Table of Contents
Sec. 38a-1. (Formerly Sec. 38-1). Definitions.
Sec. 38a-2. (Formerly Sec. 38-2). General penalty.
Secs. 38a-3 to 38a-6.
Sec. 38a-7. (Formerly Sec. 38-3). Appointment of commissioner.
Sec. 38a-8. (Formerly Sec. 38-4). Duties of the commissioner. Sharing and maintenance of
confidential information.
Sec. 38a-9. (Formerly Sec. 38-4b). Divisions of Consumer Affairs and Rate Review. Duties.
Annual reports by commissioner. Arbitration procedure.
Sec. 38a-10. (Formerly Sec. 38-4c). Regulations on arbitration procedure.
Sec. 38a-12. (Formerly Sec. 38-5). Annual reports.
Sec. 38a-13. (Formerly Sec. 38-13). Annual report to state names of companies.
Sec. 38a-14. (Formerly Sec. 38-7). Examination of affairs of insurance companies, corporations, associations or health care centers collecting underwriting data. Costs.
Sec. 38a-14a. Examination of the financial condition of insurance companies.
Sec. 38a-15. Market conduct examinations.
Sec. 38a-16. (Formerly Sec. 38-7a). Investigations and hearings by Insurance Commissioner. Subpoenas. Injunctive relief.
Sec. 38a-17. (Formerly Sec. 38-8). Authority of commissioner when business is being conducted improperly.
Sec. 38a-18. (Formerly Sec. 38-9). Application by commissioner to act as receiver.
Sec. 38a-19. (Formerly Sec. 38-349). Hearings on orders of commissioner. Appeals.
Sec. 38a-20. (Formerly Sec. 38-17). Emergency regulations.
Secs. 38a-21 to 38a-24.
Sec. 38a-25. (Formerly Sec. 38-23). Insurance Commissioner as agent for service of
process.
Sec. 38a-26. Procedure for service of process.
Sec. 38a-27. (Formerly Sec. 38-267). Procedure where substituted service made against unauthorized insurer.
Secs. 38a-28 to 38a-31.
Sec. 38a-32. (Formerly Sec. 38-19b). Malpractice Screening Panel established.
Sec. 38a-33. (Formerly Sec. 38-19c). Selection of panel to screen malpractice claim.
Sec. 38a-34. (Formerly Sec. 38-19d). Hearing by panel. Transcripts.
Sec. 38a-35. (Formerly Sec. 38-19e). Confidentiality of proceedings, records, findings
and deliberations.
Sec. 38a-36. (Formerly Sec. 38-19f). Finding as to liability.
Secs. 38a-37 to 38a-40.
DEFINITIONS. GENERAL PENALTY
Sec. 38a-1. (Formerly Sec. 38-1). Definitions. Terms used in this title, unless it
appears from the context to the contrary, shall have a scope and meaning as set forth in
this section. Sec. 38a-2. (Formerly Sec. 38-2). General penalty. Any person or corporation
violating any provision of this title for the violation of which no other penalty is provided
shall be fined not more than seven thousand five hundred dollars. Secs. 38a-3 to 38a-6. Reserved for future use. Sec. 38a-7. (Formerly Sec. 38-3). Appointment of commissioner. In accordance
with the provisions of sections 4-5 to 4-8, inclusive, the Governor shall appoint some
suitable person, not a director, officer or agent of an insurance company, to be Insurance
Commissioner. Sec. 38a-8. (Formerly Sec. 38-4). Duties of the commissioner. Sharing and
maintenance of confidential information. (a) The commissioner shall see that all laws
respecting insurance companies and health care centers are faithfully executed and shall
administer and enforce the provisions of this title. The commissioner has all powers
specifically granted, and all further powers that are reasonable and necessary to enable
the commissioner to protect the public interest in accordance with the duties imposed
by this title. The commissioner shall pay to the Treasurer all the fees which he receives.
The commissioner may administer oaths in the discharge of his duties. Sec. 38a-9. (Formerly Sec. 38-4b). Divisions of Consumer Affairs and Rate
Review. Duties. Annual reports by commissioner. Arbitration procedure. (a) Notwithstanding the provisions of section 4-8, there shall be a Division of Consumer Affairs
within the Insurance Department, which division shall act on the Insurance Commissioner's behalf and at his direction in order to carry out his responsibilities under this title
with respect to such matters. The division shall receive and review complaints from
residents of this state concerning their insurance problems, including claims disputes,
and serve as a mediator in such disputes in order to assist the commissioner in determining whether statutory requirements and contractual obligations within the commissioner's jurisdiction have been fulfilled. There shall be a director of said division, who shall
be provided with sufficient staff. The division shall serve to coordinate all appropriate
facilities in the department in addressing such complaints, and conduct any outreach
programs deemed necessary to properly inform and educate the public on insurance
matters. The director shall submit quarterly reports to the commissioner, which shall
state the number of complaints received by the division in such calendar quarter, the
Connecticut premium volume of the appropriate line of each insurance company against
which a complaint has been filed, the types of complaints received, and the number of
such complaints which have been resolved. Such reports shall be published every six
months and copies shall be made available to any interested resident of this state upon
request. 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 the findings of such reports and suggestions
for legislative initiatives to address recurring problems. Sec. 38a-10. (Formerly Sec. 38-4c). Regulations on arbitration procedure. The
Insurance Commissioner shall adopt regulations, in accordance with the provisions of
chapter 54, to carry out the purposes of subsection (b) of section 38a-9. Copies of the
regulations shall be provided to any person upon request. Sec. 38a-11. (Formerly Sec. 38-50). Fees to be paid commissioner. (a) The commissioner shall demand and receive the following fees: (1) For annual fee for each
license issued to a domestic insurance company, one hundred dollars; (2) for receiving
and filing annual reports of domestic insurance companies, twenty-five dollars; (3) for
filing all documents prerequisite to the issuance of a license to an insurance company,
one hundred seventy-five dollars, except that the fee for such filings by any health care
center, as defined in section 38a-175, shall be one thousand one hundred dollars; (4)
for filing any additional paper required by law, fifteen dollars; (5) for each certificate of
valuation, organization, reciprocity or compliance, twenty dollars; (6) for each certified
copy of a license to a company, twenty dollars; (7) for each certified copy of a report
or certificate of condition of a company to be filed in any other state, twenty dollars;
(8) for amending a certificate of authority, one hundred dollars; (9) for each license
issued to a rating organization, one hundred dollars. In addition, insurance companies
shall pay any fees imposed under section 12-211; (10) a filing fee of twenty-five dollars
for each initial application for a license made pursuant to section 38a-769; (11) with
respect to insurance agents appointments: (A) A filing fee of twenty-five dollars for
each request for any agent appointment; (B) a fee of forty dollars for each appointment
issued to an agent of a domestic insurance company or for each appointment continued;
and (C) a fee of twenty dollars for each appointment issued to an agent of any other
insurance company or for each appointment continued, except that no fee shall be payable for an appointment issued to an agent of an insurance company domiciled in a state
or foreign country which does not require any fee for an appointment issued to an agent
of a Connecticut insurance company; (12) with respect to insurance producers: (A) An
examination fee of seven dollars for each examination taken, except when a testing
service is used, the testing service shall pay a fee of seven dollars to the commissioner
for each examination taken by an applicant; (B) a fee of forty dollars for each license
issued; and (C) a fee of forty dollars for each license renewed; (13) with respect to public
adjusters: (A) An examination fee of seven dollars for each examination taken, except
when a testing service is used, the testing service shall pay a fee of seven dollars to the
commissioner for each examination taken by an applicant; and (B) a fee of one hundred
twenty-five dollars for each license issued or renewed; (14) with respect to casualty
adjusters: (A) An examination fee of ten dollars for each examination taken, except
when a testing service is used, the testing service shall pay a fee of ten dollars to the
commissioner for each examination taken by an applicant; (B) a fee of forty dollars for
each license issued or renewed; and (C) the expense of any examination administered
outside the state shall be the responsibility of the entity making the request and such
entity shall pay to the commissioner one hundred dollars for such examination and the
actual traveling expenses of the examination administrator to administer such examination; (15) with respect to motor vehicle physical damage appraisers: (A) An examination
fee of forty dollars for each examination taken, except when a testing service is used,
the testing service shall pay a fee of forty dollars to the commissioner for each examination taken by an applicant; (B) a fee of forty dollars for each license issued or renewed;
and (C) the expense of any examination administered outside the state shall be the
responsibility of the entity making the request and such entity shall pay to the commissioner one hundred dollars for such examination and the actual traveling expenses of the
examination administrator to administer such examination; (16) with respect to certified
insurance consultants: (A) An examination fee of thirteen dollars for each examination
taken, except when a testing service is used, the testing service shall pay a fee of thirteen
dollars to the commissioner for each examination taken by an applicant; (B) a fee of
two hundred dollars for each license issued; and (C) a fee of one hundred twenty-five
dollars for each license renewed; (17) with respect to surplus lines brokers: (A) An
examination fee of ten dollars for each examination taken, except when a testing service
is used, the testing service shall pay a fee of ten dollars to the commissioner for each
examination taken by an applicant; and (B) a fee of five hundred dollars for each license
issued or renewed; (18) with respect to fraternal agents, a fee of forty dollars for each
license issued or renewed; (19) a fee of thirteen dollars for each license certificate requested, whether or not a license has been issued; (20) with respect to domestic and
foreign benefit societies shall pay: (A) For service of process, twenty-five dollars for
each person or insurer to be served; (B) for filing a certified copy of its charter or articles
of association, five dollars; (C) for filing the annual report, ten dollars; and (D) for filing
any additional paper required by law, three dollars; (21) with respect to foreign benefit
societies: (A) For each certificate of organization or compliance, four dollars; (B) for
each certified copy of permit, two dollars; and (C) for each copy of a report or certificate
of condition of a society to be filed in any other state, four dollars; (22) with respect to
reinsurance intermediaries: A fee of five hundred dollars for each license issued or
renewed; (23) with respect to viatical settlement providers: (A) A filing fee of thirteen
dollars for each initial application for a license made pursuant to section 38a-465a; and
(B) a fee of twenty dollars for each license issued or renewed; (24) with respect to
viatical settlement brokers: (A) A filing fee of thirteen dollars for each initial application
for a license made pursuant to section 38a-465a; and (B) a fee of twenty dollars for each
license issued or renewed; (25) with respect to rental companies, as defined in section
38a-799, a fee of forty dollars for each permit issued or renewed; and (26) with respect
to each duplicate license issued a fee of twenty-five dollars for each license issued. Sec. 38a-12. (Formerly Sec. 38-5). Annual reports. (a) The commissioner shall,
annually, submit to the Governor a report of the commissioner's official acts and of the
condition of all insurance companies doing business in this state, with a condensed
statement of their reports made to the commissioner or accepted by the commissioner,
together with an abstract of all accounts rendered to any court by any receiver of a
domestic insurance company, a statement of the fees received by the commissioner and
paid by the commissioner to the Treasurer and such other facts as are required by law. Sec. 38a-13. (Formerly Sec. 38-13). Annual report to state names of companies. The commissioner shall, in his annual report to the Governor, state the names of
the companies so taken possession of, whether the same have resumed business or have
been liquidated, and such other facts as shall acquaint the policyholders, creditors, stockholders and public with his proceedings relating thereto; and, to that end, any special
deputy in charge of any such company shall file, annually, with the commissioner, a
report of the affairs of such company. Sec. 38a-14. (Formerly Sec. 38-7). Examination of affairs of insurance companies, corporations, associations or health care centers collecting underwriting data.
