Connecticut 2021 Regular Session Status: Enacted Bipartisan · 1 R · 1 D cosponsors

HB 6590 — AN ACT PROHIBITING CERTAIN INSURANCE DISCRIMINATION AND ESTABLISHING A TASK FORCE TO STUDY INSURANCE COSTS BORNE BY BUSINESSES LOCATED IN DISTRESSED MUNICIPALITIES.

Last action — SIGNED BY GOVERNOR

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

This bill has been enacted into law. Introduced March 04, 2021. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 2 sponsors

    2 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (1 R · 1 D) — cross-party backing.

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

636 added · 838 removed

636 line(s) added, 838 removed.

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House of Representatives File No.
House Bill No.
635 General Assembly January Session, 2021(Reprint of File No.
6590 Public Act No.
346) House Bill No.
21-93 AN ACT PROHIBITING CERTAIN INSURANCE DISCRIMINATION AND ESTABLISHING A TASK FORCE TO STUDY INSURANCE COSTS BORNE BY BUSINESSES LOCATED IN DISTRESSED MUNICIPALITIES.
6590 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner May 6, 2021 AN ACT PROHIBITING CERTAIN INSURANCE DISCRIMINATION AND ESTABLISHING A TASK FORCE TO STUDY INSURANCE COSTS BORNE BY BUSINESSES LOCATED IN DISTRESSED MUNICIPALITIES.
(C) makes any false or misleading statements as HB6590 / File No.
(C) makes any false or misleading statements as to the dividends or share of surplus previously paid on any insurance policy;
635 HB6590 File No.
635 to the dividends or share of surplus previously paid on any insurance policy;
(E) uses any name or title of any insurance policy or class of insurance policies misrepresenting the true nature thereof;
(E) uses any name or title of any insurance policy or class of insurance policies misrepresenting the true nature House Bill No.
6590 thereof;
HB6590 / File No.
(5) False financial statements.
635 HB6590 File No.
Filing with any supervisory or other public official, or making, publishing, disseminating, circulating or Public Act No.
635 (5) False financial statements.
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Filing with any supervisory or other public official, or making, publishing, disseminating, circulating or delivering to any person, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated or delivered to any person, or placed before the public, any false statement offinancialconditionofaninsurer withintent to deceive;
6590 delivering to any person, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated or delivered to any person, or placed before the public, any false statement offinancialconditionofaninsurer withintent to deceive;
(I) attempting to settle claims on the basis of an HB6590 / File No.
(I) attempting to settle claims on the basis of an Public Act No.
635 HB6590 File No.
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635 application which was altered without notice to, or knowledge or consent of the insured;
6590 application which was altered without notice to, or knowledge or consent of the insured;
(L) delaying the investigation or payment of claims by requiring an insured, claimant, or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantiallythesameinformation;(M)failingtopromptlysettleclaims, where liability has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage;
(L) delaying the investigation or payment of claims by requiring an insured, claimant, or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantiallythesameinformation;(M)failingtopromptlysettle claims, where liability has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage;
(N) failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer ofa compromise settlement;(O)using as abasisfor cash settlement with afirstpartyautomobileinsuranceclaimantanamount whichislessthan the amount which the insurer would pay if repairs were made unless such amount is agreed to by the insured or provided for by the insurance policy.
(N) failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer ofa compromise settlement;(O)using as abasisfor cash settlement with afirstpartyautomobileinsuranceclaimantanamount whichisless than the amount which the insurer would pay if repairs were made unless such amount is agreed to by the insured or provided for by the insurance policy.
Making false or fraudulent statements or representations on or relative to an application for an insurance policy for the purpose of obtaining a fee, commission, money or other benefit from any insurer, producer or individual.
Making false or Public Act No.
HB6590 / File No.
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635 HB6590 File No.
6590 fraudulent statements or representations on or relative to an application for an insurance policy for the purpose of obtaining a fee, commission, money or other benefit from any insurer, producer or individual.
635 (9) Any violation of any one of sections 38a-358, 38a-446, 38a-447, as amended by this act, 38a-488, 38a-825, 38a-826, 38a-828 and 38a-829.
(9) Any violation of any one of sections 38a-358, 38a-446, 38a-447, as amended by this act, 38a-488, 38a-825, 38a-826, 38a-828 and 38a-829.
(A) No person may (i) require, as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the person to whom such money or credit is extended or whose obligation the creditor is to acquire or finance, negotiate any policy or contract of insurance through a particular insurer or group of insurers or producer or group of producers;
