In Opposition to Raised Bill 480 An Act Concerning Life Insurance Producer Licenses and Registrations of Broker-Dealers, Agents, Investment Advisers and Investment Adviser Agents
On March 18, 2014, IIAC President, Warren Ruppar, presented the following testimony to the Insurance and Real Estate Committee:
Senator Crisco, Representative Megna and members of the Insurance and Real Estate Committee, my name is Warren Ruppar and I am President of the Independent Insurance Agents of Connecticut. The Independent Insurance Agents of Connecticut is a trade association which has been located in Connecticut and has represented independent agents for 115 years. IIAC currently represents more than 400 member agencies and their associates as well as their 3600-plus employees. I come to you today to speak in opposition to Raised Bill 480.
Effective September 1, 2002 Connecticut joined the other states in enacting an NAIC Model Licensing Law. This legislation brought standards and reciprocity to producer licensing throughout the country. Raised Bill 480 proposes to change the model act specifically in Sections 2 – 5 of the proposal. IIAC does not support changing the provisions included in the current statute. The current licensing laws for producers have proven to be effective and part of the national standard and therefore any changes should be opposed.
We thank you for your consideration.
In Support of Senate Bill 395
An Act Authorizing Domestic Surplus Lines Insurers and The Insurance Department’s
Financial Regulatory Oversight of Insurance Companies
On March 13, 2014, IIAC President, Warren Ruppar, presented the following testimony to the Insurance and Real Estate Committee:
Senator Crisco, Representative Megna and members of the Insurance and Real Estate Committee, my name is Warren Ruppar and I am President of the Independent Insurance Agents of Connecticut. The Independent Insurance Agents of Connecticut is a trade association which has been located in Connecticut and has represented independent agents for 115 years. IIAC currently represents more than 400 member agencies and their associates as well as their 3600-plus employees. I come to you today to speak in support of Senate Bill 395.
IIAC supports Senate Bill 395 as it will expand the insurance marketplace in Connecticut. The surplus lines insurance availability is an important component in how insurance is purchased and offers choices for individuals and business as they manage their risk. Senate Bill 395 will increase the availability of insurance in Connecticut and provide regulatory oversight.
IIAC urges the committee to support Senate Bill 395.
An Act Concerning Restrictions on Insurers for Adverse Weather-Related Events
On March 11, 2014, IIAC President, Warren Ruppar, presented the following testimony to the Insurance and Real Estate Committee:
Senator Crisco, Representative Megna and members of the Insurance and Real Estate Committee, my name is Warren Ruppar and I am President of the Independent Insurance Agents of Connecticut. The Independent Insurance Agents of Connecticut is a trade association which has been located in Connecticut and has represented independent agents for 115 years. IIAC currently represents more than 400 member agencies and their associates as well as their 3600-plus employees. I come to you today to speak in opposition to Senate Bill 278.
Senate Bill 278 would prohibit the declination, cancellation, non-renewal, or an increase in premium on a homeowner’s insurance policy due to “any adverse weather-related event.” This language is extremely broad and is not defined in any statute or regulation. Therefore, the interpretations of this event will bring confusion and unpredictability to the marketplace.
IIAC urges the committee to oppose Senate Bill 278.
An Act Concerning Certificates of Insurance for Property and Casualty Insurance Coverage
On March 11, 2014, IIAC President, Warren Ruppar, presented the following testimony to the Insurance and Real Estate Committee:
Senator Crisco, Representative Megna and members of the Insurance and Real Estate Committee, my name is Warren Ruppar and I am President of the Independent Insurance Agents of Connecticut. The Independent Insurance Agents of Connecticut is a trade association which has been located in Connecticut and has represented independent agents for 115 years. IIAC currently represents more than 400 member agencies and their associates as well as their 3600-plus employees. I come to you today to speak on House Bill 5248.
On November 9, 2010, Connecticut’s Insurance Commissioner Thomas Sullivan issued Bulletin S-14 which addressed the issue of the use of a certificate of insurance. This was the result of meetings with the Commissioner and his staff and members of the Independent Insurance Agents of Connecticut (IIAC) to address the issue of the proper use of certificates of insurance. The major problem that was discussed with the regulators by IIAC at that time was that numerous businesses and municipalities were requiring producers to include information on a certificate that was not included in the insurance coverage that was purchased and in place. Bulletin S-14 was developed by Commissioner Sullivan and his staff to correct this unacceptable business practice and to inform insurance consumers of the purpose of a certificate of insurance. The information in Bulletin S-14 noted that “certificates cannot be used to amend, expand or alter the terms of the underlying insurance policy.” Since that time, IIAC has met with the producer community, municipalities, and businesses to review the content of the Insurance Department Bulletin S-14 and the correct use of an approved certificate of insurance. Bulletin S-14 has proven to be a useful tool for the producer community to educate their customers on the purpose and the use of a certificate of insurance.
