Sec. 38a-675. (Formerly Sec. 38-201m). Records and information to be maintained. Approval of rules and statistical plans re loss and expense experience. (a)
Every insurer, rating organization or advisory organization and every group, association
or other organization of insurers which engages in joint underwriting or joint reinsurance
shall maintain reasonable records, of the type and kind reasonably adapted to its method
of operation, of its experience or the experience of its members and of the data, statistics
or information collected or used by it in connection with the rates, rating plans, rating
systems, underwriting rules, policy or bond forms, surveys or inspections made or used
by it so that such records will be available at all reasonable times to enable the Insurance
Commissioner to determine whether such organization, insurer, group or association,
and, in the case of an insurer or rating organization, every rate, rating plan or rating
system made or used by it, complies with the provisions of sections 38a-663 to 38a-696, inclusive, applicable to it. The maintenance of such records in the office of a licensed
rating organization or advisory organization of which an insurer is a member or subscriber will be sufficient compliance with this section for any insurer maintaining membership or subscribership in such organization, to the extent that the insurer uses the
rates, rating plans, rating systems or recommendations of such organization.
(b) The Insurance Commissioner shall approve reasonable rules and statistical
plans, reasonably adapted to each of the rating systems used, and which shall thereafter
be used by each admitted insurer in the recording and reporting of its loss and country-wide expense experience, in order that the experience of all insurers may be made available at least annually. Such rules and plans may also provide for the recording and
reporting of expense experience items which are specially applicable to this state and
are not susceptible of determination by a prorating of country-wide expense experience.
In approving such rules and plans, the commissioner shall give due consideration to the
rating systems in use in this state and in other states. No insurer shall be required to
record or report its loss experience on a classification basis that is inconsistent with
the rating system used by it provided that with respect to private passenger nonfleet
automobile insurance, the commissioner may require that claims and loss experience
data be allocated, compiled and reported by town. The commissioner may designate
one or more rating organizations or other agencies to assist him in gathering such experience and making compilations thereof, and such compilations shall be made available,
subject to reasonable rules promulgated by the commissioner, to insurers and rating
organizations.
(1969, P.A. 665, S. 13; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 311, 348; P.A. 82-353, S. 9; P.A. 01-174, S. 13.)
History: P.A. 77-614 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; P.A. 82-353 made several
technical changes to the section and amended Subsec. (b) to provide that insurer's claims and loss experience data re private
passenger nonfleet auto insurance may be compiled and reported by town; Sec. 38-201m transferred to Sec. 38a-675 in
1991; P.A. 01-174 substituted reference to Sec. 38a-696 for Sec. 38a-697 in Subsec. (a).
Sec. 38a-676. (Formerly Sec. 38-201n). Review of rating plans and rules and
form of commercial risk insurance contracts. (a) With respect to rates pertaining to
commercial risk insurance, and subject to the provisions of subsection (b) of this section
with respect to workers' compensation and employers' liability insurance, on or before
the effective date thereof, every admitted insurer shall submit to the Insurance Commissioner for the commissioner's information, except as to inland marine risks which by
general custom of the business are not written according to manual rates or rating plans,
every manual of classifications, rules and rates, and every minimum, class rate, rating
plan, rating schedule and rating system and any modification of the foregoing which it
uses. Such submission by a licensed rating organization of which an insurer is a member
or subscriber shall be sufficient compliance with this section for any insurer maintaining
membership or subscribership in such organization, to the extent that the insurer uses
the manuals, minimums, class rates, rating plans, rating schedules, rating systems, policy
or bond forms of such organization. The information shall be open to public inspection
after its submission.
(b) Each filing as described in subsection (a) of this section for workers' compensation or employers' liability insurance shall be on file with the Insurance Commissioner
for a waiting period of thirty days before it becomes effective, which period may be
extended by the commissioner for an additional period not to exceed thirty days if the
commissioner gives written notice within such waiting period to the insurer or rating
organization which made the filing that the commissioner needs such additional time
for the consideration of such filing. Upon written application by such insurer or rating
organization, the commissioner may authorize a filing which the commissioner has
reviewed to become effective before the expiration of the waiting period or any extension
thereof. A filing shall be deemed to meet the requirements of sections 38a-663 to 38a-696, inclusive, unless disapproved by the commissioner within the waiting period or
any extension thereof. If, within the waiting period or any extension thereof, the commissioner finds that a filing does not meet the requirements of said sections, the commissioner shall send to the insurer or rating organization which made such filing written
notice of disapproval of such filing, specifying therein in what respects the commissioner
finds such filing fails to meet the requirements of said sections and stating that such
filing shall not become effective. Such finding of the commissioner shall be subject to
review as provided in section 38a-19.
(c) The form of any insurance policy or contract the rates for which are subject to
the provisions of sections 38a-663 to 38a-696, inclusive, other than fidelity, surety or
guaranty bonds, and the form of any endorsement modifying such insurance policy
or contract, shall be filed with the Insurance Commissioner prior to its issuance. The
commissioner shall adopt regulations in accordance with the provisions of chapter 54
establishing a procedure for review of such policy or contract. If at any time the commissioner finds that any such policy, contract or endorsement is not in accordance with
such provisions or any other provision of law, the commissioner shall issue an order
disapproving the issuance of such form and stating the reasons for disapproval. The
provisions of section 38a-19 shall apply to any such order issued by the commissioner.
(1969, P.A. 665, S. 14; 1971, P.A. 498; P.A. 75-8; P.A. 77-614, S. 163, 610; P.A. 79-376, S. 61; P.A. 80-482, S. 312,
348; P.A. 81-94; P.A. 82-353, S. 10, 26; P.A. 88-326, S. 6; P.A. 01-174, S. 14.)
History: 1971 act inserted new Subsec. (b) re filing for workmen's compensation or employer's liability insurance,
relettering former Subsec. (b) accordingly and adding reference to Subsec. (b) in Subsec. (a); P.A. 75-8 required submission
of forms and contracts thirty days before their effective date rather than "within a reasonable time after" their effective date;
P.A. 77-614 placed insurance commissioner within the department of business regulation and made insurance department a
division within that department, effective January 1, 1979; P.A. 79-376 replaced "workmen's compensation" with "workers' compensation"; P.A. 80-482 restored insurance commissioner and division to prior independent status and abolished
the department of business regulation; P.A. 81-94 deleted word "printed" modifying "endorsement" in Subsec. (c); P.A.
82-353 limited the application of the section to commercial risk insurance and eliminated the hearing requirement before
the issuance of an order disapproving the policy or contract form, effective July 1, 1983; P.A. 88-326 required the commissioner to adopt regulations establishing a procedure for policy and contract review; Sec. 38-201n transferred to Sec. 38a-676 in 1991; P.A. 01-174 substituted references to Sec. 38a-696 for Sec. 38a-697 in Subsecs. (b) and (c) and made technical
changes, including changes for the purpose of gender neutrality, throughout.
