PA 07-225—sHB 7262

Insurance and Real Estate Committee

AN ACT CONCERNING ELECTRONIC INSURANCE FILINGS

SUMMARY: This act makes various changes in insurance company financial reporting requirements. Prior law required all insurers, HMOs, and fraternal benefit societies doing business in Connecticut to annually file financial statements by March 1 and audited financial reports by June 1 with the insurance commissioner. The act (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 NAIC must still submit paper copies to the commissioner, but foreign companies do not.

By law, the commissioner may require an insurer, HMO, or fraternal benefit society to file quarterly financial statements. Under the act, if the company electronically files the reports with NAIC on time, then it does not have to give the commissioner paper copies.

By law, a company that fails to report as required must pay a $100 fine for each day a report is late. In addition, a fraternal benefit society, upon notice from the commissioner, loses its authority to operate in Connecticut while in default.

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.

OLR Tracking: JLK: VR: JL: TS