Senate Bill No. 1060

Public Act No. 01-174

AN ACT CONCERNING INSURANCE DATA REPORTING REQUIREMENTS, SMALL EMPLOYER HEALTH PLAN AVAILABILITY, AND LICENSING REQUIREMENTS FOR INDIVIDUALS WHO MAKE FINAL UTILIZATION REVIEW DETERMINATIONS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (c) of section 38a-9 of the general statutes is repealed and the following is substituted in lieu thereof:

(c) Notwithstanding the provisions of section 4-8, there shall be a Division of Rate Review within the Insurance Department, which division shall act on the commissioner's behalf and at [his] the commissioner's direction in order to carry out [his] the commissioner's responsibilities under this title with respect to such matters. Subject to the provisions of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, the division shall assist the commissioner in reviewing rates and supplementary rate information filed with the department for compliance with statutory requirements and standards. The division's staff shall include rating examiners with sufficient actuarial expertise. Upon the request of the commissioner, the division shall review rates and supplementary rate information, and any suspected violation of the statutory requirements and standards of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, found pursuant to such review shall be referred to the commissioner for appropriate action. The division may assist the commissioner in formalizing [his] the commissioner's findings regarding such actions. The commissioner shall report to the joint standing committee of the General Assembly having cognizance of matters relating to insurance on or before January 15, 1988, and annually thereafter, concerning (1) the number and type of reviews conducted by the division in the prior calendar year, and (2) the percentage of increase or decrease in rates reviewed by the division during the preceding calendar year, by line and subline of insurance. [, and (3) instances of a filed rate found by the division to be a suspected violation of statutory requirements and standards, and the basis for each such finding.]

Sec. 2. Section 38a-696 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) For purposes of this section:

(1) "Company" means an individual company, not part of a company group, licensed to write property or casualty insurance in the state of Connecticut. It does not include surplus lines companies; and

(2) "Company group" means a group of commonly owned companies, or companies under common management and control, that are licensed to write property or casualty insurance in the state of Connecticut. It does not include surplus lines companies.

(b) [On] Annually, on or before June [1, 1988, and annually thereafter] first, each company or company group writing commercial risk insurance in this state shall submit to the Insurance Commissioner, in a form required by the commissioner, a report showing its commercial risk insurance writings and experience for the preceding calendar year in this state and country-wide. [as provided herein.] Such report shall be based on the coding of business to line and class in accordance with currently filed and approved accounting rules and statistical plans. Such report shall consist of the information required by subsection (c) of this section for the following lines and classes of insurance written by such company or company group: (1) Commercial automobile insurance, personal injury protection; (2) other commercial automobile insurance liability; (3) [products] product liability insurance; (4) medical malpractice insurance; (5) other liability insurance as follows: (A) Municipal liability, (B) liquor liability, and (C) day care center liability; and (6) any other commercial liability line described as such in the annual statement or any other class of insurance designated by the commissioner. [after notice and hearing.]

(c) Reports filed pursuant to subsection (b) of this section shall include the following data, both specific to the state and country-wide, on a calendar year basis by the type of insurance for the previous calendar year ending on the thirty-first day of December next preceding. Such data includes: (1) Direct premiums written; (2) direct premiums earned; (3) incurred loss and loss adjustment expense; [developed as the sum of the following: (A) Dollar amount of losses paid, plus (B) reserves for reported claims at the end of the current year, minus (C) reserves for reported claims at the end of the previous year, plus (D) reserves for incurred but not reported claims at the end of the current year, minus (E) reserves for incurred but not reported claims at the end of the previous year, plus (F) loss adjustment expenses paid, plus (G) reserves for loss adjustment expenses at the end of the current year, minus (H) reserves for loss adjustment expenses at the end of the previous year;] (4) incurred expenses; [allocated separately to commissions, other acquisition costs, general expenses, taxes, licenses and fees, using appropriate estimates when necessary;] and (5) policyholder dividends. [; (6) net underwriting gain or loss; (7) net investment income, including net realized capital gains and losses, using appropriate estimates where necessary; (8) net income before tax, including net investment income; (9) federal income taxes, using appropriate estimates where necessary; and (10) net income.] For purposes of this subsection, estimates may be used where credible data are unavailable.

(d) The report may be submitted to the commissioner by a licensed rating or advisory organization on behalf of the insurer or insurer group.

