OLR Bill Analysis

sHB 5010

AN ACT CONCERNING THE DISCLOSURE NOTICE FOR SURPLUS LINES INSURANCE POLICIES.

SUMMARY:

This bill increases the information that must be included on the cover sheet of a surplus lines insurance policy. Under current law, the cover sheet must state that “THIS IS A SURPLUS LINES POLICY AND IS NOT PROTECTED BY THE CONNECTICUT INSURANCE GUARANTY ASSOCIATION. ” The bill additionally requires the notice to state “OR SUBJECT TO APPROVAL BY THE CONNECTICUT INSURANCE DEPARTMENT. IT IS IMPORTANT THAT YOU READ AND UNDERSTAND THIS POLICY. ” By law, the notice must be in 12-point capital bold letters.

When insurance is not available through a licensed insurer, a person may obtain coverage from a surplus lines insurer. A surplus lines insurer is an unauthorized insurer (i. e. , an insurer not licensed to do business in Connecticut).

The bill also makes a technical change.

EFFECTIVE DATE: October 1, 2012

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute

Yea

20

Nay

0

(02/21/2012)