Connecticut 2019 Regular Session Status: Enacted 1 R cosponsors

SB 906 — AN ACT CONCERNING THE INSURANCE DEPARTMENT'S RECOMMENDED CHANGES TO THE INSURANCE STATUTES, INSURANCE PLANS PROCURED BY THE COMPTROLLER AND RETIREMENT PLANS.

Last action — SIGNED BY GOVERNOR

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 21, 2019. Enacted.

Prognosis

Advancing 52% · moderate confidence

Where this bill stands today.

Odds of enactment

High

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  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

110 added · 264 removed

110 line(s) added, 264 removed.

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General Assembly Substitute Bill No.
General Assembly Raised Bill No.
906 January Session, 2019 AN ACT CONCERNING THE INSURANCE DEPARTMENT'S RECOMMENDED CHANGES TO THE INSURANCE STATUTES AND INSURANCE PLANS PROCURED BY THE COMPTROLLER.
906 January Session, 2019 LCO No.
4295 Referred to Committee on INSURANCE AND REAL ESTATE Introduced by:
(INS) AN ACT CONCERNING THE INSURANCE DEPARTMENT'S RECOMMENDED CHANGES TO THE INSURANCE STATUTES.
(c) In addition to the specific regulations that the commissioner is required to adopt, the commissioner may adopt such further regulations, in accordance with the provisions of chapter 54, as are LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00906-R1 of 45 SB.docx Substitute Bill No.
LCO No.
906 reasonable and necessary to implement the provisions of this title.
4295 1 of 41 Raised Bill No.906 (c) In addition to the specific regulations that the commissioner is required to adopt, the commissioner may adopt such further regulations, in accordance with the provisions of chapter 54, as are reasonable and necessary to implement the provisions of this title.
No duties of a person employed by the Insurance Department on November 1, 2002, shall be performed by such attorney, actuary, accountant or expert.
No duties of a person LCO No.
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0092 of 45 R01-SB.docx } Substitute Bill No.
4295 2 of 41 Raised Bill No.906 employed by the Insurance Department on November 1, 2002, shall be performed by such attorney, actuary, accountant or expert.
906 (e) The [Insurance Commissioner] commissioner shall establish a program to reduce costs and increase efficiency through the use of electronic methods to transmit documents, including policy form and rate filings, to and from insurers and the Insurance Department.
(e) The [Insurance Commissioner] commissioner shall establish a program to reduce costs and increase efficiency through the use of electronic methods to transmit documents, including policy form and rate filings, to and from insurers and the Insurance Department.
Pursuant to terms and conditions of this compact, the state of Connecticut seeks to join with other states and establish the Interstate LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0093 of 45 R01-SB.docx } Substitute Bill No.
LCO No.
906 Insurance Product Regulation Compact, and thus become a member of the Interstate Insurance Product Regulation Commission.
4295 3 of 41 Raised Bill No.906 Pursuant to terms and conditions of this compact, the state of Connecticut seeks to join with other states and establish the Interstate Insurance Product Regulation Compact, and thus become a member of the Interstate Insurance Product Regulation Commission.
To perform these and such other related functions as may be consistent with the state regulation of the business of insurance.
To perform these and such other related functions as may be LCO No.
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0094 of 45 R01-SB.docx } Substitute Bill No.
4295 4 of 41 Raised Bill No.906 consistent with the state regulation of the business of insurance.
906 ARTICLE II DEFINITIONS For purposes of this compact:
ARTICLE II DEFINITIONS For purposes of this compact:
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0095 of 45 R01-SB.docx } Substitute Bill No.
LCO No.
906 9.
4295 5 of 41 Raised Bill No.906 9.
ARTICLE III LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0096 of 45 R01-SB.docx } Substitute Bill No.
ARTICLE III LCO No.
906 ESTABLISHMENT OF THE COMMISSION AND VENUE 1.
4295 6 of 41 Raised Bill No.906 ESTABLISHMENT OF THE COMMISSION AND VENUE 1.
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0097 of 45 R01-SB.docx } Substitute Bill No.
LCO No.
906 2.
4295 7 of 41 Raised Bill No.906 2.
For any product covered under this compact, other than long-term care insurance products, the commission shall have the authority to require LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0098 of 45 R01-SB.docx } Substitute Bill No.
For any product covered under this compact, other than long-term care insurance products, the commission shall have the authority to require an insurer to submit all or any part of its advertisement with respect to LCO No.
906 an insurer to submit all or any part of its advertisement with respect to that product for review or approval prior to use, if the commission determines that the nature of the product is such that an advertisement of the product could have the capacity or tendency to mislead the public.
4295 8 of 41 Raised Bill No.906 that product for review or approval prior to use, if the commission determines that the nature of the product is such that an advertisement of the product could have the capacity or tendency to mislead the public.
and to establish the commission's personnel policies and programs relating to, among other things, conflicts of interest, rates of compensation and LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0099 of 45 R01-SB.docx } Substitute Bill No.
and to establish the commission's personnel policies and programs relating to, among other things, conflicts of interest, rates of compensation and qualifications of personnel;
906 qualifications of personnel;
LCO No.
13.
4295 9 of 41 Raised Bill No.906 13.
To appoint committees, including advisory committees comprising members, state insurance regulators, state legislators or their representatives, insurance industry and consumer LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0010 of 45 R01-SB.docx } Substitute Bill No.
To appoint committees, including advisory committees comprising members, state insurance regulators, state legislators or their representatives, insurance industry and consumer representatives, and such other interested persons as may be designated in the bylaws;
906 representatives, and such other interested persons as may be designated in the bylaws;
LCO No.
24.
4295 10 of 41 Raised Bill No.906 24.
The commission shall, by a majority of the members, prescribe bylaws to govern its conduct as may be necessary or appropriate to LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0011 of 45 R01-SB.docx } Substitute Bill No.