[(d)] (e) The Insurance Commissioner shall annually compile and summarize all reports submitted to [him] the commissioner pursuant to subsection (b) of this section. The commissioner's compilation shall be published and made available to any interested resident of this state upon written request to the commissioner.

Sec. 3. Subsections (b) and (c) of section 38a-568 of the general statutes are repealed and the following is substituted in lieu thereof:

(b) Not later than ninety days after the commissioner's approval of small employer health care plans submitted by the board, [every] each small employer carrier, including, but not limited to, each health care center, shall, as a condition of transacting such insurance in this state, offer those small employer health care plans that correspond to the insurance products being currently offered by the carrier to small employers. [Every] Each small employer that elects to be covered under such plan and agrees to make the required premium payments and to satisfy the other provisions of the plan shall be issued such a plan by the small employer carrier.

(c) No health care center shall be required to offer coverage or accept applications pursuant to subsection (b) of this section in the case of any of the following: (1) To a group, where the group is not physically located in the health care center's approved service area; (2) to an employee, where the employee does not work or reside within the health care center's approved service area; (3) within an area, where the health care center reasonably anticipates, and demonstrates to the satisfaction of the commissioner, that it will not have the capacity within that area in its network of providers to deliver services adequately to the members of such groups because of its obligations to existing group contract holders and enrollees; [or] (4) where the commissioner finds that acceptance of an application or applications would place the health care center in an impaired financial condition; or (5) where the commissioner finds that compliance with subsection (b) or (f) of this section would place the health care center in an impaired financial condition. A health care center that refuses to offer coverage pursuant to subdivision (3) of this subsection may not, for ninety days after such refusal, offer coverage in the applicable area to new cases of employer groups with more than twenty-five eligible employees.

Sec. 4. Section 38a-568 of the general statutes is amended by adding subsection (f) as follows:

(NEW) (f) Each small employer carrier, including, but not limited to, a health care center, shall offer each health care plan that the carrier makes available to small employers, except association group plans, to all small employers, including, but not limited to, groups containing only one member.

Sec. 5. Subdivisions (6) and (7) of subsection (a) of section 38a-226c of the general statutes are repealed and the following is substituted in lieu thereof:

(6) [Nurses, practitioners] Physicians, nurses and other licensed health professionals making utilization review decisions shall have current licenses from a state licensing agency in the United States or appropriate certification from a recognized accreditation agency in the United States, provided, any final determination not to certify an admission, service, procedure or extension of stay for an enrollee within this state shall be made by a physician, nurse or other licensed health professional under the authority of a physician, nurse or other licensed health professional who has a current Connecticut license from the Department of Public Health.

(7) In cases where an appeal to reverse a determination not to certify is unsuccessful, each utilization review company shall assure that a practitioner in a specialty related to the condition is reasonably available to review the case. When the reason for the determination not to certify is based on medical necessity, including whether a treatment is experimental or investigational, each utilization review company shall have the case reviewed by a physician who is a specialist in the field related to the condition that is the subject of the appeal. Any such review that upholds a final determination not to certify in the case of an enrollee within this state shall be conducted by such practitioner or physician under the authority of a practitioner or physician who has a current Connecticut license from the Department of Public Health. The review shall be completed within thirty days of the request for review. The utilization review company shall be financially responsible for the review and shall maintain, for the commissioner's verification, documentation of the review, including the name of the reviewing physician.

Sec. 6. Subsection (d) of section 7-479e of the general statutes is repealed and the following is substituted in lieu thereof:

(d) Each such interlocal risk management pool and interlocal risk management agency shall, except as specifically designated [herein] in this section, be exempt from the provisions of the general statutes relating to insurance. The sections of the general statutes applicable to an interlocal risk management pool and interlocal risk management agency shall be: Sections 38a-11, 38a-14, 38a-17 to 38a-19, inclusive, 38a-49, 38a-51 to 38a-53, inclusive, 38a-56, 38a-76, 38a-321, 38a-334 to 38a-336a, inclusive, 38a-338, 38a-340 to 38a-343, inclusive, 38a-350, 38a-363 to 38a-387, inclusive, 38a-663 to 38a-666, inclusive, as amended by this act, 38a-669, 38a-671, 38a-675 to 38a-682, inclusive, as amended by this act, 38a-790, 38a-792, 38a-806, 38a-815 to 38a-819, inclusive, and 38a-828.