(A) No person may (i) require, as a condition precedent to the lending of money or Public Act No.
(ii) unreasonably disapprove the insurance policy provided by a borrower for the protection of the property securing the credit or HB6590 / File No.
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6590 extension of credit, or any renewal thereof, that the person to whom such money or credit is extended or whose obligation the creditor is to acquire or finance, negotiate any policy or contract of insurance through a particular insurer or group of insurers or producer or group of producers;
635 lien;
(ii) unreasonably disapprove the insurance policy provided by a borrower for the protection of the property securing the credit or lien;
If a violation of this subdivision is found, the person in violation shall be subject to the same procedures and penalties as are applicable to other provisions of section 38a-815, subsections (b) and (e) of section 38a-817 and this section.
If a violation of this subdivision is found, the person in violation shall be subject to the same procedures and penalties as are applicable to other provisions of section 38a-815, subsections (b) and (e) Public Act No.
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6590 of section 38a-817 and this section.
(12) Refusing to insure, refusing to continue to insure or limiting the amount, extent or kind of coverage available to an individual or charging an individual a different rate for the same coverage because of physical disability, mental or nervous condition as set forth in section 38a-488a or intellectual disability, except where the refusal, limitation or HB6590 / File No.
(12) Refusing to insure, refusing to continue to insure or limiting the amount, extent or kind of coverage available to an individual or charging an individual a different rate for the same coverage because of physical disability, mental or nervous condition as set forth in section 38a-488a or intellectual disability, except where the refusal, limitation or rate differential is based on sound actuarial principles or is related to actual or reasonably anticipated experience.
635 HB6590 File No.
635 rate differential is based on sound actuarial principles or is related to actual or reasonably anticipated experience.
(15) (A) Failure by an insurer, or any other entity responsible for providing payment to a health care provider pursuant to an insurance policy, to pay accident and health claims, including, but not limited to, claims for payment or reimbursement to health care providers, within the time periods set forth in subparagraph (B) of this subdivision, unless the Insurance Commissioner determines that a legitimate dispute exists asto coverage, liability or damagesor that theclaimant has fraudulently caused or contributed to the loss.
(15) (A) Failure by an insurer, or any other entity responsible for providing payment to a health care provider pursuant to an insurance Public Act No.
Any insurer, or any other entity responsible for providing payment to a health care provider pursuant to an insurance policy, who fails to pay such a claim or request within the time periods set forth in subparagraph (B) of this subdivision shall pay the claimant or health care provider the amount of such claim plus interest at the rate of fifteen per cent per annum, in addition to any other HB6590 / File No.
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6590 policy, to pay accident and health claims, including, but not limited to, claims for payment or reimbursement to health care providers, within the time periods set forth in subparagraph (B) of this subdivision, unless the Insurance Commissioner determines that a legitimate dispute exists asto coverage, liability or damagesor that theclaimant has fraudulently caused or contributed to the loss.
635 penalties which may be imposed pursuant to sections 38a-11, 38a-25, 38a-41 to 38a-53, inclusive, 38a-57 to 38a-60, inclusive, 38a-62 to 38a-64, inclusive, 38a-76, 38a-83, 38a-84, 38a-117 to 38a-124, inclusive, 38a-129 to 38a-140, inclusive, 38a-146 to 38a-155, inclusive, 38a-283, 38a-288 to 38a-290, inclusive, 38a-319,38a-320,38a-459,38a-464,38a-815to 38a-819, inclusive, 38a-824 to 38a-826, inclusive, and 38a-828 to 38a-830, inclusive.
Any insurer, or any other entity responsible for providing payment to a health care provider pursuant to an insurance policy, who fails to pay such a claim or request within the time periods set forth in subparagraph (B) of this subdivision shall pay the claimant or health care provider the amount of such claim plus interest at the rate of fifteen per cent per annum, in addition to any other penalties which may be imposed pursuant to sections 38a-11, 38a-25, 38a-41 to 38a-53, inclusive, 38a-57 to 38a-60, inclusive, 38a-62 to 38a-64, inclusive, 38a-76, 38a-83, 38a-84, 38a-117 to 38a-124, inclusive, 38a-129 to 38a-140, inclusive, 38a-146 to 38a-155, inclusive, 38a-283, 38a-288 to 38a-290, inclusive, 38a-319,38a-320,38a-459,38a-464,38a-815to 38a-819, inclusive, 38a-824 to 38a-826, inclusive, and 38a-828 to 38a-830, inclusive.
