General Assembly Raised Bill No. 6437 proposes significant amendments to existing insurance market conduct and licensing laws, set to take effect on October 1, 2025. Key changes include the introduction of electronic mail as a valid method for serving process on the commissioner, alongside traditional registered or certified mail. The commissioner is required to send a copy of the process to the last-known electronic mail address of the individual being served and maintain a record of all services. Additionally, the bill establishes a 45-day waiting period before a plaintiff can seek a default judgment in related actions. It also allows for the suspension or revocation of licenses to be communicated via personal delivery or electronic mail, and it stipulates that if a firm's license is revoked, the licenses of its principals or officers may also be revoked unless they can prove they were not at fault.

Further amendments include the removal of the requirement for insurers to conduct on-site audits of third-party administrators, replacing it with a mandate for semiannual reviews of their operations. Insurers must now report any termination of an agent's appointment for cause to the Insurance Commissioner within thirty days, while the previous requirement for annual reports on automobile insurance fraud investigations has been eliminated. The bill also repeals and substitutes several sections of the general statutes related to insurers' responsibilities and protections, clarifying that no insurance company or authorized employee shall be liable for damages in civil actions for statements made in good faith under these provisions, provided there is no fraud or malice involved. Overall, the bill aims to modernize communication methods, streamline processes, and reduce regulatory burdens on insurers while ensuring oversight and accountability.

Statutes affected:
Raised Bill: 4-182, 51-344b