In a major step toward modernizing Connecticut’s insurance regulations, the state House of Representatives has passed H.B.6981, a measure that eliminates an outdated procedural barrier in the surplus lines market. Spearheaded by Rep. Kerry Wood, D-29, a long-time advocate for regulatory efficiency, this bill would remove the requirement for brokers to obtain declinations from admitted insurers before they would access the E&S market through unaffiliated surplus lines brokers.
This milestone represents the culmination of sustained advocacy by PIACT, which prioritized the reform of E&S placement requirements as its top legislative goal for 2025.
A smart, targeted reform
With the House’s approval of H.B.6981, Connecticut moves to align itself with a growing number of states that have eliminated similar requirements. Under the current rules, brokers are forced to secure formal rejections from standard insurers—even when it is well known those insurers do not write certain risks. The result? Delays and added costs for both brokers and policyholders.
By eliminating this inefficient step, the legislation would streamline the placement process while preserving regulatory oversight and consumer protections.
Why it matters
The E&S market serves a crucial role, offering coverage for complex, high-risk or emerging exposures that the standard market won’t cover. Whether it’s a niche business, a unique property or a cutting-edge technology liability, quick access to coverage can make all the difference.
Under H.B.6981, brokers would act more swiftly and decisively—without sacrificing accountability. The change would acknowledge what professionals in the field already know: highly trained brokers are well equipped to determine when E&S placement is appropriate, and unnecessary red tape would only slow their ability to serve clients effectively.
Importantly, the bill would not alter core consumer safeguards. E&S policies would still be placed through licensed brokers, and ethical standards continue to govern placement decisions. This would be targeted reform—not deregulation.
What’s next
While House passage is a major achievement, H.B.6981 must still be approved by the state Senate. PIACT is calling on agents and industry advocates to help ensure the bill reaches the finish line.
How you can help
You can take action today by contacting your state senators and urging them to support H.B.6981. Make your voice heard and click this link.
Continuing the fight for smart policy
PIACT applauds the House for passing this practical and timely reform and urges the Senate to act swiftly. Your association will continue to work closely with lawmakers and regulators to ensure that Connecticut remains a leader in forward-thinking, responsible insurance policy.
For more background on PIACT’s testimony and the broader context of this legislation, read our earlier coverage.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
