As the days tick by to the end of the Connecticut legislative session, PIACT has been advocating for passage of the association’s top priority, H.B.6621, which makes small, but important changes to the current process of placing risks in the nonadmitted marketplace. The work has paid off—the legislation passed the state House of Representatives without opposition last week.
The bill changes how surplus-lines brokers and insureds must document surplus-lines insurance policies.
Under current law, whenever an insured procures or renews an insurance line in the nonadmitted marketplace, both the broker and the insured must sign a statement: 1. indicating that the broker made diligent efforts to obtain insurance from a licensed insurer; and 2. showing specified information about the insurance policy.
H.B.6621 would eliminate the signed statement requirement but it would maintain the requirements that the broker and the insured first make a diligent effort to obtain the insurance from a licensed insurer and document the specified information. Under the bill, the broker would be required to make the diligent-effort information available for examination by the commissioner of insurance upon request.
PIACT had sought larger reforms to the system, but it faced objections from stakeholders. In the face of those objections, your association worked diligently behind-the-scenes with both elected officials and regulators to reach a compromise on this issue.
Now, the bill will go to the state Senate for consideration in that chamber.