CHAPTER 700

PROPERTY AND CASUALTY INSURANCE

Table of Contents

Sec. 38a-307a. Terrorism exclusion in condominium association master policy prohibited. Conditions re terrorism exclusion in other commercial risk insurance policy.

Sec. 38a-322a. Certificate of insurance. Prohibitions. Investigation.

Sec. 38a-330. Transfer of policy to affiliate due to merger or acquisition. Notice.

Sec. 38a-336. (Formerly Sec. 38-175c). Uninsured and underinsured motorist coverage.

Sec. 38a-338. (Formerly Sec. 38-175d). Policies deemed to provide coverage in accordance with regulations.

Sec. 38a-343a. Notice of policy cancellation and policy information provided to Commissioner of Motor Vehicles.

Sec. 38a-354a. Automobile appraisers and insurers prohibited from requiring where automotive glass work should be performed or making certain statements. Statement required during initial contact with insured.

Sec. 38a-397. Portable electronics insurance.


PART I

IN GENERAL

Sec. 38a-307a. Terrorism exclusion in condominium association master policy prohibited. Conditions re terrorism exclusion in other commercial risk insurance policy. From July 1, 2004, until the expiration of the Terrorism Insurance Program established in the federal Terrorism Risk Insurance Act of 2002, P.L. 107-297, as amended and reauthorized from time to time, (1) for any master policy that is required to be purchased by a condominium association pursuant to section 47-83 or by a unit owners’ association pursuant to section 47-255, the standard form of fire insurance policy set forth in section 38a-307 shall not exclude coverage for loss by fire or other perils insured against in the policy caused, directly or indirectly, by terrorism, as defined by the Insurance Commissioner; and (2) for any other commercial risk insurance policy, the standard form of fire insurance policy set forth in section 38a-307 may provide that the company shall not be liable for loss by fire or other perils insured against in the policy caused, directly or indirectly, by terrorism, as defined by the Insurance Commissioner, provided the premiums charged for such policy shall reflect any savings projected from the exclusion of such perils.

(P.A. 04-140, S. 1; P.A. 09-164, S. 2; P.A. 10-5, S. 8; P.A. 15-118, S. 39.)

History: P.A. 04-140 effective July 1, 2004; P.A. 09-164 added Subdiv. (1) prohibiting terrorism exclusion in a condominium association master policy, designated existing application to other commercial risk policy as Subdiv. (2) and made a technical change; P.A. 10-5 made technical changes, effective May 5, 2010; P.A. 15-118 added “and reauthorized”.

Sec. 38a-322a. Certificate of insurance. Prohibitions. Investigation. (a) As used in this section, “certificate of insurance” means a document or instrument that is prepared or issued by an insurer or insurance producer as evidence of personal risk insurance or commercial risk insurance, as both terms are defined in section 38a-663, that is issued on property, operations or risks located in this state. “Certificate of insurance” does not include an insurance policy, a binder, an endorsement or an automobile insurance identification or information card.

(b) No person shall (1) prepare, deliver or issue for delivery a certificate of insurance that contains false or misleading information about the coverage provided by the referenced insurance policy, (2) prepare the alteration or amendment of a certificate of insurance or deliver or issue for delivery a new certificate of insurance unless such alteration, amendment or new certificate accurately reflects the provisions of the referenced insurance policy, or (3) represent that (A) a certificate of insurance confers new or additional rights to any person beyond those provided for in the referenced insurance policy, or (B) amending such certificate will alter, amend or extend the coverage provided by the referenced insurance policy.

(c) No certificate of insurance shall warrant that the referenced insurance policy complies with the insurance or indemnification requirements of a contract. The inclusion of a contract number or contract description on a certificate of insurance shall not be construed as making such a warranty.

(d) No person shall prepare, issue, demand or require, in addition to or in lieu of a certificate of insurance, an opinion letter or other document or correspondence that is inconsistent with the provisions of this section, except that an insurer or insurance producer may prepare or issue an addendum to a certificate of insurance that clarifies and explains the coverage provided by the referenced insurance policy and that otherwise complies with the provisions of this section.

(e) No person shall request or require another person to perform any act that violates the provisions of subsection (b) of this section.

(f) The commissioner may conduct an investigation, pursuant to section 38a-16, of any person the commissioner reasonably believes has violated or is engaged in a violation of any provision of this section.

(P.A. 14-74, S. 1; P.A. 15-118, S. 40.)

History: P.A. 15-118 made a technical change in Subsec. (f).