Sec. 7. Section 38a-317 of the general statutes is repealed and the following is substituted in lieu thereof:

A mobile homeowner shall be a homeowner for purposes of sections 38a-72 to 38a-75, inclusive, 38a-285, 38a-286, 38a-305 to 38a-318, inclusive, as amended by this act, 38a-328, 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, 38a-827 and 38a-894 to 38a-898, inclusive, as amended by this act, and homeowners policies as regulated [thereunder] under said sections shall be offered on the same terms to such an owner as to other homeowners, when [he] such mobile homeowner owns and occupies a mobile dwelling equipped for year-round living which is permanently attached to a permanent foundation on property owned or leased by [him] such mobile homeowner, is connected to utilities, is assessed as real property on the tax list of the town in which it is located and is in conformance with applicable state and local laws and ordinances.

Sec. 8. Section 38a-322 of the general statutes is repealed and the following is substituted in lieu thereof:

Binders or other contracts for temporary insurance may be made, orally or in writing, for a period which shall not exceed sixty days, and shall be deemed to include all the terms and applicable endorsements, approved by the commissioner, as are designated in the policy to which the binder applies. The clause of such policy specifying the hour of the day at which the insurance shall commence may be superseded by the express terms of such contract of temporary insurance. The provisions of this section shall apply to any insurance policy which is subject to the provisions of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, except standard fire insurance policies and automobile liability insurance policies.

Sec. 9. Subsections (a) and (b) of section 38a-323 of the general statutes are repealed and the following is substituted in lieu thereof:

(a) On or after October 1, 1986, no insurer shall refuse to renew any policy which is subject to the requirements of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, unless such insurer or its agent shall send, by registered or certified mail or by mail evidenced by a certificate of mailing, or deliver to the named insured, at the address shown in the policy, at least sixty days' advance notice of its intention not to renew. The notice of intent not to renew shall state or be accompanied by a statement specifying the reason for such nonrenewal. This section shall not apply: (1) In case of nonpayment of premium; or (2) if the insured fails to pay any advance premium required by the insurer for renewal, provided, notwithstanding the failure of an insurer to comply with this subsection, with respect to automobile liability insurance policies the policy shall terminate on the effective date of any other insurance policy with respect to any automobile designated in both policies.

(b) (1) On or before September 30, 1987, a premium billing notice for any policy subject to the requirements of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, except a workers' compensation policy, shall be mailed or delivered to the insured by the insurer or its agent not less than forty-five days in advance of the renewal date or the anniversary date of the policy. On or after October 1, 1987, such notice shall be so mailed or delivered to the insured not less than thirty days in advance of the policy's renewal or anniversary date, except that on or after October 1, 1998, such notice shall not be required for a commercial risk policy if the premium for the ensuing policy period is to increase less than ten per cent on an annual basis. The premium billing notice shall be based on the rates and rules applicable to the ensuing policy period. The provisions of this subsection shall apply to any such policy for which the annual premium was less than fifty thousand dollars for the preceding annual policy period.

(2) For purposes of any commercial risk policy subject to the requirements of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, except a workers' compensation policy, the mailing or delivery of a premium billing notice by an insurer's managing general agent, in accordance with the provisions of subdivision (1) of this subsection, shall constitute compliance by such insurer with said subdivision.

Sec. 10. Section 38a-347 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) The Insurance Commissioner may [promulgate such reasonable regulations as he deems necessary] adopt regulations, in accordance with chapter 54, with regard to safe driver classification plans for automobile insurance policies issued or delivered in this state.

(b) [It is specifically provided that such] Such regulations shall provide for the establishment of an authority by the Insurance Commissioner to review, upon the request of an insured, an insurance company's action in assigning a point or points under any such safe driver classification plan and to determine whether such action is consistent with the terms of the plan and the provisions of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act.

Sec. 11. Subsection (a) of section 38a-551 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) "Health insurance" means hospital and medical expenses incurred policies written on a direct basis, nonprofit service plan contracts, health care center contracts and self-insured or self-funded employee health benefit plans. The term "health insurance" for purposes of sections 38a-505, 38a-546 and 38a-551 to 38a-559, inclusive, shall not include accident only policies, disability income policies or coverages which are subject to regulation under sections 38a-19, 38a-363 to 38a-388, inclusive, and 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act.

