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May 21
The Connecticut Legislature Adjourns with Two Important Victories For IAs

​The Connecticut General Assembly gaveled in for the 2024 legislative session on February 7th and adjourned at 11:59pm on May 8th. Over the five-month stretch, legislators saw 1484 bills introduced and only 176 bills make it across the finish line. Overall, this session had a relatively light legislative agenda in terms of insurance legislation. While the Insurance committee started out strong, things quickly took a turn as internal committee conflicts prevented any work from getting done. Ultimately, no legislation was voted out of the Committee and instead a vehicle from the Commerce committee was used to insert the Department of Insurance's priorities and language.

We are pleased to report two significant victories this session. First, we successfully defeated a last minute attempt to allow the Attorney General to file suit on behalf of the Insurance Commissioner, a move that would have serious repercussions for independent agencies. Additionally, legislation to ban non-compete agreements did not advance.

The legislature passed a bill to mandate paid sick time by progressively smaller, then ultimately all, employers. The bill was amended in such a way that employers that grant at least 5 paid sick days per year will be deemed in compliance. We anticipate this bill will minimal impact on independent agencies.


H.B. 5503 An Act Concerning Insurance Market Conduct and Insurance Licensing, the Insurance Department's Technical Corrections and Other Revisions to the Insurance Statutes and Captive Insurance.

Status: Awaiting Governor's Signature

This bill makes numerous changes to insurance statutes as requested by the Department of Insurance. The original version of this bill (SB 403 AAC Insurance Market Conduct and Insurance Licensing) as proposed by the department, authorized the Insurance Department to perform market conduct examinations of third parties providing services to the insurance industry in this state. FOCUS was instrumental in removing it prior to the department's language being added to 5503. Amongst those changes include:

  • Insurance Commissioner's Enforcement Authority (Sections 1 & 2)
    • Originally this section granted very broad authority to the AG to file suit on behalf of the Commissioner for almost any violation, even if it was a perceived violation. FOCUS worked with the chairs and the department on the language that now appears in the bill which limits AGs power to address the specific issue the department was attempting to resolve
    • Allows the insurance commissioner to impose restitution, with interest, when someone violates the state's insurance laws, regulations, or commissioner orders; allows the commissioner to ask the attorney general to apply for a court order enforcing insurance laws and commissioner orders or providing restitution with interest
  • 30 Days to Turn Over Documents (Section 3)
    1. Requires anyone requested to provide the Insurance Department with documents related to an investigation to comply within 30 days after the request
  • Expiration date for certain initial licenses (Sections 4 & 5)
    1. Revises the expiration date for initial licenses issued to motor vehicle damage appraisers and casualty claims adjusters from June 30 in an odd-numbered year to two years after the licensee's birthday that came before the license was issued
  • General insurance assessment process (Section 6)
    1. Removes the Office of the Healthcare Advocate from the Insurance Department's annual process of assessing carriers for the general insurance assessment
  • Electronic filings in lieu of paper filings (Sections 7, 8, & 12)
    1. Removes requirements that insurers file copies of annual financial statements and audited financial reports with the insurance commissioner, allowing electronic filings to the NAIC to suffice
  • Non English Insurance Documents and Translations (Section 9)
    1. Requires insurers who file policies in a non-English language to certify that they comply with readable language requirements and bear the risks associated with any translations; allows the insurance commissioner to hire translation services at the insurer's cost
  • Small Employer Definition (Section 11)
    1. Beginning January 1, 2025, updates the definition of “small employer" in the health insurance statutes to mean having no more than 50 employees
  • Independent Review Organization Accreditation Period (Section 13)
    1. Extends the accreditation approval or reapproval period for independent review organizations from two to three years
  • Captive Insurer Conversion of Protected Cells (Sections 14 & 15)
    1. Allows a captive insurer's protected cell to convert into a new protected cell, incorporated cell, or captive insurance company without any impact on the protected cell's assets, rights, benefits, obligations, and liabilities
H.B. 5005 (Public Act 24-8): An Act Expanding Paid Sick Days in the State
Status: Signed into law on May 28th.

The bill extends CT's paid sick leave laws to include almost all private sector employees and employers with 25 employees in 2025, 11 employees in 2026, and all employers in 2027. It expands reasons for leave and raises the accrual rate, while also implementing restrictions on documentation requests, among other provisions.


S.B. 2  An Act Concerning Artificial Intelligence
Status: Did not Advance

This bill sought to establish a roadmap for regulation of artificial intelligence. There are numerous sections of this bill that seek to regulate varying industries, address fake images, create a working group, address elections and deceptive A.I. media, among other things.

Though the legislation ultimately failed, FOCUS was able to successfully work with legislators and other key stakeholders to carve out sections of the bill that would have regulated the insurance industry.

H.B. 5257 An Act Concerning Liability for Damage to Person or Property Caused by a Dog
Status: Did Not Advance

This bill made the owner or keeper of a dog liable for any dog that caused damage to another person or property. It specified that liability would not be placed on the owner if a person had been trespassing, teasing, or tormenting the dog, with a few other exceptions including children 7 years or younger. Additionally, law enforcement's dogs were exempt, and the officer would not be considered the dog's keeper. The bill also applied a specific provision against dogs attacking service animals, making the owner and/or keeper liable for any damage caused.

H.B. 5269 An Act Concerning Noncompete Agreements
Status: Did Not Advance

This bill established limits on the use of noncompete agreements (also known as "covenant not to compete" provisions) for employees and independent contractors. Under the bill, a noncompete agreement was enforceable only if it met specific requirements, including that (1) the covered employee earned at least three times the minimum wage or the independent contractor earned at least five times the minimum wage, and (2) any covered employee was exempt from the state's minimum wage laws. The bill also set limits on exclusivity agreements that employers and contractors could ask or require workers to sign.

H.B. 5246 An Act Concerning Electronic Posting of Certain Documents by Insurers
Status: Did not advance

This legislation would have allowed insurers to post certain insurance policies and endorsements on such insurers' Internet websites.




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