Current through September 9, 2024
Any unlicensed insurance company seeking to solicit or market
insurance products in this state is hereby declared subject to Sections
38a-41-1 to
38a-41-4, inclusive, of
the Regulations of the Connecticut State Agencies. All companies desiring to
become authorized to transact kinds of insurance permitted by title 38a of the
Connecticut General Statutes shall submit an application as follows:
(1)
Capital and domiciliary licensure
requirements.
(A) The applicant shall
file an application on the form prescribed by the insurance commissioner
setting forth the lines of insurance which it desires to write. For each line
of insurance the applicant proposes to write it shall demonstrate that it is
possessed of adequate capital and/or surplus funds in a minimum amount as
prescribed in title 38a of the Connecticut General Statutes.
(B) A determination of financial condition
will be made regarding those companies which apply. In making this
determination there shall be deducted from unassigned funds any non-qualifying
assets or understatement in reserves or special deposits not held on account
for all policyholders. The difference between market value and amortized value
of investments in bonds may be taken into consideration and also the ratio of
earned premiums to surplus as regards policyholders for non-life companies when
the ratio exceeds 3:1, as well as any other ratios that are generally
acceptable among regulators and the insurance industry.
(C) Applicant shall hold a valid Certificate
of Authority from its state of domicile or jurisdiction which authorizes it to
transact those kinds of insurance it proposes to transact in this
state.
(2)
Historic business experience.
(A)
Applicant shall demonstrate an orderly pattern of growth in the company's
marketing territories in the geographic region. The commissioner, upon
assessment of the rate of growth of the company, its business persistency,
supporting surplus resources, business acquisition costs, claims experience and
investment policies shall make a determination concerning the adequacy of
equity resources as related to the company's business expansion. Such
determination, together with a review of policyholder service arrangements
relating to Connecticut residents, will be used to evaluate the company's
potential to perform on policy obligations contracted within this state and its
expertness in marketing and servicing its product lines.
(B) Applicant shall show that it writes those
lines of business in its domiciliary jurisdiction or other license
jurisdictions that it proposes to write in this state in sufficient volume as
to demonstrate an expertise in marketing and servicing such products lines.
This requirement may be waived regarding survivor corporations in the case of
mergers or consolidations, or a company which is an affiliate of an insurer
licensed in Connecticut if it is determined this requirement is
unnecessary.
(3)
Specific filing requirements.
Each insurance company shall file applications using the
licensing requirements, forms and procedures as set forth in the Uniform
Certificate of Authority Application (UCAA), and any supplemental forms
promulgated pursuant to the UCAA published by the National Association of
Insurance Commissioners, subject to any deviations of form and detail and
additional filings as may be prescribed by the commissioner.
