Connecticut Insurance Department: Implements Public Act 23-15 Captive Insurance

• Connecticut Public Act 23-15, enacted on June 6, 2023, aims to enhance captive insurance companies and strengthen industry support in the state.
• Andrew Mais served as President of the National Association of Insurance Commissioners (NAIC) in 2024.
• The Connecticut Insurance Department announced 2024 health insurance rates that will save Affordable Care Act members $96.2 million and cap insurer profits at 0.75%.
• The department helped life insurance consumers find over $25 million in benefits and levied a $1.16 million fine against an agent in 2023.
• The CID also provided public guidance on flood safety and vehicle theft prevention, and hosted a conference on climate change and insurance.

The stated aim of the act is to bolster the industry's capabilities and provide stronger support for its continued growth and stability within Connecticut.

On June 6, 2023, the Connecticut Insurance Department announced the implementation of new legislation impacting the state's captive insurance sector. This significant development, codified as Connecticut Public Act 23-15 captive insurance, is designed to enhance the operational framework for captive insurance companies. The stated aim of the act is to bolster the industry's capabilities and provide stronger support for its continued growth and stability within Connecticut.

Andrew Mais, who served as Commissioner and was elected President of the National Association of Insurance Commissioners (NAIC) for 2024, previously led the department in issuing crucial public safety advisories, such as guidance on flood safety and insurance for communities on December 21, 2023, and warnings to Kia and Hyundai owners regarding potential vehicle theft on December 18, 2023. The Connecticut Insurance Department (CID) demonstrated a broad scope of regulatory activities throughout 2023, extending beyond legislative updates to include robust consumer protection and market oversight. The CID's direct impact on residents was evident in its success in helping life insurance consumers locate over $25 million in benefits, an achievement announced on August 11, 2023.

In its role as a market enforcer, the department imposed a substantial $1.16 million fine and revoked an agent's licenses on March 28, 2023, reinforcing its commitment to ethical conduct. Regarding health insurance, the CID played a pivotal role in rate determinations for 2024, announcing on September 8, 2023, that these rates would result in $96.2 million in savings for Affordable Care Act (ACA) plan members, while simultaneously capping insurer profits at 0.75%. This decision followed multiple public informational meetings on health insurance rate request filings held on February 3, August 14, and August 21, 2023, and a statement from Commissioner Mais on June 9, 2023, addressing these requests. The department also issued a statement on April 4, 2023, concerning a Texas judge's ruling on preventive coverage under the ACA.

The Connecticut Insurance Department's influence and expertise were recognized through several key achievements and initiatives in 2023. Andrew Mais's election as President of the National Association of Insurance Commissioners (NAIC) for 2024 highlighted Connecticut's significant standing in national insurance regulation. Further underscoring the department's caliber, George Bradner, Assistant Deputy Commissioner and Property and Casualty Division Director, received the prestigious Robert Dineen Award from the NAIC on December 5, 2023, an honor considered the highest for state insurance regulators.

The CID also fostered international collaboration and professional growth, concluding its NAIC International Fellows Program on December 11, 2023, with the departure of Marek Szala. Within the realm of insurance education, Kurt Swan was honored with the Paul DeAngelo Excellent In Insurance Education Award from the Insurance Regulatory Examiners Society (IRES) on April 18, 2023. These recognitions and programs collectively reflect the department's dedication to excellence, continuous learning, and its active role in shaping regulatory standards and practices.

Beyond specific legislative changes like Connecticut Public Act 23-15 captive insurance, the Connecticut Insurance Department actively pursued strategic initiatives aimed at addressing contemporary challenges and ensuring a resilient insurance market. The department hosted a free, virtual conference on Climate Change and Insurance (C4I) on November 15, 2023, demonstrating its proactive approach to emerging risks. Consumer engagement remained a priority, with the CID encouraging residents to explore health plan options during the open enrollment period, which spanned from November 1, 2023, to January 15, 2024. The appointment of Jane Callanan, Esq. as General Counsel on January 27, 2023, further bolstered the department's legal and strategic capabilities. These diverse efforts, from legislative enhancements to proactive risk management and consumer outreach, collectively underscore the Connecticut Insurance Department's commitment to fostering a stable, secure, and responsive insurance environment for all stakeholders in the state.

Source: Original reporting via Connecticut Insurance Department press releases.