Table of Contents Sec. 38a-740. Regulation by commissioner. The commissioner may by regulation: (1) Establish such proper standards as he may deem necessary to guide surplus
lines brokers procuring any such policy of insurance, as is permitted under subsection
(a) of section 38a-794, from any such unauthorized insurer; (2) require any unauthorized
insurer from which any surplus lines broker has procured or intends to procure any
policy of insurance, as is permitted under subsection (a) of section 38a-794, to file with
him such evidence and in such form as he may prescribe so as to enable him to establish
the financial stability, qualifications and general suitability of such unauthorized insurer
to issue any policy of insurance through any surplus lines broker, under section 38a-
794; and (3) establish such reasonable filing fees as may be necessary to defray the
cost to him of examining evidence filed with him by an unauthorized insurer either
voluntarily or pursuant to the provisions of this section. Sec. 38a-741. (Formerly Sec. 38-81). Affidavit as to attempt to procure insurance from authorized insurers. (a) The commissioner shall maintain on a current basis
a list of those lines of insurance or their components for which coverages are believed by
the commissioner to be generally unavailable from licensed insurers. The commissioner
shall republish the list and make it available to all licensees every six months. Any
person may request in writing that the commissioner add or remove a line of insurance or
its component from the current list at the next publication of the list. The commissioner's
determinations of lines of insurance or their components to be added to or removed from
the list shall not be subject to chapter 54 provided prior to making determinations, the
commissioner shall provide opportunity for comments from interested persons. Sec. 38a-742. (Formerly Sec. 38-82). Record of policies procured from unauthorized insurers. The licensee shall keep a complete and separate record of all policies
procured from unauthorized insurers under such license. Such records shall be open to
the examination of the commissioner at all reasonable times and shall show: (a) The
exact amount of each kind of insurance permitted under sections 38a-741 to 38a-744,
inclusive, 38a-794 and 38a-795 which has been procured for each insured; (b) the gross
premiums charged by the insurers for each kind of insurance permitted under section
38a-794; (c) the amount of each kind of premiums of insurance permitted by section
38a-794 which were returned to each insured; (d) the name of the insurer or insurers
which issued each of such policies; (e) the effective dates of such policies; (f) the terms
for which they were issued. Sec. 38a-743. (Formerly Sec. 38-84). Payments by licensee to commissioner.
Exceptions. Penalty. (a) Every person, firm, association or corporation licensed pursuant to the provisions of sections 38a-741 to 38a-744, inclusive, 38a-777, 38a-794 and
38a-795 shall pay to the commissioner on May first of each year a sum equal to four
per cent of the gross premiums charged the insureds by the insurers during the period
from January first to March thirty-first of that year, and on August first of each year a
sum equal to four per cent of the gross premiums charged the insured by the insurers
during the period from April first to June thirtieth of that year, on November first of
each year a sum equal to four per cent of the gross premiums charged the insureds by
the insurers during the period from July first to September thirtieth of that year and on
February first of each year a sum equal to four per cent of the gross premiums charged
the insureds by the insurers during the period from October first to December thirty-
first of the preceding year, for insurance procured by such licensee pursuant to such
license, less the amount of such premiums returned to such insureds, except that the
premium tax shall not apply to any policy issued to the state of Connecticut or any
agency thereof or to any policy issued to any town, or agency of such town or special
taxing district when said town, agency or department thereof or special taxing district
appears in the policy as the named insured and as such is responsible for the payment
of premiums shown on said policy. Each licensee shall also file on May first, August first,
November first, and February first a return, in the form described by the commissioner,
showing such information as the commissioner deems necessary. Sec. 38a-744. (Formerly Sec. 38-85). Liability of licensee. Any licensee acting
in conformance with sections 38a-741 to 38a-744, inclusive, 38a-777, 38a-794 and 38a-
795 shall not be subject to personal liability as set forth in section 38a-714. This policy is not protected by the Connecticut Insurance Guaranty Association.
Sec. 38a-740. Regulation by commissioner.
Sec. 38a-741. (Formerly Sec. 38-81). Affidavit as to attempt to procure insurance from
authorized insurers.
Sec. 38a-742. (Formerly Sec. 38-82). Record of policies procured from unauthorized insurers.
Sec. 38a-743. (Formerly Sec. 38-84). Payments by licensee to commissioner. Exceptions.
Penalty.
Sec. 38a-744. (Formerly Sec. 38-85). Liability of licensee.
Sec. 38a-745. (Formerly Sec. 38-86a). Notice on policies issued by unauthorized insurers.
Secs. 38a-746 to 38a-749.
(P.A. 90-243, S. 36.)
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(b) When any policy of insurance is procured under the authority of such license
providing a line of insurance or its component which does not, on the effective date of
coverage, appear on the current published list, there shall be executed, both by the
licensee and by the insured, affidavits setting forth facts showing that such insured and
such licensee were unable after diligent effort to procure, from any authorized insurer
or insurers, the full amount of insurance required to protect the interest of such insured,
and further showing that the amount of insurance procured from an unauthorized insurer
or insurers is only the excess over the amount so procurable from authorized insurers.
Such affidavits shall be filed by such licensee with the commissioner within forty-five
days after such policies have been procured.
(1953, S. 2802d; 1957, P.A. 132, S. 1; 1969, P.A. 665, S. 20; P.A. 90-87, S. 3.)
History: 1969 act deleted provision which stated that insurance procurable under Sec. 38-117(g) or 38-188(g) shall not
be deemed as insurance procurable from authorized insurers; P.A. 90-87 added new Subsec. (a) requiring the commissioner
to keep a list of the lines of insurance or their components for which coverages are believed to be unavailable from licensed
insurers and to republish and make available that list every six months, designated former section as Subsec. (b) and added
provisions to Subsec. (b) requiring that if a policy is issued through an insurer who, on the effective date of coverage, does
not appear on the current list, the insured and the licensee must show that a diligent effort was made to procure coverage
and file an affidavit certifying that fact within forty-five days, rather than thirty days, to the commissioner; Sec. 38-81
transferred to Sec. 38a-741 in 1991.
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(1953, S. 2803d.)
History: Sec. 38-82 transferred to Sec. 38a-742 in 1991 (Revisor's note: In 1995 the reference to Sec. "38a-377" was
deleted editorially by the Revisors to reflect the repeal of that section by public act 93-297, S. 28).
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(b) Upon failure of any person to pay the premium tax due the commissioner on its
due date, there shall be added thereto a penalty and interest, which interest shall not be
less than one per cent per month or fraction of a month which elapses from the due date
of such premium tax to the date of payment, and which penalty shall be in the amount
of ten per cent of the whole or such part of the principal of the premium tax as is unpaid.
(1953, 1955, S. 2805d; P.A. 76-305; P.A. 83-367, S. 1, 2; P.A. 90-87, S. 4; P.A. 96-75, S. 1, 2.)
History: P.A. 76-305 added exception re policies issued to state and its agencies or towns and their agencies; P.A. 83-
367 required semiannual, rather than annual, payments and returns and added Subsec. (b) concerning penalties for late
payment; P.A. 90-87 amended Subsec. (a) to require quarterly, rather than semiannual, payments and returns and amended
Subsec. (b) re penalties for late payments if not made on the due date, where previously a thirty-day grace period was
allowed; Sec. 38-84 transferred to Sec. 38a-743 in 1991; P.A. 96-75 amended exception to add policies issued to special
taxing districts, effective July 1, 1996, and applicable to payments due on or after that date.
Annotations to former section 38-84:
Cited. 208 C. 505, 508.
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(1953, S. 2806d.)
History: Sec. 38-85 transferred to Sec. 38a-744 in 1991.
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(P.A. 87-175, S. 3, 4; P.A. 90-243, S. 37.)
History: P.A. 90-243 made a technical correction; Sec. 38-86a transferred to Sec. 38a-745 in 1991.
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