SB 1050 — AN ACT CONCERNING NOTICES PROVIDED BY LIFE INSURERS.

Senate General Assembly RaisedFile Bill No.

1050326 January Session, 2021 LCOSenate Bill No.

45421050 ReferredtoCommitteeonINSURANCESenate, ANDREALApril ESTATE7, Introduced2021 by:The Committee on Insurance and Real Estate reported through SEN.

(INS)LESSER ANof ACTthe CONCERNING9th NOTICESDist., PROVIDEDChairperson BYof LIFEthe INSURERS.Committee on the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING NOTICES PROVIDED BY LIFE INSURERS.

(3) "Annuities" means all agreements to make periodical payments where the making or continuance of all or some of the series of the payments,SB1050 or/ theFile amount of the payment, is dependent upon the LCO 4542 \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01050-R01 of 5 SB.docx Raised Bill No.

1050326 continuance1 ofSB1050 humanFile lifeNo. or is for a specified term of years.

326 payments, or the amount of the payment, is dependent upon the continuance of human life or is for a specified term of years.

For purposes of this subdivision "liabilities" shall include but not be limited to reserves required by statute or by regulations adopted by the commissioner in accordance with the provisions of chapter 54 or specific requirements imposed by the commissioner upon a subject LCOSB1050 4542/ {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01050-2File of 5 R01-SB.docx } Raised Bill No.

1050326 company2 atSB1050 theFile timeNo. of admission or subsequent thereto.

326 company at the time of admission or subsequent thereto.

(16) "Person" means an individual, a corporation, a partnership, a LCOSB1050 4542/ {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01053File of 5 R01-SB.docx } Raised Bill No.

1050326 limited3 liabilitySB1050 company,File anNo. association, a joint stock company, a business trust, an unincorporated organization or other legal entity.

326 limited liability company, an association, a joint stock company, a business trust, an unincorporated organization or other legal entity.

The notice required under this LCOsubsection 4542shall {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01054be ofin 5addition R01-SB.docxto }any Raisednotice Billrequired under section 38a- SB1050 / File No.

1050326 subsection4 shallSB1050 beFile inNo. addition to any notice required under section 38a- 436a or 38a-456 of the general statutes.

326 436a or 38a-456 of the general statutes.

3 January 1, 2022 New section INS Joint Favorable LCOSB1050 4542/ {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01050-File 5No. of 5 R01-SB.docx }

326 5 SB1050 File No.

326 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:

None Municipal Impact:

None Explanation There is no fiscal impact to the state or municipalities under the bill, which requires life insurers to send certain notices and allows the Insurance Department to adopt implementing regulations, which they have the staff to do.

The Out Years State Impact:

None Municipal Impact:

None SB1050 / File No.

326 6 SB1050 File No.

326 OLR Bill Analysis SB 1050 AN ACT CONCERNING NOTICES PROVIDED BY LIFE INSURERS.

SUMMARY This bill requires, beginning January 1, 2022, that insurers delivering or issuing individual or group life insurance policies in Connecticut annually provide a written notice disclosing the policy’s status to each (1) beneficiary and owner, (2) person insured under the policy, and (3) insurance producer who negotiated and sold the policy.

The bill also requires these insurers to send any cancellation notices to each policy owner.

The cancellation notices are in addition to those required under existing law to notify (1) life insurance applicants of their right to designate a third party to receive policy cancellation notices due to premium nonpayment and (2) insured employees of a group life insurance policy’s cancellation.

The bill authorizes the insurance commissioner to adopt implementing regulations.

EFFECTIVE DATE:

January 1, 2022 COMMITTEE ACTION Insurance and Real Estate Committee Joint Favorable Yea 17 Nay 1 (03/22/2021) SB1050 / File No.

326 7