Costs. (a) The commissioner shall, as often as he deems it expedient, examine into the
affairs of any insurance company or health care center doing business in this state, any
corporation or association collecting data utilized by any such insurance company in
the underwriting of insurance policies and any corporation organized under any law of
this state or having an office in this state, which corporation is engaged in, or claiming
or advertising that it is engaged in, organizing or receiving subscriptions for or disposing
of stock of, or in any manner aiding or taking part in the formation or business of, an
insurance company or companies, or which is holding the capital stock of one or more
insurance corporations for the purpose of controlling the management thereof, as voting
trustees or otherwise. Sec. 38a-14a. Examination of the financial condition of insurance companies.
(a) Subject to the limitation contained in this section and in addition to the powers
which the Insurance Commissioner has under sections 38a-14 and 38a-15 relating to
the examination of insurance companies, the commissioner shall have the power to order
any insurance company registered under section 38a-135 to produce such records, books
or other information in the possession of the insurance company or its affiliates as are
reasonably necessary to ascertain the financial condition of such insurance company or
to determine compliance with sections 38a-129 to 38a-140, inclusive. In the event such
insurance company fails to comply with such order, the commissioner shall have the
power to examine any such affiliate to obtain such information. Sec. 38a-15. Market conduct examinations. (a) The commissioner shall, as often
as he deems it expedient undertake a market conduct examination of the affairs of any
insurance company, health care center or fraternal benefit society doing business in
this state. Sec. 38a-16. (Formerly Sec. 38-7a). Investigations and hearings by Insurance
Commissioner. Subpoenas. Injunctive relief. (a) The Insurance Commissioner or his
authorized representative may, as often as he deems necessary, conduct investigations
and hearings in aid of any investigation on any matter under the provisions of this title.
Pursuant to any such investigation or hearing, the commissioner or his authorized representative may issue subpoenas, administer oaths, compel testimony, order the production of books, records, papers and documents, and examine books and records. If any
person refuses to allow the examination of books and records, to appear, to testify or to
produce any book, record, paper or document when so ordered, a judge of the Superior
Court, upon application of the commissioner or his authorized representative, may make
such order as may be appropriate to aid in the enforcement of this section. Sec. 38a-17. (Formerly Sec. 38-8). Authority of commissioner when business
is being conducted improperly. If, in the opinion of the commissioner, any insurance
company, fraternal benefit society, health care center or residual market mechanism is
doing business in an illegal or improper manner or is failing to adjust and pay losses
and obligations when they become due, except claims to which in the judgment of the
commissioner there is a substantial defense, he may order it to discontinue such illegal
or improper method of doing business and may order it to adjust and pay its losses and
obligations as they become due. Sec. 38a-18. (Formerly Sec. 38-9). Application by commissioner to act as receiver. (a) Whenever any domestic insurance company or corporation which is under
the supervision of the commissioner (1) is insolvent; or (2) has refused to submit its
books, papers, accounts or affairs to the reasonable inspection of the commissioner, his
actuary or examiner; or (3) has permitted its capital to fall below the limits specified in
either section 38a-72 or its charter, or has failed to restore any deficiency within the
time prescribed by subsection (d) of section 38a-71, or has failed to observe any other
order of the commissioner authorized by statute; or (4) has, by contract of reinsurance
or otherwise, transferred or attempted to transfer substantially its entire property or
business, or entered into any transaction the effect of which is to merge substantially
its entire property or business in the property or business of any other company, corporation or association, without having first obtained the written approval of the commissioner; or (5) is found, after an examination, to be in such condition that its further
transaction of business will be hazardous to its policyholders or to its creditors or to the
public; or (6) has wilfully violated its charter or any law of the state; or (7) whenever any
officer or director of such company has refused to be examined under oath concerning
its affairs; or (8) if such company is organized under the laws relating to assessment
companies, its condition is found, after examination, to be such that it could not meet
the lawful requirements for incorporation and authorization, then and in any such case
the commissioner may, the Attorney General representing him, apply to the superior
court or any judge thereof for the judicial district in which the principal office of such
company is located, for an order directing such company to show cause why the commissioner should not take possession of its property and conduct its business, and for such
other relief as the nature of the case and the interests of its policyholders, creditors and
stockholders or the public may require. Sec. 38a-19. (Formerly Sec. 38-349). Hearings on orders of commissioner. Appeals. (a) Any person or insurer aggrieved by any order or decision of the commissioner
made without a hearing may, not later than thirty days after notice of the order to the
person or insurer, make written request to the commissioner for a hearing on the order
or decision. The commissioner shall hear such party or parties not later than twenty days
after receipt of such request and shall give not less than ten days' written notice of
the time and place of the hearing. Not later than fifteen days after such hearing the
commissioner shall affirm, reverse or modify his previous order or decision, specifying
his reasons therefor. Pending such hearing and decision on such hearing the commissioner may suspend or postpone the effective date of his previous order or decision. Sec. 38a-20. (Formerly Sec. 38-17). Emergency regulations. Whenever the
Governor declares, by proclamation, bank and credit union holidays or periods of banking emergency, under section 36a-23, or whenever the Governor determines, and by
proclamation declares, that the conditions in another state or in other states, affecting
insurance companies located in Connecticut, create an emergency, the commissioner,
with the approval of the Governor, during such period or periods may issue and enforce
regulations for the management and operation of the insurance companies located or
doing business within this state for the protection of the policyholders and stockholders
of such companies, having special regard to the financial conditions resulting from such
holiday and emergency periods. Secs. 38a-21 to 38a-24. Reserved for future use. Sec. 38a-25. (Formerly Sec. 38-23). Insurance Commissioner as agent for service of process. (a) The Insurance Commissioner is the agent for receipt of service of
legal process on the following: Sec. 38a-26. Procedure for service of process. (a) Service of process on the commissioner as provided in section 38a-25 shall be made by delivering two copies thereof
to the commissioner, or to the office of the commissioner, or to an official or office of
an official designated by the commissioner to receive service. The person serving process shall pay to the office of the commissioner the fee set for that service by section
38a-11, for each person or insurer to be served. Sec. 38a-27. (Formerly Sec. 38-267). Procedure where substituted service
made against unauthorized insurer. (a) Before any unauthorized person or insurer
files or causes to be filed any pleading in any court action or proceeding or in any
administrative proceeding before the commissioner instituted against the person or insurer by service made in accordance with the provisions of section 38a-25, section 38a-
26 or section 38a-273, the person or insurer shall either: (1) Deposit with the clerk of
the court in which the action or proceeding is pending, or with the commissioner in
administrative proceedings before the commissioner, cash or securities or a bond with
good and sufficient sureties to be approved by the court or the commissioner, in an
amount to be fixed by the court or the commissioner sufficient to secure the payment
of any final judgment which may be rendered in the action or proceeding, provided the
court or the commissioner in administrative proceedings may in its or his discretion make
an order dispensing with the deposit or bond where the insurer shows to the satisfaction of
the court or the commissioner that it maintains in this state funds or securities, in trust
or otherwise, sufficient and available to satisfy any final judgment which may be entered
in the action or proceeding; or (2) procure proper authorization to do an insurance business in this state. Secs. 38a-28 to 38a-31. Reserved for future use. Sec. 38a-32. (Formerly Sec. 38-19b). Malpractice Screening Panel established.