Sec. 38a-330. Transfer of policy to affiliate due to merger or acquisition. Notice. Each property and casualty insurer that, at the time of policy renewal, transfers any policy to an affiliate as a result of a merger or acquisition of control, shall provide notice to policyholders at least sixty days prior to the effective date of transfer. Such transfer shall not require a nonrenewal or cancellation of the policy.

(P.A. 98-64; P.A. 06-109, S. 1; P.A. 15-118, S. 41.)

History: P.A. 06-109 provided that transfer shall not require cancellation of the policy; P.A. 15-118 made a technical change.

PART II

MOTOR VEHICLE POLICIES

Sec. 38a-336. (Formerly Sec. 38-175c). Uninsured and underinsured motorist coverage. (a)(1)(A) Each automobile liability insurance policy shall provide insurance, herein called uninsured and underinsured motorist coverage, in accordance with the regulations adopted pursuant to section 38a-334, with limits for bodily injury or death not less than those specified in subsection (a) of section 14-112, for the protection of persons insured thereunder who are legally entitled to recover damages because of bodily injury, including death resulting therefrom, from owners or operators of uninsured motor vehicles and underinsured motor vehicles and insured motor vehicles, the insurer of which becomes insolvent prior to payment of such damages.

(B) Each insurer licensed to write automobile liability insurance in this state shall provide uninsured and underinsured motorist coverage with limits requested by any named insured upon payment of the appropriate premium, provided each such insurer shall offer such coverage with limits that are twice the limits of the bodily injury coverage of the policy issued to the named insured. The insured’s selection of uninsured and underinsured motorist coverage shall apply to all subsequent renewals of coverage and to all policies or endorsements that extend, change, supersede or replace an existing policy issued to the named insured, unless changed in writing by any named insured.

(C) No insurer shall be required to provide uninsured and underinsured motorist coverage to (i) a named insured or relatives residing in the named insured’s household when occupying, or struck as a pedestrian by, an uninsured or underinsured motor vehicle or a motorcycle that is owned by the named insured, except as provided in subparagraph (D) of this subdivision, or (ii) any insured occupying an uninsured or underinsured motor vehicle or motorcycle that is owned by such insured.

(D) For each automobile liability insurance policy issued or renewed on or after October 1, 2014, an insurer shall not deny uninsured motorist coverage to a named insured or any relative residing in the named insured’s household solely on the basis that the named insured or such relative was struck as a pedestrian by a motor vehicle or motorcycle, during the theft of such motor vehicle or motorcycle, that is owned by the named insured and listed as a covered motor vehicle on the named insured’s policy.

(2) Notwithstanding any provision of this section, each automobile liability insurance policy issued or renewed on and after January 1, 1994, shall provide uninsured and underinsured motorist coverage with limits for bodily injury and death equal to those purchased to protect against loss resulting from the liability imposed by law unless any named insured requests in writing a lesser amount, but not less than the limits specified in subsection (a) of section 14-112. Such written request shall apply to all subsequent renewals of coverage and to all policies or endorsements that extend, change, supersede or replace an existing policy issued to the named insured, unless changed in writing by any named insured. No such written request for a lesser amount shall be effective unless any named insured has signed an informed consent form that shall contain: (A) An explanation of uninsured and underinsured motorist insurance approved by the commissioner; (B) a list of uninsured and underinsured motorist coverage options available from the insurer; and (C) the premium cost for each of the coverage options available from the insurer. Such informed consent form shall contain a heading in twelve-point type and shall state: “WHEN YOU SIGN THIS FORM, YOU ARE CHOOSING A REDUCED PREMIUM, BUT YOU ARE ALSO CHOOSING NOT TO PURCHASE CERTAIN VALUABLE COVERAGE WHICH PROTECTS YOU AND YOUR FAMILY. IF YOU ARE UNCERTAIN ABOUT HOW THIS DECISION WILL AFFECT YOU, YOU SHOULD GET ADVICE FROM YOUR INSURANCE AGENT OR ANOTHER QUALIFIED ADVISER.”