The commission shall, by a majority of the members, prescribe bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes, and exercise the powers, of the compact, including, but not limited to:
906 carry out the purposes, and exercise the powers, of the compact, including, but not limited to:
(ii) Providing reasonable procedures for appointing and electing members, as well as holding meetings, of the management committee;
LCO No.
4295 11 of 41 Raised Bill No.906 (ii) Providing reasonable procedures for appointing and electing members, as well as holding meetings, of the management committee;
and LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0012 of 45 R01-SB.docx } Substitute Bill No.
and (viii) Providing a mechanism for winding up the operations of the commission and the equitable disposition of any surplus funds that may exist after the termination of the compact after the payment and/or reserving of all of its debts and obligations.
906 (viii) Providing a mechanism for winding up the operations of the commission and the equitable disposition of any surplus funds that may exist after the termination of the compact after the payment and/or reserving of all of its debts and obligations.
LCO No.
d.
4295 12 of 41 Raised Bill No.
906 d.
(ii) Establishing and overseeing an organizational structure within, LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-009013 of 45 R01-SB.docx } Substitute Bill No.
(ii) Establishing and overseeing an organizational structure within, and appropriate procedures for, the commission to provide for the creation of uniform standards and other rules, receipt and review of product filings, administrative and technical support functions, review of decisions regarding the disapproval of a product filing, and the review of elections made by a compacting state to opt out of a uniform standard;
906 and appropriate procedures for, the commission to provide for the creation of uniform standards and other rules, receipt and review of product filings, administrative and technical support functions, review of decisions regarding the disapproval of a product filing, and the review of elections made by a compacting state to opt out of a uniform standard;
provided that a uniform standard shall not be submitted to LCO No.
provided that a uniform standard shall not be submitted to the compacting states for adoption unless approved by two-thirds of the members of the management committee;
4295 13 of 41 Raised Bill No.906 the compacting states for adoption unless approved by two-thirds of the members of the management committee;
Prior to the adoption by the commission of any uniform standard, revision to the bylaws, annual budget or other significant matter as may be provided in the bylaws, the management committee shall consult with LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0014 of 45 R01-SB.docx } Substitute Bill No.
Prior to the adoption by the commission of any uniform standard, revision to the bylaws, annual budget or other significant matter as may be provided in the bylaws, the management committee shall consult with and report to the legislative committee.
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906 and report to the legislative committee.
c.
LCO No.
4295 14 of 41 Raised Bill No.906 c.
provided, that nothing herein shall be construed to prohibit that LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0015 of 45 R01-SB.docx } Substitute Bill No.
provided, that nothing herein shall be construed to prohibit that person from retaining counsel;
906 person from retaining counsel;
The commission shall indemnify and hold harmless any member, officer, executive director, employee or representative of the commission for the amount of any settlement or judgment obtained against that person arising out of any actual or alleged act, error or omission that occurred within the scope of commission employment, duties or responsibilities, or that such person had a reasonable basis for believing occurred within the scope of commission employment, duties or responsibilities, provided, that the actual or alleged act, error or omission did not result from the intentional or wilful and wanton misconduct of that person.
The commission shall indemnify and hold harmless any member, officer, executive director, employee or representative of the commission for the amount of any settlement or judgment obtained LCO No.
4295 15 of 41 Raised Bill No.906 against that person arising out of any actual or alleged act, error or omission that occurred within the scope of commission employment, duties or responsibilities, or that such person had a reasonable basis for believing occurred within the scope of commission employment, duties or responsibilities, provided, that the actual or alleged act, error or omission did not result from the intentional or wilful and wanton misconduct of that person.
RULEMAKING FUNCTIONS OF THE COMMISSION AND OPTING OUT OF UNIFORM STANDARDS LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0016 of 45 R01-SB.docx } Substitute Bill No.
RULEMAKING FUNCTIONS OF THE COMMISSION AND OPTING OUT OF UNIFORM STANDARDS 1.
906 1.
2.
LCO No.
4295 16 of 41 Raised Bill No.906 2.
Give written notice to the commission no later than ten business days after the uniform standard is promulgated, or at the time the state LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0017 of 45 R01-SB.docx } Substitute Bill No.
Give written notice to the commission no later than ten business days after the uniform standard is promulgated, or at the time the state becomes a compacting state;
906 becomes a compacting state;
The commissioner shall make specific findings of fact and conclusions of law, based on a preponderance of the evidence, detailing the conditions in the state which warrant a departure from the uniform standard and determining that the uniform standard would not reasonably protect the citizens of the state.
The commissioner shall make specific findings of fact and conclusions of law, based on a preponderance of the evidence, detailing the conditions in the state which warrant a departure from the uniform standard and determining that the uniform standard would not LCO No.
4295 17 of 41 Raised Bill No.906 reasonably protect the citizens of the state.
If a compacting state LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0018 of 45 R01-SB.docx } Substitute Bill No.
If a compacting state opts out of a uniform standard after the uniform standard has been made effective in that state, the opt out shall have the same prospective effect as provided under Article XIV of this compact for withdrawals.