Sec. 12. Section 38a-663 of the general statutes is repealed and the following is substituted in lieu thereof:

The following words and phrases, as used in sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, shall have the following meanings unless the context otherwise requires:

(a) "Rating organization" means an individual, partnership, corporation, unincorporated association, other than an admitted insurer, whether located within or outside this state, who or which has as a primary object or purpose the making of rates, rating plans or rating systems. Two or more admitted insurers which act in concert for the purpose of making rates, rating plans or rating systems, and which do not operate within the specific authorizations contained in sections 38a-667, 38a-669, 38a-670 and 38a-672 shall be deemed to be a rating organization. No single insurer shall be deemed to be a rating organization.

(b) "Advisory organization" means every group, association or other organization of insurers, whether located within or outside this state, which assists insurers or rating organizations in rate-making by the collection and furnishing of loss or expense statistics, or by the submission of recommendations, provided the term shall not include actuarial, legal or other consultants.

(c) "Member" means an insurer who participates in or is entitled to participate in the management of a rating, advisory or other organization.

(d) "Subscriber" means an insurer which is furnished at its request (1) with rates and rating manuals by a rating organization of which it is not a member, or (2) with advisory services by an advisory organization of which it is not a member.

(e) "Wilful" and "wilfully" in relation to an act or omission which constitutes a violation of sections 38a-663 to 38a-681, inclusive, as amended by this act, means with actual knowledge or belief that such act or omission constitutes such violation and with specific intent to commit such violation.

(f) "Market" means the interaction between buyers and sellers consisting of a product market component and a geographic market component, as determined by the commissioner in accordance with the provisions of subsection (b) of section 38a-687.

(g) "Noncompetitive market" means a residual market or a market for which there is a ruling in effect pursuant to section 38a-687, as amended by this act, that a reasonable degree of competition does not exist.

(h) "Competitive market" means a market which has not been found to be noncompetitive pursuant to section 38a-687, as amended by this act.

(i) "Personal risk insurance" means homeowners, tenants, private passenger nonfleet automobile, mobile manufactured home and other property and casualty insurance for personal, family or household needs except workers' compensation insurance.

(j) "Commercial risk insurance" means insurance within the scope of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, which is not personal risk insurance.

(k) "Supplementary rate information" includes any manual or plan of rates, classification, rating schedule, minimum premium, rating rule, and any other similar information needed to determine the applicable rate in effect or to be in effect.

(l) "Supporting information" means (1) the experience and judgment of the filer and the experience or data of other insurers or organizations relied upon by the filer, (2) the interpretation of any statistical data relied upon by the filer, and (3) descriptions of methods used in making the rates, and other similar information required to be filed by the commissioner.

(m) "Residual market" means an arrangement for the provision of insurance in accordance with the provisions of section 38a-328, 38a-329 or 38a-670.

Sec. 13. Subsection (a) of section 38a-675 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Every insurer, rating organization or advisory organization and every group, association or other organization of insurers which engages in joint underwriting or joint reinsurance shall maintain reasonable records, of the type and kind reasonably adapted to its method of operation, of its experience or the experience of its members and of the data, statistics or information collected or used by it in connection with the rates, rating plans, rating systems, underwriting rules, policy or bond forms, surveys or inspections made or used by it so that such records will be available at all reasonable times to enable the Insurance Commissioner to determine whether such organization, insurer, group or association, and, in the case of an insurer or rating organization, every rate, rating plan or rating system made or used by it, complies with the provisions of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, applicable to it. The maintenance of such records in the office of a licensed rating organization or advisory organization of which an insurer is a member or subscriber will be sufficient compliance with this section for any insurer maintaining membership or subscribership in such organization, to the extent that the insurer uses the rates, rating plans, rating systems or recommendations of such organization.

Sec. 14. Section 38a-676 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) With respect to rates pertaining to commercial risk insurance, and subject to the provisions of subsection (b) of this section with respect to workers' compensation and employers' liability insurance, on or before the effective date thereof, every admitted insurer shall submit to the Insurance Commissioner for [his] the commissioner's information, except as to inland marine risks which by general custom of the business are not written according to manual rates or rating plans, every manual of classifications, rules and rates, and every minimum, class rate, rating plan, rating schedule and rating system and any modification of the foregoing which it uses. Such submission by a licensed rating organization of which an insurer is a member or subscriber shall be sufficient compliance with this section for any insurer maintaining membership or subscribership in such organization, to the extent that the insurer uses the manuals, minimums, class rates, rating plans, rating schedules, rating systems, policy or bond forms of such organization. The information shall be open to public inspection after its submission.

(b) Each filing as described in subsection (a) of this section for workers' compensation or employers' liability insurance shall be on file with the Insurance Commissioner for a waiting period of thirty days before it becomes effective, which period may be extended by the commissioner for an additional period not to exceed thirty days if [he] the commissioner gives written notice within such waiting period to the insurer or rating organization which made the filing that [he] the commissioner needs such additional time for the consideration of such filing. Upon written application by such insurer or rating organization, the commissioner may authorize a filing which [he] the commissioner has reviewed to become effective before the expiration of the waiting period or any extension thereof. A filing shall be deemed to meet the requirements of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, unless disapproved by the commissioner within the waiting period or any extension thereof. If, within the waiting period or any extension thereof, the commissioner finds that a filing does not meet the requirements of said sections, [he] the commissioner shall send to the insurer or rating organization which made such filing written notice of disapproval of such filing, specifying therein in what respects [he] the commissioner finds such filing fails to meet the requirements of said sections and stating that such filing shall not become effective. Such finding of the commissioner shall be subject to review as provided in section 38a-19.

(c) The form of any insurance policy or contract the rates for which are subject to the provisions of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, other than fidelity, surety or guaranty bonds, and the form of any endorsement modifying such insurance policy or contract, shall be filed with the Insurance Commissioner prior to its issuance. The commissioner shall adopt regulations in accordance with the provisions of chapter 54 establishing a procedure for review of such policy or contract. If at any time the commissioner finds that any such policy, contract or endorsement is not in accordance with such provisions or any other provision of law, [he] the commissioner shall issue an order disapproving the issuance of such form and stating [his] the reasons [therefore] for disapproval. The provisions of section 38a-19 shall apply to any such order issued by the commissioner.

Sec. 15. Section 38a-680 of the general statutes is repealed and the following is substituted in lieu thereof:

Any person, insurer, organization, group or association who fails to comply with the final order of the Insurance Commissioner pursuant to sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, shall be fined not more than one thousand dollars, but if such failure be wilful, not more than ten thousand dollars, or imprisoned not more than one year or both. The commissioner shall collect the amount so payable and such penalties may be in addition to any other penalties provided by law.

Sec. 16. Subsection (e) of section 38a-687 of the general statutes is repealed and the following is substituted in lieu thereof:

(e) For the purpose of any hearing or investigation under sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, the commissioner or any officer designated by [him] the commissioner may administer oaths and affirmations, subpoena witnesses, compel their attendance, receive oral and documentary evidence and require the production of any books, papers, correspondence, memoranda, agreements or other documents or records which the commissioner deems relevant or material to the inquiry.

Sec. 17. Subdivisions (2) to (4), inclusive, of subsection (a) of section 38a-688 of the general statutes are repealed and the following is substituted in lieu thereof:

(2) In a noncompetitive market, every insurer shall file with the commissioner all rates and supplementary rate information for that market and such supporting information as is required by the commissioner. For purposes of subsection (d) of section 7-479e, as amended by this act, sections 38a-341, 38a-387, 38a-665, subsection (b) of section 38a-672, and sections 38a-673, 38a-675, as amended by this act, 38a-676, as amended by this act, and 38a-686 to 38a-694, inclusive, as amended by this act, residual markets, title insurance and credit property insurance are deemed to be noncompetitive markets. All rates and supplementary rate information and such supporting information as is required by the commissioner, shall also be filed with the commissioner for insurance provided pursuant to section 38a-328, 38a-329 or 38a-670. Such rates and supplementary rate information and supporting information required by the commissioner shall be on file with the commissioner for a waiting period of thirty days before it becomes effective, which period may be extended by the commissioner for an additional period not to exceed thirty days if [he] the commissioner gives written notice within such waiting period to the insurer or rating organization which made the filing that [he] the commissioner needs such additional time for the consideration of such filing. Upon written application by such insurer or rating organization, the commissioner may authorize a filing which [he] the commissioner has reviewed to become effective before the expiration of the waiting period or any extension thereof. A filing shall be deemed to meet the requirements of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, unless disapproved by the commissioner within the waiting period or any extension thereof. If, within the waiting period or any extension thereof, the commissioner finds that a filing does not meet the requirements of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, [he] the commissioner shall send to the insurer or rating organization which made such filing written notice of disapproval of such filing, specifying therein in what respects [he] the commissioner finds such filing fails to meet the requirements of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, and stating that such filing shall not become effective. Such finding of the commissioner shall be subject to review as provided in section 38a-19.