(b) An insurance company shall be obligated to make payment to its insured up to the limits of the policy’s uninsured and underinsured motorist coverage after the limits of liability under all bodily injury liability bonds or insurance policies applicable at the time of the accident have been exhausted by payment of judgments or settlements, but in no event shall the total amount of recovery from all policies, including any amount recovered under the insured’s uninsured and underinsured motorist coverage, exceed the limits of the insured’s uninsured and underinsured motorist coverage. In no event shall there be any reduction of uninsured or underinsured motorist coverage limits or benefits payable (1) for amounts received by the insured for Social Security disability benefits paid or payable pursuant to the Social Security Act, 42 USC Section 301, et seq., or (2) with respect to an automobile liability insurance policy issued or renewed on or after October 1, 2015, (A) for amounts paid by or on behalf of any tortfeasor for bodily injury to anyone other than individuals insured under the policy against which the claim is made, or (B) for amounts paid by or on behalf of any tortfeasor for property damage. The limitation on the total amount of recovery from all policies shall not apply to underinsured motorist conversion coverage purchased pursuant to section 38a-336a.

(c) Each automobile liability insurance policy issued on or after October 1, 1971, that contains a provision for binding arbitration shall include a provision for final determination of insurance coverage in such arbitration proceeding. With respect to any claim submitted to arbitration on or after October 1, 1983, the arbitration proceeding shall be conducted by a single arbitrator if the amount in demand is forty thousand dollars or less or by a panel of three arbitrators if the amount in demand is more than forty thousand dollars.

(d) Regardless of the number of policies issued, vehicles or premiums shown on a policy, premiums paid, persons covered, vehicles involved in an accident, or claims made, in no event shall the limit of liability for uninsured and underinsured motorist coverage applicable to two or more motor vehicles covered under the same or separate policies be added together to determine the limit of liability for such coverage available to an injured person or persons for any one accident. If a person insured for uninsured and underinsured motorist coverage is an occupant of a nonowned vehicle covered by a policy also providing uninsured and underinsured motorist coverage, the coverage of the occupied vehicle shall be primary and any coverage for which such person is a named insured shall be secondary. All other applicable policies shall be excess. The total amount of uninsured and underinsured motorist coverage recoverable is limited to the highest amount recoverable under the primary policy, the secondary policy or any one of the excess policies. The amount paid under the excess policies shall be apportioned in accordance with the proportion that the limits of each excess policy bear to the total limits of the excess policies. If any person insured for uninsured and underinsured motorist coverage is an occupant of an owned vehicle, the uninsured and underinsured motorist coverage afforded by the policy covering the vehicle occupied at the time of the accident shall be the only uninsured and underinsured motorist coverage available.

(e) For the purposes of this section, an “underinsured motor vehicle” means a motor vehicle with respect to which the sum of the limits of liability under all bodily injury liability bonds and insurance policies applicable at the time of the accident is less than the applicable limits of liability under the uninsured motorist portion of the policy against which claim is made under subsection (b) of this section.

(f) Notwithstanding subsection (a) of section 31-284, an employee of a named insured injured while occupying a covered motor vehicle in the course of employment shall be covered by such insured’s otherwise applicable uninsured and underinsured motorist coverage.

(g) (1) No insurance company doing business in this state may limit the time within which any suit may be brought against it or any demand for arbitration on a claim may be made on the uninsured or underinsured motorist provisions of an automobile liability insurance policy to a period of less than three years from the date of accident, provided, in the case of an underinsured motorist claim the insured may toll any applicable limitation period (A) by notifying such insurer prior to the expiration of the applicable limitation period, in writing, of any claim which the insured may have for underinsured motorist benefits and (B) by commencing suit or demanding arbitration under the terms of the policy not more than one hundred eighty days from the date of exhaustion of the limits of liability under all automobile bodily injury liability bonds or automobile insurance policies applicable at the time of the accident by settlements or final judgments after any appeals.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, in the case of an uninsured motorist claim, if the motor vehicle of a tortfeasor is an uninsured motor vehicle because the automobile liability insurance company of such tortfeasor becomes insolvent or denies coverage, no insurance company doing business in this state may limit the time within which any suit may be brought against it or any demand for arbitration on a claim may be made on the uninsured motorist provisions of an automobile liability insurance policy to a period of less than one year from the date of receipt by the insured of written notice of such insolvency of, or denial of coverage by, such automobile liability insurance company.

(1967, P.A. 510, S. 4; 1969, P.A. 202; 1971, P.A. 767; P.A. 79-235; P.A. 82-441, S. 20, 23; P.A. 83-267, S. 2; 83-461; P.A. 85-7; P.A. 86-403, S. 79, 132; P.A. 90-243, S. 127; P.A. 93-77, S. 2, 4; 93-297, S. 1, 29; May 25 Sp. Sess. P.A. 94-1, S. 35, 36, 130; P.A. 98-189, S. 1, 2; P.A. 00-143; P.A. 10-5, S. 9; P.A. 14-20, S. 1; 14-71, S. 1; P.A. 15-118, S. 69.)

History: 1969 act added proviso re limited coverage of uninsured motorists requested by insured; 1971 act specified that policies issued on or after October 1, 1971, which contain provision for binding arbitration shall provide for final determination of insurance coverage in arbitration proceedings; P.A. 79-235 added coverage re “underinsured” vehicles and added Subsec. (b), defining “underinsured motor vehicle” and detailing payments which insurance company is obligated to make; P.A. 82-441 amended Subsec. (a) by adding “Such arbitration proceeding shall be conducted by a single arbitrator,” effective July 1, 1983; P.A. 83-267 amended Subsec. (a) to provide for arbitration of any claim submitted on or after October 1, 1983, by panel of three arbitrators if amount in demand exceeds $40,000; P.A. 83-461 amended Subsec. (a) to provide that an insurer is not required to provide uninsured motorist coverage to a named insured or a resident relative who is injured by an uninsured or underinsured motor vehicle owned by the named insured, or to any insured injured while occupying an uninsured or underinsured motor vehicle owned by the insured and added Subdiv. (2) requiring uninsured motorist coverage limits to be the same as those purchased to protect against loss resulting from the liability imposed by law unless a different amount is requested in writing by the insured, on every policy issued or renewed on and after July 1, 1984; P.A. 85-7 amended Subsec. (a) to provide that no insurer is required to provide uninsured motorist coverage to an insured occupying an uninsured or underinsured motorcycle owned by the insured, and to clarify the applicability of written requests for less coverage; P.A. 86-403 made technical change in Subsec. (b); P.A. 90-243 added a reference to “each automobile liability insurance policy”, made technical changes for statutory consistency, deleted the numerical Subsec. indicators and substituted alphabetical Subsecs. (b) to (d); Sec. 38-175c transferred to Sec. 38a-336 in 1991; P.A. 93-77 added new Subsec. (e) (designated as (g) by the Revisors because of the relettering of subsections by P.A. 93-297) prohibiting an insurance company limiting the time for bringing suit or demanding arbitration on uninsured or underinsured motorist provisions of a motor vehicle policy to a period of less than three years and specifying the manner in which an insured may toll the limitation period in the case of an underinsured motorist claim, effective May 20, 1993; P.A. 93-297 replaced “uninsured motorist coverage” with “uninsured and underinsured motorist coverage” where appearing, amended Subsec. (a)(1) to replace “the named insured” with “any named insured”, replace the provision that an insurer is not required to provide uninsured motorist coverage with limits in excess of the limits of the bodily injury coverage with provision that requires each insurer to offer uninsured and underinsured motorist coverage with limits that are twice the limits of the bodily injury coverage and add provision that the insured’s selection of coverage applies to all subsequent renewals, policies and endorsements unless changed in writing by any named insured, amended Subsec. (a)(2) to change the date from July 1, 1984, to January 1, 1994, replace “the insured” with “any named insured”, add provision that a written request for a lesser amount is not effective unless an informed consent form is signed and specify the contents of such form, amended Subsec. (b) to provide that the limitation on the total amount of recovery from all policies does not apply to underinsured motorist conversion coverage, inserted a new Subsec. (d) to prohibit the aggregation of the limits of liability, specify which policy coverages are primary, secondary and excess and the total amount of recovery thereunder when a person is an occupant of a nonowned vehicle and specify the availability of coverage when a person is an occupant of an owned vehicle, relettered former Subsec. (d) as Subsec. (e) and added Subsec. (f) re coverage of a named insured injured in the course of employment, effective January 1, 1994, and applicable to acts or omissions occurring on or after said date; May 25 Sp. Sess. P.A. 94-1 amended Subsecs. (a) and (g) by making technical changes, effective July 1, 1994; P.A. 98-189 amended Subsec. (g) by designating existing provisions as Subdiv. (1) and making technical changes thereto and adding new Subdiv. (2) to prohibit an insurance company limiting the time for bringing suit or demanding arbitration on an uninsured motorist claim where the insurance company of the tortfeasor becomes insolvent or denies coverage to a period of less than one year from the date the insured received notice of such insolvency or denial of coverage, effective October 1, 1998, and applicable to insurance policies issued or renewed on or after January 1, 1999; P.A. 00-143 amended Subsec. (b) to add provision prohibiting any reduction of uninsured or underinsured motorist coverage limits or benefits payable for amounts received by the insured for Social Security disability benefits; P.A. 10-5 made technical changes in Subsec. (a)(2), effective May 5, 2010; P.A. 14-20 amended Subsec. (b) to designate existing provision re prohibition on reduction of uninsured or underinsured motorist coverage limits or benefits for Social Security disability benefits paid or payable as Subdiv. (1) and add Subdiv. (2) re prohibition on reduction of uninsured or underinsured motorist coverage limits or benefits, with respect to automobile liability insurance policies issued or renewed on or after October 1, 2015, for amounts paid by or on behalf of tortfeasor for bodily injury or property damage, effective October 1, 2015; P.A. 14-71 amended Subsec. (a)(1) to designate existing provision re no insurer required to provide coverage to named insured or relatives as new Subpara. (A), redesignate existing Subparas. (A) and (B) as clauses (i) and (ii), add new Subpara. (B) prohibiting denial of uninsured motorist coverage solely on basis that named insured or relative was struck during the theft of insured motor vehicle or motorcycle, and make technical changes, effective October 1, 2014, and applicable to claims arising on or after that date; P.A. 15-118 added provisions to conform with changes made by P.A. 14-71, S. 1, and made technical changes.