906 opts out of a uniform standard after the uniform standard has been made effective in that state, the opt out shall have the same prospective effect as provided under Article XIV of this compact for withdrawals.
The commission may grant a stay if it determines the regulatory opt out is being pursued in a reasonable manner and there is a likelihood of success.
The LCO No.
4295 18 of 41 Raised Bill No.906 commission may grant a stay if it determines the regulatory opt out is being pursued in a reasonable manner and there is a likelihood of success.
ARTICLE VIII COMMISSION RECORDS AND ENFORCEMENT LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00919 of 45 R01-SB.docx } Substitute Bill No.
ARTICLE VIII COMMISSION RECORDS AND ENFORCEMENT 1.
906 1.
The commission may promulgate additional rules under which it may make available to federal and state agencies, including law enforcement agencies, records and information otherwise exempt from disclosure, and may enter into agreements with such agencies to receive or exchange information or records subject to nondisclosure and confidentiality provisions.
The commission may promulgate additional rules under which it may make available to federal and state agencies, including law enforcement agencies, records and information otherwise exempt from disclosure, and may enter into agreements with such agencies to receive or exchange information or records subject to nondisclosure and confidentiality LCO No.
4295 19 of 41 Raised Bill No.906 provisions.
The commissioner of any state in which an insurer is authorized to do business, or is conducting the business of insurance, shall continue to exercise the commissioner's authority to oversee the LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0020 of 45 R01-SB.docx } Substitute Bill No.
The commissioner of any state in which an insurer is authorized to do business, or is conducting the business of insurance, shall continue to exercise the commissioner's authority to oversee the market regulation of the activities of the insurer in accordance with the provisions of the state's law.
906 market regulation of the activities of the insurer in accordance with the provisions of the state's law.
With respect to the commissioner's market regulation of a product or advertisement that is approved or certified to the commission, the content of the product or advertisement shall not constitute a violation of the provisions, standards or requirements of the compact except upon a final order of the commission, issued at the request of a commissioner after prior notice to the insurer and an opportunity for hearing before the commission.
With respect to the commissioner's market regulation of a product or advertisement that is approved or certified to the commission, the content of the product or advertisement shall not constitute a violation of the provisions, standards or requirements of the compact except upon a final order of the commission, issued at the request of a LCO No.
4295 20 of 41 Raised Bill No.906 commissioner after prior notice to the insurer and an opportunity for hearing before the commission.
Insurers and third-party filers seeking to have a product LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0021 of 45 R01-SB.docx } Substitute Bill No.
Insurers and third-party filers seeking to have a product approved by the commission shall file the product with, and pay applicable filing fees to, the commission.
906 approved by the commission shall file the product with, and pay applicable filing fees to, the commission.
Notwithstanding any provision herein to the contrary, the commission shall promulgate rules to establish conditions and procedures under which the commission will provide public access to product filing information.
Notwithstanding any provision herein to the contrary, the LCO No.
4295 21 of 41 Raised Bill No.906 commission shall promulgate rules to establish conditions and procedures under which the commission will provide public access to product filing information.
An allegation that the commission, in disapproving a product or advertisement filed with the commission, acted arbitrarily, capriciously, or in a manner that is an abuse of discretion or otherwise not in accordance with the law, is subject to judicial review in LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0022 of 45 R01-SB.docx } Substitute Bill No.
An allegation that the commission, in disapproving a product or advertisement filed with the commission, acted arbitrarily, capriciously, or in a manner that is an abuse of discretion or otherwise not in accordance with the law, is subject to judicial review in accordance with Article III, section 4 of this compact.
906 accordance with Article III, section 4 of this compact.
ARTICLE XII FINANCE 1.
ARTICLE XII LCO No.
4295 22 of 41 Raised Bill No.906 FINANCE 1.
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0023 of 45 R01-SB.docx } Substitute Bill No.
6.
906 6.
Upon the determination of the commission, but no less frequently than every three years, the review of the independent auditor shall include a management and performance audit of the commission.
Upon the determination of the commission, but no less frequently than every three years, the review of the independent auditor shall include a management and performance audit of the LCO No.
4295 23 of 41 Raised Bill No.906 commission.
provided, the commission shall become effective for purposes of adopting uniform standards for, reviewing, and giving approval or disapproval of, products filed with the commission that satisfy applicable uniform standards only after twenty-six states are LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0024 of 45 R01-SB.docx } Substitute Bill No.
provided, the commission shall become effective for purposes of adopting uniform standards for, reviewing, and giving approval or disapproval of, products filed with the commission that satisfy applicable uniform standards only after twenty-six states are compacting states or, alternatively, by states representing greater than forty per cent of the premium volume for life insurance, annuity, disability income and long-term care insurance products, based on records of the National Association of Insurance Commissioners for the prior year.
906 compacting states or, alternatively, by states representing greater than forty per cent of the premium volume for life insurance, annuity, disability income and long-term care insurance products, based on records of the National Association of Insurance Commissioners for the prior year.
No amendment shall become effective and binding upon the commission and the compacting states unless and until all compacting states enact the amendment into law.
