Disability Services shall notify the 335
	424	+	Insurance Commissioner. Immediately following the close of the fiscal 336
	425	+	year, the Insurance Commissioner shall recalculate the proposed 337
	426	+	assessment for each domestic insurance company, [or] other domestic 338
	427	+	entity, extended warranty provider or warrantor of a vehicle theft 339
	428	+	protection product in accordance with subsection (c) of this section 340
	429	+	using the actual expenditures made during the fiscal year by the 341
	430	+	Insurance Department, the Office of the Healthcare Advocate and the 342
	431	+	Office of Health Strategy from the Insurance Fund, the actual 343
	432	+	expenditures made on behalf of the department and said offices from 344
	433	+	the Capital Equipment Purchase Fund pursuant to section 4a-9, not 345
	434	+	including such expenditures made on behalf of the Health Systems 346
	435	+	Planning Unit of the Office of Health Strategy, and the actual 347
	436	+	expenditures for the fall prevention program. On or before July thirty-348
	437	+	first, annually, the Insurance Commissioner shall render to each such 349
	438	+	domestic insurance company, [and] other domestic entity, extended 350
	439	+	warranty provider and warrantor of a vehicle theft protection product a 351
	440	+	statement showing the difference between their respective recalculated 352
	441	+	assessments and the amount they have previously paid. On or before 353
	442	+	August thirty-first, the Insurance Commissioner, after receiving any 354
	443	+	objections to such statements, shall make such adjustments that in the 355
	444	+	commissioner's opinion may be indicated, and shall render an adjusted 356
	445	+	assessment, if any, to the affected companies. Any such domestic 357
	446	+	insurance company, [or] other domestic entity, extended warranty 358
	447	+	provider or warrantor of a vehicle theft protection product may pay to 359
	448	+	Raised Bill No. 1425
	449	+
	450	+
	451	+
	452	+	LCO No. 5341 13 of 13
	453	+
	454	+	the Insurance Commissioner the entire assessment required under this 360
	455	+	subsection in one payment when the first installment of such assessment 361
	456	+	is due. 362
	457	+	(g) If any assessment is not paid when due, a penalty of twenty-five 363
	458	+	dollars shall be added thereto, and interest at the rate of six per cent per 364
	459	+	annum shall be paid thereafter on such assessment and penalty. 365
	460	+	(h) The Insurance Commissioner shall deposit all payments made 366
	461	+	under this section with the State Treasurer. On and after June 6, 1991, 367
	462	+	the moneys so deposited shall be credited to the Insurance Fund 368
	463	+	established under section 38a-52a and shall be accounted for as expenses 369
	464	+	recovered from insurance companies. 370
351	465		This act shall take effect as follows and shall amend the following
352	466		sections:
353	467
354	468		Section 1 October 1, 2025 42-260
355		-	Sec. 2 October 1, 2025 38a-11(a)
	469	+	Sec. 2 October 1, 2025 38a-47
	470	+	Sec. 3 October 1, 2025 38a-48
356	471
357		-	INS Joint Favorable Subst.
	472	+	Statement of Purpose:
	473	+	To regulate the business of extended warranties for motor vehicles and
	474	+	vehicle theft protection product warranties in this state.
	475	+
	476	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	477	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	478	+	underlined.]
358	479