See Sec. 38a-688 re review of rates for personal risk insurance and residual markets in competitive or noncompetitive
markets.
Annotations to former section 38-201n:
Former section 38-188 cited. 152 C. 612, 619; 153 C. 465. History of former sections 38-117 and 38-189 discussed.
153 C. 465.
Former section 38-189 cited. 25 CS 312; 26 CS 423.
Annotations to present section:
Cited. 231 C. 756, 785.
Subsec. (a):
Cited. 36 CA 587, 589.
Subsec. (c):
Failure of insurance company to file horse exclusion policy endorsement with Insurance Commissioner does not invalidate endorsement. 45 CS 298.
Sec. 38a-677. (Formerly Sec. 38-201o). Examinations. (a) The Insurance Commissioner shall, at least once every five years, and may as often as may be reasonable
and necessary, make or cause to be made an examination of each licensed rating organization, and he may, as often as may be reasonable and necessary make or cause to
be made an examination of any advisory organization or group, association or other
organization which engages in joint underwriting or joint reinsurance. In lieu of any
such examination, said commissioner may accept the report of an examination made
by the insurance supervisory official of another state. In examining any organization,
group or association pursuant to this section said commissioner shall ascertain whether
such organization, group or association, and, in the case of a rating organization, any
rate or rating system made or used by it, complies with the requirements and standards
of sections 38a-663 to 38a-681, inclusive, applicable to it.
(b) The Insurance Commissioner may, at any reasonable time, make or cause to be
made an examination of every admitted insurer transacting any class of insurance to
which the provisions of said sections are applicable to ascertain whether such insurer
and every rate and rating system used by it for every such class of insurance complies
with the requirements and standards of said sections applicable thereto. Such examination shall not be a part of a periodic general examination participated in by representatives of more than one state.
(c) The officers, managers, agents and employees of any such organization, group,
association, or insurer may be examined at any time under oath and shall exhibit all
books, records, accounts, documents or agreements governing its method of operation,
together with all data, statistics and information of every kind and character collected
or considered by such organization, group, association or insurer in the conduct of the
operations to which such examination relates.
(d) The reasonable cost of any examination authorized by this section shall be paid
by the organization, group, association or insurer to be examined.
(1969, P.A. 665, S. 15; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 313, 348.)
History: P.A. 77-614 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. 38-201o transferred to
Sec. 38a-677 in 1991.
Sec. 38a-678. (Formerly Sec. 38-201p). Complaint and hearing. Practices prohibited. Suspension and revocation of certificate of authority or license. Appeals.
(a) Any person aggrieved by any rate charged, rating plan, rating system, or underwriting
rule followed or adopted by an insurer or rating organization may request the insurer
or rating organization to review the manner in which the rate, plan, system or rule has
been applied with respect to insurance afforded him. Such request may be made by his
authorized representative, and shall be in writing. If the request is not granted within
thirty days after it is made, the requester may treat it as rejected. Any person aggrieved
by the action of an insurer or rating organization in refusing the review requested, or in
failing or refusing to grant all or part of the relief requested, may file a written complaint
and request for hearing with the Insurance Commissioner, specifying the grounds relied
upon. If said commissioner has information concerning a similar complaint he may deny
the hearing. If he believes that probable cause for the complaint does not exist or that
the complaint is not made in good faith he shall deny the hearing. Otherwise, and if he
finds that the complaint charges a violation of sections 38a-663 to 38a-681, inclusive,
and that the complainant would be aggrieved if the violation is proven, he shall proceed
as provided in subsection (b) of this section.
(b) If after examination of an insurer, rating organization, advisory organization,
or group, association or other organization of insurers which engages in joint underwriting or joint reinsurance, or upon the basis of other information, or upon sufficient complaint as provided in subsection (a) of this section, the Insurance Commissioner has
good cause to believe that such insurer, organization, group or association or any rate,
rating plan or rating system made or used by any such insurer or rating organization,
does not comply with the requirements and standards of said sections applicable to it,
he shall, unless he has good cause to believe such noncompliance is wilful, give notice
in writing to such insurer, organization, group or association stating therein what manner
and to what extent such noncompliance is alleged to exist and specifying therein a
reasonable time, not less than ten days thereafter, in which such noncompliance may
be corrected. Notices under this section shall be confidential as between said commissioner and the parties unless a hearing is held in accordance with the provisions of
subsection (c) of this section.
(c) If the Insurance Commissioner has good cause to believe such noncompliance
to be wilful, or if within the period prescribed by said commissioner in the notice required
by subsection (b) of this section the insurer, organization, group or association does not
make such changes as may be necessary to correct the noncompliance specified by said
commissioner or establish to the satisfaction of said commissioner that such specified
noncompliance does not exist, then said commissioner may hold a public hearing in
connection therewith, provided within a reasonable period of time, which shall be not
less than ten days before the date of such hearing, he shall mail a written notice specifying
the matters to be considered at such hearings to such insurer, organization, group or
association. If no notice has been given as provided in subsection (b) of this section
such notice shall state therein in what manner and to what extent noncompliance is
alleged to exist. The hearing shall not include any additional subjects not specified in
the notices required by said subsection (b).
(d) If after a hearing pursuant to subsection (c) of this section, the Insurance Commissioner finds (1) that any rate, rating plan or rating system violates the provisions of
sections 38a-663 to 38a-681, inclusive, applicable to it, he may issue an order to the
insurer or rating organization which has been the subject of the hearing specifying in
what respects such violation exists and stating when, within a reasonable period of time,
the further use of such rate or rating system by such insurer or rating organization in
contracts of insurance made thereafter shall be prohibited; (2) that an insurer, rating
organization, advisory organization, or a group, association or other organization of
insurers which engages in joint underwriting or joint reinsurance, is in violation of the
provisions of said sections applicable to it other than the provisions dealing with rates,
rating plans or rating systems, he may issue an order to such insurer, organization, group
or association which has been the subject of the hearing specifying in what respects
such violation exists and requiring compliance within a reasonable time thereafter; (3)
that the violation of any of the provisions of said sections applicable to it by any insurer
or rating organization which has been the subject of hearing was wilful, he may suspend
or revoke, in whole or in part, the certificate of authority of such insurer or the license
of such rating organization with respect to the class of insurance which has been the
subject matter of the hearing; (4) that any rating organization has wilfully engaged in
any fraudulent or dishonest act or practices, he may suspend or revoke, in whole or in
part, the license of such organization in addition to any other penalty provided in said
sections; (5) in addition to other penalties provided by law the Insurance Commissioner
may suspend or revoke, in whole or in part, the license of any rating organization or the
certificate of authority of any insurer with respect to the class or classes of insurance
specified in such order, which fails to comply within the time limited by such order
or any extension thereof which said commissioner may grant, with an order of said
commissioner lawfully made by him pursuant to this subsection and effective pursuant
to subdivision (7) of this subsection; (6) except as otherwise provided in sections 38a-663 to 38a-681, inclusive, all proceedings in connection with the denial, suspension or
revocation of a license or certificate of authority under said sections shall be conducted
in accordance with the provisions of section 38a-41 and the Insurance Commissioner
shall have all the powers granted to him therein; (7) any findings, determination, rule,
ruling or order made by the Insurance Commissioner, in accordance with the provisions
of said sections, shall be subject to review by appeal in accordance with the provisions
of section 4-183. No such finding, determination, rule, ruling or order shall become
effective before the expiration of twenty days after notice and a copy thereof are mailed
or delivered to the person affected, and any finding, determination, rule, ruling or order
of said commissioner so submitted for review shall not become effective for a further
period of fifteen days after the petition for review is filed with the court. The court may
stay the effectiveness thereof for a longer period.