No amendment shall become effective and binding upon the commission and the compacting states LCO No.
4295 24 of 41 Raised Bill No.906 unless and until all compacting states enact the amendment into law.
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0025 of 45 R01-SB.docx } Substitute Bill No.
d.
906 d.
The commission's approval of products and advertisement prior to the effective date of withdrawal shall continue to be effective and be given full force and effect in the withdrawing state, unless formally rescinded by the withdrawing state in the same manner as provided by the laws of the withdrawing state for the prospective disapproval of products or advertisement previously approved under state law.
The commission's approval of products and advertisement prior to the effective date of withdrawal shall continue to be effective and be given full force and effect in the LCO No.
4295 25 of 41 Raised Bill No.906 withdrawing state, unless formally rescinded by the withdrawing state in the same manner as provided by the laws of the withdrawing state for the prospective disapproval of products or advertisement previously approved under state law.
The commission shall stipulate the conditions and the time period within which the LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0026 of 45 R01-SB.docx } Substitute Bill No.
The commission shall stipulate the conditions and the time period within which the defaulting state must cure its default.
906 defaulting state must cure its default.
Reinstatement following termination of any compacting state requires a reenactment of the compact.
Reinstatement following termination of any compacting state LCO No.
4295 26 of 41 Raised Bill No.906 requires a reenactment of the compact.
ARTICLE XVI LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0027 of 45 R01-SB.docx } Substitute Bill No.
ARTICLE XVI BINDING EFFECT OF COMPACT AND OTHER LAWS Section 1.
906 BINDING EFFECT OF COMPACT AND OTHER LAWS Section 1.
For advertisement that is subject to the commission's authority, any rule, uniform standard or other requirement of the commission which governs the content of the advertisement shall constitute the exclusive provision that a commissioner may apply to the content of the advertisement.
For advertisement that is subject to the commission's authority, any rule, uniform standard or other requirement of the commission which governs the LCO No.
4295 27 of 41 Raised Bill No.906 content of the advertisement shall constitute the exclusive provision that a commissioner may apply to the content of the advertisement.
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0028 of 45 R01-SB.docx } Substitute Bill No.
b.
906 b.
In the event any provision of this compact exceeds the constitutional limits imposed on the legislature of any compacting state, the obligations, duties, powers or jurisdiction sought to be conferred by that provision upon the commission shall be ineffective as to that compacting state, and those obligations, duties, powers or jurisdiction shall remain in the compacting state and shall be exercised by the agency thereof to which those obligations, duties, powers or jurisdiction are delegated by law in effect at the time this compact becomes effective.
In the event any provision of this compact exceeds the constitutional limits imposed on the legislature of any compacting state, the obligations, duties, powers or jurisdiction sought to be conferred by that provision upon the commission shall be ineffective LCO No.
4295 28 of 41 Raised Bill No.906 as to that compacting state, and those obligations, duties, powers or jurisdiction shall remain in the compacting state and shall be exercised by the agency thereof to which those obligations, duties, powers or jurisdiction are delegated by law in effect at the time this compact becomes effective.
(d) (1) Upon approval by the commissioner of the proposed plan of reorganization, the board of directors, the chairperson of the board of directors or the president of the reorganizing insurer shall call a members' meeting to present and hold a vote on the plan of LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0029 of 45 R01-SB.docx } Substitute Bill No.
(d) (1) Upon approval by the commissioner of the proposed plan of reorganization, the board of directors, the chairperson of the board of directors or the president of the reorganizing insurer shall call a members' meeting to present and hold a vote on the plan of reorganization.
906 reorganization.
(a) Each insurer that issues, renews, amends or endorses an automobile or homeowners insurance policy in this state on or after [October 1, 2017] July 1, 2019, shall include with the policy a conspicuous statement specifying that any individual may designate a third party to receive notice of cancellation or nonrenewal of the policy.
(a) Each insurer that issues, renews, amends or endorses an automobile or homeowners insurance policy in this state on or after [October 1, 2017] July 1, 2019, shall include with the policy a conspicuous statement specifying that any individual may designate a LCO No.
4295 29 of 41 Raised Bill No.906 third party to receive notice of cancellation or nonrenewal of the policy.
When LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0030 of 45 R01-SB.docx } Substitute Bill No.
When a third party is so designated, all such notices and copies shall be mailed in an envelope clearly marked on its face with, or, if agreed between the insurer and the third party, delivered by electronic means stating, the following:
906 a third party is so designated, all such notices and copies shall be mailed in an envelope clearly marked on its face with, or, if agreed between the insurer and the third party, delivered by electronic means stating, the following:
Subsection (a) of section 38a-324 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
Subsection (a) of section 38a-324 of the general statutes is LCO No.
4295 30 of 41 Raised Bill No.906 repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
If the basis for cancellation is nonpayment of premium, at least ten days' advance notice shall be given and the insured may continue the coverage and avoid the effect of the cancellation by LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0031 of 45 R01-SB.docx } Substitute Bill No.
If the basis for cancellation is nonpayment of premium, at least ten days' advance notice shall be given and the insured may continue the coverage and avoid the effect of the cancellation by payment in full at any time prior to the effective date of cancellation.
906 payment in full at any time prior to the effective date of cancellation.
Notwithstanding the provisions of this section, the advance notice period for cancellation of any professional liability policy, as defined in section 38a-393, shall be at least ninety days.
Notwithstanding the provisions of this section, the advance notice period for cancellation of any professional liability policy, as defined in section 38a-393, shall be at LCO No.
4295 31 of 41 Raised Bill No.906 least ninety days.
(1) Any such contract signed on or after [October 1, 2013] July 1, 2019, shall contain a provision, prominently displayed on the first page of such contract in not less than twelve-point boldface type, specifying that the insured may cancel the contract, provided such insured LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0032 of 45 R01-SB.docx } Substitute Bill No.
(1) Any such contract signed on or after [October 1, 2013] July 1, 2019, shall contain a provision, prominently displayed on the first page of such contract in not less than twelve-point boldface type, specifying that the insured may cancel the contract, provided such insured notifies the public adjuster at such public adjuster's main office or branch office at the address shown in the contract, by certified mail, return receipt requested, or, if agreed between the insured and the public adjuster, by electronic means with proof of a delivery receipt, posted or delivered not later than midnight of the fourth calendar day after the day on which the insured signs the contract, except that if the signing is on a Friday, Saturday or Sunday, the cancellation shall be posted not later than midnight of the Thursday immediately following, and thereafter the contract shall be void ab initio.
906 notifies the public adjuster at such public adjuster's main office or branch office at the address shown in the contract, by certified mail, return receipt requested, or, if agreed between the insured and the public adjuster, by electronic means with proof of a delivery receipt, posted or delivered not later than midnight of the fourth calendar day after the day on which the insured signs the contract, except that if the signing is on a Friday, Saturday or Sunday, the cancellation shall be posted not later than midnight of the Thursday immediately following, and thereafter the contract shall be void ab initio.
(2) Any such contract signed on or after [October 1, 2013] July 1, 2019, that does not display the provision as specified in subdivision (1) LCO No.
(2) Any such contract signed on or after [October 1, 2013] July 1, 2019, that does not display the provision as specified in subdivision (1) of this subsection shall be void ab initio.
4295 32 of 41 Raised Bill No.906 of this subsection shall be void ab initio.
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0033 of 45 R01-SB.docx } Substitute Bill No.
(a) (1) Before issuing any certificate of authority to any health care center on or after July 1, 1990, the commissioner shall require that a health care center have:
906 (a) (1) Before issuing any certificate of authority to any health care center on or after July 1, 1990, the commissioner shall require that a health care center have:
As used in this subsection, "total adjusted capital" means the sum of a health care center's net worth and any other item in the nature of capital as deemed appropriate by the commissioner;
As used in this subsection, "total adjusted capital" means the sum of a health care center's net worth and any other item in the nature of LCO No.
4295 33 of 41 Raised Bill No.906 capital as deemed appropriate by the commissioner;
or (B) two per cent of its annual premium revenues as reported on the LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-009034 of 45 R01-SB.docx } Substitute Bill No.
or (B) two per cent of its annual premium revenues as reported on the most recent annual financial statement filed with the commissioner on the first one hundred fifty million dollars of premium revenues plus one per cent of annual premium revenues in excess of one hundred fifty million dollars.
906 most recent annual financial statement filed with the commissioner on the first one hundred fifty million dollars of premium revenues plus one per cent of annual premium revenues in excess of one hundred fifty million dollars.
(A) Enter into an agreement with a duly licensed insurance company to provide coverage to subscribers and enrollees outside of the health care center's established network, subject to approval by the commissioner;
(A) Enter into an agreement with a duly licensed insurance company to provide coverage to subscribers and enrollees outside of LCO No.
4295 34 of 41 Raised Bill No.906 the health care center's established network, subject to approval by the commissioner;
T1 (X + Y – Z) LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0035 of 45 R01-SB.docx } Substitute Bill No.
T1 (X + Y – Z) T2 UE = ────────── T3 6 Where:
906 T2 UE = ────────── T3 6 Where:
Y = Total year-to-date uncovered expenditures reported in the health care center's annual statement for the prior calendar year.
Y = Total year-to-date uncovered expenditures reported in the LCO No.
4295 35 of 41 Raised Bill No.906 health care center's annual statement for the prior calendar year.
(A) The preparation and filing of reports by health care centers relating to risk-based capital LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0036 of 45 R01-SB.docx } Substitute Bill No.
(A) The preparation and filing of reports by health care centers relating to risk-based capital levels and the calculation thereof;
906 levels and the calculation thereof;
(b) Every health care center shall, when determining liabilities, include an amount estimated in the aggregate to provide for any unearned premium and for the payment of all claims for health care expenditures which have been incurred, whether reported or unreported, which are unpaid and for which such organization is or may be liable, and to provide for the expense of adjustment or settlement of such claims.
(b) Every health care center shall, when determining liabilities, include an amount estimated in the aggregate to provide for any unearned premium and for the payment of all claims for health care expenditures which have been incurred, whether reported or unreported, which are unpaid and for which such organization is or LCO No.
4295 36 of 41 Raised Bill No.906 may be liable, and to provide for the expense of adjustment or settlement of such claims.
This provision shall not prohibit LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0037 of 45 R01-SB.docx } Substitute Bill No.
This provision shall not prohibit collection of cost-sharing amounts, or costs for noncovered services, which have not otherwise been paid by a primary or secondary carrier in accordance with regulatory standards for coordination of benefits, from covered persons in accordance with the terms of the covered person's health plan.