(i) For claims filed in paper format, sixty days after receipt by the insurer of the claimant's proof of loss form or the health care provider's request for payment filed in accordance with the insurer's practices or procedures, except that when there is a deficiency in the information needed for processing a claim, as determined in accordance with section 38a-477, the insurer shall (I) send written notice to the claimant or health care provider, as the case may be, of all alleged deficiencies in information needed for processing a claim not later than thirty days after the insurer receives a claim for payment or reimbursement under the contract, and (II) pay claims for payment or reimbursement under the contract not later than thirty days after the insurer receives the information requested;
(i) For claims filed in paper format, sixty days after receipt by the insurer of the claimant's proof of loss form or the health care provider's request for payment filed in accordance with the insurer's practices or procedures, except that when there is a deficiency in the information needed for processing a claim, as determined in accordance with section Public Act No.
and (ii) For claims filed in electronic format, twenty days after receipt by the insurer of the claimant's proof of loss form or the health care provider's request for payment filed in accordance with the insurer's practices or procedures, except that when there is a deficiency in the information needed for processing a claim, as determined in accordance with section 38a-477, the insurer shall (I) notify the claimant or health HB6590 / File No.
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6590 38a-477, the insurer shall (I) send written notice to the claimant or health care provider, as the case may be, of all alleged deficiencies in information needed for processing a claim not later than thirty days after the insurer receives a claim for payment or reimbursement under the contract, and (II) pay claims for payment or reimbursement under the contract not later than thirty days after the insurer receives the information requested;
635 care provider, as the case may be, of all alleged deficiencies in information needed for processing a claim not later than ten days after the insurer receives a claim for payment or reimbursement under the contract, and (II) pay claims for payment or reimbursement under the contract not later thantendaysafter theinsurer receivestheinformation requested.
and (ii) For claims filed in electronic format, twenty days after receipt by the insurer of the claimant's proof of loss form or the health care provider's request for payment filed in accordance with the insurer's practices or procedures, except that when there is a deficiency in the information needed for processing a claim, as determined in accordance with section 38a-477, the insurer shall (I) notify the claimant or health care provider, as the case may be, of all alleged deficiencies in information needed for processing a claim not later than ten days after the insurer receives a claim for payment or reimbursement under the contract, and (II) pay claims for payment or reimbursement under the contract not later thantendaysafter theinsurer receivestheinformation requested.
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For purposes of this subdivision, "constructive total loss" means the cost to repair or salvage damaged property, or the cost to both repair and salvage such property, equals or exceeds the total value of the property at the time of the loss.
For purposes of this subdivision, "constructive total loss" means the cost to repair or salvage damaged Public Act No.
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6590 property, or the cost to both repair and salvage such property, equals or exceeds the total value of the property at the time of the loss.
(18) With respect to an insurance company, hospital service HB6590 / File No.
(18) With respect to an insurance company, hospital service corporation, health care center or fraternal benefit society providing individual or group health insurance coverage of the types specified in subdivisions (1), (2), (4), (5), (6), (10), (11) and (12) of section 38a-469, refusing to insure, refusing to continue to insure or limiting the amount, extent or kind of coverage available to an individual or charging an individual a different rate for the same coverage because such individual has been a victim of [family] domestic violence, as defined in section 17b-112a.
635 HB6590 File No.
635 corporation, health care center or fraternal benefit society providing individual or group health insurance coverage of the types specified in subdivisions (1), (2), (4), (5), (6), (10), (11) and (12) of section 38a-469, refusing to insure, refusing to continue to insure or limiting the amount, extent or kind of coverage available to an individual or charging an individual a different rate for the same coverage because such individual has been a victim of [family] domestic violence, as defined in section 17b-112a.
[(19)] (20) With respect to an insurance company, hospital service corporation, health care center or fraternal benefit society providing individual or group health insurance coverage of the types specified in subdivisions (1), (2), (3), (4), (6), (9), (10), (11) and (12) of section 38a-469, refusing to insure, refusing to continue to insure or limiting the amount, extent or kind of coverage available to an individual or charging an individual a different rate for the same coverage because of genetic information.
