Substitute House Bill No. 6437 proposes significant amendments to existing insurance laws, set to take effect on October 1, 2025. The bill repeals Sections 38a-26 and 38a-774, replacing them with updated provisions that enhance the service of legal documents and the procedures for license suspension or revocation. Key changes include allowing service of process via electronic mail, alongside traditional methods, and requiring the commissioner to send a copy of the process to the last-known email address of the individual being served. Additionally, the bill establishes that no default judgment can be granted until 45 days after the service of process. It also introduces a new framework for license suspension or revocation, enabling the commissioner to impose fines, conduct hearings, and deliver notices electronically.

Moreover, the bill mandates that insurers using third-party administrators (TPAs) are responsible for determining benefits and claims procedures, while requiring semiannual reviews of TPA operations without the need for an on-site audit. Insurers must report the termination of an agent's appointment for cause to the Insurance Department within 30 days, and the bill removes the annual reporting requirement for automobile insurance fraud investigations. It also includes provisions that protect insurance companies and employees from liability when providing information related to fraud investigations, provided there is no malice or criminal intent. The bill further replaces references to the "judicial district of Hartford" with the "judicial district of New Britain," aiming to streamline processes and enhance accountability within the insurance sector.

Statutes affected:
Raised Bill: 4-182, 51-344b
INS Joint Favorable: 4-182, 51-344b
File No. 64: 4-182, 51-344b