Senate Bill No. 407
Senate Bill No. 407
PUBLIC ACT NO. 98-98
AN ACT CONCERNING REQUIREMENTS FOR APPRAISERS' AND
ADJUSTERS' LICENSES AND MAKING TECHNICAL AND MINOR
CHANGES TO THE INSURANCE LAWS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subdivision (9) of section 38a-1 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(9) "Insolvency" or "insolvent" means, for any
insurer, that it is unable to pay its obligations
when they are due, or when its admitted assets do
not exceed its liabilities plus the greater of:
(A) [Any capital] CAPITAL and surplus required by
law for its organization AND CONTINUED OPERATION;
or (B) the total par or stated value of its
authorized and issued capital stock. For purposes
of this subdivision "liabilities" shall include
but not be limited to reserves required by statute
or by regulations adopted by the commissioner IN
ACCORDANCE WITH THE PROVISIONS OF CHAPTER 54 or
specific requirements imposed by the commissioner
upon a subject company at the time of admission or
subsequent thereto.
Sec. 2. Section 38a-19 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) Any person or insurer aggrieved by any
order or decision of the commissioner made without
a hearing may, [within] NOT LATER THAN thirty days
after notice of the order to the person or
insurer, make written request to the commissioner
for a hearing [thereon] ON THE ORDER OR DECISION.
The commissioner shall hear such party or parties
[within] NOT LATER THAN twenty days after receipt
of such request and shall give not less than ten
days' written notice of the time and place of the
hearing. [Within] NOT LATER THAN fifteen days
after such hearing the commissioner shall affirm,
reverse or modify his previous [action] ORDER OR
DECISION, specifying his reasons therefor. Pending
such hearing and decision [thereon] ON SUCH
HEARING the commissioner may suspend or postpone
the effective date of his previous [action] ORDER
OR DECISION.
(b) Nothing contained in this section or
sections 38a-363 to 38a-388, inclusive, shall
require the observance at any hearing of formal
rules of pleading or evidence.
(c) THE PROVISIONS OF THIS SECTION SHALL NOT
APPLY TO AN ORDER OR DECISION OF THE COMMISSIONER
MADE PURSUANT TO SECTION 20 OF PUBLIC ACT 97-99,
AS AMENDED BY SECTION 60 OF PUBLIC ACT 97-8 OF THE
JUNE 18 SPECIAL SESSION.
[(c)] (d) Any order or decision of the
commissioner shall be subject to appeal therefrom
in accordance with the provisions of section
4-183.
Sec. 3. Subsection (a) of section 38a-25 of
the general statutes, as amended by section 17 of
public act 97-202, is repealed and the following
is substituted in lieu thereof:
(a) The Insurance Commissioner is the agent
for receipt of service of legal process on the
following:
(1) Foreign and alien insurance companies
authorized to do business in this state in any
proceeding arising from or related to any
transaction having a connection with this state.
(2) Fraternal benefit societies authorized to
do business in this state.
(3) Insurance-support organizations as defined
in section 38a-976, transacting business outside
this state which affects a resident of this state.
(4) Risk retention groups designating the
Insurance Commissioner as agent for receipt of
service of process pursuant to section 38a-252.
(5) Purchasing groups designating the
Insurance Commissioner as agent for receipt of
service of process pursuant to section 38a-261.
(6) Eligible surplus lines insurers authorized
by the commissioner to accept surplus lines
insurance.
(7) Except as provided by section 38a-273,
unauthorized insurers or other persons assisting
unauthorized insurers who directly or indirectly
do any of the acts of insurance business as set
forth in subsection (a) of section 38a-271.
(8) The Connecticut Insurance Guaranty
Association and the Connecticut Life and Health
Insurance Guaranty Association.
(9) Insurance companies designating the
Insurance Commissioner as agent for receipt of
service of process pursuant to subsection (g) of
section 38a-85.
(10) Nonresident [brokers] INSURANCE PRODUCERS
and nonresident surplus lines brokers licensed by
the Insurance Commissioner.
(11) Viatical settlement providers and
viatical settlement brokers licensed by the
commissioner.
(12) NONRESIDENT REINSURANCE INTERMEDIARIES
DESIGNATING THE COMMISSIONER AS AGENT FOR RECEIPT
OF SERVICE OF PROCESS PURSUANT TO SECTION
38a-760b.
(13) WORKERS' COMPENSATION SELF-INSURANCE
GROUPS, AS DEFINED IN SECTION 38a-100l.
(14) PERSONS ALLEGED TO HAVE VIOLATED ANY
PROVISION OF SECTION 38a-130.
Sec. 4. Subsection (a) of section 38a-54 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) On or after December 31, 1990, each
insurance company, health care center or fraternal
benefit society doing business in this state shall
have an annual audit conducted by an independent
certified public accountant and shall annually
file an audited financial report with the
commissioner on or before the [thirtieth] FIRST
day of June for the year ending the [thirty-first
day of December next preceding] PRECEDING DECEMBER
THIRTY-FIRST.
