History: P.A. 85-68 added Subsec. (b), requiring insurers to give notice to insureds of the availability of such coverage
at the time of initial renewal in 1986; Sec. 38-175t transferred to Sec. 38a-339 in 1991; P.A. 03-199 amended Subsec. (a)
to substitute "Each" for "Any" and delete reference to policies on or after October 1, 1979, and amended Subsec. (b) to
delete reference to policy renewal during 1986; P.A. 05-140 deleted Subsec. (a) designator and former Subsec. (b) re notice
of availability of safety glass coverage.
Sec. 38a-343. (Formerly Sec. 38-175h). Receipt of cancellation notice. Reason
for cancellation. Notice of cancellation. Requirements. (a) No notice of cancellation
of a policy to which section 38a-342 applies may be effective unless sent, by registered
or certified mail or by mail evidenced by a certificate of mailing, or delivered by the
insurer to the named insured, and any third party designated pursuant to section 38a-323a, at least forty-five days before the effective date of cancellation, except that (1)
where cancellation is for nonpayment of the first premium on a new policy, at least
fifteen days' notice of cancellation accompanied by the reason for cancellation shall be
given, and (2) where cancellation is for nonpayment of any other premium, at least ten
days' notice of cancellation accompanied by the reason for cancellation shall be given.
No notice of cancellation of a policy which has been in effect for less than sixty days
may be effective unless mailed or delivered by the insurer to the insured and any third
party designee at least forty-five days before the effective date of cancellation, provided
(A) at least fifteen days' notice shall be given where cancellation is for nonpayment of
the first premium on a new policy, and (B) at least ten days' notice shall be given where
cancellation is for nonpayment of any other premium or material misrepresentation.
The notice of cancellation shall state or be accompanied by a statement specifying the
reason for such cancellation. Any notice of cancellation for nonpayment of the first
premium on a new policy may be retroactive to the effective date of such policy, provided
at least fifteen days' notice has been given to the insured and any third party designee
and payment of such premium has not been received during such notice period.
(b) Where a private passenger motor vehicle liability insurance company sends a
notice of cancellation under subsection (a) of this section to the named insured of a
private passenger motor vehicle liability insurance policy, or a third party designee,
such company shall provide with such notice a warning, in a form approved by the
Commissioner of Motor Vehicles and the Insurance Commissioner, which informs the
named insured that (1) the cancellation will be reported to the Commissioner of Motor
Vehicles; (2) the named insured may be receiving one or more mail inquiries from
the Commissioner of Motor Vehicles, concerning whether or not required insurance
coverage is being maintained, and that the named insured must respond to these inquiries; (3) if the required insurance coverage lapses at any time, the Commissioner of Motor
Vehicles may suspend the registration or registrations for the vehicle or vehicles under
the policy and the number plates will be subject to confiscation and any person operating
any such vehicle will be subject to legal penalties for operating a motor vehicle with a
suspended registration; (4) the named insured will not be able to have the registration
restored or obtain a new registration, or any other registration or renewal in the insured's
name, except upon presentation to the Commissioner of Motor Vehicles of evidence of
required security or coverage and the entering into of a consent agreement with the
commissioner in accordance with the provisions of section 14-12g.
(c) This section shall not apply to nonrenewal.
(1969, P.A. 809, S. 3; P.A. 77-199, S. 4, 12; P.A. 81-289, S. 2; P.A. 82-353, S. 2; P.A. 86-95, S. 1; P.A. 93-298, S. 1,
11; P.A. 98-80, S. 2; P.A. 02-60, S. 2; P.A. 04-10, S. 6; P.A. 05-282, S. 5.)