There is established within the Insurance Department the "malpractice screening panel"
which shall consist of members whose names shall be supplied by the Connecticut State
Medical Society and the Connecticut Bar Association. This panel may be added to
whenever the need arises by requesting further names from either the Connecticut State
Medical Society or the Connecticut Bar Association. Members of the panel shall serve
without compensation. The Insurance Commissioner may designate a member of his
department to administer the operation of and maintain the records for such screening
panel. Sec. 38a-33. (Formerly Sec. 38-19c). Selection of panel to screen malpractice
claim. Whenever all parties to a claim for malpractice agree, they may request the
Insurance Commissioner or his designee to select a panel composed of two physicians
and one attorney from the Malpractice Screening Panel established under section 38a-
32. None of the members of the panel, insofar as possible, shall be from the same community of practice of either the physician involved or the attorneys for the parties. At least
one of the physicians shall be from the same specialty as the physician against whom
such claim is filed and the attorney shall have experience in the trial of personal injury
cases. The attorney so designated shall act as chairman. Sec. 38a-34. (Formerly Sec. 38-19d). Hearing by panel. Transcripts. The panel
so selected shall decide when and at what place it will hold its hearings. A transcript of
the proceedings may be taken at the discretion of either or both parties and the expense
of the same shall be borne by the party ordering the same or desiring a copy thereof.
The original of said transcript and all pertinent records of said panel shall be maintained
by the Insurance Commissioner. Sec. 38a-35. (Formerly Sec. 38-19e). Confidentiality of proceedings, records,
findings and deliberations. All proceedings, records, findings and deliberations of a
hearing panel shall be confidential and shall not be used in any other proceedings, or
otherwise publicized, except as provided in section 19a-17b and sections 38a-32 to
38a-36, inclusive, nor disclosed by any party, witness, counsel, panel member or other
person, on penalty of being found in contempt of court. The manner in which a hearing
panel and each member thereof deliberates, decides and votes on any matter submitted
to it, including whether its final decision is unanimous or otherwise, shall not be disclosed
or made public by any person, except as provided in said sections. Sec. 38a-36. (Formerly Sec. 38-19f). Finding as to liability. At the conclusion
of its hearing and deliberation, the panel shall make a finding as to liability only signed
by all members and record the same with the Insurance Commissioner who shall forward
a copy of the same to the parties. The finding, if unanimous, shall be admissible in
evidence at any subsequent trial of the issues. The trier, whether court or jury, shall
determine what if any weight should be afforded said finding. The finding shall speak
for itself and no member of the panel shall be subject to subpoena or required to testify
regarding the same. Any explanation of the finding or the panel shall be at the discretion
of the trial judge.
(1) "Affiliate" or "affiliated" means a person that directly, or indirectly through
one or more intermediaries, controls, is controlled by or is under common control with
another person.
(2) "Alien insurer" is defined in subparagraph (A) of subdivision (11) of this section.
(3) "Annuities" means all agreements to make periodical payments where the making or continuance of all or some of the series of the payments, or the amount of the
payment, is dependent upon the continuance of human life or is for a specified term of
years. This definition does not apply to payments made under a policy of life insurance.
(4) "Commissioner" means the Insurance Commissioner.
(5) "Control", "controlled by" or "under common control with" means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a person, whether through the ownership of voting securities, by contract
other than a commercial contract for goods or nonmanagement services, or otherwise,
unless the power is the result of an official position with the person.
(6) "Domestic insurer" is defined in subparagraph (B) of subdivision (11) of this
section.
(7) "Foreign country" means any jurisdiction not in any state, district or territory
of the United States.
(8) "Foreign insurer" is defined in subparagraph (C) of subdivision (11) of this
section.
(9) "Insolvency" or "insolvent" means, for any insurer, that it is unable to pay its
obligations when they are due, or when its admitted assets do not exceed its liabilities
plus the greater of: (A) Capital and surplus required by law for its organization and
continued operation; or (B) the total par or stated value of its authorized and issued
capital stock. 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 company at the time of admission or subsequent thereto.
(10) "Insurance" means any agreement to pay a sum of money, provide services or
any other thing of value on the happening of a particular event or contingency or to
provide indemnity for loss in respect to a specified subject by specified perils in return
for a consideration. In any contract of insurance, an insured shall have an interest which
is subject to a risk of loss through destruction or impairment of that interest, which risk
is assumed by the insurer and such assumption shall be part of a general scheme to
distribute losses among a large group of persons bearing similar risks in return for a
ratable contribution or other consideration.
(11) "Insurer" or "insurance company" includes any corporation, association, partnership or combination of persons doing any kind or form of insurance business other
than a fraternal benefit society, and shall include a receiver of any insurer when the
context reasonably permits. When modified as follows, the term has the following
meanings:
(A) "Alien insurer" means any insurer that has been chartered by or organized or
constituted within or under the laws of any state or country without the United States.
(B) "Domestic insurer" means any insurer that has been chartered by, incorporated,
organized or constituted within or under the laws of this state.
(C) "Foreign insurer" means any insurer that has been chartered by or organized or
constituted within or under the laws of another state or a territory of the United States.
(D) "Mutual insurer" means any insurance company without capital stock, the managing directors or officers of which are elected by its members.
(E) "Unauthorized insurer" or "nonadmitted insurer" means an insurer that has not
been granted a certificate of authority by the commissioner to transact the business
of insurance in this state or an insurer transacting business not authorized by a valid
certificate.
(12) "Insured" means a person to whom or for whose benefit an insurer makes a
promise in an insurance policy. The term includes policyholders, subscribers, members
and beneficiaries. This definition applies only to the provisions of this title and does not
define the meaning of this word as used in insurance policies or certificates.
(13) "Life insurance" means insurance on human lives and insurances pertaining
to or connected with human life. The business of life insurance includes granting endowment benefits, granting additional benefits in the event of death by accident or accidental
means, granting additional benefits in the event of the total and permanent disability of
the insured, and providing optional methods of settlement of proceeds. Life insurance
includes burial contracts to the extent provided by section 38a-464.
(14) "Person" means an individual, a corporation, a partnership, a limited liability
company, an association, a joint stock company, a business trust, an unincorporated
organization or other legal entity.
(15) "Policy" means any document, including attached endorsements and riders,
purporting to be an enforceable contract, which memorializes in writing some or all of
the terms of an insurance contract.
(16) "State" means any state, district, or territory of the United States.
(17) "Subsidiary" of a specified person means an affiliate controlled by the person
directly, or indirectly through one or more intermediaries.
(18) "Unauthorized insurer" is defined in subparagraph (E) of subdivision (11) of
this section.
(19) "United States" means the United States of America, its territories and possessions, the Commonwealth of Puerto Rico and the District of Columbia.
(1949 Rev., S. 6024; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 266, 345, 348; P.A. 81-111, S. 5; P.A. 90-243, S. 1;
P.A. 95-79, S. 138, 189; P.A. 98-98, S. 1; 98-214, S. 28.)
History: P.A. 77-614 made insurance department a division within the department of business regulation, retaining
insurance commissioner as its head, effective January 1, 1979; P.A. 80-482 restored insurance commissioner and division
to prior independent status and abolished the department of business regulation; P.A. 81-111 redefined "domestic insurance
company" to include "incorporated" companies; P.A. 90-243 replaced previously existing provisions with new Subdivs.
(1) to (19), inclusive, defining "affiliate", "affiliated", "annuities", "commissioner", "control", "domestic insurer", "foreign
country", "foreign insurer", "insolvency", "insolvent", "insurance", "insurer", "insurance company", "alien insurer", "domestic insurer", "foreign insurer", "mutual insurer", "unauthorized insurer", "nonadmitted insurer", "insured", "life insurance", "person", "policy", "state", "subsidiary" and "United States"; Sec. 38-1 transferred to Sec. 38a-1 in 1991; P.A. 95-
79 redefined "person" to include a limited liability company, effective May 31, 1995; P.A. 98-98 and 98-214 both amended
Subpara. (9)(A) to include capital and surplus required by law for continued operation, and P.A. 98-98 also amended
Subpara. (9)(B) to require that regulations be adopted in accordance with chapter 54.
Subdiv. (10):
"Insurance" does not include self-insurance for purposes of the guaranty act. 247 C. 442.
Subdiv. (11):
"Insurer" does not include self-insuring employer. 247 C. 442.
(Return to TOC) (Return to Chapters) (Return to Titles)
(1949 Rev., S. 6275; P.A. 83-255, S. 1, 2.)
History: P.A. 83-255 increased maximum fine from five hundred dollars to seven thousand five hundred dollars; Sec.
38-2 transferred to Sec. 38a-2 in 1991.
Annotation to former section 38-2:
Cited. 162 C. 507.
(Return to TOC) (Return to Chapters) (Return to Titles)
(Return to TOC) (Return to Chapters) (Return to Titles)
INSURANCE COMMISSIONER. POWERS AND DUTIES
(1949 Rev., S. 6025; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 267, 345, 348.)
History: P.A. 77-614 made insurance department a division within the department of business regulation, retaining
insurance commissioner as its head, effective January 1, 1979; P.A. 80-482 restored insurance commissioner and division
to prior independent status and abolished the department of business regulation; Sec. 38-3 transferred to Sec. 38a-7 in 1991.
Annotation to former section 38-3:
Cited. 140 C. 222.
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(b) The commissioner shall recommend to the General Assembly changes which,
in his opinion, should be made in the laws relating to insurance.
(c) In addition to the specific regulations which the commissioner is required to
adopt, the commissioner may adopt such further regulations as are reasonable and necessary to implement the provisions of this title. Regulations shall be adopted in accordance
with the provisions of chapter 54.
(d) The commissioner shall develop a program of periodic review to ensure compliance by the Insurance Department with the minimum standards established by the National Association of Insurance Commissioners for effective financial surveillance and
regulation of insurance companies operating in this state. The commissioner shall adopt
regulations, in accordance with the provisions of chapter 54, pertaining to the financial
surveillance and solvency regulation of insurance companies and health care centers as
are reasonable and necessary to obtain or maintain the accreditation of the Insurance
Department by the National Association of Insurance Commissioners. The commissioner shall maintain, as confidential, any confidential documents or information received from the National Association of Insurance Commissioners, or the International
Association of Insurance Supervisors, or any documents or information received from
state or federal insurance, banking or securities regulators or similar regulators in a
foreign country which are confidential in such jurisdictions. The commissioner may
share any information, including confidential information, with the National Association of Insurance Commissioners, the International Association of Insurance Supervisors, or state or federal insurance, banking or securities regulators or similar regulators
in a foreign country so long as the commissioner determines that such entities agree to
maintain the same level of confidentiality in their jurisdiction as is available in this state.
(e) The Insurance 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. The
commissioner may sit as a member of the board of a consortium organized by or in
association with the National Association of Insurance Commissioners for the purpose
of coordinating a system for electronic rate and form filing among state insurance departments and insurers.
(1949 Rev., S. 6029; 1959, P.A. 78, S. 1; P.A. 90-243, S. 2; P.A. 92-112, S. 1; P.A. 95-168, S. 1; P.A. 98-57, S. 1; 98-
85; P.A. 99-9, S. 1, 6.)
History: 1959 act deleted requirement that the commissioner supply insurance companies with the forms required by
law; P.A. 90-243 expanded the insurance commissioner's statutory powers, duties and obligations and divided section into
Subsecs.; Sec. 38-4 transferred to Sec. 38a-8 in 1991; P.A. 92-112 added a new Subsec. (d) allowing the commissioner to
develop a program of periodic review to ensure financial integrity as a minimum standard as required by the National
Association of Insurance Commissioners; P.A. 95-168 amended Subsec. (d) to add provisions re confidentiality of documents received by Insurance Commissioner; P.A. 98-57 amended Subsec. (d) to require the commissioner to maintain as
confidential information received from the International Association of Insurance Supervisors, or from state or federal
insurance, banking or securities regulators or similar regulators in a foreign country, and authorized the commissioner to
share confidential information with those officials; P.A. 98-85 added new Subsec. (e) to require the commissioner to
establish a program to use electronic methods to transmit documents to and from insurers, and authorized the commissioner
to sit on a consortium re electronic rate and form filing among state insurance departments and insurers; P.A. 99-9 amended
Subsecs. (a) and (d) to reference "health care centers", effective May 12, 1999.
Annotation to former section 38-4:
Permits commissioner to supervise activities of insurance companies so as to see that they fulfill obligations imposed
on them by law. 140 C. 222.
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(b) (1) The Division of Consumer Affairs shall provide an independent arbitration
procedure for the settlement of disputes between claimants and insurance companies
concerning automobile physical damage and automobile property damage liability
claims in which liability and coverage are not in dispute. Such procedure shall apply
only to disputes involving private passenger motor vehicles as defined in subsection
(e) of section 38a-363. Any company licensed to write private passenger automobile
insurance, including collision, comprehensive and theft, in this state shall participate in
the arbitration procedure. The commissioner shall appoint an administrator for such
procedure. Only those disputes in which attempts at mediation by the Division of Consumer Affairs have failed shall be accepted as arbitrable. The referral of the complaint
to arbitration shall be made by the Insurance Department examiner who investigated
the complaint. Each party to the dispute shall pay a filing fee of twenty dollars. The
insurance company shall pay the consumer the undisputed amount of the claim upon
written notification from the department that the complaint has been referred to arbitration. Such payment shall not affect any right of the consumer to pursue the disputed
amount of the claim.
(2) The commissioner shall prepare a list of at least ten persons, who have not been
employed by the department or an insurance company during the preceding twelve
months, to serve as arbitrators in the settlement of such disputes. The arbitrators shall
be members of any dispute resolution organization approved by the commissioner. One
arbitrator shall be appointed to hear and decide each complaint. Appointment shall be
based solely on the order of the list. If an arbitrator is unable to serve on a given day,
or if either party objects to the arbitrator, then the next arbitrator on the list will be
selected. The department shall schedule arbitration hearings as often, and in such locations, as it deems necessary. Parties to the dispute shall be provided written notice of
the hearing, at least ten days prior to the hearing date. The commissioner may issue
subpoenas on behalf of the arbitrator to compel the attendance of witnesses and the
production of documents, papers and records relevant to the dispute. Decisions shall be
made on the basis of the evidence presented at the arbitration hearing. Where the arbitrator believes that technical expertise is necessary to decide a case, he may consult with
an independent expert recommended by the commissioner. The arbitrator and any independent technical expert shall be paid by the department on a per dispute basis as established by the commissioner. The arbitrator, as expeditiously as possible, but not later
than fifteen days after the arbitration hearing, shall render a written decision based on
the information gathered and disclose the findings and the reasons to the parties involved.
The arbitrator shall award filing fees to the prevailing party. If the decision favors the
consumer the decision shall provide specific and appropriate remedies including interest
at the rate of ten per cent on the arbitration award concerning the disputed amount of
the claim, retroactive to the date of payment for the undisputed amount of the claim.
The decision may include costs for loss of use and storage of the motor vehicle and shall
specify a date for performance and completion of all awarded remedies. Notwithstanding
any provision of the general statutes or any regulation to the contrary, the Insurance
Department shall not amend, reverse, rescind, or revoke any decision or action of any
arbitrator. The department shall contact the consumer within ten working days after the
date for performance, to determine whether performance has occurred. Either party may
make application to the superior court for the judicial district in which one of the parties
resides or, when the court is not in session, any judge thereof for an order confirming,
vacating, modifying or correcting any award, in accordance with the provisions of sections 52-417, 52-418, 52-419 and 52-420. If it is determined by the court that either
party's position after review has been improved by at least ten per cent over that party's
position after arbitration, the court, in its discretion, may grant to that party its costs
and reasonable attorney's fees. No evidence, testimony, findings, or decision from the
department arbitration procedure shall be admissible in any civil proceeding, except
judicial review of the arbitrator's decision as contemplated by this subsection.
(3) The department shall maintain records of each dispute, including names of parties to the arbitration, the decision of the arbitrator, compliance, the appeal, if any, and
the decision of the court. The department shall annually compile such statistics and send
a copy to the committee of the General Assembly having cognizance of matters relating
to insurance. The report shall be considered a public document.
(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 direction in order to carry out his responsibilities under this title
with respect to such matters. Subject to the provisions of sections 38a-663 to 38a-697,
inclusive, 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, inclusive, found pursuant
to such review shall be referred to the commissioner for appropriate action. The division
may assist the commissioner in formalizing his 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, (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.
(d) The directors and staff of both the Division of Consumer Affairs and the Division
of Rate Review shall be appointed by the commissioner under the provisions of chapter 67.
(P.A. 87-515, S. 1, 4; P.A. 88-326, S. 9, 11; P.A. 96-227, S. 1; P.A. 99-145, S. 2, 23.)
History: P.A. 88-326 required the Connecticut premium volume of the line of each insurance company against which
a complaint has been filed to be stated in quarterly reports to the commissioner, required reports from the director to be
published and made available every six months, and inserted a new Subsec. (b) establishing an arbitration procedure for
automobile damage claims, relettering existing Subsecs. as necessary, effective July 1, 1989; Sec. 38-4b transferred to
Sec. 38a-9 in 1991; (Revisor's note: In 1997 a reference in Subsec. (b)(2) to "Department of Insurance" was changed
editorially by the Revisors to "Insurance Department" for consistency with customary statutory usage); P.A. 96-227
amended Subsec. (c) to delete the requirement that the division director be a member of the American Academy of Actuaries;
P.A. 99-145 amended Subsec. (b) to substitute "subsection (e) of section 38a-363" for "subsection (g) of section 38a-363",
effective June 8, 1999.
