OLR Bill Analysis
HB 6678 (as amended by House "A")*
AN ACT CONCERNING THE LEGISLATIVE COMMISSIONERS' RECOMMENDATIONS FOR TECHNICAL AND OTHER CHANGES TO THE INSURANCE AND RELATED STATUTES.
This bill makes a number of unrelated changes in insurance laws and related provisions. It:
1. repeals a provision requiring auto insurers to provide certain information to insureds about glass repair which the federal court of appeals declared unconstitutional (§ 70);
2. ensures that a ban on denying uninsured motorist coverage to certain named insureds or relatives continues to apply on and after October 1, 2015 (§ 69); and
3. replaces an improper reference to the Office of the Healthcare Advocate (OHA) chairperson as a member of the Commission on Health Equity with a reference to the Healthcare Advocate (OHA does not have a chairperson) (§ 59).
The bill also repeals, for certain individual and group health insurance policies, provisions relating to health care claim denials (i.e., adverse determinations), coverage determination time limits, and adverse determination notifications (§ 71). The repealed provisions (CGS §§ 38a-483b & 38a-513a) are superseded by ones in compliance with the federal Patient Protection and Affordable Care Act (CGS § 38a-591 et seq.).
The bill makes conforming changes for consistency within the insurance statutes (§§ 65-68). It also makes numerous minor and technical changes.
*House Amendment “A” repeals the superseded provisions for individual and group health insurance policies. The underlying bill repeals the provisions only for group policies.
EFFECTIVE DATE: October 1, 2015
§ 70 – AUTO GLASS REPAIR
The bill repeals an auto glass repair provision prohibiting glass claims representatives or third-party administrators (TPAs) from giving the name of a glass shop or scheduling an appointment for an insured with a glass shop owned by the insurer, TPA, or parent company of either, unless they also provide the name of at least one other auto glass repair shop. The 2nd Circuit U.S. Court of Appeals ruled that requiring insurers or TPAs to give insureds a competitor's contact information violates their free speech rights under the U.S. Constitution (Safelite Group, Inc. v. Jepsen, 764 F.3d 258 (2d Cir. 2014)).
§ 69 – UNINSURED MOTORIST COVERAGE
In 2014, the legislature passed two acts on uninsured motorist coverage. PA 14-71, effective October 1, 2014, bans insurers from denying such coverage to a named insured or related household member solely because he or she is struck as a pedestrian by, and during the theft of, the insured's covered vehicle. PA 14-20 modifies the same statute effective October 1, 2015 but does not include the ban. The bill ensures that the ban continues to apply on and after October 1, 2015.
sHB 5195 (File 14), reported favorably by the Insurance and Real Estate Committee, also reconciles the provisions on uninsured motorist coverage in PA 14-20 and PA 14-71.
Insurance and Real Estate Committee