History: P.A. 77-199 required thirty, rather than twenty, days' notice of cancellation and made notification of reason
for cancellation mandatory in all cases where previously cancellation notice could simply inform insured that reason would
be given "upon written request ... mailed or delivered to the insurer not less than fifteen days next preceding the effective
date of cancellation" in Subsec. (a), deleted Subsec. (b) which had repeated provision of Subsec. (a) re insured's request
for reason for cancellation and relettered former Subsec. (c) accordingly; P.A. 81-289 specified that notice of cancellation
for automobile insurance policies be sent by registered or certified mail or by mail evidenced by certificate of mailing;
P.A. 82-353 amended Subsec. (a), adding a provision concerning cancellation notices for policies in effect for less than sixty
days; P.A. 86-95 increased the notice of cancellation requirement from thirty to forty-five days; Sec. 38-175h transferred to
Sec. 38a-343 in 1991; P.A. 93-298 inserted new Subsec. (b) detailing the cancellation procedure required when a private
passenger motor vehicle liability insurer sends a cancellation notice and relettered former Subsec. (b) accordingly, effective
January 1, 1994; P.A. 98-80 amended Subsec. (a) to insert designators (1), (2), (A) and (B), to require notice of cancellation
based on nonpayment of the first premium on a new policy to be at least fifteen days, retaining ten days' notice for other
reasons, and to allow notice of cancellation for nonpayment of first premium on a new policy to be retroactive to the
effective date of the policy, provided fifteen days' notice is given and no payment is received; P.A. 02-60 added references
to a third party designated pursuant to Sec. 38a-323, substituted "for cancellation" for "thereof", "the insured's" for "his"
and "provided" for "provided that" and, in Subsec. (b)(4), inserted a comma; P.A. 04-10 made a technical change in Subsec.
(a); P.A. 05-282 amended Subsec. (b) by changing "will" to "may" and "will cancel" to "may suspend", replacing provision
re operation of unregistered motor vehicle with provision re operating a motor vehicle with a suspended registration,
replacing provision re payment of fees for restoration, confiscation and posting of financial responsibility for one year with
provision making restoration of registration or new or renewal registration contingent upon presentation to Commissioner of
Motor Vehicles of evidence of required security or coverage and entering into consent agreement as provided in Sec. 14-12g.
Subsec. (a):
Statute only requires certificate of mailing as proof of mailing cancellation notice and does not require firsthand testimony verifying actual delivery to post office, or proof of actual delivery to insured. 275 C. 408.
Sec. 38a-343a. Notification of Commissioner of Motor Vehicles of the cancellation of private passenger motor vehicle liability insurance policies. When. (a) Each
insurance company which issues private passenger motor vehicle liability insurance
policies in this state shall, each month, on a date specified by the commissioner, notify
the Commissioner of Motor Vehicles of the cancellation by the insurance company of
all such policies which occurred during the preceding month. The notice required shall
include the name of the named insured in the policy, the policy number, the vehicle
identification number of each automobile covered by the policy and the effective date
of the policy's cancellation. The commissioner shall specify an acceptable method of
notification. The method of notification specified may include computer tapes or electronic transmission. The failure of an insurance company to comply with the requirements of this section shall not affect the cancellation of any private passenger motor
vehicle liability insurance policy.
(b) The Commissioner of Motor Vehicles shall receive or accept all notices of policy
cancellation from private passenger motor vehicle liability insurance companies, as
required pursuant to subsection (a) of this section. The commissioner shall review and
analyze the cancellation data submitted, together with such other information as he may
obtain from the private passenger motor vehicle liability insurance companies, from the
records of the Department of Motor Vehicles, or from any other public or private agency
or firm in possession of relevant information, for the purpose of determining whether
any registered owner identified in any such notice has failed to continuously maintain
insurance coverage in violation of sections 14-12c and 38a-371. In conducting such an
inquiry to determine insured status, the commissioner may contact registered vehicle
owners by mail and require that such mail inquiries be answered in not less than thirty
days, in a satisfactory manner containing such information and verification of insurance
coverage as the commissioner shall deem necessary and acceptable.
(P.A. 93-298, S. 2, 11; Oct. 25 Sp. Sess. P.A. 05-3, S. 2.)
History: P.A. 93-298 effective January 1, 1994; Oct. 25 Sp. Sess. P.A. 05-3 amended Subsec. (a) to eliminate proviso
that no notification shall be made for any cancellation of any policy of commercial insurance, effective January 1, 2006.
PART III
NO-FAULT MOTOR VEHICLE INSURANCE
Sec. 38a-363. (Formerly Sec. 38-319). Definitions. As used in sections 38a-17,
38a-19 and 38a-363 to 38a-388, inclusive:
(a) "Injury" means bodily injury, sickness or disease, including death resulting
therefrom, accidentally caused and arising out of the ownership, maintenance or use of
a private passenger motor vehicle or a vehicle with a commercial registration, as defined
in subdivision (14) of subsection (a) of section 14-1.