Sec. 38a-338. (Formerly Sec. 38-175d). Policies deemed to provide coverage in accordance with regulations. Policies affording bodily injury liability, property damage liability and uninsured motorist coverages to which the provisions of sections 38a-334 to 38a-336a, inclusive, and 38a-340 apply shall be deemed to provide insurance under such coverages in accordance with regulations adopted pursuant to section 38a-334. Policies affording medical payments coverage to which the provisions of said sections apply shall be deemed to provide insurance under such coverage in accordance with such regulations.

(1967, P.A. 510, S. 5; P.A. 93-297, S. 20, 29; P.A. 15-118, S. 42.)

History: Sec. 38-175d transferred to Sec. 38a-338 in 1991; P.A. 93-297 added reference to Sec. 38a-336a, effective January 1, 1994, and applicable to acts or omissions occurring on or after said date; P.A. 15-118 made technical changes.

Sec. 38a-343a. Notice of policy cancellation and policy information provided to Commissioner of Motor Vehicles. (a)(1) The Commissioner of Motor Vehicles may require each insurance company that issues private passenger motor vehicle liability insurance policies in this state to notify the commissioner monthly, on a date specified by the commissioner, of the cancellation by the insurance company of all such policies which occurred during the preceding month. Such notice shall include the name of the named insured in the policy, the policy number, the vehicle identification number of each automobile covered by the policy and the effective date of the policy’s cancellation. The commissioner shall specify an acceptable method of notification. The method of notification specified may include computer tapes or electronic transmission.

(2) The commissioner may require each insurance company that issues private passenger motor vehicle liability insurance policies in this state to provide monthly, on a date specified by the commissioner, the policy information required for purposes of the Online Insurance Verification System, as provided in section 14-112a.

(3) The failure of an insurance company to comply with the requirements of this section shall not affect the cancellation of any private passenger motor vehicle liability insurance policy.

(b) The Commissioner of Motor Vehicles shall receive or accept all notices of policy cancellation or all policy information from private passenger motor vehicle liability insurance companies, as required pursuant to subsection (a) of this section. The commissioner shall review and analyze the cancellation data or policy information submitted, together with such other information as the commissioner may obtain from the private passenger motor vehicle liability insurance companies, from the records of the Department of Motor Vehicles, or from any other public or private agency or firm in possession of relevant information, for the purpose of determining whether any registered owner identified in any such notice has failed to continuously maintain insurance coverage in violation of sections 14-12c and 38a-371. In conducting such an inquiry to determine insured status, the commissioner may contact registered vehicle owners by mail and require that such mail inquiries be answered in not less than thirty days, in a satisfactory manner containing such information and verification of insurance coverage as the commissioner shall deem necessary and acceptable.

(P.A. 93-298, S. 2, 11; Oct. 25 Sp. Sess. P.A. 05-3, S. 2; June Sp. Sess. P.A. 15-5, S. 232.)

History: P.A. 93-298 effective January 1, 1994; Oct. 25 Sp. Sess. P.A. 05-3 amended Subsec. (a) to eliminate proviso that no notification shall be made for any cancellation of any policy of commercial insurance, effective January 1, 2006; June Sp. Sess. P.A. 15-5 amended Subsec. (a) by designating existing provisions as Subdivs. (1) and (3) and adding Subdiv. (2) re monthly provision of information for Online Insurance Verification System, amended Subsec. (b) to add references to policy information, and made technical changes, effective June 30, 2015.