906 collection of cost-sharing amounts, or costs for noncovered services, which have not otherwise been paid by a primary or secondary carrier in accordance with regulatory standards for coordination of benefits, from covered persons in accordance with the terms of the covered person's health plan.
(C) Notwithstanding any other provision in this contract, nothing in this contract shall be construed to modify the rights and benefits contained in the covered person's health plan.
LCO No.
4295 37 of 41 Raised Bill No.906 (C) Notwithstanding any other provision in this contract, nothing in this contract shall be construed to modify the rights and benefits contained in the covered person's health plan.
with the expectation of receiving LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00938 of 45 R01-SB.docx } Substitute Bill No.
with the expectation of receiving payment directly or indirectly from (name of health care center) ...., such providers or facilities shall agree to abide by the provisions of subparagraphs (A), (B), (C), (D) and (E) of this subsection (or citations appropriate to the contract form) ....." (2) In the event that the participating provider contract has not been reduced to writing as required by this subsection or that the contract fails to contain the provisions required by subdivision (1) of this subsection, the participating provider shall not collect or attempt to collect from the subscriber or enrollee sums owed by the health care center.
906 payment directly or indirectly from (name of health care center) ...., such providers or facilities shall agree to abide by the provisions of subparagraphs (A), (B), (C), (D) and (E) of this subsection (or citations appropriate to the contract form) ....." (2) In the event that the participating provider contract has not been reduced to writing as required by this subsection or that the contract fails to contain the provisions required by subdivision (1) of this subsection, the participating provider shall not collect or attempt to collect from the subscriber or enrollee sums owed by the health care center.
(B) request payment from a subscriber or enrollee for such sums;
(B) request payment from LCO No.
4295 38 of 41 Raised Bill No.906 a subscriber or enrollee for such sums;
[(d) The commissioner shall require that each health care center LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0039 of 45 R01-SB.docx } Substitute Bill No.
[(d) The commissioner shall require that each health care center have a plan for handling insolvency which allows for continuation of benefits for the duration of the contract period for which premiums have been paid and continuation of benefits to members who are confined to inpatient facilities on the date of insolvency until their discharge or expiration of benefits.
906 have a plan for handling insolvency which allows for continuation of benefits for the duration of the contract period for which premiums have been paid and continuation of benefits to members who are confined to inpatient facilities on the date of insolvency until their discharge or expiration of benefits.
or (5) any other arrangements to assure that benefits are continued as specified above.] [(e)] (d) Every agreement to provide health care services between a provider and a health care center shall require the provider to provide at least sixty days' advance notice to the health care center to terminate the agreement.
or (5) any other arrangements to assure that benefits are continued as specified above.] [(e)] (d) Every agreement to provide health care services between a LCO No.
4295 39 of 41 Raised Bill No.906 provider and a health care center shall require the provider to provide at least sixty days' advance notice to the health care center to terminate the agreement.
(3) The deposit shall be an admitted asset of the health care center in LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0040 of 45 R01-SB.docx } Substitute Bill No.
(3) The deposit shall be an admitted asset of the health care center in the determination of net worth.
906 the determination of net worth.
If the health care center is placed in rehabilitation or liquidation, the deposit shall be an asset subject to the provisions of the Insurers Rehabilitation and Liquidation Act.] Sec.
If the health care center is placed in rehabilitation or liquidation, the deposit shall be an asset subject to the provisions of the LCO No.
4295 40 of 41 Raised Bill No.
906 Insurers Rehabilitation and Liquidation Act.] Sec.
Subsection (a) of section 5-259 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) The Comptroller, with the approval of the Attorney General and of the Insurance Commissioner, shall arrange and procure a group hospitalization and medical and surgical insurance plan or plans for (1) state employees, (2) members of the General Assembly who elect coverage under such plan or plans, (3) participants in an alternate retirement program who meet the service requirements of section 5- 162 or subsection (a) of section 5-166, (4) anyone receiving benefits under section 5-144 or from any state-sponsored retirement system, except the teachers' retirement system and the municipal employees retirement system, (5) judges of probate and Probate Court employees, (6) the surviving spouse, and any dependent children of a state police officer, a member of an organized local police department, a firefighter or a constable who performs criminal law enforcement duties who dies before, on or after June 26, 2003, as the result of injuries received while LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0041 of 45 R01-SB.docx } Substitute Bill No.
906 acting within the scope of such officer's or firefighter's or constable's employment and not as the result of illness or natural causes, and whose surviving spouse and dependent children are not otherwise eligible for a group hospitalization and medical and surgical insurance plan.
Coverage for a dependent child pursuant to this subdivision shall terminate no earlier than the [policy anniversary date on or after] end of the calendar year during whichever of the following occurs first, the date on which the child:
Becomes covered under a group health plan through the dependent's own employment;
or attains the age of twenty-six, (7) employees of the Capital Region Development Authority established by section 32-601, and (8) the surviving spouse and dependent children of any employee of a municipality who dies on or after October 1, 2000, as the result of injuries received while acting within the scope of such employee's employment and not as the result of illness or natural causes, and whose surviving spouse and dependent children are not otherwise eligible for a group hospitalization and medical and surgical insurance plan.