(b) "Insurer" or "insurance company" includes a self-insurer and a person having
the rights and obligations of an insurer under sections 38a-19 and 38a-363 to 38a-388,
inclusive, as provided by section 38a-371.
(c) "Occupying" a vehicle means to be in or upon or entering into or alighting from
the vehicle.
(d) "Owner" of a private passenger motor vehicle means the person who owns the
legal title thereto, except where the motor vehicle is the subject of a security agreement
or lease with option to purchase with the debtor or lessee having the right to possession,
in which event "owner" means the debtor or lessee.
(e) "Private passenger motor vehicle" means a: (1) Private passenger type automobile; (2) station-wagon-type automobile; (3) camper-type motor vehicle; (4) high-mileage-type motor vehicle, as defined in section 14-1; (5) truck-type motor vehicle with a
load capacity of fifteen hundred pounds or less, registered as a passenger motor vehicle,
as defined in said section, or as a passenger and commercial motor vehicle, as defined
in said section, or used for farming purposes; or (6) a vehicle with a commercial registration, as defined in subdivision (12) of said section. It does not include a motorcycle or
motor vehicle used as a public or livery conveyance.
(f) "Relative" of a person means one who is related to the person by blood, marriage
or adoption.
(g) "Use" of a motor vehicle includes the loading or unloading thereof.
(h) "Pedestrian" means any person not occupying a vehicle of any type other than
a vehicle designed to be drawn or driven by muscular power.
(1972, P.A. 273, S. 1; P.A. 74-17, S. 1, 2; P.A. 76-182, S. 1; P.A. 80-128; P.A. 81-394, S. 7; P.A. 84-429, S. 73; P.A.
93-297, S. 10, 29; P.A. 94-243, S. 4; P.A. 01-139, S. 5; P.A. 05-288, S. 142.)
History: P.A. 74-17 defined "pedestrian" in new Subdiv. (l); P.A. 76-182 redefined "economic loss" to include losses
incurred by persons unemployed at time of accident, i.e. equivalency of unemployment compensation benefits; P.A. 80-128 redefined "private passenger motor vehicle"; P.A. 81-394 amended Subdiv. (g) to include a high-mileage type motor
vehicle within the definition of "private passenger motor vehicle"; P.A. 84-429 made technical changes for statutory
consistency; Sec. 38-319 transferred to Sec. 38a-363 in 1991; P.A. 93-297 deleted definitions of "basic reparations insured",
"economic loss", "added reparations benefits" and "basic reparations benefits" and relettered the remaining Subdivs.
accordingly, effective January 1, 1994, and applicable to acts or omissions occurring on or after said date; P.A. 94-243
redefined "injury" to include injuries involving vehicles with commercial registrations and redefined "private passenger
motor vehicle" to include vehicles with commercial registrations; P.A. 01-139 applied definitions to Sec. 38a-17, and
applied definition of an "insurer" to an "insurance company"; P.A. 05-288 made a technical change in Subdiv. (a), effective
July 13, 2005.
Sec. 38a-371. (Formerly Sec. 38-327). Mandatory security requirements.
(a)(1) The owner of a private passenger motor vehicle required to be registered in this
state shall provide and continuously maintain throughout the registration period security
in accordance with sections 38a-334 to 38a-343, inclusive. (2) The owner of a private
passenger motor vehicle not required to be registered in this state shall maintain security
in accordance with this section, in effect continuously throughout the period of its operation, maintenance or use as a motor vehicle within this state with respect to accidents
occurring in this state.
(b) The security required by this section, may be provided by a policy of insurance
complying with this section issued by or on behalf of an insurer licensed to transact
business in this state or, if the vehicle is registered in another state, by a policy of
insurance issued by or on behalf of an insurer licensed to transact business in either this
state or the state in which the vehicle is registered.
