Substitute House Bill No. 5503 is an act that addresses various aspects of insurance regulation, including market conduct, insurance licensing, technical corrections to insurance statutes, and captive insurance. The bill expands the Insurance Commissioner's powers, allowing the commissioner to order restitution for sums obtained in violation of insurance provisions, regulations, or orders, along with interest. It also outlines disciplinary actions against insurance producers and introduces a provision for the Attorney General to apply to the Superior Court for orders related to restraining violations and enforcing penalties. The bill amends the process for the commissioner's investigations, specifying a 30-day compliance period for the production of requested documents, and changes the licensing and regulation of motor vehicle physical damage appraisers and casualty claims adjusters, including a new expiration date for licenses and biennial renewal requirements.

The bill also revises the assessment and payment process for domestic insurance companies, removing the involvement of the Healthcare Advocate and adjusting the payment timeline. It modifies the penalty for late payments, updates the requirements for electronic filing of financial reports, and amends the readability requirements for insurance policies, including provisions for non-English-language policies. Furthermore, the bill changes the reporting requirements for pharmacy benefits managers, redefines "small employer," and extends the approval period for independent review organizations. It outlines definitions and provisions related to captive insurance companies, including the conversion of protected cells into various forms of captive insurance entities. Lastly, the bill establishes the Health Reinsurance Association, which all insurers in the state must join, and specifies the association's powers and duties, including the repeal of section 38a-556a of the general statutes. The bill includes insertions and deletions of legal references, notably replacing references to section 38a-556a with 38a-557.

Statutes affected:
INS Joint Favorable Substitute:
File No. 644:
Public Act No. 24-138: