The Office of the Insurance Commissioner of Connecticut published a news release announcing the laws enacted during the 2025 Session of the Connecticut General Assembly that are related to the insurance industry.
HB 6433 updates the state’s captive insurance framework and allows it to be a more attractive option to domicile for captive insurers. The bill allows captive insurers to convert into protected cells without impacting the company’s assets, rights, benefits, obligations, and liabilities. Protected cells may also be sold or transferred to another captive insurer with all of their assets, benefits, and liabilities.
The bill also expands the Department’s regulatory authority. The Department is authorized to separate insolvent protected cells from a sponsored captive insurer, allowing them to address the issue without affecting the captive as a whole.
HB 6435 requires insurers to reimburse the Connecticut Insurance Department (CID) for arbitration costs in auto physical and property damage claims, under certain conditions. Insurers will now be required to make a pre-arbitration offer following the Department’s claim mediation process.
If the claimant rejects the offer and goes to arbitration, if the amount awarded by the arbitrator is greater than the pre-arbitration offer, the insurer must pay the Department’s costs for conducting the arbitration. If the arbitration award is less than the pre-arbitration offer, the Department will continue to carry the costs of arbitration.
HB 6434 makes revisions to health insurance statutes and can be found here.
The news release can be found here.