(c) Subject to approval of the Insurance Commissioner the security required by this
section, may be provided by self-insurance by filing with the commissioner in satisfactory form: (1) A continuing undertaking by the owner or other appropriate person to
perform all obligations imposed by this section; (2) evidence that appropriate provision
exists for the prompt and efficient administration of all claims, benefits, and obligations
provided by this section; and (3) evidence that reliable financial arrangements, deposits
or commitments exist providing assurance for payment of all obligations imposed by
this section substantially equivalent to those afforded by a policy of insurance that would
comply with this section. A person who provides security under this subsection is a self-insurer. A municipality may provide the security required under this section by filing
with the commissioner a notice that it is a self-insurer.
(d) Except as provided in subsection (b) of section 14-213b, the owner of any private
passenger motor vehicle required to be registered in this state who operates it or permits
it to be operated in this state is guilty of a class C misdemeanor if he fails to provide
the security required by this section.
(e) An owner of a private passenger motor vehicle with respect to which security
is required who fails to have such security in effect at the time of an accident shall
have all of the rights and obligations of an insurer under sections 38a-363 to 38a-388,
inclusive, and shall remain subject to all the obligations of the Financial Responsibility
Law, sections 14-112 to 14-133, inclusive.
(f) Upon receipt of a signed written request for suspension from the owner of a
registered motor vehicle stating that such vehicle will not be operated upon any highway
during a period of not less than thirty consecutive days, the insurer of such vehicle shall
suspend, to the extent requested by the owner, insurance coverage afforded under the
policy providing the security required by sections 38a-363 to 38a-388, inclusive, for
such vehicle until notified by the owner that the coverage should be reinstated. During
the period of suspension only, the provisions of subsections (a) to (e), inclusive, of this
section shall not apply with respect to such vehicle, provided, if such vehicle is operated
upon any highway by or with the permission of the owner during the period of suspension, the provisions of said subsections (a) to (e), inclusive, of this section, shall thereupon become applicable. As used in this subsection, "highway" shall be defined as in
section 14-1. This subsection shall not apply to a motor vehicle for which proof of
financial responsibility is required under the provisions of sections 14-112 to 14-133,
inclusive.
(1972, P.A. 273, S. 9; P.A. 73-174, S. 1, 2; P.A. 74-13; 74-338, S. 4, 94; P.A. 75-567, S. 62, 80; P.A. 81-36; P.A. 82-145; P.A. 88-73, S. 2; P.A. 92-60, S. 8; P.A. 93-297, S. 12, 29; Oct. 25 Sp. Sess. P.A. 05-3, S. 3.)
History: P.A. 73-174 added Subsec. (f) re suspension of insurance; P.A. 74-13 deleted reference to car "owned by a
nonresident" in provision which requires that security be in effect with regard to cars not registered in state while operated
in Connecticut under Subsec. (a); P.A. 74-338 substituted reference to Sec. 14-133 for reference to Sec. 14-144 in Subsec.
(f); P.A. 75-567 substituted reference to Sec. 14-133 for reference to Sec. 14-144 in Subsec. (e); P.A. 81-36 required that
owners who are members of military service and who garage vehicle out-of-state provide security for payment of basic
reparations benefits only while vehicle is operated in this state; P.A. 82-145 permitted municipalities to provide the required
security by filing notice stating it is a self-insurer in Subsec. (c); P.A. 88-73 amended Subsec. (b) to require that the insurer
be licensed rather than authorized to transact business in this state; Sec. 38-327 transferred to Sec. 38a-371 in 1991; P.A.
92-60 made technical corrections for statutory consistency; P.A. 93-297 amended Subdiv. (1) of Subsec. (a) to require that
security be maintained "in accordance with sections 38a-334 to 38a-343, inclusive," rather than "in accordance with sections
38a-363 to 38a-388, inclusive, for payment of basic reparations benefits and the liabilities under residual liability insurance"
and delete provision re security and coverage required to be maintained by a member of the military service who garages
his vehicle outside of this state, amended Subdiv. (2) of Subsec. (a) to require that security be maintained in accordance
with "this section" rather than in accordance with "sections 38a-363 to 38a-388, inclusive", amended Subsec. (b) to replace
references to "sections 38a-363 to 38a-388, inclusive" with "this section", amended Subsec. (c) to replace references to
"sections 38a-363 to 38a-388, inclusive" with "this section" and delete provisions re payment of basic reparations benefits
and the liabilities covered by residual liability insurance, amended Subsec. (d) to replace reference to "sections 38a-363
to 38a-388, inclusive" with "this section" and delete requirement that owner "provide the proof of financial responsibility
required under section 14-112", amended Subsec. (e) to delete provision re personal liability of the owner for payment of
basic reparations benefits and amended Subsec. (f) to delete provisions re applicability of Sec. 38a-372 during the period
of suspension, effective January 1, 1994, and applicable to acts or omissions occurring on or after said date; Oct. 25 Sp.