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(P.A. 88-326, S. 10.)
History: Sec. 38-4c transferred to Sec. 38a-10 in 1991; (Revisor's note: In 1997 a reference to "Commissioner of
Insurance" was changed editorially by the Revisors to "Insurance Commissioner" for consistency with customary statutory usage).
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(b) If any state imposes fees upon domestic fraternal benefit societies greater than
are fixed by this section or sections 38a-595 to 38a-626, inclusive, 38a-631 to 38a-640,
inclusive, or 38a-800, the commissioner shall collect from each fraternal benefit society
incorporated by or organized under the laws of such other state and admitted to transact
business in this state, the same fees as are imposed upon similar domestic societies and
organizations by such other state. The expense of any examination or inquiry made
outside the state shall be borne by the society so examined.
(c) Each unauthorized insurer declared to be an eligible surplus lines insurer shall
pay to the Insurance Commissioner, on or before May first of each year, an annual fee
of sixty-three dollars in order to remain on the list of eligible surplus lines insurers.
(d) For service of process on the commissioner, the commissioner shall demand
and receive a fee of twenty-five dollars for each person or insurer to be served. The
commissioner shall also collect, for each hospital or ambulance lien filed, twenty-five
dollars, and for each small claims notice filed, five dollars, each of which shall be paid
by the plaintiff at the time of service, the same to be recovered by him as part of the
taxable costs if he prevails in the suit.
(e) Each insurance company depositing any security with the Treasurer pursuant
to section 38a-83 shall pay to the commissioner two hundred fifty dollars, annually. In
case of an examination or appraisal made outside the office of the Treasurer, and in such
case the company in whose behalf such examination or appraisal has been made shall pay
to the commissioner one hundred dollars for such examination and the actual traveling
expenses of the officer making such examination or appraisal.
(1949 Rev., S. 6062, 6071, 6088; 1959, P.A. 514, S. 2; 1961, P.A. 18, S. 1; February, 1965, P.A. 196, S. 1; 1969, P.A.
497; P.A. 81-314, S. 3, 4; P.A. 82-96, S. 7, 8; P.A. 84-253; P.A. 87-221; P.A. 89-251, S. 179, 203; P.A. 90-243, S. 17;
P.A. 91-29, S. 1, 8; 91-68, S. 1; P.A. 93-239, S. 1, 30; P.A. 94-160, S. 1, 24; P.A. 95-136, S. 2, 3, 8; P.A. 97-202, S. 3, 18;
P.A. 99-127, S. 2, 3.)
History: 1959 act increased fees; 1961 act added provision re amending certificate of authority; 1965 act imposed two-
dollar fee for agents of nondomestic insurance companies except where other state or country requires no fee for issuing
license to agent of Connecticut company; 1969 act raised fee for agents of domestic companies from three to five dollars,
raised fee for insurance brokers from twenty to thirty-five dollars, for public adjusters from twenty to fifty dollars and for
certificate from two to ten dollars; P.A. 81-314 doubled the fees for insurance agents' licenses, effective May 1, 1982;
P.A. 82-96 doubled license fees for an insurance broker and public adjuster to reflect change from annual to biennial
renewals for such licensees; P.A. 84-253 provided that the commissioner shall charge a fee of ten dollars for each license
certification requested, whether issued or not; P.A. 87-221 increased the fee for the filing by health care centers of all
documents prerequisite to the issuance of a license from thirty-five to one thousand dollars; P.A. 89-251 increased the
fees; P.A. 90-243 divided the section into Subsecs. (a) to (e), inclusive, and revised fee schedule for agents of a domestic
insurance company, insurance agents and public adjusters, added fee schedule for casualty adjusters, motor vehicle physical
damage appraisers, certified insurance consultants, surplus lines brokers, insurance administrators, fraternal agents and
domestic and foreign benefit societies and added provisions re service of process; Sec. 38-50 transferred to Sec. 38a-
11 in 1991; P.A. 91-29 deleted former Subdiv. (18) in Subsec. (a) re the examination fee and license fee for insurance
administrators, renumbering remaining Subdivs. accordingly; P.A. 91-68 amended Subsec. (e) to increase the deposit
payment from one hundred fifty dollars annually to two hundred fifty dollars annually and to increase the examination
and appraisal payment from ten dollars to one hundred dollars; P.A. 93-239 amended Subsec. (a) to add new Subdiv. (22)
re license for reinsurance intermediary, effective June 28, 1993; P.A. 94-160 in Subsec. (a) amended Subdiv. (11) by
substituting "appointments" for "license", substituting provision re twenty-five-dollar filing fee for provision re examination fee, increased the fee to twenty dollars from five dollars for each appointment issued to an agent of any other insurance
company or for each appointment continued, replaced Subdiv. (12) re fees for insurance brokers with new provision re
insurance producers, added a new Subpara. (C) in Subdivs. (14) and (15) re the expense of any examination administered
outside the state, and added a new Subdiv. (23) regarding the fee for duplicate licensing, effective January 1, 1996; P.A.
95-136 in Subsec. (a) amended Subdiv. (18) to require a fee of forty dollars for each fraternal agent license issued, in
Subdiv. (19) lowered the fee from thirty dollars to thirteen dollars for each license certificate request and added a new
Subdiv. (23) regarding the fee for duplicate licensing, (in effect changing its effective date from January 1, 1996) effective
June 7, 1995, and further amended Subsec. (a) to make technical changes, effective January 1, 1996; P.A. 97-202 inserted
new Subdivs. (23) and (24) re viatical settlement providers and viatical settlement brokers, respectively, renumbering
former Subdiv. (23) as Subdiv. (25), effective January 1, 1998; P.A. 99-127 amended Subsec. (a) to insert new Subdiv.
(25) re rental companies, and to redesignate former Subdiv. (25) as (26), effective June 8, 1999.
See Sec. 38a-51 re assessment of costs of examination and valuation.
Annotation to former section 38-50:
Cited. 121 C. 311.
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(b) On or before January 15, 2001, and annually thereafter, the commissioner shall
submit to the joint standing committee of the General Assembly having cognizance of
matters relating to insurance a report detailing all the information the commissioner
received during the past year pursuant to sections 29-311, 31-290d, 38a-356 and 53-445.
(1949 Rev., S. 6030; P.A. 00-211, S. 3.)
History: Sec. 38-5 transferred to Sec. 38a-12 in 1991; P.A. 00-211 designated existing provisions as Subsec. (a) and
made provisions gender neutral, and added new Subsec. (b) re annual reports to the insurance committee of the General
Assembly re information received pursuant to Secs. 29-311, 31-290d, 38a-356 and 53-445.
See Sec. 4-60 re annual reports of budgeted agencies.
See Sec. 38a-13 re annual reports of names of companies for which commissioner is receiver.
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(1949 Rev., S. 6039.)
History: Sec. 38-13 transferred to Sec. 38a-13 in 1991.
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(b) In scheduling and determining the nature, scope and frequency of the examinations, the commissioner shall consider such matters as the results of financial statement
analyses and ratios, changes in management or ownership, actuarial opinions, reports
of independent certified public accountants and such other criteria as set forth in the
examiners' handbook adopted by the National Association of Insurance Commissioners
and in effect at the time the commissioner exercises discretion under this section.
(c) (1) To carry out examinations under this section, the commissioner may appoint, as examiners, one or more competent persons, not officers of or connected with
or interested in any insurance company, other than as a policyholder. The commissioner
may engage the services of attorneys, appraisers, independent actuaries, independent
certified public accountants or other professionals and specialists to assist him in conducting the examinations under this section as examiners, the cost of which shall be
borne by the company which is the subject of the examination. (2) In conducting the
examination, the commissioner, his actuary or any examiner authorized by the commissioner may examine, under oath, the officers and agents of such a company, health care
center, corporation or association and all persons deemed to have material information
regarding the company's, health care center's, corporation's or association's property
or business. Each such company, health care center, corporation or association, its officers and agents, shall produce the books and papers, in its or their possession, relating
to its business or affairs, and any other person may be required to produce any book or
paper, in his custody, deemed to be relevant to such examination, for the inspection of
the commissioner, his actuary or examiners, when required. The officers and agents of
the company, health care center, corporation or association shall facilitate the examination and aid the examiners in making the same so far as it is in their power to do so. The
refusal of any company, by its officers, directors, employees or agents, to submit to
examination or to comply with any reasonable written request of the examiners shall
be grounds for suspension of, or refusal of or nonrenewal of any license or authority held
by the company to engage in an insurance or other business subject to the commissioner's
jurisdiction. Any such proceedings for suspension, revocation or refusal of any license
or authority shall be conducted pursuant to subsection (c) of section 38a-41. (3) In
conducting the examination, the examiner shall observe those guidelines and procedures
set forth in the examiners' handbook adopted by the National Association of Insurance
Commissioners. The commissioner may also adopt such other guidelines or procedures
as the commissioner may deem appropriate.
