HB 6590 Summary

• Repeals and replaces section 38a-816 to expand the definition of unfair insurance practices, effective October 1, 2021, including misrepresentations, false advertising, defamation, unfair claim settlement practices, and complaint handling failures.

• Prohibits life insurance companies from discriminating in premiums or rates based on race, sexual orientation, gender identity, or domestic violence victim status (Section 2).

• Establishes comprehensive regulation of life settlement contracts, including definitions for brokers, providers, financing entities, and prohibited stranger-originated life insurance practices (Section 3).

• Requires insurers to pay accident and health claims within 60 days for paper submissions and 20 days for electronic submissions, with 15% annual interest penalty for late payment (Section 1, subsection 15).

• Creates an 8-member task force to study insurance costs and underwriting practices affecting businesses in distressed municipalities, with a report due by January 1, 2022 (Section 4).