CT HB07013

Allows the Insurance Commissioner to designate domestic insurance companies with at least $15 million in policyholder surplus as domestic surplus lines insurers, effective July 1, 2017.

Designated domestic surplus lines insurers are treated as unauthorized/nonadmitted insurers that may write surplus lines insurance only through licensed surplus lines brokers and are subject to surplus lines insurance regulations under chapter 701d.

Surplus lines policies issued by domestic surplus lines insurers are exempt from Connecticut Insurance Guaranty Association protection and requirements relating to rates, rating plans, policy forms, and policy cancellation/nonrenewal.

Surplus lines insurance written by domestic surplus lines insurers is subject to the tax under section 38a-743 but exempt from the tax under section 12-202 (the domestic insurance company tax).

Establishes and clarifies definitions in Connecticut insurance law, including new definition for "domestic surplus lines insurer" and restates definitions for alien, domestic, foreign, and unauthorized/nonadmitted insurers.