Sess. P.A. 05-3 amended Subsec. (d) to add exception re Sec. 14-213b(b), effective January 1, 2006.
PART IV
PROFESSIONAL LIABILITY INSURANCE
Sec. 38a-394. (Formerly Sec. 38-370c). Mandatory provisions for professional
liability insurance policies issued on a claims-made basis. Additional requirements
for certain claims-made medical malpractice policies. (a) Each professional liability
insurance policy issued on a claims-made basis delivered, issued for delivery or renewed
in this state on or after October 1, 1978, shall contain (1) a provision for the purchase
of prior acts coverage, and (2) a contractual right of the insured to purchase at any time
during the policy period and not later than thirty days after termination of such policy
period equivalent coverage for all claims occurring during an insured policy period
regardless of when made.
(b) Each professional liability insurance policy issued on a claims-made basis delivered, issued for delivery or renewed in this state on or after October 1, 2005, to a physician
or surgeon, hospital, advanced practice registered nurse or physician assistant shall provide prior acts coverage and unlimited extended reporting period coverage without additional charge to the insured if, while the insured is covered under the policy, (1) the
insured dies, becomes permanently disabled and unable to carry out his or her practice,
or retires permanently from practice, or (2) the insurer discontinues offering such policy
in this state for any reason and the insured (A) is over the age of fifty-five, and (B) has
been insured by the insurer for the seven consecutive years immediately preceding the
discontinuance. Prior acts coverage and unlimited extended reporting period coverage
under this subsection shall be enforceable against an insurer that discontinues offering
such policy in this state for any reason prior to the insured's death, disability or retirement, provided the insured is covered under the policy on the date the insurer discontinues offering the policy. The insurer shall provide such coverage upon death, disability
or retirement in the same manner as if the insurer continued offering such policy in
this state.
(P.A. 78-91; P.A. 05-103, S. 1.)
History: Sec. 38-370c transferred to Sec. 38a-394 in 1991; P.A. 05-103 designated existing provisions as Subsec. (a)
and substituted "Each" for "Every" and made a technical change therein, and added new Subsec. (b) re policies for a
physician or surgeon, hospital, advanced practice registered nurse or physician assistant.
Sec. 38a-395. (Formerly Sec. 38-370d). Medical malpractice data: Closed
claims reports. Database. Annual report. (a) As used in this section:
(1) "Claim" means a request for indemnification filed by a physician, surgeon, hospital, advanced practice registered nurse or physician assistant pursuant to a professional
liability policy for a loss for which a reserve amount has been established by an insurer;
(2) "Closed claim" means a claim that has been settled, or otherwise disposed of,
where the insurer has made all indemnity and expense payments on the claim; and
(3) "Insurer" means an insurer that insures a physician, surgeon, hospital, advanced
practice registered nurse or physician assistant against professional liability. "Insurer"
includes, but is not limited to, a captive insurer or a self-insured person.
(b) On and after January 1, 2006, each insurer shall provide to the Insurance Commissioner a closed claim report, on such form as the commissioner prescribes, in accordance with this section. The insurer shall submit the report not later than ten days after
the last day of the calendar quarter in which a claim is closed. The report shall only
include information about claims settled under the laws of this state.
(c) The closed claim report shall include:
(1) Details about the insured and insurer, including: (A) The name of the insurer;
(B) the professional liability insurance policy limits and whether the policy was an
occurrence policy or was issued on a claims-made basis; (C) the name, address, health
care provider professional license number and specialty coverage of the insured; and
(D) the insured's policy number and a unique claim number.
(2) Details about the injury or loss, including: (A) The date of the injury or loss that
was the basis of the claim; (B) the date the injury or loss was reported to the insurer;
(C) the name of the institution or location at which the injury or loss occurred; (D) the
type of injury or loss, including a severity of injury rating that corresponds with the
severity of injury scale that the Insurance Commissioner shall establish based on the
severity of injury scale developed by the National Association of Insurance Commissioners; and (E) the name, age and gender of any injured person covered by the claim.
