Bill Text: CT HB05010 | 2012 | General Assembly | Introduced
Bill Title: An Act Concerning The Disclosure Notice For Surplus Lines Insurance Policies.
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2012-04-18 - Senate Calendar Number 361 [HB05010 Detail]
Download: Connecticut-2012-HB05010-Introduced.html
General Assembly |
Raised Bill No. 5010 | |||
February Session, 2012 |
LCO No. 54 | |||
*00054_______INS* |
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Referred to Committee on Insurance and Real Estate |
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Introduced by: |
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(INS) |
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AN ACT CONCERNING INFORMATION TO BE SUPPLIED OR DISCLOSED FOR CERTAIN PERSONAL RISK AND SURPLUS LINES INSURANCE POLICIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 38a-53a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
(a) Each domestic, foreign and alien insurer authorized to transact insurance in this state shall [annually on or before March first of each year,] file electronically with the National Association of Insurance Commissioners annually, on or before March first, a copy of its annual statement convention blank, along with such additional filings as prescribed by the commissioner for the preceding year. The information filed with the National Association of Insurance Commissioners shall include additional filings as prescribed by the commissioner and shall include the signed jurat page and the actuarial certification. Any amendments and addendums to the annual statement or other financial statements subsequently filed with the commissioner shall also be filed with the National Association of Insurance Commissioners. Foreign insurers that are domiciled in a state that has a law substantially similar to the provisions of this section shall be deemed in compliance with this section. Upon written application of any insurer domiciled in this state that transacts no insurance business in another state, the commissioner may grant an exemption from compliance with this section if compliance would constitute a financial or organizational hardship upon the insurer. All financial analysis ratios and examination synopses concerning insurance companies that are submitted to the Insurance Department by the National Association of Insurance Commissioners are confidential and may not be disclosed or otherwise made public by the department.
(b) Each domestic, foreign and alien insurer that delivers, issues for delivery, renews, amends or endorses a homeowners insurance policy in this state shall file with the commissioner annually, on or before March first, the number of such policies in force in this state as of January first of such year, by zip codes of the insured residential properties.
Sec. 2. Section 38a-350 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
Each insurance company [which] that issues in this state automobile liability policies as defined in section 38a-341, insuring against loss resulting from liability for damages because of bodily injury or death of any person and injury to or destruction of property arising out of the ownership, maintenance or use of a specific motor vehicle or motor vehicles, shall file with the Insurance Commissioner, for each calendar year in which it does business within the state, not later than sixty days after the end of such calendar year, [with the Insurance Commissioner,] a record of (1) the number of such policies insuring motor vehicles principally garaged in Connecticut in force as of January first of such year, (2) the number of car years of such insurance in force as of January first of such year, the number of such policies nonrenewed in such year, (3) the number of such policies cancelled in such year, (4) the number of such new policies underwritten in such year, (5) the total number of such policies in force as of December thirty-first of such year, [and] (6) the number of car years of such insurance in force as of December thirty-first of such year, and (7) the number of private passenger nonfleet automobile insurance policies insuring motor vehicles principally garaged in Connecticut in force as of January first of such year, by zip codes where such motor vehicles are principally garaged.
Sec. 3. Section 38a-741 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
(a) The commissioner shall maintain on a current basis a list of those lines of insurance or their components for which coverages are believed by the commissioner to be generally unavailable from licensed insurers. The commissioner shall republish the list and make it available to all licensees every six months. Any person may request in writing that the commissioner add or remove a line of insurance or its component from the current list at the next publication of the list. The commissioner's determinations of lines of insurance or their components to be added to or removed from the list shall not be subject to chapter 54 provided prior to making determinations, the commissioner shall provide opportunity for comments from interested persons.
(b) (1) When any policy of insurance is procured under the authority of such license providing a line of insurance or its component that does not, on the effective date of coverage, appear on the current published list, both the licensee and the insured shall [execute affidavits] write signed statements setting forth facts showing that such licensee and such insured were unable after diligent effort to procure, from any authorized insurer or insurers, the full amount of insurance required to protect the interest of such insured, and further showing that the amount of insurance procured from an unauthorized insurer or insurers is only the excess over the amount so procurable from authorized insurers. Such licensee shall file such [affidavits] signed statements with the commissioner not later than forty-five days after such policies have been procured.
(2) The provisions of subdivision (1) of this subsection shall not apply to any policy of insurance procured under the authority of such license for an insured that is an exempt commercial purchaser, as defined in Section 527 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111-203, as amended from time to time, provided (A) the surplus lines broker has disclosed to such exempt commercial purchaser that such insurance may or may not be available from an authorized insurer, that may provide greater protection with more regulatory oversight, and (B) such exempt commercial purchaser has subsequently requested such broker, in writing, to procure such policy from an unauthorized insurer.
Sec. 4. Section 38a-777 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
Any licensee under sections 38a-741 to 38a-744, inclusive, as amended by this act, or section 38a-794 who negotiates, continues or renews any contract for insurance in any unauthorized company, and who neglects to make and file the [affidavit and] statements required by [said sections] section 38a-741, as amended by this act, or who wilfully makes a false [affidavit or] statement, or who negotiates, continues or renews any such contract of insurance after the revocation or during the suspension of the licensee's license, shall forfeit the license if not previously revoked and shall be fined not more than four thousand dollars or imprisoned not more than six months, or both.
Sec. 5. Section 38a-745 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
Each insurance policy issued pursuant to sections 38a-741 to 38a-744, inclusive, as amended by this act, [38a-777] and 38a-794 by a surplus lines insurer shall bear on its cover, in not less than twelve-point boldface type in capital letters, the following:
NOTICE
THIS IS A SURPLUS LINES POLICY AND IS NOT PROTECTED BY THE CONNECTICUT INSURANCE GUARANTY ASSOCIATION OR SUBJECT TO APPROVAL BY THE CONNECTICUT INSURANCE DEPARTMENT. IT IS IMPORTANT THAT YOU READ AND UNDERSTAND THIS POLICY.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2012 |
38a-53a |
Sec. 2 |
October 1, 2012 |
38a-350 |
Sec. 3 |
October 1, 2012 |
38a-741 |
Sec. 4 |
October 1, 2012 |
38a-777 |
Sec. 5 |
October 1, 2012 |
38a-745 |
Statement of Purpose:
To require insurers to report annually to the Insurance Commissioner the number of homeowners insurance policies and private passenger nonfleet automobile insurance policies in force in the state by zip codes, to change the requirement for an affidavit for a surplus lines policy to a signed statement, and to add language to the disclosure statement required on the cover of a surplus lines insurance policy form.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]