Connecticut P&C Insurance Law & Regulation
The state portion of the Connecticut property and casualty exam starts with who regulates insurance in Connecticut and the consumer-protection rules that overlay the national coverage forms. This chapter covers the Connecticut Insurance Department and its authority, unfair trade practices, and the cancellation and nonrenewal protections that apply to policies delivered in the state.
The Connecticut Insurance Department
Connecticut regulates insurance through the Connecticut Insurance Department (CID), led by a Commissioner appointed by the Governor. The department issues, denies, suspends, and revokes producer licenses, reviews policy forms and rates, investigates complaints, and enforces the Connecticut insurance statutes. A common exam point is knowing that the CID — not a bank, motor-vehicle, or general financial-services agency — licenses property and casualty producers and regulates the insurers doing business in the state.
Unfair Trade Practices and Producer Conduct
Connecticut's unfair insurance trade practices law prohibits misrepresentation of policy terms, false or misleading advertising, unfair discrimination between similar risks, defamation of an insurer, coercion, and unfair claim settlement practices. Rebating — giving any part of the premium or commission or other valuable consideration as an inducement to buy — is prohibited. Premiums a producer collects are held in a fiduciary capacity for the insurer or client and must not be commingled or converted. Violations can bring fines and license suspension or revocation by the CID.
Cancellation and Nonrenewal Protections
Connecticut law limits how and when an insurer may cancel or nonrenew personal auto and homeowners policies and requires advance written notice so the insured can find replacement coverage. After a policy has been in force beyond an initial period, cancellation is generally allowed only for specific reasons such as nonpayment of premium, fraud, or a substantial increase in risk. The exact notice periods are set by statute and can change; confirm the current day counts with the Connecticut Insurance Department before relying on a specific number.