(3) An insurer may file rates by reference, with or without deviation, to rates charged by another insurer which were filed and are in effect if the insurer's direct written premium for the applicable line of insurance is less than one-half of one per cent of the total state-wide direct written premium for that line, as determined from the annual statements filed by insurers licensed to do business in this state and as calculated by the National Association of Insurance Commissioners from its data base. Supporting information shall not be required for rates filed by reference pursuant to this subsection. For purposes of this subdivision the term "insurer" shall include two or more admitted insurers having a common ownership or operating in this state under common management or control.

(4) Rates filed pursuant to this section shall be filed in such form and manner as is prescribed by the commissioner. Whenever a filing made pursuant to subdivision (1) or (2) of subsection (a) of this section is not accompanied by the information upon which the insurer supports such filing and the commissioner does not have sufficient information to determine whether such filing meets the requirements of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, [he] the commissioner shall require such insurer to furnish the information upon which it supports such filing and in such event the waiting period shall commence as of the date such information is furnished. The information furnished in support of a filing may include (A) the experience or judgment of the insurer making the filing, (B) its interpretation of any statistical data it relies upon, (C) the experience of other insurers, or (D) any other relevant factors.

Sec. 18. Section 38a-692 of the general statutes is repealed and the following is substituted in lieu thereof:

The commissioner may on [his] the commissioner's own initiative or upon request of any person, issue a ruling, exempting any market from any or all of the provisions of subsection (d) of section 7-479e, as amended by this act, section 38a-341, subsection (a) of section 38a-343, sections 38a-358, 38a-387, 38a-663, as amended by this act, 38a-665, subsection (b) of section 38a-672, sections 38a-673, 38a-675, as amended by this act, 38a-676, as amended by this act, 38a-680, as amended by this act, 38a-686 to 38a-694, inclusive, as amended by this act, and subdivision (9) of section 38a-816, if and to the extent that [he] the commissioner finds their application unnecessary to achieve the purpose of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act.

Sec. 19. Section 38a-695 of the general statutes is repealed and the following is substituted in lieu thereof:

Whenever a filing is submitted by an insurer to the Insurance Commissioner to revise the rates or supplementary rate information applicable to any policy subject to the provisions of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, [it] the filing shall specify an effective date, provided the filing may specify separate effective dates for new business and renewal business. Such rates or supplementary rate information shall only apply to policies with an inception, continuation, or renewal effective date on or after the appropriate filing effective date, regardless of the date the policy is written, issued, processed or delivered. If either a coverage is changed or an exposure is added during the policy period, the insurer shall specify, at the time of the original filing, whether the applicable rates will be (1) the rates in effect at the beginning of the policy period, or (2) the rates in effect on the effective date of the change in coverage or the addition in exposure. If the latter rates are specified, such rates shall apply only to the changed coverage or the added exposure.

Sec. 20. Section 38a-897 of the general statutes is repealed and the following is substituted in lieu thereof:

Notwithstanding the provisions of sections 38a-663 to [38a-697] 38a-696, inclusive, as amended by this act, whenever the fund assesses insurers in accordance with sections 38a-894 to 38a-898, inclusive, each insurer shall charge an additional premium on every property insurance policy issued by it insuring property in this state the effective date of which policy is within the three-year period commencing ninety days after the date of assessment by the fund. The amount of the additional premium shall be calculated on the basis of a uniform percentage of the premiums on such policies equal to one-third of the ratio of the amount of an insurer's assessment to the amount of its direct earned premiums for the calendar year immediately preceding the year in which the assessment is made, such that over the period of three years the aggregate of all such additional premium charges by an insurer shall be equal to the amount of the assessment of such insurer. The minimum additional premium charge on a policy may be one dollar, and any other additional premium charge may be rounded to the nearest dollar. Any funds collected from these additional premium charges by an insurer, in excess of any assessment, shall be transmitted forthwith to the fund.

Sec. 21. Section 38a-697 of the general statutes is repealed.

Approved July 6, 2001