Substitute House Bill No. 5503, Public Act No. 24-138, is a comprehensive piece of legislation that addresses various aspects of insurance regulation, including market conduct, insurance licensing, and captive insurance. The bill enhances the powers of the Insurance Commissioner, allowing for the ordering of restitution with interest for violations of insurance provisions and enforcing penalties even if a license has been surrendered, revoked, or lapsed. It also revises the conditions for disciplining an insurance producer's license and mandates compliance with document production orders. Additionally, the bill modifies the expiration and renewal process for licenses of motor vehicle physical damage appraisers and casualty claims adjusters, and it changes the assessment and taxation of domestic insurance companies, including a new distribution of payments and adjustments to the provisions for when a company's assessment exceeds certain percentages of actual expenditures.

The bill also updates the definition of a "small employer," extends the approval period for independent review organizations, and revises the readability requirements for insurance policies, including the filing of non-English language policies. It introduces new reporting deadlines for pharmacy benefits managers and allows for electronic filing of financial reports. Furthermore, the bill provides definitions for various terms related to captive insurance companies and details the conversion process for protected cells within sponsored captive insurance companies. It also amends the Covered Connecticut program to include only in-network providers and services and establishes the Health Reinsurance Association, outlining its administration, financial operations, and liability protections. The bill includes deletions and insertions in the legal language, indicating updates to the statutes, and is set to take effect on October 1, 2024.

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