(d) In lieu of an examination under this section of any foreign or alien insurer licensed in this state, the commissioner may accept until January 1, 1994, an examination
report on the company prepared by the insurance department for the company's state
of domicile or port-of-entry state. Thereafter, such reports may only be accepted if (1)
such state's insurance department was, at the time of the examination, accredited under
the National Association of Insurance Commissioners' financial regulation standards
and accreditation program or (2) the examination is performed under the supervision
of an accredited insurance department or with the participation of one or more examiners
who are employed by such an accredited state insurance department and who, after a
review of the examination workpapers and report, state under oath that the examination
was performed in a manner consistent with the standards and procedures required by
their insurance department.
(e) (1) Nothing contained in this section shall be construed to limit the commissioner's authority to terminate or suspend any examination in order to pursue legal or regulatory action pursuant to the insurance laws of this state. Findings of fact and conclusions
made pursuant to any examination shall be prima facie evidence in any legal or regulatory
action.
(2) Nothing contained in this section shall be construed to limit the commissioner's
authority in such legal or regulatory action to use and, if appropriate, to make public
any final or preliminary examination report, any examiner or company workpapers or
other documents, or any other information discovered or developed during the course
of any examination.
(3) No later than sixty days following completion of the examination, the examiner
in charge shall file, under oath, with the Insurance Department a verified written report
of examination. Upon receipt of the verified report, the Insurance Department shall
transmit the report to the company examined, together with a notice which shall afford
the company examined a reasonable opportunity, not to exceed thirty days to make a
written submission or rebuttal with respect to any matters contained in the examination
report. Within thirty days of the end of the period allowed for the receipt of written
submissions or rebuttals, the commissioner shall fully consider and review the report,
together with any written submissions or rebuttals and any relevant portions of the examiner's workpapers and enter an order: (A) Adopting the examination report as filed or
with modification or corrections. If the examination report reveals that the company is
operating in violation of any law, regulation or prior order of the commissioner, the
commissioner may order the company to take any action the commissioner considers
necessary and appropriate to cure such violation; or (B) rejecting the examination report
with directions to the examiners to reopen the examination for purposes of obtaining
additional data, documentation or information, and refiling pursuant to subparagraph
(A) of this subdivision; or (C) calling for an investigatory hearing with no less than
twenty days' notice to the company for purposes of obtaining additional documentation,
data, information and testimony.
(f) (1) All orders entered pursuant to subdivision (3) of subsection (e) of this section
shall be accompanied by findings and conclusions resulting from the commissioner's
consideration and review of the examination report, relevant examiner workpapers and
any written submissions or rebuttals. The findings and conclusions, which form the
basis of any such order of the commissioner, shall be subject to review as provided in
section 38a-19. (2) Any investigatory hearing conducted under subparagraph (C) of
subdivision (3) of subsection (e) of this section by the commissioner or authorized
representative, shall be conducted as a nonadversarial confidential investigatory proceeding as necessary for the resolution of any inconsistencies, discrepancies or disputed
issues apparent (A) upon the filed examination report, (B) raised by or as a result of the
commissioner's review of relevant workpapers or (C) by the written submission or
rebuttal of the company. Within twenty days of the conclusions of any such hearing,
the commissioner shall enter an order pursuant to subparagraph (A) of subdivision (3)
of subsection (e) of this section. The commissioner shall not appoint an examiner as an
authorized representative to conduct the hearing. The hearing shall proceed expeditiously with discovery by the company limited to the examiner's workpapers which
tend to substantiate any assertions set forth in any written submission or rebuttal. The
commissioner or his authorized representative may issue subpoenas for the attendance
of any witnesses or the production of any documents deemed relevant to the investigation
whether under the control of the department, the company or other persons. The documents produced shall be included in the record and testimony taken by the commissioner
or his authorized representative shall be under oath and preserved for the record. Nothing
contained in this section shall require the department to disclose any information or
records which would indicate or show the existence or content of any investigation or
activity of a criminal justice agency. The hearing shall proceed with the commissioner
or his authorized representative posing questions to the persons subpoenaed. Thereafter
the company and the Insurance Department may present testimony relevant to the investigation. Cross-examination shall be conducted only by the commissioner or his authorized representative. The company and the Insurance Department shall be permitted to
make closing statements and may be represented by counsel of their choice.
(g) The commissioner may, if he deems it in the public interest, publish any such
report, or the result of any such examination contained therein, in one or more newspapers of the state.
(h) The commissioner shall, at least once in every five years, visit and examine
the affairs of each domestic insurance company, health care center, domestic fraternal
benefit society, and foreign and alien insurance company doing business in this state.
Notwithstanding subdivision (1) of subsection (c) of this section, no domestic insurance
company or other domestic entity subject to examination under this section shall pay
as costs associated with the examination the salaries, fringe benefits, traveling and maintenance expenses of examining personnel of the Insurance Department engaged in such
examination if such domestic company or entity is otherwise liable to assessment levied
under section 38a-47, except that a domestic insurance company or other domestic entity
shall pay the traveling and maintenance expenses of examining personnel of the Insurance Department when such company or entity is examined outside the state.
(i) Nothing contained in this section shall prevent or be construed as prohibiting
the commissioner from disclosing the content of an examination report, preliminary
examination report or results, or any matter relating thereto, to the Insurance Department
of this or any other state or country, or to law enforcement officials of this or any other
state or to any agency of the federal government at any time, so long as such agency
or office receiving the report or matters relating thereto agrees in writing to hold it
confidential.
(j) All working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the commissioner or any other person in the course
of an examination made under this section shall be given confidential treatment, shall
not be subject to subpoena and shall not be made public by the commissioner or any
other person, except to the extent provided in subsection (i) of this section. Access to
such information may be granted by the commissioner to the National Association of
Insurance Commissioners so long as it agrees, in writing, to hold it confidential.
(k) (1) The commissioner may engage the services of, from time to time, on an
individual basis, qualified actuaries, certified public accountants, or other similar individuals who are independently practicing their professions, even though said persons
may from time to time be similarly employed or retained by persons subject to examination under this section. (2) No cause of action shall arise nor shall any liability be imposed
against the commissioner, the commissioner's authorized representatives or any examiner appointed by the commissioner for any statements made or conduct performed in
good faith while carrying out the provisions of this section. (3) No cause of action shall
arise, nor shall any liability be imposed against any person for the act of communicating
or delivering information or data to the commissioner or the commissioner's authorized
representative examiner pursuant to an examination made under this section, if such act
of communication or delivery was performed in good faith and without fraudulent intent
or the intent to deceive. (4) This section does not abrogate or modify in any way any
common law or statutory privilege or immunity heretofore enjoyed by any person identified in subdivision (2) of this subsection. (5) A person identified in subdivision (2) of
this subsection shall be entitled to an award of attorney's fees and costs if he is the
prevailing party in a civil cause of action for libel, slander or any other relevant tort
arising out of activities in carrying out the provisions of this section and the party bringing the action was not substantially justified in doing so. For purposes of this section a
proceeding is "substantially justified" if it had a reasonable basis in law or fact at the
time that it was initiated.
(1949 Rev., S. 6032; 1953, S. 2784d; P.A. 77-215; P.A. 81-101, S. 6; P.A. 90-243, S. 3; P.A. 92-112, S. 2; P.A. 93-
239, S. 16; P.A. 96-227, S. 2.)
History: P.A. 77-215 authorized examination of affairs of corporations and associations "collecting data utilized by
any such insurance company in the underwriting of insurance policies" and amended provisions accordingly; P.A. 81-101
deleted exception to five year examinations for domestic fraternal benefit societies which formerly were examined once
every three years; P.A. 90-243 applied provisions to health care centers, divided sections into Subsecs. and added Subsec.
