In a major win for the insurance industry and Connecticut businesses, the state Senate passed H.B.6981, a top legislative priority for PIACT. This pivotal reform would eliminate the outdated requirement that brokers must obtain declinations from admitted insurers before placing coverage in the excess and surplus lines market through unaffiliated surplus lines brokers.
The bill, championed in the House by Rep. Kerry Wood, D-29, and backed by sustained advocacy from PIACT, now moves to Gov. Ned Lamont’s desk for his consideration. With this reform, Connecticut would align itself with a growing number of states that have modernized their surplus lines placement rules.
Cutting red tape, preserving protections
Under current law, brokers must seek formal rejections from standard carriers—even when it’s clear those carriers will not write certain high-risk or specialized policies. This procedural step has long been seen as a costly and unnecessary delay, both for brokers and the clients they serve.
The passage of H.B.6981 sends a clear message: Connecticut is serious about cutting red tape while keeping consumers protected. This legislation would streamline access to essential coverage and ensure the state’s insurance market remains competitive and efficient.
Crucially, the bill would not diminish consumer protection. Connecticut law prohibits consumers from directing access to the non-admitted market. Consumers must use licensed brokers, who adhere to professional and ethical standards. Brokers also would remain financially incentivized to seek coverage in the admitted market first, as E&S placements typically involve additional steps and split commissions.
A modern solution for a modern market
The E&S market plays a critical role in providing coverage for complex, distressed or emerging risks that the standard market cannot serve. Whether it’s for a unique business, new technology or high-hazard property, time often is of the essence. H.B.6981 would acknowledge that licensed brokers are best positioned to determine when E&S placement is necessary—without bureaucratic interference.
PIACT’s leadership made this case forcefully during testimony before the General Assembly Insurance and Real Estate Committee in February. Industry experts including PIACT Treasurer Kathleen Bailey, CPIA, ACSR, CLCS, and past President James Berliner, CPCU, shared real-world examples of how the current system hinders clients’ ability to secure timely coverage.
Member advocacy made the difference
PIACT extends its sincere gratitude to the many members who supported this initiative. Whether by testifying at the Capitol, attending PIACT’s Legislative Reception or sending letters to legislators, member involvement played a pivotal role in advancing this bill.
These personal efforts brought real-world insight to lawmakers and demonstrated the strength and unity of Connecticut’s independent agent community. Your advocacy made a direct and lasting impact.
Looking ahead
With Senate passage complete, PIACT now turns its focus to ensuring the bill is signed into law and implemented effectively.
PIACT thanks its members, industry allies and legislative champions for their advocacy, and encourages agents to stay engaged as this important reform heads toward final enactment.
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.
