The Property & Casualty division regulates property and casualty insurance through a three-tier system of statutory standards embodied in Title 38a of the Connecticut General Statutes. The Property and Casualty Division reviews all rate, rule, and form filings made by property and casualty insurers in the state. These filings cover approximately 23 major lines of insurance provided by approximately 525 licensed companies. The division monitors price competition and levels of availability and affordability of needed insurance.
Competitive rating laws establish standards for regulation of personal risk insurance. The statutes rely on competition in the marketplace to establish and maintain reasonable rate levels. An exception to this is private passenger automobile bodily injury liability and uninsured/underinsured motorist coverage which are subject to prior approval for rates. Personal insurance includes insurance for private passenger automobile, homeowners, mobile home, excess liability/umbrella, watercraft, and recreational vehicle.
Commercial insurance is subject to file-and-use rating laws which also rely on competition to establish reasonable rate levels, subject to the standard that no rate shall be deemed excessive unless such rate is unreasonably high for insurance provided or a reasonable degree of competition does not exist. Commercial insurance includes property and liability insurance for all commercial vehicles and businesses, and includes insurance for manufacturers, contractors, hospitals and municipalities. It also includes insurance covering professional liability insurance for doctors, dentists, lawyers and other professionals, as well as title insurance, mortgage and bond guarantee, inland marine and other lines such as fidelity, surety, glass, and burglary insurance. Commercial insurance also includes coverage for day care, workers compensation, liquor liability, environmental pollution, asbestos removal liability and other specialty property and liability coverages.
The division oversees the operation of residual markets (Assigned Risk Plans) in Connecticut. Rates in the residual market are subject to prior approval by the commissioner. Residual markets include the Workers’ Compensation Assigned Risk, the Connecticut Automobile Insurance Assigned Risk Plan, and the Fair Access to Insurance Requirements (FAIR) Plan.
This division also has the statutory responsibility of approving financial responsibility for outdoor amusements involving mechanical devices, fireworks displays and indoor special effects. The division reviews and approves applications before the State Fire Marshal issues permits to operate.