Connecticut Seal

General Assembly

Amendment

 

January Session, 2017

LCO No. 6832

   
 

*SB0080606832SDO*

Offered by:

 

SEN. LOONEY, 11th Dist.

SEN. DUFF, 25th Dist.

SEN. DOYLE, 9th Dist.

SEN. SLOSSBERG, 14th Dist.

SEN. GERRATANA, 6th Dist.

SEN. WINFIELD, 10th Dist.

SEN. LARSON, 3rd Dist.

To: Subst. Senate Bill No. 806

File No. 301

Cal. No. 174

"AN ACT ESTABLISHING THE CRUMBLING FOUNDATION ASSISTANCE PROGRAM AND ASSISTING HOMEOWNERS WITH CRUMBLING FOUNDATIONS. "

Strike lines 1 to 19, inclusive, in their entirety and substitute the following in lieu thereof:

"Section 1. (NEW) (Effective July 1, 2018) (a) Each admitted and nonadmitted insurer that issues, renews, amends or endorses a homeowners insurance policy, a renters insurance policy, a condominium unit owners insurance policy or a master policy that is required to be purchased by a condominium association pursuant to section 47-83 of the general statutes or by a unit owners' association pursuant to section 47-255 of the general statutes on or after July 1, 2018, on any property or risks located or resident in this state, shall collect a surcharge of twelve dollars from the named insured under such policy. Such insurer shall state the surcharge separately on a billing notice or policy declaration or in a document provided to the named insured under such policy. In no event shall the surcharge be considered premium for the issuance of such insurance policy.

(b) (1) For each insurance policy subject to subsection (a) of this section issued, renewed, amended or endorsed by an admitted insurer, the admitted insurer shall remit to the Insurance Commissioner, not later than March fifteenth annually, all such surcharges collected during the calendar year next preceding and shall include with such remittance, in a form and manner prescribed by the commissioner, documentation to substantiate the surcharge amount remitted.

(2) For each insurance policy subject to subsection (a) of this section issued, renewed, amended or endorsed by a nonadmitted insurer, the licensee who procured, continued or renewed such coverage shall remit to the Insurance Commissioner, on or before February fifteenth annually, all such surcharges collected during the calendar year next preceding and shall include with such remittance, in a form and manner prescribed by the commissioner, documentation to substantiate the surcharge amount remitted. For purposes of this subdivision, "licensee" has the same meaning as provided in subsection (b) of section 38a-743 of the general statutes.

(c) All such remittances collected shall be deposited in the Crumbling Foundation Assistance Fund established pursuant to section 2 of this act.

(d) The Insurance Commissioner may adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to carry out the purposes of this section.

(e) The surcharge required under subsection (a) of this section shall terminate on June 30, 2025. "

Strike sections 11 and 12 in their entirety and renumber the remaining sections and internal references accordingly

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. Section 29-263 of the general statutes is amended by adding subsection (d) as follows (Effective July 1, 2017):

(NEW) (d) Any municipality may, by ordinance adopted by its legislative body, waive any application fee imposed by the municipality and the education fee assessed pursuant to subsection (b) of this section on a building permit application to repair or replace a concrete foundation that has deteriorated due to the presence of pyrrhotite.

Sec. 502. Subsection (c) of section 38a-743 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(c) (1) (A) With respect to nonadmitted insurance, where such coverage is procured, continued or renewed for an insured by a licensee on or after July 1, 2011, and where this state is an insured's home state, such licensee shall pay a tax equal to the sum of four per cent of the gross premiums charged such insureds by nonadmitted insurers, irrespective of the fact that the insurance policy may cover properties, risks or exposures located or to be performed both within and without this state.

(B) With respect to nonadmitted insurance of the type specified under subsection (a) of section 1 of this act, where such coverage is procured, continued or renewed for an insured by a licensee on or after July 1, 2018, such licensee shall pay, in accordance with subdivision (3) of this subsection, the surcharge required under subsection (a) of section 1 of this act.

(2) (A) For the period beginning on July 1, 2011, and ending September 30, 2011, each licensee shall pay to the Insurance Commissioner, on or before November 15, 2011, in accordance with procedures established and on forms provided by said commissioner, a tax on nonadmitted insurance equal to the sum of four per cent of the gross premiums charged insureds by nonadmitted insurers during such period.

(B) For the period beginning on October 1, 2011, and ending December 31, 2011, each licensee shall pay to the Insurance Commissioner, on or before February 15, 2012, in accordance with procedures established and on forms provided by said commissioner, a tax on nonadmitted insurance equal to the sum of four per cent of the gross premiums charged insureds by nonadmitted insurers during such period.

(3) For calendar years beginning on or after January 1, 2012, each licensee shall pay to the Insurance Commissioner, in accordance with procedures established and on forms provided by said commissioner, (A) on or before May fifteenth of each year in which nonadmitted insurance was procured, continued or renewed, a tax on such insurance equal to the sum of four per cent of the gross premiums charged insureds by nonadmitted insurers during the period from January first to March thirty-first of that year; (B) on or before August fifteenth of each year in which nonadmitted insurance was procured, continued or renewed, a tax on such insurance equal to the sum of four per cent of the gross premiums charged insureds by nonadmitted insurers during the period from April first to June thirtieth of that year; (C) on or before November fifteenth of each year in which nonadmitted insurance was procured, continued or renewed, a tax on such insurance equal to the sum of four per cent of the gross premiums charged insureds by nonadmitted insurers during the period from July first to September thirtieth of that year; and (D) (i) on or before February fifteenth of each year succeeding a year in which nonadmitted insurance was procured, continued or renewed, a tax on such insurance equal to the sum of four per cent of the gross premiums charged insureds by nonadmitted insurers during the period from October first to December thirty-first of the preceding year, and (ii) beginning July 1, 2018, on or before February fifteenth of each year succeeding a year in which nonadmitted insurance of the type specified under subsection (a) of section 1 of this act was procured, continued or renewed, the surcharge required under said subsection.

(4) In the event of cancellation and rewriting of any nonadmitted insurance contract, the premium for purposes of this subsection shall be the premium in excess of the unearned premium of the cancelled insurance contract.

(5) If, pursuant to subsection (g) of this section, the Insurance Commissioner enters into a cooperative or reciprocal agreement with another state or states, and if the provisions set forth in such agreement are different from provisions prescribed by this subsection, then the provisions set forth in such agreement shall prevail. "

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2018

New section

Sec. 501

July 1, 2017

29-263

Sec. 502

July 1, 2017

38a-743(c)