(1969, P.A. 665, S. 16; P.A. 76-436, S. 633, 681; P.A. 77-603, S. 118, 125; 77-614, S. 163, 610; P.A. 78-331, S. 35,
58; P.A. 80-482, S. 314, 348; P.A. 88-317, S. 38, 107.)
History: P.A. 76-436 replaced court of common pleas with superior court in Subsec. (d), effective July 1, 1978; P.A.
77-603 replaced previous detailed appeal provisions with statement requiring that appeals be made in accordance with
Sec. 4-183; P.A. 77-614 placed insurance commissioner within the department of business regulation and made insurance
department a division within that department, effective January 1, 1979; P.A. 78-331 made technical correction in Subsec.
(d); P.A. 80-482 restored insurance commissioner and division to prior independent status and abolished the department
of business regulation; P.A. 88-317 amended Subdiv. (7) of Subsec. (d) by repealing sentence after "4-183" which stated:
"Such appeal may be filed at any time before the effective date of such finding, determination, rule, ruling or order",
effective July 1, 1989, and applicable to all agency proceedings commencing on or after that date; Sec. 38-201p transferred
to sec. 38a-678 in 1991.
Annotations to former sections 38-192 and 38-201:
On appeal from order of insurance commissioner involving the rejection of a proposal for a change in the filings by a
workmen's compensation rating organization, the court determines, on the basis of the record before the commissioner,
whether the appellants have sustained the burden of proving that the action of the commissioner was either contrary to
some statute or rule of law or so arbitrary and unreasonable as to amount to an abuse of his discretion. 152 C. 617, 618.
Power of commissioner to approve a filing and to order a workmen's compensation rating organization, which had rejected
the proposal for such filing, to add it to its filings, was conditioned on conformity to section 38-187. Id., 620, 621.
Commissioner's approval of a wrap-up plan and order to National Council on Compensation Insurance to add it to its
filings upheld as in his power under this section. 26 CS 419.
Annotation to former section 38-201p:
Cited. 169 C. 267, 303.
Sec. 38a-679. (Formerly Sec. 38-201q). Withholding or giving of false or misleading information. No person, insurer or organization shall wilfully withhold information from, or knowingly give false or misleading information to the Insurance Commissioner or to any rating organization, advisory organization, insurer or group,
association or other organization of insurers, which affect the rates, rating systems or
premiums for the classes of insurance to which the provisions of sections 38a-663 to
38a-681, inclusive, are applicable.
(1969, P.A. 665, S. 17; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 315, 348.)
History: P.A. 77-614 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. 38-201q transferred to
Sec. 38a-679 in 1991.
Sec. 38a-680. (Formerly Sec. 38-201r). Penalties. Any person, insurer, organization, group or association that fails to comply with the final order of the Insurance
Commissioner pursuant to sections 38a-663 to 38a-696, inclusive, shall be fined not
more than one thousand dollars, but if such failure be wilful, not more than ten thousand
dollars, or imprisoned not more than one year or both. The commissioner shall collect
the amount so payable and such penalties may be in addition to any other penalties
provided by law.
(1969, P.A. 665, S. 18; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 316, 348; P.A. 82-353, S. 20; P.A. 01-174, S. 15;
P.A. 02-24, S. 3.)
History: P.A. 77-614 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; P.A. 82-353 increased maximum fines from fifty dollars to one thousand dollars and in the case of a wilful violation, from five to ten thousand dollars;
Sec. 38-201r transferred to Sec. 38a-680 in 1991; P.A. 01-174 substituted reference to Sec. 38a-696 for Sec. 38a-697; P.A.
02-24 substituted "that" for "who".
Sec. 38a-681. (Formerly Sec. 38-201s). Payment of dividends, savings and unabsorbed premium deposits excepted. Nothing in sections 38a-663 to 38a-681, inclusive, shall be construed to prohibit or regulate the payment of dividends, savings or
unabsorbed premium deposits allowed or returned by insurers to their policyholders,
members or subscribers. A plan for the payment of dividends, savings or unabsorbed
premium deposits allowed or returned by insurers to their policyholders, members or
subscribers shall not be deemed a rating plan or system.
(1969, P.A. 665, S. 19.)
History: Sec. 38-201s transferred to Sec. 38a-681 in 1991.
Sec. 38a-682. (Formerly Sec. 38-201t). Rate credit for driver training courses.
If any insurance company licensed to do business in this state allows a rate credit or
deviation in motor vehicle insurance premium charges for persons successfully completing a full course of study of motor vehicle operation in a public secondary school, a
state vocational school or a private secondary school, as approved by the Commissioner
of Motor Vehicles in accordance with the provisions of section 14-36e, or training of a
similar nature provided by a licensed drivers' school approved by said commissioner,
including, in each case, successful completion of the required number of hours of classroom instruction and behind-the-wheel, on-the-road instruction, then such insurance
company shall give equal credit or deviation to all such persons.
(1969, P.A. 214; P.A. 99-232, S. 3.)
History: Sec. 38-201t transferred to Sec. 38a-682 in 1991; (Revisor's note: In 1997 a reference to "Motor Vehicle
Department" was replaced editorially by the Revisors with "Department of Motor Vehicles" for consistency with customary
statutory usage); P.A. 99-232 substituted requirement that if any insurance company allows a rate credit or deviation for
completion of a full course of study of motor vehicle operation in enumerated types of schools or similar training, as
approved by the Commissioner of Motor Vehicles, then such insurance company shall give equal credit or deviation to all
such persons, for prior requirement that any insurance company which allows a rate credit or deviation for persons successfully completing a secondary or vocational school driver education program shall give equal credit or deviation for persons
successfully completing a course offered by a full-time commercially operated driving school licensed by the Department
of Motor Vehicles which course consists of at least thirty classroom hours of instruction and six hours of behind-the-wheel
instruction.
