Connecticut Seal

General Assembly

Amendment

 

February Session, 2018

LCO No. 5921

   
 

*HB0520605921HDO*

Offered by:

 

REP. SCANLON, 98th Dist.

 

To: Subst. House Bill No. 5206

File No. 233

Cal. No. 166

"AN ACT CONCERNING INSURANCE ISSUES."

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

"Sec. 501. Section 1 of senate bill 198 of the current session, as amended by Senate Amendment Schedule "A", is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) There is established a task force to study and develop strategies to develop, expand and improve the insurance industry workforce in this state. Such study shall include, but need not be limited to, (1) an evaluation and analysis of the status of the insurance industry workforce in this state, (2) the employment needs of the insurance industry in this state, and (3) methods of developing, expanding and improving the insurance industry workforce in this state.

(b) The task force shall consist of the following members:

(1) Two appointed by the speaker of the House of Representatives;

(2) Two appointed by the president pro tempore of the Senate;

(3) One appointed by the majority leader of the House of Representatives;

(4) One appointed by the majority leader of the Senate;

(5) One appointed by the minority leader of the House of Representatives;

(6) Two appointed by the minority leader of the Senate;

(7) One appointed by the deputy Senate Republican president pro tempore;

(8) The Insurance Commissioner, or the commissioner's designee; [and]

(9) The president of the Board of Regents for Higher Education, or the president's designee; and

(10) The president of The University of Connecticut, or the president's designee.

(c) Any member of the task force appointed under subdivision (1), (2), (3), (4), (5), (6) or (7) of subsection (b) of this section may be a member of the General Assembly.

(d) All appointments to the task force shall be made not later than thirty days after the effective date of this section. Any vacancy shall be filled by the appointing authority.

(e) The speaker of the House of Representatives and the president pro tempore of the Senate shall select the chairpersons of the task force from among the members of the task force. Such chairpersons shall schedule the first meeting of the task force, which shall be held not later than sixty days after the effective date of this section.

(f) The administrative staff of the joint standing committee of the General Assembly having cognizance of matters relating to insurance shall serve as administrative staff of the task force.

(g) Not later than January 1, 2019, the task force shall submit a report on its findings and recommendations to the joint standing committee of the General Assembly having cognizance of matters relating to insurance, in accordance with the provisions of section 11-4a of the general statutes. The task force shall terminate on the date that it submits such report or January 1, 2019, whichever is later.

Sec. 502. Subdivision (1) of subsection (a) of section 38a-323 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):

(a) (1) No insurer shall refuse to renew any policy that is subject to the requirements of sections 38a-663 to 38a-696, inclusive, unless such insurer or its agent sends, by registered or certified mail or by mail evidenced by a certificate of mailing, or delivers to the named insured, at the address shown in the policy, or, if agreed between the insurer and the named insured, by electronic means, at least sixty days' advance notice of its intention not to renew. The notice of intent not to renew shall state or be accompanied by a statement specifying the reason for such nonrenewal. This section shall not apply: (A) In case of nonpayment of premium; (B) if the insured fails to pay any advance premium required by the insurer for renewal, provided, notwithstanding the failure of an insurer to comply with this subsection, with respect to automobile liability insurance policies the policy shall terminate on the effective date of any other insurance policy with respect to any automobile designated in both policies; or (C) if the policy is transferred from the insurer to an affiliate of such insurer for another policy with no interruption of coverage and contains the same terms, conditions and provisions, including policy limits, as the transferred policy, except that the insurer to which the policy is transferred shall not be prohibited from applying its rates and rating plans at the time of renewal. With respect to an automobile or homeowners policy, each insurer that sends or delivers a notice of nonrenewal pursuant to this subsection shall use the same method to send or deliver such notice to any third party designated pursuant to section 38a-323a.

Sec. 503. Section 38a-323a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):

(a) Each insurer that issues, renews, amends or endorses an automobile or homeowners insurance policy in this state on or after October 1, [2017] 2019, shall include with the policy a conspicuous statement specifying that any individual may designate a third party to receive notice of cancellation or nonrenewal of the policy. The statement shall include a designation form, [and] a mailing address and an electronic mail address the individual may use to designate a third party. Such statement shall be in a form approved by the Insurance Commissioner.

(b) No designation form shall be effective unless it contains a written acceptance by the third party designee to receive copies of notices of cancellation or nonrenewal from the insurer on behalf of the individual. The third party designation shall be effective not later than ten business days after the date the insurer receives the designation form and the acceptance of the third party. The third party may terminate the status as a third party designee by providing written notice to both the insurer and the insured individual. The individual may terminate the third party designation by providing written notice to the insurer and the third party designee. The insurer may require the individual and the third party to send the notices to the insurer by certified mail, return receipt requested, or, if agreed between the insurer and the individual or the insurer and the third party, by electronic means.

(c) The insurer's transmission to the third party designee of a copy of any notice of cancellation or nonrenewal shall be in addition to the transmission of the original document to the insured individual. When a third party is so designated, all such notices and copies shall be mailed in an envelope clearly marked on its face with, or, if agreed between the insurer and the third party, delivered by electronic means stating, the following: "IMPORTANT INSURANCE POLICY INFORMATION: OPEN IMMEDIATELY". The copy of the notice of cancellation or nonrenewal transmitted to the third party shall be governed by the same law and policy provisions that govern the notice being transmitted to the insured individual. The designation of a third party shall not constitute acceptance of any liability on the part of the third party or insurer for services provided to the insured individual.

