Diligent Effort Repeal Heads to Governor Lamont’s Desk
Legislation to eliminate Connecticut’s outdated “diligent effort” requirement is now headed to Gov. Ned Lamont following final passage in the State Senate. The bill, HB 5373, previously cleared the House and represents a significant step toward modernizing the state’s insurance marketplace.
The reform removes the requirement that agents obtain and document three declinations from admitted carriers before placing coverage in the excess and surplus lines market. In practice, this process often creates delays for consumers and unnecessary administrative work for agents. The excess and surplus market plays a critical role in covering risks that the standard market cannot accommodate, including unique or high-risk exposures.
Big I Connecticut members played a central role in advancing the legislation through consistent advocacy and direct engagement with policymakers. During the Big I Connecticut Morning at the Capitol, members held a well-attended roundtable with Insurance & Real Estate Committee Co-Chair, Rep. Kerry Wood, and Insurance Commissioner Josh Hershman. Members shared real-world examples from their agencies and emphasized how the requirement affects customers, helping to keep the issue front and center at a key point in the session.
The bill also enhances transparency by authorizing the Insurance Commissioner to require annual reporting from surplus lines brokers, including policy counts, property locations, and premium data for real property coverage.
Big I Connecticut also took a forward-looking approach to the issue. At the same time it pursued full repeal, the association developed an alternative policy option focused on expanding Connecticut’s “exportable list.” This list identifies coverages that are generally unavailable in the admitted market and exempts them from the diligent effort requirement. The March 2026 report found that Connecticut’s list is among the shortest in the region, highlighting an opportunity for improvement. This parallel effort ensured that a viable reform path was ready regardless of how the legislation progressed.
With HB 5373 now awaiting the governor’s signature, Big I Connecticut continues to demonstrate its effectiveness in advancing practical reforms that improve access to coverage and reduce unnecessary delays for consumers and businesses.
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