(e) re commissioner's power to hire independent actuaries and repayment of examination expenses; Sec. 38-7 transferred
to Sec. 38a-14 in 1991; P.A. 92-112 deleted former Subsecs. (c) and (e) re examiner's report and re use of independent
contractors and payment of costs by entity being examined, added new Subsec. (b) re the scheduling, nature, scope and
frequency of examinations, relettered old Subsec. (b) as (c) and divided it into Subdiv. (1) allowing the commissioner to
engage the services of various professionals to assist him in conducting the examinations and requiring insurers to bear
the expense of such services and Subdiv. (2) re sanctions of nonrenewal or suspension of license for refusal to submit to
examination or to comply with reasonable requests of the examiners within the commissioner's discretion, added new
Subsec. (d) re acceptable substitutes for an examination report for any foreign or alien insurers, added new Subsec. (e) re
the commissioner's authority to review, accept or reject any examination or to terminate or suspend the examination of
an insurer to pursue legal or regulatory action and to use any facts or conclusions made from the examination as prima
facie evidence in a legal or regulatory action, added new Subsec. (f) re hearings and orders of the commissioner concerning
his evaluations, conclusions and findings in assessing the examination report, created new Subsec. (g), with language taken
from the former Subsec. (c) re publication of report of examination of an insurer, relettered former Subsec. (d) as (h), added
new Subsec. (i), allowing the commissioner to disclose to any local, state, or federal government or to any law enforcement
officials the contents of any examination report or preliminary examination report provided the agency agrees in writing
to hold it confidential, added new Subsec. (j) making all workpapers and recorded information confidential, not subject
to subpoena and not accessible to the public and added Subsec. (k) allowing the employment of various professionals who
may independently practice their profession by being employed by an organization subject to examination, providing that
no liability or cause of action may arise against the commissioner or his representatives if conduct or statements made
were in good faith and without fraudulent intent and allowing any party found to be harmed by the disclosure of the
commissioner or his representatives an award of attorney's fees and cost, if he is the prevailing party in a civil cause of
action for libel, slander or relevant tort; P.A. 93-239 amended Subsec. (c) to add new Subdiv. (3) re procedures followed
when conducting an examination, amended Subsec. (e) to add new Subdiv. (2) re commissioner's authority to make the
results of an examination public, renumbering the existing Subdiv. (2) accordingly, made technical corrections to internal
references in Subsec. (f) and amended Subsec. (h) to delete the commissioner's option to accept the official report of an
alien or foreign insurer in lieu of an examination of his own; P.A. 96-227 amended Subsec. (h) to revise provisions re
domestic insurers' examination costs.
See Sec. 38a-49 re reimbursement of state for costs incurred in examining fraternal benefit societies and foreign companies.
See Sec. 38a-50 re reimbursement for costs of valuation.
See Sec. 38a-51 re assessments of costs of examination and valuation.
Annotation to former section 38-7:
In determining whether the law has been complied with, the commissioner acts as a quasi-judicial officer. 60 C. 461.
See note to Sec. 38-9 (now 38a-18).
Annotations to present section:
Subsec. (k):
Subdiv. (5) cited. 240 C. 141.
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(b) The commissioner may engage the services of attorneys, actuaries, accountants
and other experts not otherwise a part of the commissioner's staff, at the registered
insurance company's expense, as shall be reasonably necessary to assist in the conduct
of the examination under subsection (a) of this section. All persons so engaged shall be
under the direction and control of the commissioner and shall act in a purely advisory
capacity.
(c) Each registered insurance company producing for examination records, books
and papers pursuant to subsection (a) of this section shall be liable for and shall pay the
expense of such examination in accordance with sections 38a-14 and 38a-15.
(P.A. 92-112, S. 21, 35.)
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(b) To carry out the examinations under this section, the commissioner may appoint,
as market conduct examiners, one or more competent persons, not officers or connected
with or interested in any insurance company, health care center or fraternal benefit
society, other than as a policyholder. In conducting the examination, the commissioner,
his actuary or any examiner authorized by the commissioner may examine, under oath,
the officers and agents of such an insurance company, health care center or fraternal
benefit society and all persons deemed to have material information regarding the company's, center's or society's property or business. Each such company, center or society,
its officers and agents, shall produce the books and papers, in its or their possession,
relating to its business or affairs, and any other person may be required to produce any
book or paper, in his custody, deemed to be relevant to the examination, for the inspection
of the commissioner, his actuary or examiners, when required. The officers and agents
of the company, center or association shall facilitate the examination and aid the examiners in making the same so far as it is in their power to do so.
(c) Each market conduct examiner shall make a full and true report of each market
conduct examination made by him, which shall comprise only facts appearing upon the
books, papers, records or documents of the examined company, center or society or
ascertained from the sworn testimony of its officers or agents or of other persons examined under oath concerning its affairs. The examiner's report shall be presumptive evidence of the facts therein stated in any action or proceeding in the name of the state
against the company, center or society, its officers or agents. The commissioner shall
grant a hearing to the company, center or society examined, before filing any such report,
and may withhold any such report from public inspection for such time as he deems
proper. The commissioner may, if he deems it in the public interest, publish any such
report, or the result of any such examination contained therein, in one or more newspapers of the state.
(d) All the expense of any examination made under the authority of this section,
other than examinations of domestic insurance companies, shall be paid by the company,
center or society examined, and domestic insurance companies and other domestic entities examined outside the state shall pay the traveling and maintenance expenses of
examiners.
(P.A. 90-243, S. 4.)
See Sec. 38a-323(g) re market conduct examinations and insurer's good faith effort re personal and commercial risk
policy billing practices.
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(b) The Attorney General, at the request of the commissioner, is authorized to apply
in the name of the state of Connecticut to the Superior Court for an order temporarily
or permanently restraining and enjoining any person from violating any provision of
this title.
(P.A. 86-95, S. 2, 3.)
History: Sec. 38-7a transferred to Sec. 38a-16 in 1991.
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(1949 Rev., S. 6031; P.A. 92-60 S. 1.)
History: Sec. 38-8 transferred to Sec. 38a-17 in 1991; P.A. 92-60 applied provisions of section to fraternal benefit
societies, health care centers and residual market mechanisms.
Annotation to former section 38-8:
Commissioner may inquire into reasons why company denies liability on policy. 86 C. 556.
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(b) Whenever it appears to the commissioner that any of the conditions set forth in
subsection (a) of this section exists or that irreparable loss and injury to the property or
business of any insurance company has occurred or may occur unless the commissioner
so acts immediately, the commissioner, without notice and before applying to the court
for any order, forthwith shall take possession of the property, business, books, records
and accounts of such company, and of the offices and premises occupied by it for the
transaction of its business, and retain possession subject to the order of the court. Any
person having possession of, and refusing to deliver, any of the books, records or assets
of a company against whom a seizure order has been issued by the commissioner shall
be fined not more than one thousand dollars, or imprisoned not more than one year,
or both.
(c) Whenever the commissioner makes any seizure as provided in subsection (b)
of this section, the chief of police for the town or municipality in which the principal
office of the company is located, and the Commissioner of Public Safety, shall, on
demand of the commissioner, furnish him with such patrolmen, troopers or officers as
may be necessary in enforcing or effecting any such seizure. Not more than fifteen days
after making any seizure, the commissioner shall institute a proceeding under subsection
(a) of this section, returnable not less than twelve or more than thirty days after the
service thereof.
(1949 Rev., S. 6035; 1957, P.A. 448, S. 44; 1967, P.A. 518; 1971, P.A. 179, S. 24; P.A. 77-614, S. 486, 610; P.A. 78-
280, S. 2, 127; P.A. 90-243, S. 5; P.A. 00-99, S. 83, 154.)
History: 1967 act made previous provisions Subsec. (a), replacing former alphabetic Subdiv. indicators with numeric
indicators and rephrasing provision re failure to observe commissioner's orders to make good deficiencies, etc., and added
Subsecs. (b) to (f); 1971 act amended Subsec. (c) to require institution of proceeding within fifteen days after seizure rather
than "immediately" and "returnable not less than twelve or more than thirty days after the service thereof" rather than "in
no case more than thirty days after such seizure, or the next return day but one, whichever shall be sooner"; P.A. 77-614
replaced commissioner of state police with commissioner of public safety in Subsec. (c), effective January 1, 1979; P.A.
78-280 substituted "judicial district" for "county" in Subsec. (a); P.A. 90-243 deleted Subsecs. (d) to (f), inclusive, re the
surplus and deficiency of a company in receivership but See Sec. 38a-71 for replacement provisions; Sec. 38-9 transferred
to Sec. 38a-18 in 1991; P.A. 00-99 deleted reference to sheriff of the county and deputy sheriffs in Subsec. (c), effective
December 1, 2000.
Annotations to former section 38-9:
It is no defense to an application by insurance commissioner for a receiver that another company has assumed all the
liabilities. 45 C. 381. Statute vests the commissioner with a wide range of discretion, with the exercise of which the courts
will not interfere. 60 C. 460. Exclusive right of commissioner to apply for receiver where company is acting illegally. 80
C. 684. See note to Sec. 38-131. Cited. 128 C. 363.
Annotations to present section:
Subsec. (a):
Subdiv. (2) cited. 219 C. 384, 387.
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(b) Nothing contained in this section or sections 38a-363 to 38a-388, inclusive,
shall require the observance at any hearing of formal rules of pleading or evidence.
(c) The provisions of this section shall not apply to an order or decision of the
commissioner made pursuant to section 38a-478n.
(d) Any order or decision of the commissioner shall be subject to appeal therefrom
in accordance with the provisions of section 4-183.
(1972, P.A. 273, S. 31; P.A. 76-436, S. 636, 681; P.A. 77-603, S. 121, 125; P.A. 92-60, S. 2; P.A. 98-98, S. 2.)
History: P.A. 76-436 replaced court of common pleas with superior court in Subsec. (c), effective July 1, 1978; P.A.
77-603 replaced previous appeal provisions of Subsec. (c) with statement requiring that appeals be made in accordance
with Sec. 4-183; Sec. 38-349 transferred to Sec. 38a-19 in 1991; P.A. 92-60 made technical changes in Subsec. (a) for
statutory consistency; P.A. 98-98 amended Subsec. (a) to substitute "not later than" for "within" re days, to replace references to "thereon" and to substitute "order or decision" for "action", added new Subsec. (c) to make section inapplicable
to an order or decision made pursuant to Sec. 38a-478n, and redesignated existing Subsec. (c) as Subsec. (d).