Sec. 38a-683. (Formerly Sec. 38-201u). Premium discount for senior citizens
completing an accident prevention course. Regulations. (a) The premium charges
for a private passenger nonfleet automobile under an automobile liability or physical
damage insurance policy for any principal operator who has attained the age of sixty-two years and has submitted proof of successful completion of an accident prevention
course approved by the Commissioner of Motor Vehicles shall be appropriately modified to reflect such operator's reduced exposure to loss. Such course shall be completed
within one year prior to the initial application of the discount or, for subsequent applications of the discount, within one year of the expiration of the current discount period.
If proof of successful completion of such course is submitted during the term of a policy,
any premium modification shall become effective upon the next renewal. A minimum
discount of five per cent shall be applicable to premium charges for such automobile
for policies effective on and after July 1, 1983. The discount shall apply to the premium
charges for the automobile for at least twenty-four months. This section shall not apply
to any group automobile insurance policy issued pursuant to section 38a-803 under
which premiums are broadly averaged for the group rather than determined individually.
(b) The Commissioner of Motor Vehicles shall adopt regulations in accordance
with the provisions of chapter 54 concerning the content and other requirements of the
accident prevention course referred to in subsection (a) of this section, including, but
not limited to, the number of hours of classroom instruction, approval of schools and
instructors offering the course and certificate issuance upon successful completion.
(P.A. 82-352, S. 1-3; P.A. 83-182; P.A. 85-156, S. 4.)
History: P.A. 83-182 amended Subsec. (a) by requiring that an accident prevention course be completed within a certain
time in order for the premium discount to apply and by fixing the duration of the discount; P.A. 85-156 amended Subsec.
(a) to remove the time limitation on the availability of the premium discount; Sec. 38-201u transferred to Sec. 38a-683
in 1991.
Sec. 38a-684. (Formerly Sec. 38-201ee). Rate credit for safe boat handling
courses. Any insurer who delivers or issues for delivery in the state any policy, other
than homeowners, covering a motorboat used for recreational purposes and powered
by a motor in excess of five horsepower shall allow a rate credit when the principal
operator or operators has submitted to such insurer proof of successful completion of a
course in safe boat handling approved by the Commissioner of Environmental Protection
in accordance with section 15-133c or the provisions of section 15-133b. For policies
delivered or issued for delivery on or after January 1, 1983, and before January 1, 1986,
the credit shall be not less than five per cent of the premium for a period of two years
from the effective date of the policy.
(P.A. 82-421, S. 2, 4.)
History: Sec. 38-201ee transferred to Sec. 38a-684 in 1991.
Sec. 38a-685. (Formerly Sec. 38-201hh). Premium discount for motorcyclists
completing novice or advanced training course. Any insurer who delivers or issues
for delivery in this state liability insurance policies for motorcycles shall offer a premium
discount on any such policy to any principal operator of a motorcycle who submits to
such insurer proof of successful completion of the novice or advanced motorcycle training course offered by the Department of Transportation. A minimum discount of ten
per cent shall be applicable to premium charges for any such policy delivered, issued
for delivery or renewed on or after October 1, 1987, such discount to be applicable for
a period of five years from the original effective date of the discount. Such course shall
be completed within one year prior to the initial application of the discount or, for
subsequent applications of the discount, within one year prior to the expiration of the
current discount period. If proof of successful completion of such course is submitted
during the term of a policy, any premium modification shall become effective upon the
next renewal. The discount provided by this section shall not be applicable to physical
damage insurance coverage for motorcycles.
(P.A. 87-168.)
History: Sec. 38-201hh transferred to Sec. 38a-685 in 1991.
Sec. 38a-686. (Formerly Sec. 38-201v). Standards for the making and use of
rates re personal risk insurance. Regulations. The following standards, methods and
criteria shall apply to the making and use of rates pertaining to personal risk insurance:
(a) Rates shall not be excessive, inadequate or unfairly discriminatory.
(1) A rate in a competitive market is not excessive. A rate in a noncompetitive
market including a rate for insurance provided pursuant to sections 38a-328, 38a-329
and 38a-670 is excessive if it is unreasonably high for the insurance provided.
(2) No rate shall be held inadequate unless (A) it is unreasonably low for the insurance provided, and (B) continued use of it would endanger solvency of the insurer, or
unless (C) such rate is unreasonably low for the insurance provided and the use of such
rate by the insurer using same has, or, if continued will have, the effect of destroying
competition or creating a monopoly.
(b) In determining whether rates comply with the excessiveness standard in a noncompetitive market under subdivision (1) of subsection (a) of this section, the inadequacy standard under subdivision (2) of subsection (a) of this section and the requirement
that rates not be unfairly discriminatory, the following criteria shall apply:
(1) Consideration may be given, to the extent possible, to past and prospective loss
experience within and outside this state, to conflagration and catastrophe hazards, to a
reasonable margin for underwriting profit and contingencies, to past and prospective
expenses both country-wide and those specially applicable to this state, to investment
income earned or realized by insurers both from their unearned premium and loss reserve
funds, and to all other factors, including judgment factors, deemed relevant within and
outside this state and in the case of fire insurance rates, consideration may be given to
the experience of the fire insurance business during the most recent five-year period for
which such experience is available. Consideration may be given in the making and use
of rates to dividends, savings or unabsorbed premium deposits allowed or returned by
insurers to their policyholders, members or subscribers.
(2) The systems of expense provisions included in the rates for use by an insurer
or group of insurers may differ from those of other insurers or groups of insurers to
reflect the operating methods of any such insurer or group with respect to any kind of
insurance, or with respect to any subdivision or combination thereof.
(3) Risks may be grouped by classifications for the establishment of rates and minimum premiums, provided that with respect to private passenger nonfleet automobile
insurance, any change in territorial classifications shall be subject to prior approval by
the Insurance Commissioner, and provided no surcharge on any motor vehicle liability
or physical damage insurance premium may be assigned for (A) any accident involving
only property damage of one thousand dollars or less, or (B) the first accident involving
only property damage of more than one thousand dollars which would otherwise result
in a surcharge to the policy of the insured, within the experience period set forth in the
insurer's safe driver classification plan, or (C) any violation of section 14-219 unless
such violation results in the suspension or revocation of the operator's license under
section 14-111b, or (D) less than three violations of section 14-218a within any one-year period, or (E) any accident caused by an operator other than the named insured, a
relative residing in the named insured's household, or a person who customarily operates
the insured vehicle, or (F) the first or second accident within the current experience
period in relation to which the insured was not convicted of a moving traffic violation
and was not at fault, or (G) any motor vehicle infraction. Subparagraph (G) of this
subdivision shall not be applicable to any plan established pursuant to section 38a-329.
Classification rates may be modified to produce rates for individual risks in accordance
with rating plans which provide for recognition of variations in hazards or expense
provisions or both. Such rating plans may include application of the judgment of the
insurer and may measure any differences among risks that can be demonstrated to have
a probable effect upon losses or expenses.
(4) Each rating plan shall establish appropriate eligibility criteria for determining
significant risks which are to qualify under the plan. Rating plans which comply with
the provisions of this subdivision shall be deemed to produce rates which are not unfairly
discriminatory.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section, no
rate shall include any adjustment designed to recover underwriting or operating losses
incurred out-of-state.
(d) The commissioner may adopt regulations in accordance with the provisions of
chapter 54 concerning rating plans to effectuate the provisions of this section.
(P.A. 82-353, S. 5, 26; P.A. 84-165, S. 2; P.A. 85-45, S. 1; P.A. 86-254; P.A. 88-73, S. 4; P.A. 89-114, S. 2; 89-192,
S. 2; 89-193, S. 2.)
History: P.A. 82-353, S. 5, effective July 1, 1983; P.A. 84-165 amended Subsec. (b)(3) to increase minimum damage
requirement for premium surcharges from three hundred to six hundred dollars; P.A. 85-45 amended Subdiv. (3) of Subsec.
(b) to prohibit any premium surcharge based on an accident caused by someone other than the named insured, a resident
relative or a customary operator of the vehicle; P.A. 86-254 amended Subdiv. (3) of Subsec. (b) by adding Subpara. (E),
prohibiting surcharge for "any motor vehicle infraction", provided such prohibition shall not apply to plan established
pursuant to Sec. 38-185l; P.A. 88-73 amended Subdiv. (3) of Subsec. (b) to increase minimum property damage requirement
for premium surcharges from six hundred to one thousand dollars; P.A. 89-114 added Subsec. (c) providing that no rate
shall include any adjustment designed to recover underwriting or operating losses incurred out-of-state and redesignated
former Subdiv. (5) of Subsec. (b) as Subsec. (d); P.A. 89-192 added a new Subpara. in Subdiv. (3) of Subsec. (b) providing
that no surcharge may be assigned on an automobile insurance policy for the first or second accident within the current
experience period in which the insured was not convicted of a moving traffic violation and was not at fault and relettered
the remaining Subparas.; P.A. 89-193 added new Subpara. in Subdiv. (3) of Subsec. (b) providing that no surcharge on an
automobile insurance policy may be assigned for the first accident involving only property damage of more than one
thousand dollars which would otherwise result in a surcharge to the policy of the insured, within a certain experience period
and relettered the remaining Subparas.; Sec. 38-201v transferred to Sec. 38a-686 in 1991 (Revisor's note: In 1995 in
Subsec. (a) (1) the word "sections" was substituted editorially by the Revisors for the word "section" before the reference
to "38a-328, 38a-329 and 38a-670" for consistency of statutory reference).
See Sec. 38a-665 re standards for the making and use of rates for commercial risk insurance.
Subdiv. (b):
Subpara. (1) cited. 36 CA 587, 589.
Sec. 38a-687. (Formerly Sec. 38-201w). Existence of competitive market re
personal risk insurance. Determination of competition. Hearing. (a) With respect
to personal risk insurance, a competitive market is presumed to exist unless the commissioner, after hearing, determines that a reasonable degree of competition does not exist
in a market and issues a ruling to that effect. Any such ruling shall expire no later than
three years after the date of issue unless the commissioner renews the ruling after hearing
and a finding as to the continued lack of a reasonable degree of competition. After such
ruling has been in effect for a period of at least one year but not exceeding two years,
any insurance company may make written request to the commissioner for a hearing at
which it or any of the insurance companies affected by the ruling may present evidence
that competition exists in the affected market. The commissioner shall hold such hearing
within sixty days after receipt of the request. He shall provide written notice of the time
and place of the hearing to all insurance companies affected by the ruling at least fifteen
days in advance of such hearing. The commissioner shall issue his findings within thirty
days after such hearing. If the commissioner finds a continued lack of reasonable competition in the affected market, his original ruling shall remain in effect. If the commissioner
finds that a reasonable degree of competition exists in the affected market, his original
ruling shall expire immediately.
(b) In determining whether or not a reasonable degree of competition exists in a
market pursuant to subsection (a), the commissioner may define that market in terms
of a product market component and a geographic market component. The product market
component shall consist of identical or readily interchangeable products including, but
not limited to, consideration of coverage, policy terms, rate classifications and underwriting. The geographic market component shall consist of a geographical area in which
buyers have a reasonable degree of access to the insurance product through sales outlets
and other marketing mechanisms. In determining the geographic market component,
the commissioner shall consider existing marketing patterns. The commissioner may
consider relevant tests of workable competition pertaining to market structure, performance and conduct and the practical opportunities available to consumers in the market
to acquire pricing and other consumer information and to compare and obtain insurance
from competing insurers. Such tests may include, but are not limited to, the following:
Size and number of firms actively engaged in the market; market shares and changes
in market shares of firms, ease of entry and exit from a given market, underwriting
restriction or results, investment income earned or realized by insurers from both their
unearned premium and loss reserve funds for that market, availability of consumer information concerning the product and sales outlets or other sales mechanisms, and efforts
of insurers to provide consumer information. The determination of competition involves
the interaction of the various tests. The weight given to specific tests depends upon the
particular situation and pattern of test results.
(c) In determining whether or not a competitive market exists pursuant to subsection
(a), the commissioner shall monitor the degree of competition in this state. In doing
so, he shall utilize existing relevant information, analytical systems and other sources,
participate in or cause the development of new relevant information, analytical systems
and other sources or rely on some combination thereof. Such activities may be conducted
internally within the Insurance Department, in cooperation with other state insurance
departments, through outside contractors or in any other manner deemed appropriate
by the commissioner. For purposes of judicial review pursuant to the provisions of
section 4-183, the determination of whether or not a competitive market exists shall be
deemed to be a question of fact.
(d) For the purpose of determining whether a competitive market exists, the commissioner, in his discretion, may make such public or private investigations within or
outside this state as he deems necessary.
(e) For the purpose of any hearing or investigation under sections 38a-663 to 38a-696, inclusive, the commissioner or any officer designated by the commissioner may
administer oaths and affirmations, subpoena witnesses, compel their attendance, receive
oral and documentary evidence and require the production of any books, papers, correspondence, memoranda, agreements or other documents or records which the commissioner deems relevant or material to the inquiry.
(f) In case of a refusal of any person to comply with any subpoena issued hereunder
or to testify with respect to any matter concerning which he may be lawfully interrogated,
the superior court for the judicial district of Hartford, upon application by the commissioner, may issue an order requiring such person to comply with such subpoena or to
testify. Failure to obey the order of the court may be punished by the court as a contempt
of court.