Public Act No.
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6590 [(19)] (20) With respect to an insurance company, hospital service corporation, health care center or fraternal benefit society providing individual or group health insurance coverage of the types specified in subdivisions (1), (2), (3), (4), (6), (9), (10), (11) and (12) of section 38a-469, refusing to insure, refusing to continue to insure or limiting the amount, extent or kind of coverage available to an individual or charging an individual a different rate for the same coverage because of genetic information.
An insurance company, hospital service corporation, health care center or fraternal benefit society providing individual health coverage of the types specified in subdivisions (1), (2), (3), (4), (6), (9), (10), (11) and (12) of section 38a-469, shall not be prohibited from refusing to insure or applying a preexisting condition limitation,to theextentpermittedby law,to anindividual who has been diagnosed with a disease or condition based on medical information other than genetic information and has exhibited symptoms of such HB6590 / File No.
An insurance company, hospital service corporation, health care center or fraternal benefit society providing individual health coverage of the types specified in subdivisions (1), (2), (3), (4), (6), (9), (10), (11) and (12) of section 38a-469, shall not be prohibited from refusing to insure or applying a preexisting condition limitation,to theextentpermittedby law,to anindividual who has been diagnosed with a disease or condition based on medical information other than genetic information and has exhibited symptoms of such disease or condition.
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635 disease or condition.
Sec.
Public Act No.
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6590 Sec.
or (3) make or require any rebate, diminution or discount on the basis of race, sexual orientation, gender identity or status as a victim of domestic violence upon the sum to be paid on any policy in case of the death of any person insured, nor insert in the policy any condition, nor make any stipulation whereby such person insured shall bind [himself, his] such person, such person's heirs, executors, administrators or assigns to accept any sum less than the full value or amount of such HB6590 / File No.
or (3) make or require any rebate, diminution or discount on the basis of race, sexual orientation, gender identity or status as a victim of domestic violence upon the sum to be paid on any policy in case of the death of any person insured, nor insert in the policy any condition, nor make any stipulation whereby such person insured shall bind [himself, his] such person, such person's heirs, executors, administrators or assigns to accept any sum less than the full value or amount of such policy, in case of a claim accruing thereon by reason of the death of such person insured, other than such as are imposed upon all persons in similar cases;
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635 policy, in case of a claim accruing thereon by reason of the death of such person insured, other than such as are imposed upon all persons in similar cases;
(1) "Advertisement" means any written, electronic or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet or similar communicationsmedia,including,butnotlimitedto,filmstrips,motion pictures and videos, published, disseminated, circulated or placed before the public, directly or indirectly, for the purpose of creating an interest in or inducing a person to purchase or sell, assign, devise, bequest or transfer the death benefit or ownership of a life insurance policy or an interest in a life insurance policy pursuant to a life settlement contract.
(1) "Advertisement" means any written, electronic or printed Public Act No.
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6590 communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet or similar communicationsmedia,including,butnotlimitedto,filmstrips,motion pictures and videos, published, disseminated, circulated or placed before the public, directly or indirectly, for the purpose of creating an interest in or inducing a person to purchase or sell, assign, devise, bequest or transfer the death benefit or ownership of a life insurance policy or an interest in a life insurance policy pursuant to a life settlement contract.
(A) Being unable to perform at least two HB6590 / File No.
(A) Being unable to perform at least two activities of daily living, including, but not limited to, eating, toileting, transferring, bathing, dressing or continence;
635 HB6590 File No.
635 activities of daily living, including, but not limited to, eating, toileting, transferring, bathing, dressing or continence;
(6) (A) "Financing entity" means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a life settlement contract:
(6) (A) "Financing entity" means an underwriter, placement agent, Public Act No.
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6590 lender, purchaser of securities, purchaser of a policy or certificate from a provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a life settlement contract:
