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the general statutes is repealed and the following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is repealed and  the  following  is substituted in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