(g) No person may be excused from attending and testifying or from producing any
document or record before the commissioner, or in obedience to the subpoena of the
commissioner or any officer designated by him, or in any proceeding instituted by the
commissioner, on the ground that the testimony or evidence, documentary or otherwise,
required of him may tend to incriminate him or subject him to a penalty of forfeiture,
provided no individual may be prosecuted or subjected to any penalty or forfeiture for
or on account of any transaction, matter, or thing concerning which he is compelled,
after claiming his privilege against self-incrimination, to testify or produce evidence,
documentary or otherwise, except that the individual testifying is not exempt from prosecution and punishment for perjury or contempt committed in testifying.
(P.A. 82-353, S. 6, 26; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 95-220, S. 4-6; P.A. 01-174, S. 16.)
History: P.A. 82-353, S. 6, effective July 1, 1983; P.A. 88-230 replaced "judicial district of Hartford-New Britain" with
"judicial district of Hartford", effective September 1, 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from
September 1, 1991, to September 1, 1993; Sec. 38-201w transferred to Sec. 38a-687 in 1991; P.A. 93-142 changed the
effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; P.A. 95-220 changed
the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective July 1, 1995; P.A. 01-174
amended Subsec. (e) to substitute reference to Sec. 38a-696 for Sec. 38a-697 and make a technical change for the purpose
of gender neutrality.
Sec. 38a-688. (Formerly Sec. 38-201x). Review of rates re personal risk insurance and residual markets in competitive or noncompetitive markets. (a) The following procedures shall apply with respect to rates pertaining to personal risk insurance
and residual markets:
(1) In a competitive market, every insurer shall file with the commissioner all rates
and supplementary rate information to be used in this state, provided that such rates and
information need not be filed for inland marine risks which by general custom of the
business are not written according to manual rules or rating plans. No such filings may
be made by a rating organization on behalf of any insurer. Such rates and supplementary
rate information shall be filed by the effective date of the filing or the date that premium
billing notices reflecting the new rates are sent to insureds or agents, whichever is earlier.
In a competitive market, if the commissioner finds, after a hearing, that an insurer's
rates require closer supervision because of the insurer's financial condition or unfairly
discriminatory rating practices, the insurer shall file with the commissioner at least thirty
days before the effective date, all such rates and such supplementary rate information
and supporting information as prescribed by the commissioner. Upon application by
the filer, the commissioner may authorize an earlier effective date for the filing.
(2) In a noncompetitive market, every insurer shall file with the commissioner all
rates and supplementary rate information for that market and such supporting information as is required by the commissioner. For purposes of subsection (d) of section 7-479e,
sections 38a-341, 38a-387, 38a-665, subsection (b) of section 38a-672, and sections
38a-673, 38a-675, 38a-676 and 38a-686 to 38a-694, inclusive, residual markets, title
insurance and credit property insurance are deemed to be noncompetitive markets. All
rates and supplementary rate information and such supporting information as is required
by the commissioner, shall also be filed with the commissioner for insurance provided
pursuant to section 38a-328, 38a-329 or 38a-670. Such rates and supplementary rate
information and supporting information required by the commissioner shall be on file
with the commissioner for a waiting period of thirty days before it becomes effective,
which period may be extended by the commissioner for an additional period not to
exceed thirty days if the commissioner gives written notice within such waiting period
to the insurer or rating organization which made the filing that the commissioner needs
such additional time for the consideration of such filing. Upon written application by
such insurer or rating organization, the commissioner may authorize a filing which the
commissioner has reviewed to become effective before the expiration of the waiting
period or any extension thereof. A filing shall be deemed to meet the requirements of
sections 38a-663 to 38a-696, inclusive, unless disapproved by the commissioner within
the waiting period or any extension thereof. If, within the waiting period or any extension
thereof, the commissioner finds that a filing does not meet the requirements of sections
38a-663 to 38a-696, inclusive, the commissioner shall send to the insurer or rating
organization which made such filing written notice of disapproval of such filing, specifying therein in what respects the commissioner finds such filing fails to meet the requirements of sections 38a-663 to 38a-696, inclusive, and stating that such filing shall not
become effective. Such finding of the commissioner shall be subject to review as provided in section 38a-19.
(3) An insurer may file rates by reference, with or without deviation, to rates charged
by another insurer which were filed and are in effect if the insurer's direct written premium for the applicable line of insurance is less than one-half of one per cent of the
total state-wide direct written premium for that line, as determined from the annual
statements filed by insurers licensed to do business in this state and as calculated by
the National Association of Insurance Commissioners from its data base. Supporting
information shall not be required for rates filed by reference pursuant to this subsection.
For purposes of this subdivision the term "insurer" shall include two or more admitted
insurers having a common ownership or operating in this state under common management or control.
(4) Rates filed pursuant to this section shall be filed in such form and manner as is
prescribed by the commissioner. Whenever a filing made pursuant to subdivision (1)
or (2) of subsection (a) of this section is not accompanied by the information upon
which the insurer supports such filing and the commissioner does not have sufficient
information to determine whether such filing meets the requirements of sections 38a-663 to 38a-696, inclusive, the commissioner shall require such insurer to furnish the
information upon which it supports such filing and in such event the waiting period
shall commence as of the date such information is furnished. The information furnished
in support of a filing may include (A) the experience or judgment of the insurer making
the filing, (B) its interpretation of any statistical data it relies upon, (C) the experience
of other insurers, or (D) any other relevant factors.
(5) All rates, supplementary rate information and any supporting information for
risks filed under subsection (d) of section 7-479e, sections 38a-341, 38a-387, 38a-665,
subsection (b) of section 38a-672, and sections 38a-673, 38a-675, 38a-676 and 38a-686
to 38a-694, inclusive, shall, as soon as filed, be open to public inspection at any reasonable time. Copies may be obtained by any person on request and upon payment of a
reasonable charge.
(b) Rates for insurance described in subsection (a) of this section shall be subject
to review as follows:
(1) Rates subject to prefiling under subdivision (1) or (2) of subsection (a) of this
section may be reviewed and disapproved before their effective date, except that rates
for insurance provided pursuant to section 38a-328, 38a-329 and 38a-670 shall not be
effective until approved by the commissioner. Any rate may be reviewed and disapproved subsequent to its effective date.
(2) The commissioner may disapprove a rate if the insurer fails to comply with the
filing requirements of this section. The commissioner shall disapprove a rate for use in
a competitive market if he finds that the rate is inadequate or unfairly discriminatory
under subsection (a) of section 38a-686. The commissioner shall disapprove a rate for
use in a noncompetitive or residual market if he finds the rate is excessive, inadequate
or unfairly discriminatory under subsection (a) of section 38a-686.