For purposes of this subdivision, "employee" means any regular employee or elective officer receiving pay from a municipality, "municipality" means any town, city, borough, school district, taxing district, fire district, district department of health, probate district, housing authority, regional work force development board established under section 31-3k, flood commission or authority established by special act or regional council of governments.
For purposes of subdivision (6) of this subsection, "firefighter" means any person who is regularly employed and paid by any municipality for the purpose of performing firefighting duties for a municipality on average of not less than thirty- five hours per week.
The minimum benefits to be provided by such plan or plans shall be substantially equal in value to the benefits that each such employee or member of the General Assembly could secure in such plan or plans on an individual basis on the preceding first day of July.
The state shall pay for each such employee and each member of the General Assembly covered by such plan or plans the portion of the premium charged for such member's or employee's individual coverage and seventy per cent of the additional cost of the form of LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0042 of 45 R01-SB.docx } Substitute Bill No.
906 coverage and such amount shall be credited to the total premiums owed by such employee or member of the General Assembly for the form of such member's or employee's coverage under such plan or plans.
On and after January 1, 1989, the state shall pay for anyone receiving benefits from any such state-sponsored retirement system one hundred per cent of the portion of the premium charged for such member's or employee's individual coverage and one hundred per cent of any additional cost for the form of coverage.
The balance of any premiums payable by an individual employee or by a member of the General Assembly for the form of coverage shall be deducted from the payroll by the State Comptroller.
The total premiums payable shall be remitted by the Comptroller to the insurance company or companies or nonprofit organization or organizations providing the coverage.
The amount of the state's contribution per employee for a health maintenance organization option shall be equal, in terms of dollars and cents, to the largest amount of the contribution per employee paid for any other option that is available to all eligible state employees included in the health benefits plan, but shall not be required to exceed the amount of the health maintenance organization premium.
Sec.
10.
Subsection (a) of section 38a-503b of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2020):
(a) As used in this section, "carrier" means each insurer, health care center, hospital service corporation, medical service corporation or other entity delivering, issuing for delivery, renewing, amending or continuing any individual health insurance policy in this state providing coverage of the type specified in subdivisions (1), (2), (4), [(6),] (10), (11) and (12) of section 38a-469.
Sec.
11.
Subsection (a) of section 38a-530b of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2020):
(a) As used in this section, "carrier" means each insurer, health care LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0043 of 45 R01-SB.docx } Substitute Bill No.
906 center, hospital service corporation, medical service corporation or other entity delivering, issuing for delivery, renewing, amending or continuing any group health insurance policy in this state providing coverage of the type specified in subdivisions (1), (2), (4), [(6),] (11) and (12) of section 38a-469.
Sec.
12.
Subsection (b) of section 38a-535 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2020):
(b) Each group health insurance policy providing coverage of the type specified in subdivisions (1), (2), (4), [(6),] (11) and (12) of section 38a-469 delivered, issued for delivery or renewed on or after October 1, 1989, or continued as defined in section 38a-531, on or after October 1, 1990, shall provide benefits for preventive pediatric care for any child covered by the policy or contract at approximately the following age intervals:
Every two months from birth to six months of age, every three months from nine to eighteen months of age and annually from two through six years of age.
Any such policy may provide that services rendered during a periodic review shall be covered to the extent that such services are provided by or under the supervision of a single physician during the course of one visit.
On and after January 1, 2009, each such policy shall also provide coverage for blood lead screening and risk assessments ordered by a primary care provider pursuant to section 19a-111g.
Such benefits shall be subject to any policy provisions which apply to other services covered by such policy.
Sec.
13.
14.
10.
15.
11.
(Effective from passage) LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0044 of 45 R01-SB.docx } Substitute Bill No.
(Effective from passage) This act shall take effect as follows and shall amend the following sections:
906 This act shall take effect as follows and shall amend the following sections:
4 July 1, 2019 38a-323a July 1, 2019 Sec.
4 July 1, 2019 38a-323a Sec.
5 38a-324(a) Sec.
5 July 1, 2019 38a-324(a) Sec.
9 from passage 5-259(a) Sec.
9 from passage New section Sec.
10 January 1, 2020 38a-503b(a) Sec.
10 from passage Repealer section Sec.
11 January 1, 2020 38a-530b(a) Sec.
11 from passage Repealer section Statement of Purpose:
12 January 1, 2020 38a-535(b) Sec.
To (1) permit the Insurance Commissioner to obtain the services of certain third-party professionals, (2) eliminate an opt-out concerning disability income insurance products in the Interstate Insurance Product Regulation Compact, (3) modify a voting requirement concerning reorganizing insurers, (4) change the effective date of, and repeal, certain sections of Public Act 18-158, (5) provide that certain notices concerning licensees and commercial risk insurance policies may be made by electronic means, and (6) eliminate certain requirements concerning the insolvency of health care centers.
13 from passage New section Sec.
[Proposed deletions are enclosed in brackets.
14 from passage Repealer section Sec.
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.] LCO No.
15 from passage Repealer section INS Joint Favorable Subst.
4295 41 of 41
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00906- 45 of 45 R01-SB.docx }
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Action History

