Gov. Lamont Signs Bill Modernizing Diligent Effort Requirement
With Governor Lamont’s signature of HB6981, effective October 1, 2025 the diligent effort requirement for placing surplus lines coverage with unaffiliated wholesale surplus lines brokers will no longer be required.
Connecticut General Statutes Insurance Section 38a-741 requires that, before acquiring coverage outside of the standard market, both the licensee and the insured shall first make a diligent effort, as defined by the commissioner, to procure, from any authorized insurer or insurers, the full amount of insurance required to protect the interest of such insured. The statute is amended to exclude from the diligent effort requirement “any policy of insurance where the broker seeks to procure or place such insurance through an unaffiliated wholesale surplus lines insurance broker.”
As previously reported, Big I Connecticut actively urged the General Assembly to pass this important modernization effort. Just one day after Chair of the Board Danielle Brown sent a letter of support to House Speaker Matt Ritter, the bill was raised in the House and passed. Advocates then turned their attention toward the Senate, which passed the bill during the final days of session.
We will continue to monitor this development and share any additional guidance that may be provided by the Connecticut Insurance Department. Thank you again to those members who participated in grassroots advocacy to help move this important modernization effort over the finish line.
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