House Bill 5248 addresses the same issues as Bulletin S-14. We support the efforts of the committee in bringing the intent, language and purpose of Bulletin S-14 to statutory language if approved by this committee.
An Act Concerning Certain Surplus Lines Insurance Policies and the Duties of
Surplus Lines Insurance Brokers
On March 11, 2014, IIAC President, Warren Ruppar, presented the following testimony to the Insurance and Real Estate Committee:
Senator Crisco, Representative Megna and members of the Insurance and Real Estate Committee, my name is Warren Ruppar and I am President of the Independent Insurance Agents of Connecticut. The Independent Insurance Agents of Connecticut is a trade association which has been located in Connecticut and has represented independent agents for 115 years. IIAC currently represents more than 400 member agencies and their associates as well as their 3600-plus employees. I come to you today to speak in opposition to House Bill 5366.
The non-admitted market for insurance provides insurance coverage for personal and commercial lines when the coverage is not available in the admitted market. The insurers that provide this coverage offer options that do not exist in the admitted market due to the risk associated with that insured individual or business. House Bill 5366 would place requirements on the non-admitted market that currently do not exist. IIAC is concerned that these requirements would have a negative impact on the non-admitted market and may result in these insurers not writing personal and commercial insurance in Connecticut.
IIAC urges the committee to oppose House Bill 5366
An Act Concerning Changes to the Property and Casualty Insurance Statutes
On March 11, 2014, IIAC President, Warren Ruppar, presented the following testimony to the Insurance and Real Estate Committee:
Senator Crisco, Representative Megna and members of the Insurance and Real Estate Committee, my name is Warren Ruppar and I am President of the Independent Insurance Agents of Connecticut. The Independent Insurance Agents of Connecticut is a trade association which has been located in Connecticut and has represented independent agents for 115 years. IIAC currently represents more than 400 member agencies and their associates as well as their 3600-plus employees. I come to you today to speak on House Bill 5502.
In section 5-1 (c) the proposal states that any person who “discusses with the insured’s insurance company first-party property loss or damage under the insured’s policy or a first party claim” would be defined as a “public adjuster.” This language is very broad and appears to include an insurance producer, any agency staff person or customer services representative in the definition of “public adjuster.” The normal duties of a producer or staff include talking with the insured and or an insurance company claim person to assist with the resolution of a claim. These individuals are not considered public adjusters.
In section 6-2 (b) there is also a restriction on when a “public adjuster” may contact an insured. This restriction may hinder the ability of a producer, agency staff or customer service representative in talking with an insured in the event of a claim if the definition in section 5-1 (c) remains.
IIAC suggests that insurance producers, agency staff and customer service representatives be exempted from this definition so that they may assist their customers when a loss occurs.
AN ACT CONCERNING ELECTRONIC PROOF OF AUTOMOBILE INSURANCE IDENTIFICATION CARDS
On February 27, 2014, IIAC President, Warren Ruppar, presented the following testimony to the Insurance and Real Estate Committee:
Senator Crisco, Representative Megna and members of the Insurance and Real Estate Committee, my name is Warren Ruppar and I am President of the Independent Insurance Agents of Connecticut. The Independent Insurance Agents of Connecticut is a trade association which has been located in Connecticut and has represented independent agents for 115 years. IIAC currently represents more than 400 member agencies and their associates as well as their 3600-plus employees. I come to you today to speak in favor of House Bill 5252.
House Bill 5252 will enable Connecticut drivers to provide proof of auto insurance “by display of electronic images on a cellular mobile telephone or other electronic device.” Cell phones, iPads, and numerous other portable devices are used by the majority of Connecticut’s population. The availability of app’s by insurance companies to provide their customers with information on their policy or to report a claim is also an increasing component of the current technology. Connecticut drivers benefit from the use of this technology and the addition of electronic proof of insurance would be welcomed. It is also important to note that the Connecticut Insurance Department has indicated that they support the concept that is in House Bill 5252.
HB5252 will allow Connecticut to join the 30 states that have enacted legislation to allow the use of electronic proof of insurance. These state are Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Minnesota, Mississippi, Missouri, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin and Wyoming.
We urge the committee to support HB5252.