Sec. 38a-354a. Automobile appraisers and insurers prohibited from requiring where automotive glass work should be performed or making certain statements. Statement required during initial contact with insured. (a) No automobile physical damage appraiser shall require that automotive glass work, as defined in section 20-330, should or should not be performed in or by a specified facility or glass shop.

(b) No insurance company doing business in this state or third-party claims administrator, agent or adjuster for such company shall (1) require any insured to use a specific person for the provision of automotive glass work, or (2) state that choosing a facility other than a glass shop participating in an automotive glass work program established by such company will result in delays in or a lack of guarantee for the automotive glass work.

(c) If there is any communication between a glass claims representative for an insurance company doing business in this state or a third-party claims administrator for such company and an insured regarding automotive glass work or automobile glass products, in the initial contact with the insured, such representative or claims administrator shall state or disclose to the insured a statement substantially similar to the following: “You have the right to choose a licensed glass shop where the damage to your motor vehicle will be repaired. If you have a preference, please let us know.”.

(P.A. 13-67, S. 1; P.A. 15-118, S. 70.)

History: P.A. 13-67 effective January 1, 2014; P.A. 15-118 amended Subsec. (c) by deleting former Subdiv. (2) and making a conforming change.

PART V

MISCELLANEOUS INSURANCE

Sec. 38a-397. Portable electronics insurance. (a) As used in this section:

(1) “Portable electronics insurance” means insurance coverage for the repair or replacement of a portable electronic device because of loss, theft, inoperability due to mechanical failure, malfunction, damage or other similar causes of loss. “Portable electronics insurance” does not include (A) an extended warranty, as defined in section 42-260, (B) an insurance policy covering a seller’s or manufacturer’s obligations under a warranty, or (C) a homeowners, renter’s or other insurance policy that includes coverage similar to portable electronics insurance;

(2) “Portable electronic device” means any self-contained, easily carried electronic equipment for personal use for communicating, viewing, listening, recording, playing video games, computing or global positioning, including a cellular or satellite telephone, paging device, personal global positioning system unit, portable computer, audio listening or audio recording device, video viewing or video recording device, digital camera, portable video game system, telephone answering machine, docking or charging station for any portable electronic device, and other similar device. “Portable electronic device” includes accessories for and services related to the use of such devices;

(3) “Buyer” means a person who leases or purchases a portable electronic device;

(4) “Enrolled buyer” means a buyer who elects coverage under a portable electronics insurance policy;

(5) “Insurance producer” has the same meaning as provided in section 38a-702a;

(6) “Insurer” has the same meaning as provided in section 38a-1;

(7) “Location” means any physical location in this state or any Internet web site or call center site directed at residents of this state;

(8) “Portable electronics transaction” means the lease or sale of a portable electronic device by a seller to a buyer;

(9) “Seller” means a person in the business of direct or indirect portable electronics transactions; and

(10) “Supervising entity” means a business entity licensed as an insurer in this state and authorized to write personal or commercial risk insurance business in this state or an insurance producer licensed in this state, appointed by an insurer to supervise such insurer’s portable electronics insurance program.

(b) (1) No seller shall offer or sell portable electronics insurance in this state without obtaining a portable electronics insurance license from the Insurance Commissioner as set forth in this subsection, except that a seller offering or selling portable electronics insurance in this state prior to October 1, 2014, may continue to offer or sell such insurance while the application from the Insurance Commissioner is pending and during the application process. Any such license issued by the commissioner shall be in force until January thirty-first of each even-numbered year unless sooner suspended or revoked.

(2) Such license shall authorize any employee or authorized representative of such seller to offer or sell portable electronics insurance at each location where the seller engages in portable electronics transactions. No such employee or authorized representative shall be required to be licensed under chapter 701a, provided:

(A) The seller obtains and maintains such portable electronics insurance license;

(B) The insurer issuing a portable electronics insurance policy to the seller or a supervising entity of such insurer supervises the administration of the seller’s portable electronics insurance program; and

(C) No such employee or authorized representative holds himself or herself out as a licensed insurance producer.

(3) (A) (i) Any seller seeking to obtain a portable electronics insurance license shall submit an initial sworn application to the Insurance Department on a form prescribed by the Insurance Commissioner. Such application shall include (I) the name, residence address and other information as said commissioner may require for an employee or an officer of the seller that is designated by such seller as the individual responsible for the seller’s compliance with this section. If the seller derives more than fifty per cent of its revenue from the sale of portable electronics insurance, the seller shall include the name, residence address and other information as said commissioner may require of all the seller’s shareholders who are directly or indirectly the beneficial owner of ten per cent or more of any class of security of such seller, and of all its officers and directors, and (II) the address of the applicant’s home office. Such application shall be accompanied by the fees set forth in section 38a-11. Each portable electronics insurance license shall be valid for two years.

(ii) Any seller seeking to renew a portable electronics insurance license shall submit to the Insurance Department any changes to the initial application and any other information the Insurance Commissioner may require and the renewal fee set forth in section 38a-11.

(B) Any seller offering or selling portable electronics insurance in this state prior to October 1, 2014, shall apply for a portable electronics insurance license not later than ninety days after the Insurance Commissioner makes the application for such license available. On and after October 1, 2014, a seller seeking to offer or sell portable electronics insurance in this state shall obtain such license prior to offering or selling such insurance in this state.

(c) At each location where a seller offers or sells portable electronics insurance to buyers, such seller shall make available to prospective buyers brochures or other written materials that contain all of the following:

(1) A disclosure that portable electronics insurance may duplicate insurance coverage already provided by a buyer’s homeowners, renter’s or other insurance policy;

(2) A statement that enrollment in portable electronics insurance is not required for a buyer to lease or purchase a portable electronics device;

(3) (A) The identity of the insurer issuing the portable electronics insurance policy, (B) the identity of the supervising entity of such insurer, if any, (C) the amount of any applicable deductible and a summary of how such deductible is to be paid, (D) a summary of the insurance policy benefits, and (E) a summary of key terms and conditions of such insurance policy, including, but not limited to, whether, under such insurance policy, portable electronic devices may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment;

(4) A summary of the process for filing a claim, including a description of how to return portable electronic devices and the maximum fee applicable if the buyer fails to comply with any equipment return requirements; and

(5) A statement that a buyer enrolled in a portable electronics insurance policy may cancel the insurance certificate at any time and that the person paying the premium will receive a refund of or a credit for any applicable unearned premium.

(d) (1) If portable electronics insurance is included at no additional charge with the lease or purchase of a portable electronic device, the seller shall clearly and conspicuously disclose, in writing, to the buyer that such insurance is included at no additional charge with the lease or purchase of a portable electronic device.

(2) A seller may bill for and collect premium payments for portable electronics insurance policies, provided:

(A) Any premium payment that is not included in the cost of the lease or purchase of a portable electronic device is itemized separately on the enrolled buyer’s invoice; and

(B) The seller remits such premium payment to the insurer issuing such insurance policy not later than sixty days after the seller receives such payment. Such insurer shall not cancel an enrolled buyer’s certificate on the basis of nonpayment of premium if such enrolled buyer timely pays such premium to the seller.

(3) A seller shall not be required to maintain premium payments collected pursuant to this subsection in a segregated account if such insurer authorizes the seller to commingle such payments. All such premium payments collected shall be held by the seller in a fiduciary capacity for the benefit of such insurer.

(4) A seller may receive compensation from such insurer for such billing and collection services, as agreed to by such insurer and such seller.

(e) (1) A portable electronics insurance policy shall not be issued, sold or offered for sale unless such insurance policy is issued by an insurer authorized to write such line of business in this state. Such insurance policy may be issued as a group policy or a master commercial inland marine policy to a seller for its enrolled buyers. An insurer authorized to issue a portable electronics insurance policy in this state shall file a copy of the form for such policy in accordance with subsection (c) of section 38a-676.

(2) An insurer that issues portable electronics insurance policies and does not directly supervise the administration of a seller’s portable electronics insurance program shall appoint a supervising entity and shall provide the name and contact information of such supervising entity to the Insurance Commissioner and to any seller that offers or sells such insurance policy to buyers.

(3) The supervising entity shall maintain a registry of seller locations in this state that are authorized to offer or sell such insurer’s portable electronics insurance policies in this state. Upon request by the Insurance Commissioner with at least ten days’ notice, such supervising entity shall make such registry available during the regular business hours of such supervising entity to said commissioner or said commissioner’s designee for inspection and examination.

