OLR Bill Analysis

SB 438

AN ACT CONCERNING STATEMENTS MADE IN APPLICATIONS FOR INDIVIDUAL HEALTH INSURANCE POLICIES.

SUMMARY:

This bill specifies that insurers cannot deny coverage under an individual health insurance policy because of a false statement in the insurance application unless the (1) applicant knew or should have known that the statement was false (presumably at the time the application was completed) and (2) the misstatement is material (i. e. , affected how the insurer acted on the application). Under current law, insurers may deny coverage if the misstatement is material.

EFFECTIVE DATE: July 1, 2006

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable