SB 1031 Summary

• Requires individual life insurance policies to include a notice allowing applicants to cancel within 10 days of receipt, with the policy becoming void upon return to the insurer or agent.

• Mandates insurers maintain proof of policy delivery or mailing for seven years in any format (paper, electronic, etc.) and make such proof available to the Insurance Commissioner upon request.

• Expands the Insurance Commissioner's authority to impose restitution on insurance producers who commit violations involving misappropriation of funds, unfair trade practices, fraud, or dishonest practices.

• Requires health insurers to pay accident and health claims within 60 days (paper format) or 20 days (electronic format) of receipt, with 15% annual interest plus penalties for late payments; sets deficiency notice timeframes at 30 days (paper) or 10 days (electronic).

• Prohibits insurers and health care entities from offering health insurance policies that reserve discretion to interpret policy terms or use standards of interpretation inconsistent with Connecticut state law.