Sec. 504. Subsection (a) of section 38a-343 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):

(a) No notice of cancellation of a policy to which section 38a-342 applies shall be effective unless [sent,] the notice is delivered or sent by the insurer to the named insured, and any third party designated pursuant to section 38a-323a, by registered [or] mail, certified mail, [or by] mail evidenced by a certificate of mailing [,] or, [delivered by the insurer to the named insured, and any third party designated pursuant to section 38a-323a,] if agreed between the insurer and the named insured, by electronic means, at least forty-five days before the effective date of cancellation, except that (1) where cancellation is for nonpayment of the first premium on a new policy, at least fifteen days' notice of cancellation accompanied by the reason for cancellation shall be given, and (2) where cancellation is for nonpayment of any other premium, at least ten days' notice of cancellation accompanied by the reason for cancellation shall be given. No notice of cancellation of a policy that has been in effect for less than sixty days shall be effective unless mailed or delivered by the insurer to the insured and any third party designee at least forty-five days before the effective date of cancellation, except that (A) at least fifteen days' notice shall be given where cancellation is for nonpayment of the first premium on a new policy, and (B) at least ten days' notice shall be given where cancellation is for nonpayment of any other premium or material misrepresentation. The notice of cancellation shall state or be accompanied by a statement specifying the reason for such cancellation. Any notice of cancellation for nonpayment of the first premium on a new policy may be retroactive to the effective date of such policy, provided at least fifteen days' notice has been given to the insured and any third party designee and payment of such premium has not been received during such notice period.

Sec. 505. Section 38a-344 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):

Proof of mailing by certified mail, return receipt requested, or, if agreed between an insurer and a named insured, delivery by electronic means with proof of a delivery receipt, notice of cancellation, [or of] an intention not to renew or of reasons for cancellation, to the named insured [,] and any third party designated pursuant to section 38a-323a [,] at the address shown in the policy, or by electronic means if agreed between an insurer and a named insured, shall be sufficient proof of notice.

Sec. 506. Subparagraph (A) of subdivision (2) of subsection (b) of section 38a-676 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):

(2) (A) Each filing described in subsection (a) of this section for professional liability insurance for physicians and surgeons, hospitals, advanced practice registered nurses or physician assistants shall be subject to prior rate approval in accordance with this section. On and after July 13, 2005, each insurer or rating organization seeking to increase its rates over the rates in the insurer's previous filing for such insurance by seven and one-half per cent or more shall (i) file a request for such change with the Insurance Commissioner, and (ii) send written notice of any request for an increase in rates to insureds who would be subject to the increase on such form as the commissioner prescribes by certified mail, return receipt requested, or, if agreed by the insured and the insurer or the insured and the rating organization, by electronic means with proof of a delivery receipt. Such request shall be filed and such notice shall be sent at least sixty days prior to the proposed effective date of the increase. The notice to insureds of a request for an increase in rates shall indicate that the insured may request a public hearing by submitting a written request to the Insurance Commissioner not later than fifteen days after the date notice was sent. Any request for an increase in rates under this subdivision shall be filed after notice is sent to insureds and shall indicate the date such notice was sent. Not later than fifteen days after such notice is sent, the insurer shall submit a list to the commissioner indicating the name of each insured to whom notice was sent and whether a return receipt or a delivery receipt was received for the notice sent to the insured.

Sec. 507. Subsection (a) of section 38a-724 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):

(a) The use of an employment contract between a public adjuster and the insured shall be mandatory.

(1) Any such contract signed on or after October 1, [2013] 2019, shall contain a provision, prominently displayed on the first page of such contract in not less than twelve-point boldface type, specifying that the insured may cancel the contract, provided such insured notifies the public adjuster at such public adjuster's main office or branch office at the address shown in the contract, by certified mail, return receipt requested, or, if agreed between the insured and the public adjuster, by electronic means with proof of a delivery receipt, posted or delivered not later than midnight of the fourth calendar day after the day on which the insured signs the contract, except that if the signing is on a Friday, Saturday or Sunday, the cancellation shall be posted not later than midnight of the Thursday immediately following, and thereafter the contract shall be void ab initio.

(2) Any such contract signed on or after October 1, [2013] 2019, that does not display the provision as specified in subdivision (1) of this subsection shall be void ab initio.

Sec. 508. Section 1 of substitute senate bill 207 of the current session, as amended by Senate Amendment Schedule "A", is repealed and the following is substituted in lieu thereof (Effective January 1, 2019):

Each insurer, health care center, fraternal benefit society, hospital service corporation, medical service corporation or other entity that delivers, issues for delivery, renews, amends or continues an individual or group health insurance policy in this state that provides coverage of the type specified in subdivision (1), (2), (4), (10), (11), (12) or (16) of section 38a-469 of the general statutes and includes coverage for inpatient or outpatient dental services shall, at least once during the term of a contract, [year,] permit a licensed dentist who provides covered dental services to an insured to refuse to accept reimbursement for such services by way of a virtual credit card. Such refusal shall apply to all covered dental services provided by such dentist during the term of such contract. [year.] As used in this section, "virtual credit card" means a single-use credit card exclusively provided in an electronic or digital format."

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

Sec. 501

from passage

SB 198 (current session), Sec. 1

Sec. 502

October 1, 2019

38a-323(a)(1)

Sec. 503

October 1, 2019

38a-323a

Sec. 504

October 1, 2019

38a-343(a)

Sec. 505

October 1, 2019

38a-344

Sec. 506

October 1, 2019

38a-676(b)(2)(A)

Sec. 507

October 1, 2019

38a-724(a)

Sec. 508

January 1, 2019

SB 207 (current session), Sec. 1