OLR Bill Analysis

sHB 7262 (as amended by House “A”)*

AN ACT CONCERNING ELECTRONIC INSURANCE FILINGS AND VIATICAL SETTLEMENT CONTRACTS.

SUMMARY:

This bill makes various changes in insurance company financial reporting requirements. Under current law, all insurers, HMOs, and fraternal benefit societies doing business in Connecticut must annually file financial statements by March 1 and audited financial reports by June 1 with the insurance commissioner. The bill (1) limits the annual reporting requirements to domestic and foreign companies, (2) requires the financial statements to be complete when filed, and (3) requires the companies to electronically file the statements and reports with the National Association of Insurance Commissioners (NAIC). Domestic companies that file on time with the NAIC must still submit paper copies to the insurance commissioner, but foreign companies do not.

The bill also requires all insurers, HMOs, and fraternal benefit societies that file quarterly financial statements with the commissioner to file them electronically with the NAIC. If timely filed with the NAIC, the company does not have to submit a paper copy to the insurance commissioner.

*House Amendment “A” removes a provision that imposed a minimum viatical settlement contract sale price.

EFFECTIVE DATE: October 1, 2007

BACKGROUND

Domestic, Foreign, Alien, and Unauthorized Companies

The Insurance Department licenses and regulates domestic, foreign, and alien companies to transact insurance in the state. A domestic company is formed under Connecticut laws. A foreign company is formed under the laws of another state or U. S. territory. An alien company is formed under another country's laws. An unauthorized company is not licensed or admitted to transact insurance business in the state.

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute

Yea

19

Nay

0

(03/15/2007)