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(10) "Life insurance producer" means any person licensed in this state as a resident or nonresident insurance producer who has received qualification or authority for life insurance coverage or a life line coverage pursuant to chapter 702.
635 HB6590 File No.
635 (10) "Life insurance producer" means any person licensed in this state as a resident or nonresident insurance producer who has received qualification or authority for life insurance coverage or a life line coverage pursuant to chapter 702.
(i) A written agreement entered into between a provider and an owner, establishing the terms under which compensation or anything of value will be paid, which compensation or thing of value is less than theexpected deathbenefit oftheinsurance policy or certificate, inreturn for the owner's assignment, transfer, sale, devise or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation, provided the minimum value for a life settlement contract shall be greater than a cash surrender value or accelerated death benefit available at the time of an application for a life settlement contract;
Public Act No.
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6590 (i) A written agreement entered into between a provider and an owner, establishing the terms under which compensation or anything of value will be paid, which compensation or thing of value is less than theexpected deathbenefit oftheinsurance policy or certificate, inreturn for the owner's assignment, transfer, sale, devise or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation, provided the minimum value for a life settlement contract shall be greater than a cash surrender value or accelerated death benefit available at the time of an application for a life settlement contract;
HB6590 / File No.
(i) A policy loan by a life insurance company pursuant to the terms of the life insurance policy or accelerated death provisions contained in the life insurance policy, whether issued with the original policy or as a Public Act No.
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635 (i) A policy loan by a life insurance company pursuant to the terms of the life insurance policy or accelerated death provisions contained in the life insurance policy, whether issued with the original policy or as a rider;
6590 rider;
or (III) between one or more members in a limited liability company or between a limited liability company and one or more of its members or one or more trusts HB6590 / File No.
or (III) between one or more members in a limited liability company or between a limited liability company and one or more of its members or one or more trusts established by its members;
635 HB6590 File No.
Public Act No.
635 established by its members;
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(viii) An agreement entered into by a service recipient or a trust established by the service recipient, and a service provider or a trust established by the service provider, that performs significant services for the service recipient's trade or business;
6590 (viii) An agreement entered into by a service recipient or a trust established by the service recipient, and a service provider or a trust established by the service provider, that performs significant services for the service recipient's trade or business;
(16) "Policy" means an individual or group policy, group certificate, HB6590 / File No.
(16) "Policy" means an individual or group policy, group certificate, Public Act No.
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635 contract or arrangement of life insurance owned by a resident of this state, regardless of whether delivered or issued for delivery in this state.
6590 contract or arrangement of life insurance owned by a resident of this state, regardless of whether delivered or issued for delivery in this state.
(H) A special purpose entity;
Public Act No.
HB6590 / File No.
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6590 (H) A special purpose entity;
635 (I) A related provider trust;
(I) A related provider trust;
(23) "Special purpose entity" means a corporation, partnership, trust, limited liability company or other similar entity formed solely to provide, either directly or indirectly, access to institutional capital markets (A) for a financing entity or provider, (B) in connection with a transaction in which the securities in the special purpose entity are acquired by the owner or by a qualified institutional buyer, as defined in Rule 144A of the federal Securities Act of 1933, as amended from time to time, or (C) the securities pay a fixed rate of return commensurate with established asset-backed institutional capital markets.
(23) "Special purpose entity" means a corporation, partnership, trust, limited liability company or other similar entity formed solely to provide, either directly or indirectly, access to institutional capital markets (A) for a financing entity or provider, (B) in connection with a transaction in which the securities in the special purpose entity are acquired by the owner or by a qualified institutional buyer, as defined in Rule 144A of the federal Securities Act of 1933, as amended from time Public Act No.