Any individually identifiable health information, as defined in 45 CFR 160.103, as from
time to time amended, submitted pursuant to this subdivision shall be confidential. The
reporting of the information is required by law. If necessary to comply with federal
privacy laws, including the Health Insurance Portability and Accountability Act of 1996,
(P.L. 104-191) (HIPAA), as from time to time amended, the insured shall arrange with
the insurer to release the required information.
(3) Details about the claims process, including: (A) Whether a lawsuit was filed
and, if so, in which court; (B) the outcome of such lawsuit; (C) the number of other
defendants, if any; (D) the stage in the process when the claim was closed; (E) the dates
of the trial, if any; (F) the date of the judgment or settlement, if any; (G) whether an
appeal was filed and, if so, the date filed; (H) the resolution of any appeal and the date
such appeal was decided; (I) the date the claim was closed; (J) the initial indemnity and
expense reserve for the claim; and (K) the final indemnity and expense reserve for the
claim.
(4) Details about the amount paid on the claim, including: (A) The total amount of
the initial judgment rendered by a jury or awarded by the court; (B) the total amount of
the settlement if there was no judgment rendered or awarded; (C) the total amount of
the settlement if the claim was settled after judgment was rendered or awarded; (D) the
amount of economic damages, as defined in section 52-572h, or the insurer's estimate
of the amount in the event of a settlement; (E) the amount of noneconomic damages,
as defined in section 52-572h, or the insurer's estimate of the amount in the event of a
settlement; (F) the amount of any interest awarded due to the failure to accept an offer
of judgment or compromise; (G) the amount of any remittitur or additur; (H) the amount
of final judgment after remittitur or additur; (I) the amount paid by the insurer; (J) the
amount paid by the defendant due to a deductible or a judgment or settlement in excess
of policy limits; (K) the amount paid by other insurers; (L) the amount paid by other
defendants; (M) whether a structured settlement was used; (N) the expense assigned to
and recorded with the claim, including, but not limited to, defense and investigation
costs, but not including the actual claim payment; and (O) any other information the
commissioner determines to be necessary to regulate the professional liability insurance
industry with respect to physicians, surgeons, hospitals, advanced practice registered
nurses or physician assistants, ensure the industry's solvency and ensure that such liability insurance is available and affordable.
(d) (1) The commissioner shall establish an electronic database composed of closed
claim reports filed pursuant to this section.
(2) The commissioner shall compile the data included in individual closed claim
reports into an aggregated summary format and shall prepare a written annual report of
the summary data. The report shall provide an analysis of closed claim information
including a minimum of five years of comparative data, when available, trends in frequency and severity of claims, itemization of damages, timeliness of the claims process,
and any other descriptive or analytical information that would assist in interpreting the
trends in closed claims.
(3) The annual report shall include a summary of rate filings for professional liability
insurance for physicians, surgeons, hospitals, advanced practice registered nurses and
physician assistants, which have been approved by the department for the prior calendar
year, including an analysis of the trend of direct losses, incurred losses, earned premiums
and investment income as compared to prior years. The report shall include base premiums charged by insurers for each specialty and the number of providers insured by
specialty for each insurer.
(4) Not later than March 15, 2007, and annually thereafter, the commissioner shall
submit the annual report to the joint standing committee of the General Assembly having
cognizance of matters relating to insurance in accordance with section 11-4a. The commissioner shall also (A) make the report available to the public, (B) post the report on
its Internet site, and (C) provide public access to the contents of the electronic database
after the commissioner establishes that the names and other individually identifiable
information about the claimant and practitioner have been removed.
(e) The Insurance Commissioner shall provide the Commissioner of Public Health
with electronic access to all information received pursuant to this section. The Commissioner of Public Health shall maintain the confidentiality of such information in the
same manner and to the same extent as required for the Insurance Commissioner.
(P.A. 86-365, S. 4, 5; P.A. 05-275, S. 14.)
History: Sec. 38-370d transferred to Sec. 38a-395 in 1991; P.A. 05-275 replaced former provisions with new Subsecs.
(a) to (e) re closed claims reports and data, effective January 1, 2006.