(3) If the commissioner finds that a reasonable degree of competition does not exist
in a market in accordance with section 38a-687, he may require that the insurers in that
market file supporting information with respect to existing rates. If the commissioner
believes that such rates may violate any of the requirements of subsection (d) of section 7-479e, sections 38a-341, 38a-387, 38a-665, subsection (b) of section 38a-672, or sections
38a-673, 38a-675, 38a-676, or 38a-686 to 38a-694, inclusive, he may proceed as provided in section 38a-678. If the commissioner believes that rates in a competitive market
violate the inadequacy or unfair discrimination standards in section 38a-686 or any other
applicable requirement of subsection (d) of section 7-479e, section 38a-341, 38a-387,
38a-665, subsection (b) of section 38a-672, or sections 38a-673, 38a-675, 38a-676, or
38a-686 to 38a-694, inclusive, he may require the insurers in that market to file supporting information with respect to existing rates. If after reviewing the supporting information, the commissioner continues to believe that such rates may violate these requirements, he may proceed as provided in section 38a-678. The commissioner may
disapprove, without hearing, rates prefiled pursuant to subdivision (1) or (2) of subsection (a) of this section that have not become effective, provided that the insurer whose
rates have been disapproved shall be given a hearing pursuant to section 38a-19.
(4) If the commissioner disapproves a rate, he shall issue an order specifying the
respects in which it fails to meet the requirements of subsection (d) of section 7-479e,
section 38a-341, 38a-387, 38a-665, subsection (b) of section 38a-672, and sections 38a-673, 38a-675, 38a-676, and 38a-686 to 38a-694, inclusive. For rates in effect at the time
of the disapproval, the commissioner shall state, within a reasonable period of time,
when the further use of such rate in contracts of insurance made thereafter shall be
prohibited. The order shall be issued within thirty days after the hearing or within such
reasonable time extension as the commissioner may determine. Such order may include
a provision for premium adjustment for the period after the effective date of the order
for policies in effect on such date.
(5) Whenever an insurer has no legally effective rates as a result of the commissioner's disapproval of rates or other act, the commissioner shall specify interim rates. Upon
appeal from any such order of the commissioner the court may, upon request of the
appealing insurer, stay such order, provided that the insurer places in an escrow account
the difference, as received, between the disapproved rates and the interim rates specified
by the commissioner. When new rates become legally effective, the commissioner shall
order the escrowed funds to be distributed appropriately, with interest at the legal rate
as provided in section 37-1, except that minimal refunds to policyholders are not required
to be distributed.
(P.A. 82-353, S. 11, 26; P.A. 92-60, S. 21; P.A. 93-297, S. 16, 29; P.A. 01-174, S. 17.)
History: P.A. 82-353, S. 11, effective July 1, 1983; Sec. 38-201x transferred to Sec. 38a-688 in 1991; P.A. 92-60 made
technical corrections for statutory consistency; P.A. 93-297 deleted references to repealed Sec. 38a-386, effective January
1, 1994, and applicable to acts or omissions occurring on or after said date; P.A. 01-174 amended Subsec. (a)(2) and (4)
to substitute references to Sec. 38a-696 for Sec. 38a-697 and make technical changes, including changes for the purpose
of gender neutrality.
See Sec. 38a-676 re review of rating plans and rules and form of commercial risk insurance contracts.
Sec. 38a-689. (Formerly Sec. 38-201y). Insurers issuing homeowners policies
to file underwriting rules and regulations with commissioner. Approval procedure.
(a) Each insurance company which issues homeowners insurance policies in this state
shall file with the Insurance Commissioner the rules and regulations, or any modifications of such rules and regulations, used by such company to determine whether or not
to underwrite such policies.
(b) Such rules and regulations, or modification of such rules and regulations, shall
be on file with the commissioner for a waiting period of thirty days before they become
effective. The commissioner may extend the waiting period for an additional extension
period not to exceed thirty days if the commissioner gives the insurance company that
made the filing written notice within the waiting period. The written notice shall indicate
that the commissioner needs additional time to consider the filing. Upon written application by such insurance company, the commissioner may authorize a filing that the commissioner has reviewed to become effective before the expiration of the waiting period
or any extension period. A filing shall be deemed approved unless disapproved by the
commissioner within the waiting period or any extension period. If, within the waiting
period or any extension period, the commissioner disapproves the filing, the commissioner shall send the insurance company that made such filing written notice of disapproval, specifying the reasons for disapproval, and stating that such filing shall not
become effective. Such finding of the commissioner shall be subject to review as provided in section 38a-19.
(P.A. 82-353, S. 21; P.A. 00-7, S. 2.)
History: Sec. 38-201y transferred to Sec. 38a-689 in 1991; P.A. 00-7 designated existing language as Subsec. (a),
deleted "On or before January 1, 1983", rewrote section and deleted reference that modification of rules and regulations
be on file with the commissioner for a thirty day waiting period, and added new Subsec. (b) concerning waiting period for
approval, extension period and disapproval re rules, regulations and modifications of rules and regulations.
Sec. 38a-690. (Formerly Sec. 38-201z). Commissioner to approve statistical
plan for workers' compensation insurance. The Insurance Commissioner shall approve a uniform statistical plan for workers' compensation and employers' liability
insurance which shall thereafter be used by all insurers writing such insurance.
(P.A. 82-353, S. 22.)
History: Sec. 38-201z transferred to Sec. 38a-690 in 1991.
Sec. 38a-691. (Formerly Sec. 38-201aa). Commissioner to develop consumer
information system for personal risk insurance needs. The commissioner is authorized to utilize, develop or cause to be developed a consumer information system which
will provide and disseminate price and other relevant information on a readily available
basis to purchasers with personal risk insurance needs. Such activity may be conducted
internally within the Insurance Department, in cooperation with other state insurance
departments, through outside contractors or in any other manner deemed appropriate
by the commissioner. To the extent deemed necessary and appropriate by the commissioner, insurers, advisory organizations and other persons or organizations involved in
conducting the business of insurance in this state to which this section applies shall
cooperate in the development and utilization of a consumer information system. The
provisions of this section shall not limit the authority of the commissioner with respect
to commercial risk insurance.
(P.A. 82-353, S. 18.)
History: Sec. 38-201aa transferred to Sec. 38a-691 in 1991.
Sec. 38a-692. (Formerly Sec. 38-201bb). Rulings by commissioner exempting
market. The commissioner may on the commissioner's own initiative or upon request
of any person, issue a ruling, exempting any market from any or all of the provisions
of subsection (d) of section 7-479e, section 38a-341, subsection (a) of section 38a-343, sections 38a-358, 38a-387, 38a-663, 38a-665, subsection (b) of section 38a-672,
sections 38a-673, 38a-675, 38a-676, 38a-680, 38a-686 to 38a-694, inclusive, and subdivision (9) of section 38a-816, if and to the extent that the commissioner finds their
application unnecessary to achieve the purpose of sections 38a-663 to 38a-696, inclusive.
(P.A. 82-353, S. 23; P.A. 01-174, S. 18.)
History: Sec. 38-201bb transferred to Sec. 38a-692 in 1991 (Revisor's note: In 1995 the reference to Sec. "38a-386"
was deleted editorially by the Revisors to reflect the repeal of that section by public act 93-297, S. 28); P.A. 01-174
substituted reference to Sec. 38a-696 for Sec. 38a-697 and made technical changes for the purpose of gender neutrality.
