Substitute House Bill No. 5373 proposes significant revisions to Connecticut's insurance statutes, focusing on modernizing communication methods and streamlining regulatory processes. Key changes include the repeal of Section 38a-26, which previously outlined service of process on the commissioner, now allowing for electronic mail as a valid method of service. The bill also establishes that no default judgment can be granted until 45 days after service is completed. Additionally, it repeals Section 38a-774, updating the notification process for license suspensions or revocations to include electronic communication, and shifts the judicial district for appeals from Hartford to New Britain. The bill aims to enhance efficiency and reduce costs for the Insurance Department, with an estimated savings of $30,000 for FY 27 and $40,000 for FY 28 due to the adoption of electronic delivery methods.

Further amendments address the assessment and fee structure for insurers and health care centers, including a new requirement for entities to submit objections to proposed fees by December 20 annually. The bill modifies the assessment calculation process, increasing the percentage due by June 30 from 25% to 35%, and introduces provisions for third-party administrators to continue services in the event of an insurer's insolvency. It also expands the Connecticut Insurance Guaranty Association's coverage to include cybersecurity insurance and updates the definition of "covered claims." Overall, the bill seeks to improve regulatory oversight, enhance consumer protections, and adapt to the evolving landscape of insurance coverage, with an effective date set for October 1, 2026.

Statutes affected:
Raised Bill:
INS Joint Favorable Substitute:
File No. 241: