Raised Bill No. 403 is a legislative proposal aimed at amending the insurance market conduct and insurance licensing laws in Connecticut, with an effective date of October 1, 2024. The bill grants the insurance commissioner additional powers to order restitution and interest for sums obtained in violation of insurance provisions and outlines the commissioner's duties, which include ensuring compliance with insurance laws, recommending legal changes, adopting regulations, conducting periodic reviews, maintaining confidentiality, and promoting the industry. A new subsection (i) is introduced, enabling the Attorney General to take legal action, at the commissioner's request, against violators of insurance regulations, including seeking injunctions and imposing penalties of up to $100,000 per violation. The state may also recover the costs of such actions if the commissioner prevails.

The bill also amends Section 38a-16 to allow the Insurance Commissioner or their representative to conduct investigations, issue data calls, and administer subpoenas. It protects data provided in response to a data call from disclosure and expands the scope of market conduct examinations to include third-party service providers. Additionally, it revises the renewal date for initial licenses issued to appraisers and adjusters, changing the expiration to two years after the licensee's birthday preceding the date the license was issued, and allows for biennial renewal upon payment of the specified fee. The commissioner is also granted the authority to adopt regulations concerning the qualifications and conduct of licensees. The bill's purpose is to enhance legal actions for insurance regulation violations, establish new compliance requirements for investigations, authorize examinations of third-party service providers, and update the renewal dates for certain licenses.

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