Sec. 38a-693. (Formerly Sec. 38-201cc). Regulations. The Insurance Commissioner may adopt regulations in accordance with the provisions of chapter 54, as he
deems necessary to effectuate the purposes of sections 38a-341, 38a-358, 38a-672, 38a-673, 38a-676, 38a-686 to 38a-689, inclusive, 38a-691, 38a-692 and 38a-694.
(P.A. 82-353, S. 24; P.A. 89-65, S. 3.)
History: P.A. 89-65 authorized the commissioner to adopt regulations to carry out the purposes of Secs. 38-201j and
38-201k; Sec. 38-201cc transferred to Sec. 38a-693 in 1991.
Sec. 38a-694. (Formerly Sec. 38-201dd). Legislative finding. Deregulation. It
is found and declared that the purposes of subsection (d) of section 7-479e, section 38a-341, subsection (a) of section 38a-343, sections 38a-358, 38a-387, 38a-663, 38a-665,
subsection (b) of section 38a-672, sections 38a-673, 38a-675, 38a-676, 38a-680, 38a-686 to 38a-694, inclusive, and subdivision (9) of section 38a-816, are: (1) To prohibit
noncompetitive behavior by insurers; (2) to protect policyholders and the public against
the adverse effects of excessive, inadequate or unfairly discriminatory rates; (3) to promote price competition among insurers so as to provide rates which are responsive
to competitive market conditions; (4) to promote sufficient consumer activity in the
marketplace in order to generate a regulatory effect on price; (5) to improve availability,
fairness and reliability of insurance; (6) to authorize essential cooperative action among
insurers in the rate- making process and to regulate such activity to prevent practices
that tend to substantially reduce competition or create a monopoly; (7) to encourage
the most efficient and economic marketing practices; (8) to provide price and other
information to enable consumers to purchase insurance suitable for their needs and to
foster competitive insurance markets; and (9) to provide the Insurance Commissioner
with authority to impose regulatory controls in the event that the other purposes are not
accomplished.
(P.A. 82-353, S. 1.)
History: Sec. 38-201dd transferred to Sec. 38a-694 in 1991 (Revisor's note: In 1995 the reference to Sec. "38a-386"
was deleted editorially by the Revisors to reflect the repeal of that section by public act 93-297, S. 28 and in 1999 the
reference to Sec. "37a-676" was changed to "38a-676" to correct a typographical error).
Sec. 38a-695. (Formerly Sec. 38-201ff). Effective dates for revised insurance
rates and supplementary rate information. Whenever a filing is submitted by an
insurer to the Insurance Commissioner to revise the rates or supplementary rate information applicable to any policy subject to the provisions of sections 38a-663 to 38a-696,
inclusive, the filing shall specify an effective date, provided the filing may specify
separate effective dates for new business and renewal business. Such rates or supplementary rate information shall only apply to policies with an inception, continuation, or
renewal effective date on or after the appropriate filing effective date, regardless of the
date the policy is written, issued, processed or delivered. If either a coverage is changed
or an exposure is added during the policy period, the insurer shall specify, at the time
of the original filing, whether the applicable rates will be (1) the rates in effect at the
beginning of the policy period, or (2) the rates in effect on the effective date of the
change in coverage or the addition in exposure. If the latter rates are specified, such
rates shall apply only to the changed coverage or the added exposure.
(P.A. 86-34, S. 1, 2; P.A. 01-174, S. 19.)
History: Sec. 38-201ff transferred to Sec. 38a-695 in 1991; P.A. 01-174 substituted "38a-696" for "38a-697" and
substituted "the filing" for "it".
Sec. 38a-696. (Formerly Sec. 38-201ii). Annual report of commercial risk insurance writings and experience. Required financial data. Compilation by commissioner. (a) For purposes of this section:
(1) "Company" means an individual company, not part of a company group, licensed to write property or casualty insurance in the state of Connecticut. It does not
include surplus lines companies; and
(2) "Company group" means a group of commonly owned companies, or companies
under common management and control, that are licensed to write property or casualty
insurance in the state of Connecticut. It does not include surplus lines companies.
(b) Annually, on or before June first, each company or company group writing
commercial risk insurance in this state shall submit to the Insurance Commissioner, in
a form required by the commissioner, a report showing its commercial risk insurance
writings and experience for the preceding calendar year in this state and country-wide.
Such report shall be based on the coding of business to line and class in accordance with
currently filed and approved accounting rules and statistical plans. Such report shall
consist of the information required by subsection (c) of this section for the following lines
and classes of insurance written by such company or company group: (1) Commercial
automobile insurance, personal injury protection; (2) other commercial automobile insurance liability; (3) product liability insurance; (4) medical malpractice insurance; (5)
other liability insurance as follows: (A) Municipal liability, (B) liquor liability, and (C)
day care center liability; and (6) any other commercial liability line described as such
in the annual statement or any other class of insurance designated by the commissioner.
(c) Reports filed pursuant to subsection (b) of this section shall include the following
data, both specific to the state and country-wide, on a calendar year basis by the type
of insurance for the previous calendar year ending on the thirty-first day of December
next preceding. Such data includes: (1) Direct premiums written; (2) direct premiums
earned; (3) incurred loss and loss adjustment expense; (4) incurred expenses; and (5)
policyholder dividends. For purposes of this subsection, estimates may be used where
credible data are unavailable.
(d) The report may be submitted to the commissioner by a licensed rating or advisory
organization on behalf of the insurer or insurer group.
(e) The Insurance Commissioner shall annually compile and summarize all reports
submitted to the commissioner pursuant to subsection (b) of this section. The commissioner's compilation shall be published and made available to any interested resident
of this state upon written request to the commissioner.
(P.A. 87-515, S. 2, 4; P.A. 93-297, S. 17, 29; P.A. 01-174, S. 2.)
History: Sec. 38-201ii transferred to Sec. 38a-696 in 1991; P.A. 93-297 amended Subsec. (b) to delete in Subdiv. (1)
the term "no-fault" in description of commercial automobile insurance, effective January 1, 1994, and applicable to acts
or omissions occurring on or after said date; P.A. 01-174 amended Subsec. (b)(6) to reference any other class of insurance
designated by the commissioner and delete "after notice and hearing", amended Subsec. (c)(3) to substitute "loss adjustment
expense" for "loss expense" and to delete Subparas. (A) to (H) re calculation of incurred loss and loss adjustment expense,
deleted multiple criteria in Subsec. (c)(4), deleted Subdivs. (c)(6) to (10), inserted new Subsec. (d) re reports submitted
by a licensed rating or advisory organization, redesignated existing Subsec. (d) as Subsec. (e) and made technical changes,
including changes for purposes of gender neutrality, in Subsecs. (b) and (e).