Annotations to former section 38-349:
Cited. 169 C. 267, 278, 279, 292. Cited. 186 C. 507, 508.
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(1949 Rev., S. 6043; 1969, P.A. 504, S. 22; P.A. 00-6, S. 4.)
History: 1969 act substituted reference to Sec. 36-28a for reference to Sec. 36-28, repealed by same act; Sec. 38-17
transferred to Sec. 38a-20 in 1991; P.A. 00-6 replaced "bank holiday" with "bank and credit union holidays".
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SERVICE OF PROCESS
(1) Foreign and alien insurance companies authorized to do business in this state
in any proceeding arising from or related to any transaction having a connection with
this state.
(2) Fraternal benefit societies authorized to do business in this state.
(3) Insurance-support organizations as defined in section 38a-976, transacting business outside this state which affects a resident of this state.
(4) Risk retention groups designating the Insurance Commissioner as agent for receipt of service of process pursuant to section 38a-252.
(5) Purchasing groups designating the Insurance Commissioner as agent for receipt
of service of process pursuant to section 38a-261.
(6) Eligible surplus lines insurers authorized by the commissioner to accept surplus
lines insurance.
(7) Except as provided by section 38a-273, unauthorized insurers or other persons
assisting unauthorized insurers who directly or indirectly do any of the acts of insurance
business as set forth in subsection (a) of section 38a-271.
(8) The Connecticut Insurance Guaranty Association and the Connecticut Life and
Health Insurance Guaranty Association.
(9) Insurance companies designating the Insurance Commissioner as agent for receipt of service of process pursuant to subsection (g) of section 38a-85.
(10) Nonresident insurance producers and nonresident surplus lines brokers licensed by the Insurance Commissioner.
(11) Viatical settlement providers and viatical settlement brokers licensed by the
commissioner.
(12) Nonresident reinsurance intermediaries designating the commissioner as agent
for receipt of service of process pursuant to section 38a-760b.
(13) Workers' compensation self-insurance groups, as defined in section 38a-1001.
(14) Persons alleged to have violated any provision of section 38a-130.
(b) Each foreign and alien insurer by applying for and receiving a license to do
insurance business in this state, each fraternal benefit society by applying for and receiving a certificate to solicit members and do business, each surplus lines insurer declared
to be an eligible surplus lines insurer by the commissioner, each insurance-support
organization transacting business outside this state which affects a resident of this state,
and each unauthorized insurer by doing an act of insurance business prohibited by section
38a-272, is considered to have irrevocably appointed the Insurance Commissioner as
his agent for receipt of service of process in accordance with subsection (a) of this
section. Such appointment shall continue in force so long as any certificate of membership, policy or liability remains outstanding in this state.
(c) The commissioner is also agent for the executors, administrators or personal
representatives, receivers, trustees or other successors in interest of the persons specified
under subsection (a) of this section.
(d) Any legal process that is served on the commissioner pursuant to this section
shall be of the same legal force and validity as if served on the principal.
(e) The right to effect service of process as provided under this section does not
limit the right to serve legal process in any other manner provided by law.
(1949 Rev., S. 6054; P.A. 90-243, S. 7; P.A. 92-60, S. 3; P.A. 97-202, S. 17, 18; P.A. 98-98, S. 3.)
History: P.A. 90-243 replaced prior provisions with new provisions empowering the commissioner to act as the agent
of service of legal process for various insurance ventures; Sec. 38-23 transferred to Sec. 38a-25 in 1991; P.A. 92-60
amended Subsec. (a) by adding Subdivs. (8) to (10) empowering the commissioner to act as the agent of service of legal
process for various insurance associations, for certain brokers licensed by the commissioner and for certain insurers; P.A.
97-202 added Subdiv. (11) in Subsec. (a) re viatical settlement providers and brokers, effective January 1, 1998; P.A. 98-
98 amended Subdiv. (a)(10) to substitute "insurance producers" for "brokers" and added new Subdivs. (a)(12) to (14),
inclusive, re nonresident reinsurance intermediaries, workers compensation self-insurance groups and persons alleged to
have violated Sec. 38a-130.
Annotations to former section 38-23:
Presentment in evidence of certificate of commissioner's appointment not necessary; authorization may be inferred
from his reception of service and collection of fee. 121 C. 311. Cited. 153 C. 588.
Cited. 7 CA 617, 618, 623.
Cited. 18 CS 441.
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(b) The commissioner shall immediately send by registered or certified mail one
copy of the process to the person to be served as follows: (1) To that person's last-known
principal place of business, residence, or post-office address, or (2) if a foreign insurance
company, to the secretary of the company, or (3) if an alien insurance company, to the
resident manager, if any, in this country, or (4) if a fraternal benefit society, to the
secretary or corresponding officer of the society.
(c) The commissioner shall retain the second copy of the process for his files. The
commissioner shall keep a record of all process served, showing the day and hour of
service.
(d) Proof of service shall be evidenced by a certificate signed by the commissioner
or by the official designated to receive service of process, showing the service made on
him and mailing by him, attached to the second copy of the process.
(e) No plaintiff or complainant shall be entitled to a judgment or determination by
default in any action or proceeding in which the process is served under this section
until the expiration of forty-five days from the date of service of process commencing
the action or proceeding.
(P.A. 90-243, S. 8; P.A. 92-60, S. 4; P.A. 93-239, S. 10.)
History: P.A. 92-60 amended Subsec. (a) by reducing the number of copies to be delivered to the commissioner for
service of process from "three" to "two"; P.A. 93-239 amended Subsec. (d) replacing reference to the third copy of the
service of process with second copy.
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(b) The court in any action or proceeding in which service is made as provided in
section 38a-25, section 38a-26 and section 38a-273, or the commissioner in any administrative proceeding in which service is made as provided in section 38a-273, may, in its
or his discretion, order such postponement as may be necessary to afford the defendant
reasonable opportunity to comply with subsection (a) of this section and defend the
action or proceeding.
(c) Nothing in subsection (a) of this section shall be construed to prevent an unauthorized person or insurer from filing a motion to quash a writ or to set aside service thereof
made as provided in section 38a-25, section 38a-26 or section 38a-273 on the ground
that the person or insurer served has not done any of the acts enumerated in subsection
(a) of section 38a-271.
(1969, P.A. 561, S. 5; P.A. 90-243, S. 150; P.A. 96-78, S. 1.)
History: P.A. 90-243 made technical changes for statutory consistency; Sec. 38-267 transferred to Sec. 38a-27 in 1991;
P.A. 96-78 amended Subsec. (a)(1) re funds or securities to substitute "maintains in this state" for "maintains in a state".
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MEDICAL MALPRACTICE SCREENING PANEL
(P.A. 77-249, S. 1; 77-614, S. 163, 587, 610; P.A. 78-303, S. 85, 136; P.A. 80-482, S. 269, 345, 348.)
History: P.A. 77-614 and 78-303 placed insurance commissioner within the department of business regulation and
made insurance department a division within that department, effective January 1, 1979; P.A. 80-482 restored insurance
commissioner and division to prior independent status and abolished the department of business regulation; Sec. 38-19b
transferred to Sec. 38a-32 in 1991.
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(P.A. 77-249, S. 2; 77-614, S. 163, 587, 610; P.A. 78-303, S. 85, 136; P.A. 80-482, S. 270, 348.)
History: P.A. 77-614 and 78-303 placed insurance commissioner within the department of business regulation and
made the insurance department a division within that department, effective January 1, 1979; P.A. 80-482 restored insurance
commissioner and division to prior independent status and abolished the department of business regulation; Sec. 38-19c
transferred to Sec. 38a-33 in 1991.
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(P.A. 77-249, S. 3; 77-614, S. 163, 587, 610; P.A. 78-303, S. 85, 136; P.A. 80-482, S. 3, 345, 348.)
History: P.A. 77-614 and 78-303 placed insurance commissioner within the department of business regulation and
made insurance department a division within that department, effective January 1, 1979; P.A. 80-482 restored insurance
commissioner and division to prior independent status and abolished the department of business regulation; Sec. 38-19d
transferred to Sec. 38a-34 in 1991.
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(P.A. 77-249, S. 4; P.A. 82-472, S. 160, 183.)
History: P.A. 82-472 substituted "in this chapter" for "herein" where appearing; Sec. 38-19e transferred to Sec. 38a-
35 in 1991.
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(P.A. 77-249, S. 5; 77-614, S. 163, 587, 610; P.A. 78-303, S. 85, 136; P.A. 80-482, S. 271, 348.)
History: P.A. 77-614 and 78-303 placed insurance commissioner within the department of business regulation and
made insurance department a division within that department, effective January 1, 1979; P.A. 80-482 restored insurance
commissioner and division to prior independent status and abolished the department of business regulation; Sec. 38-19f
transferred to Sec. 38a-36 in 1991.
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