PIACT achieved a major legislative achievement this session, with the passage of H.B.6981, a long-standing priority for the association and a milestone for the state’s insurance community.
H.B.6981 eliminates the outdated requirement that brokers must obtain formal declinations from admitted insurers before placing coverage in the nonadmitted excess and surplus market through unaffiliated surplus lines brokers. This reform streamlines the placement process, reduces administrative burdens, and allows brokers to respond more efficiently to clients with complex or high-risk insurance needs.
The E&S market plays a vital role in covering emerging risks and hard-to-place properties. By removing unnecessary red tape, Connecticut joins states like Louisiana, Mississippi, Virginia and Wisconsin, which already have modernized their surplus lines procedures.
This legislative success is the result of grassroots advocacy. PIACT members engaged directly with lawmakers, provided testimony, and shared real-world experiences that demonstrated the need for reform. Their efforts helped lawmakers understand the practical impact of the declination requirement and the benefits of removing it.
Where we are now: A regulatory roadblock
Despite the bill’s clear intent, the Connecticut Insurance Department has adopted a narrow interpretation of the new law. Currently, the department asserts that the declination exemption applies only to transactions between E&S brokers—excluding the far more common retail-to-wholesale broker arrangements.
This interpretation contradicts the legislative record and undermines the bill’s purpose. In response, PIA is working actively to clarify the law and to ensure it is implemented as intended.
Next steps
PIACT remains committed to ensuring that Connecticut brokers can leverage the E&S market fully without unnecessary regulatory barriers. We will continue to advocate for a practical interpretation of H.B.6981.
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.