(24) "Stranger-originated life insurance" means an act, practice or arrangement to initiate a life insurance policy for the benefit of a third- HB6590 / File No.
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6590 to time, or (C) the securities pay a fixed rate of return commensurate with established asset-backed institutional capital markets.
635 party investor who, at the time of policy origination, has no insurable interest in the insured.
(24) "Stranger-originated life insurance" means an act, practice or arrangement to initiate a life insurance policy for the benefit of a third- party investor who, at the time of policy origination, has no insurable interest in the insured.
(2) One appointed by the president pro tempore of the Senate, who is an insurance producer licensed in this state;
Public Act No.
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6590 (2) One appointed by the president pro tempore of the Senate, who is an insurance producer licensed in this state;
HB6590 / File No.
(5) One appointed by the minority leader of the House of Representatives, who has experience working for an insurer doing business in this state;
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635 (5) One appointed by the minority leader of the House of Representatives, who has experience working for an insurer doing business in this state;
(d) All initial appointments to the task force shall be made not later thanthirty daysafter the effective date ofthis section.Any vacancy shall be filled by the appointing authority.
(d) All initial appointments to the task force shall be made not later thanthirty daysafter theeffective date ofthis section.Any vacancy shall be filled by the appointing authority.
(f) The administrative staff of the joint standing committee of the General Assembly having cognizance of matters relating to insurance shall serve as administrative staff of the task force.
(f) The administrative staff of the joint standing committee of the Public Act No.
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6590 General Assembly having cognizance of matters relating to insurance shall serve as administrative staff of the task force.
HB6590 / File No.
Approved June 28, 2021 Public Act No.
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635 This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2021 38a-816 Sec.
2 October 1, 2021 38a-447 Sec.
3 October 1, 2021 38a-465 Sec.
4 from passage New section HB6590 / File No.
635 21 HB6590 File No.
635 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $ Insurance Dept.
GF - Potential Minimal Minimal Revenue Gain Note:
GF=General Fund Municipal Impact:
None Explanation The bill results in a potential minimal revenue gain to the General Fund, to the extent the Insurance Commissioner assesses additional fines or penalties for violations of the Connecticut Unfair Insurance Practices Act (CUIPA).
The bill prohibits discrimination for certain insurance products on the basis of sexual orientation, gender identity, or being a victim of domestic violence and makes such discrimination a violation of CUIPA.
CUIPA fines can range from $5,000 per violationup to a maximum of $250,000 in aggregate penalties per entity in any six- month period.
The bill also establishes a temporary task force to study the insurance costs borne by businesses in distressed municipalities, and report on its findings.
This will have no fiscal impact.
House "A" alters the membership of the task force and its focus, which does not change the fiscal impact of the underlying bill.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the amount of fines assessed.
HB6590 / File No.
635 22 HB6590 File No.
635 OLR Bill Analysis HB 6590 (as amended by House "A")* AN ACT PROHIBITING CERTAIN INSURANCE DISCRIMINATION AND ESTABLISHING A TASK FORCE TO STUDY INSURANCE COSTS BORNE BY BUSINESSES LOCATED IN DISTRESSED MUNICIPALITIES.
SUMMARY This bill prohibits health carriers (e.g., insurers and HMOs) issuing disability income protection policies from refusing to insure a person, varying the terms of coverage, or charging a different rate for coverage because the person has been a victim of domestic violence.
Current law prohibits heath carriers issuing other types of health insurance policies from taking these actions because a person has been a family violence victim, which is an undefined term.
The bill instead prohibits them from taking these actions because a person has been a victim of domestic violence, as defined in state law (see BACKGROUND).
The bill also prohibits:
1.
property and casualty insurers from making any distinction or discrimination against a person when issuing, renewing, amending, or terminating a policy or setting premiums or coverage terms because the person has been a domestic violence victim and 2.
life insurers from making any distinction or discrimination against a person in premiums, rates, or the amount payable on a policybecauseoftheperson’ssexualorientation,genderidentity, or domestic violence victim status (existing law already prohibits these actions based on a person’s race).
Under the bill, any health carrier or insurer that violates the above prohibitions commits a Connecticut Unfair Insurance Practices Act HB6590 / File No.
635 23 HB6590 File No.
635 violation (see BACKGROUND).
The bill also establishes a nine-member task force to study the insurance costs borne by businesses in distressed municipalities.
It specifiestheappointing authoritiesandmember qualifications.
The task force must report findings and recommendations to the Insurance and Real Estate Committee by January 1, 2022.
It terminates when it submits its report or January 1, 2022, whichever is later.
Lastly, the bill makes technical changes.
*HouseAmendment“A”makeschangestothetaskforcebyreducing its membership by two;
adding qualifications for two members;
and making its focus insurance costs, rather than “high” insurance costs, borne by certain businesses.
EFFECTIVE DATE:
October 1, 2021, except the task force provisions are effective upon passage.
TASK FORCE The bill establishes a task force to study the insurance costs borne by businesses in distressed municipalities.
Under the bill, the task force must study, at a minimum, insurance underwriting practices affecting, and factors driving the insurance rates paid by, businesses in distressed municipalities.
The task force includes the insurance commissioner or his designee, and eight appointed members.
The appointing authorities must make initial appointments by 30 days’ after the bill’s passage and fill any vacancies.
Table 1 identifies the appointees’ required qualifications, if any, and appointing authorities.
Members appointed by legislative leaders may be legislators.
Table 1:
Appointed Members’ Qualifications and Appointing Authorities Appointing Authority Number Qualifications HB6590 / File No.
635 24 HB6590 File No.
635 House speaker One Must have experience advocating for the interests of groups historically underrepresented in the business community Senatepresidentprotempore One Must be a Connecticut-licensed insurance producer House majority leader One None Senate majority leader One None House minority leader One Must have experience working for an insurer doing business in Connecticut Senate minority leader One None Governor Two One must have experience advocating for the interests of groups historically underrepresented in the business community Under the bill, the House speaker and Senate president pro tempore select the task force’s chairpersons from among the members.
The chairpersons must schedule the first meeting and hold it by 60 days’ after the bill’s passage.
The Insurance and Real Estate Committee’s administrative staff serves as the task force’s administrative staff.
BACKGROUND Victim of Domestic Violence By law, “victim of domestic violence” means a person who has been abused or subjected to extreme cruelty by any of the following:
1.
physical acts that resulted in or were threatened to result in physical injury, HB6590 / File No.
635 HB6590 File No.
635 2.
sexual abuse, 3.
sexual activity involving a child in the home, 4.
being forced to participate in nonconsensual sexual acts or activities, 5.
threats of or attempts at physical or sexual abuse, 6.
mental abuse, or 7.
neglect or deprivation of medical care (CGS § 17b-112a).
Connecticut Unfair Insurance Practices Act The law prohibits engaging in unfair or deceptive acts or practices in the business of insurance.
It authorizes the insurance commissioner to conduct investigations and hearings, issue cease and desist orders, impose fines, revoke or suspend licenses, and order restitution for per se violations (i.e., violations specifically listed in statute).
The law also allows the commissioner to ask the attorney general to seek injunctive relief in Superior Court if he believes someone is engaging in other unfair or deceptive acts not specifically defined in statute.
Fines may be up to (1) $5,000 per violation to a $50,000 maximum or (2)$25,000perviolationtoa$250,000maximuminanysix-monthperiod if the violation was knowingly committed.
The law also imposes a fine of up to $50,000, in addition to or in lieu of a license suspension or revocation, for violating a cease and desist order.
COMMITTEE ACTION Insurance and Real Estate Committee Joint Favorable Yea 18 Nay 0 (03/22/2021) HB6590 / File No.
635 26
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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 21-93

  5. ON CONSENT CALENDAR /IN CONCURRENCE

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

  7. SEN. ADOPTED HO. AMEND. SCH. A

  8. FILE NO. 635

  9. SENATE CALENDAR NUMBER 383

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

  11. HOUSE PASSED, HOUSE AMEND. SCH. A

  12. HOUSE ADOPTED HOUSE AMEND. SCH. A

  13. FILE NO. 346

  14. HOUSE CALENDAR NUMBER 262

  15. FAV. RPT., TABLED FOR HOUSE CALENDAR

  16. RPTD. OUT OF LCO

  17. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/07/21

  18. FILED WITH LCO

  19. Joint Favorable

  20. PUBLIC HEARING 0309

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

Sponsors

Sponsorship breakdown

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2 sponsors · 0 co-sponsors · 185 not signed on

Sponsors (2)

Co-sponsors (0)

None.

Not signed on (185)

185 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.

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Frequently asked questions

Who sponsors HB 6590?
HB 6590 is sponsored by Tom Delnicki (Republican) and Hilda E. Santiago (Democratic).
What is the current status of HB 6590?
This bill has been enacted into law. Introduced March 04, 2021. Enacted.
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