On May 30, CT LEG passed bill on insurance licensing and conduct.
CT LEG passed bill HB 5503 on insurance market conduct and insurance licensing.
Provisions amended various sections of CT INS 697-1-38a regarding insurance.
Bill Provisions
Grants power to insurance commissioner to order restitution under the statute and its regulations, as well as interest at the rate outlined in Connecticut statutory provisions.
Provides that commissions retains enforcement jurisdiction over revoked licensees.
Allows the Attorney General at the request of the commissioner to seek orders, injunctions restraining violations, enforcing any order or penalty, providing restitution.
Further, bill requires that those in receipt of order for production of books and records must comply with the order not later than 30 days after the date of such order.
Any initial license issued by the commissioner to an insurance claims appraiser or a claims adjuster shall expire two years after the date of the licensee's birthday.
That preceded the date the license was issued unless sooner revoked or suspended.
Removes requirements that insurers file copies of annual financial statements, audited financial reports with commissioner, allowing electronic filings to the NAIC to suffice.
Requires insurers who file policies in a non-English language to certify they comply with readable language requirements and bear risks associated with any translations.
Beginning Jan. 1, 2025, bill provisions will update the definition of a small employer in the health insurance statutes to mean having no more than 50 employees.
Allows captive insurer’s protected cell to convert into new protected cell, incorporated cell, or captive insurance company without impact on protected cell’s assets, liabilities.
Legislative History
On Mar. 14, 2024, bill was introduced in House; on May 3, 2024 bill passed House.
On May 3, 2024, bill was introduced in Senate; on May 8, 2024, bill passed Senate.
On May 30, 2024, bill was delivered to the governor; pending governor review.
Effectiveness
If enacted, HB 5503 will be effective Oct. 1, 2024; s. 17, 18 effective immediately.
Jun. 2024 CT LEG Governor Approval
On Jun. 6, 2024, CT LEG reported bill was signed into law, assigned Public Act 24-138.
Document dated Jun. 6, received from CT LEG Jun. 13, summarized on Jun. 18, 2024.
Regulators
CT LEG
Entity Types
IB; Ins
Reference
Bill, 6/6/2024; Public Act 24-138, Bill HB05503, 5/8/2024; Citation: CT INS 697-1-38a;
Functions
Audit; Compliance; Legal; Market Conduct; Record Retention; Registration/Licensing
