Key Takeaways
- The Connecticut Insurance Department (CID) regulates all insurance activities under Connecticut General Statutes (CGS) Title 38a
- The Insurance Commissioner is appointed by the Governor and oversees the Department
- Connecticut uses a prior approval rate system for most property and casualty insurance rates
- The Department handles licensing, rate filings, market conduct examinations, and consumer complaints
- Connecticut emphasizes consumer protection while maintaining a competitive insurance marketplace
Connecticut Insurance Department (CID)
The Connecticut Insurance Department (CID) is the state agency responsible for regulating the Property & Casualty insurance industry in Connecticut. The Department operates as part of the Connecticut Department of Business and Consumer Protection.
The Insurance Commissioner
The Insurance Commissioner is:
- Appointed by the Governor
- Responsible for enforcing Connecticut General Statutes (CGS) Title 38a - Insurance
- Authorized to adopt regulations, review rate filings, investigate violations, and discipline licensees
- Supported by the Connecticut Insurance Department staff
Commissioner Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Filing Review | Review P&C insurance rate filings under prior approval system |
| Market Conduct | Examine insurer business practices and compliance |
| Enforcement | Investigate and prosecute violations of insurance law |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt regulations interpreting Connecticut insurance law |
Exam Tip: The Commissioner is APPOINTED by the Governor, not elected. This is a common exam question.
Rate Regulation System
Connecticut uses a prior approval system for most P&C insurance:
Key Provisions
- Prior Approval Required: Insurers must file rates with the Department and receive approval before using them
- Rate Standards: Rates must not be excessive, inadequate, or unfairly discriminatory
- Rate Filing Requirements: Insurers must file rates and supporting actuarial data with the Department
- Consumer Protection Focus: System ensures thorough review before rates affect consumers
- File-and-Use for Some Lines: Certain lines may use modified systems
Prior Approval Process
- Insurer Files Rates: Submits rate filing with actuarial support and data
- Department Review: CID examines filing for compliance with rate standards
- Public Hearing (if needed): Department may hold hearings for significant rate changes
- Approval/Disapproval: Commissioner approves, modifies, or disapproves rates
- Implementation: Insurer can only use rates after receiving approval
Exam Tip: Connecticut's prior approval system differs from file-and-use states like Nevada. Know that insurers MUST receive approval BEFORE using rates.
Connecticut Insurance Law Structure
Connecticut General Statutes (CGS) Title 38a
Connecticut insurance regulation is codified in CGS Title 38a - Insurance, which covers:
Chapter 700c - Insurance Producers
- Producer licensing requirements
- Continuing education mandates
- Prohibited practices
- Appointment requirements
Chapter 702 - Unauthorized Insurance
- Surplus lines insurance
- Unauthorized insurer provisions
- Penalties for violations
Chapter 704a - Regulation of Insurance Rates
- Rate filing requirements
- Prior approval standards
- Rate hearing procedures
Chapter 704b - Unfair Insurance Practices
- Unfair trade practices definitions
- Prohibited acts
- Penalties for violations
Chapter 704c - Claims Handling
- Claims settlement requirements
- Unfair claims practices
- Time limits for claim processing
Chapter 705 - Property and Casualty Insurance
- Policy form requirements
- Mandatory provisions
- Cancellation and non-renewal rules
Chapter 707a - Workers' Compensation
- Employer requirements
- Coverage mandates
- Second Injury Fund provisions
Exam Tip: Focus on Chapter 700c (producers), Chapter 704a (rates), Chapter 704b (unfair practices), and Chapter 705 (P&C insurance). These are heavily tested.
Connecticut Insurance Department Organization
The Department operates through several functional divisions:
| Division | Responsibilities |
|---|---|
| Licensing Division | Producer and company licensing, continuing education tracking |
| Consumer Affairs | Handle consumer complaints and inquiries, mediate disputes |
| Financial Regulation | Monitor insurer financial condition and solvency |
| Market Conduct | Examine business practices and compliance |
| Legal Division | Enforcement actions, hearing procedures, regulatory interpretation |
| Actuarial Division | Review rate filings and actuarial soundness |
Consumer Protection Functions
Consumer Affairs Division
The Department provides consumer protection through:
- Consumer Helpline: (800) 203-3447 for complaints and questions
- Main Office: (860) 297-3800
- Email: cid.licensing@ct.gov
- Online Resources: Available at portal.ct.gov/cid
- Educational Materials: Consumer guides and insurance information
- Complaint Resolution: Mediation services for consumer disputes
Complaint Process
- Consumer Files Complaint: Online at portal.ct.gov/cid or by phone/mail
- Department Review: CID reviews complaint and contacts insurer or producer
- Investigation: Department investigates and requests documentation
- Response Required: Insurer/producer must respond within specified time (typically 15 days)
- Resolution: CID facilitates resolution or takes enforcement action
- Follow-up: Department tracks outcome and consumer satisfaction
Common Complaint Types
- Premium disputes and billing issues
- Claims handling delays and denials
- Policy cancellations and non-renewals
- Producer misconduct or misrepresentation
- Coverage disputes and interpretation issues
- Unfair settlement practices
Exam Tip: The Connecticut Consumer Helpline is (800) 203-3447. The main office is (860) 297-3800. These numbers may appear on exams.
Connecticut's Insurance Industry Hub
Connecticut is known as the "Insurance Capital of the World" due to Hartford's concentration of insurance companies:
Hartford Insurance Center
Major Carriers Based in Connecticut:
- The Hartford
- Travelers
- Aetna
- Cigna
- United Healthcare (divisions)
Industry Benefits:
- Large insurance job market
- Professional development opportunities
- Industry networking and associations
- Insurance education programs
- Regulatory expertise concentration
Exam Tip: Connecticut's nickname as "Insurance Capital of the World" reflects Hartford's historic role as an insurance industry center.
How is the Connecticut Insurance Commissioner selected?
What type of rate regulation system does Connecticut primarily use for P&C insurance?
What is the consumer helpline number for the Connecticut Insurance Department?