(f) (1) An enrolled buyer may cancel a portable electronics insurance certificate at any time. Such cancellation may be (A) oral to the seller at the location where such enrolled buyer elected such coverage or to a telephone number specified for such purpose, or (B) in writing, which writing shall be sent by United States mail or electronic means to (i) the insurer that issued such insurance policy if such enrolled buyer pays the premium to such insurer, or (ii) the seller if such seller collects the premium payment for such insurance policy. Not later than three days after a seller receives a cancellation, such seller shall notify, or forward such cancellation to, the supervising entity or the insurer that issued such insurance policy if such insurer has not appointed a supervising entity. The supervising entity shall notify, or forward such cancellation to, the insurer that issued such insurance policy. Such insurer shall refund or arrange for credit any applicable unearned premium to be provided, not later than sixty days after receiving such notice or cancellation, to the person who paid the premium.

(2) (A) An insurer may cancel, terminate or change the terms and conditions of a portable electronics insurance policy only upon providing at least thirty days’ written notice, sent by United States mail or electronic means, to the seller policyholder and enrolled buyers. If the insurer changes the terms and conditions of such insurance policy, such insurer shall provide the seller policyholder with a revised insurance policy or endorsement and each enrolled buyer with a revised certificate, endorsement, updated brochure or other materials that indicate a change in the terms and conditions of such insurance policy and a summary of the material changes.

(B) An insurer may cancel, with at least fifteen days’ written notice, sent by United States mail or electronic means to the seller policyholder and enrolled buyers:

(i) A portable electronics insurance policy for nonpayment of premium by the seller policyholder or a portable electronics insurance certificate for nonpayment of premium by an enrolled buyer. Such seller policyholder or enrolled buyer may continue the coverage and avoid the effect of the cancellation by payment in full at any time prior to the effective date of cancellation. If an enrolled buyer timely made a payment to the seller pursuant to subdivision (2) of subsection (d) of this section, such insurer shall not cancel such enrolled buyer’s certificate for nonpayment of premium; or

(ii) A portable electronics insurance certificate for fraud or material misrepresentation by the enrolled buyer in obtaining such insurance coverage or in the presenting of a claim thereunder.

(C) An insurer may cancel a portable electronics insurance certificate, effective immediately, (i) if an enrolled buyer ceases to have an active service with the seller, or (ii) for exhaustion of the aggregate limit of liability, if any, of such insurance coverage, provided the insurer sends written notice of such cancellation by United States mail or electronic means to such enrolled buyer not later than thirty days after such buyer exhausts such limit. If such notice is not timely sent, coverage shall continue notwithstanding the aggregate limit of liability until the insurer sends such notice of cancellation to such enrolled buyer.

(3) A seller may terminate a portable electronics insurance policy at any time, provided such seller provides at least thirty days’ written notice prior to such termination, by United States mail or electronic means, to the insurer issuing such insurance policy or to the supervising entity of such insurer and to each enrolled buyer, of such termination and the effective date of such termination.

(4) (A) Any written notices or correspondence sent pursuant to this subsection or otherwise required by law shall be sent to, as applicable, (i) the enrolled buyer at such enrolled buyer’s last known mailing address or electronic mail address on file with the insurer or the seller, (ii) the insurer at such insurer’s mailing address or electronic mail address specified for such purpose, or (iii) the seller at such seller’s mailing address or electronic mail address specified for such purpose. For purposes of this subsection, the provision of an enrolled buyer’s electronic mail address by such enrolled buyer to the insurer or the seller shall be deemed consent by such enrolled buyer to receive such notices or correspondence by electronic mail.

(B) Each insurer or seller that sends a written notice or correspondence pursuant to this subsection shall maintain proof that such notice or correspondence was sent for not less than three years after such notice or correspondence was sent.

(C) A supervising entity may send a written notice or correspondence pursuant to this subsection on behalf of the insurer or a seller for which the insurer has issued a portable electronics insurance policy. Such supervising entity shall maintain proof that such notice or correspondence was sent for not less than three years after such notice or correspondence was sent.

(g) The Insurance Commissioner may:

(1) Refuse to issue or renew, for cause, after notice and hearing, a portable electronics insurance license. Any person aggrieved by the action of the commissioner in disapproving or refusing to renew a portable electronics license may appeal therefrom in accordance with the provisions of section 4-183, except venue for such appeal shall be in the judicial district of New Britain; and

(2) Suspend or revoke a portable electronics insurance license and impose a fine in addition to or in lieu of suspension or revocation, in accordance with section 38a-774. In addition, in lieu of suspension or revocation, the commissioner may issue a cease and desist order suspending the privilege of offering or selling portable electronics insurance at specific locations of a seller or by specific employees or authorized representatives of such seller.

(P.A. 14-64, S. 1; P.A. 15-187, S. 1.)

History: P.A. 15-187 amended Subsec. (b) to add provision re duration of license in Subdiv. (1) and make a technical change.