PA 15-166—HB 6771
Insurance and Real Estate Committee
AN ACT AUTHORIZING NONADMITTED INSURERS TO OPEN AN OFFICE IN THIS STATE
SUMMARY: Under existing law, the Unauthorized Insurers Act defines what it means to transact insurance business in the state and sets out penalties for nonadmitted or unauthorized insurers who do so; however, it allows these insurers to transact surplus lines insurance. This act specifies that the Unauthorized Insurers Act allows these insurers to open an office in Connecticut to transact surplus lines insurance.
By law, a nonadmitted or unauthorized insurer is one that has not been granted a certificate of authority by the insurance commissioner to transact insurance business in Connecticut. Surplus lines insurance is property and casualty insurance coverage that is unavailable from Connecticut-licensed insurers (i. e. , admitted insurers) and must therefore be purchased from a nonadmitted insurer. Surplus lines insurers register with the Insurance Department but are not domiciled in the state. They work through licensed surplus lines brokers who must maintain an office here by law.
EFFECTIVE DATE: October 1, 2015
OLR Tracking: JKL; KD; MS; BS