Sec. 5. Subsection (a) of section 38a-271 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Unless otherwise indicated, as used in
sections 38a-27, and 38a-271 to 38a-278,
inclusive, AS AMENDED, "insurer" includes all
corporations, associations, partnerships and
individuals engaged as principals in the business
of insurance and also includes interinsurance
exchanges, [and] mutual benefit societies AND
HEALTH CARE CENTERS and "commissioner" means the
Insurance Commissioner. Any of the following acts
effected in this state by mail or otherwise is
defined to be doing an insurance business in this
state: (1) The making of or proposing to make, as
an insurer, an insurance contract; (2) the making
of or proposing to make, as guarantor or surety,
any contract of guaranty or suretyship as a
vocation and not merely incidental to any other
legitimate business or activity of the guarantor
or surety; (3) the taking or receiving of any
application for insurance; (4) the receiving or
collection of any premium, commission, membership
fees, assessments, dues or other consideration for
any insurance or any part thereof; (5) the
issuance or delivery of contracts of insurance to
residents of this state or to persons authorized
to do business in this state; (6) directly or
indirectly acting as an agent for or otherwise
representing or aiding on behalf of another any
person or insurer in the solicitation,
negotiation, procurement or effectuation of
insurance or renewals thereof or in the
dissemination of information as to coverage or
rates, or forwarding of applications, or delivery
of policies or contracts, or inspection of risks,
a filing of rates or investigation or adjustment
of claims or losses or in the transaction of
matters subsequent to effectuation of the contract
and arising out of it, or in any other manner
representing or assisting a person or insurer in
the transaction of insurance with respect to
subjects of insurance resident, located or to be
performed in this state. The provisions of this
subdivision shall not operate to prohibit
full-time salaried employees of a corporate
insured from acting in the capacity of an
insurance manager or buyer in placing insurance in
behalf of such employer; (7) the doing of or
proposing to do any insurance business in
substance equivalent to any of the foregoing in a
manner designed to evade the provisions of the
general statutes relating to insurance; and (8)
any other transactions of business in this state
by an insurer. The venue of an act committed by
mail is at the point where the matter transmitted
by mail is delivered and takes effect.
Sec. 6. Subsection (a) of section 38a-790 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) No person shall act as an appraiser for
motor vehicle physical damage claims on behalf of
any insurance company or firm or corporation
engaged in the adjustment or appraisal of motor
vehicle claims unless such person has first
secured a license from the Insurance Commissioner,
and has paid the license fee specified in section
38a-11, AS AMENDED, for each two-year period or
fraction thereof. The license shall be applied for
as provided in section 38a-769. THE COMMISSIONER
MAY WAIVE THE REQUIREMENT FOR EXAMINATION IN THE
CASE OF ANY APPLICANT FOR A MOTOR VEHICLE PHYSICAL
DAMAGE APPRAISER'S LICENSE WHO IS A NONRESIDENT OF
THIS STATE AND WHO HOLDS AN EQUIVALENT LICENSE
FROM THE STATE IN WHICH THE APPLICANT RESIDES. Any
such license issued by the commissioner shall be
in force until the thirtieth day of June in each
odd-numbered year unless sooner revoked or
suspended. The license may, in the discretion of
the commissioner, be renewed biennially upon
payment of the fee specified in section 38a-11, AS
AMENDED. The commissioner may adopt reasonable
regulations concerning standards for
qualification, suspension or revocation of such
licenses and the methods by which licensees shall
conduct their business.
Sec. 7. Subsection (a) of section 38a-792 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) No person may act as an adjuster of
casualty claims for any insurance company or firm
or corporation engaged in the adjustment of
casualty claims unless such person has first
secured a license from the commissioner, and has
paid the license fee specified in section 38a-11,
AS AMENDED, for each two-year period or fraction
thereof. Application for such license shall be
made as provided in section 38a-769. THE
COMMISSIONER MAY WAIVE THE REQUIREMENT FOR
EXAMINATION IN THE CASE OF ANY APPLICANT FOR A
CASUALTY CLAIMS ADJUSTER'S LICENSE WHO IS A
NONRESIDENT OF THIS STATE AND WHO HOLDS AN
EQUIVALENT LICENSE FROM THE STATE IN WHICH THE
APPLICANT RESIDES. Any such license issued by the
commissioner shall be in force until the thirtieth
day of June in each odd-numbered year unless
sooner revoked or suspended. The license may, in
the discretion of the commissioner, be renewed
biennially upon payment of the fee specified in
section 38a-11, AS AMENDED. The commissioner may
waive the examination required under section
38a-769, in the case of an applicant who at any
time within two years next preceding the date of
application has been licensed in this state under
a license of the same type as the license applied
for.
Approved May 22, 1998