  1. SIGNED BY GOVERNOR

  2. TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR

  3. TRANSMITTED TO SECRETARY OF THE STATE

  4. PUBLIC ACT 19-125

  5. IN CONCURRENCE

  6. HOUSE PASSED, SEN. AMEND. SCH. A

  7. HOUSE ADOPTED SEN. AMEND. SCH. A

  8. HOUSE CALENDAR NUMBER 729

  9. FAV. RPT., TABLED FOR HOUSE CALENDER

  10. TRANSMITTED PURSUANT TO JOINT RULE 17

  11. ON CONSENT CALENDAR

  12. SEN. PASSED, SEN. AMEND. SCH. A

  13. SEN. ADOPTED SEN. AMEND. SCH. A

  14. FILE NO. 266

  15. SENATE CALENDAR NUMBER 169

  16. FAV. RPT., TAB. FOR CAL., SEN.

  17. RPTD. OUT OF LCO

  18. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/01/19

  19. FILED WITH LCO

  20. Joint Favorable Substitute

  21. PUBLIC HEARING 0227

  22. REF. TO JOINT COMM. ON Insurance and Real Estate

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 186 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (186)

186 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance healthcare labor health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 906?
SB 906 is sponsored by Heather S. Somers (Republican).
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This bill has been enacted into law. Introduced February 21, 2019. Enacted.
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