Connecticut Administrative Code › Title 38a - Insurance Department › 327 - Claims-made Liability Insurance Policies › Section 38a-327-3 - Minimum standards

Current through July 10, 2024
No claims-made policy shall be delivered, issued for delivery,
				or renewed in this state by a licensed insurer on or after the effective date
				of this regulation, unless such policy and the issuing insurer complies with
				the following minimum standards:
(a)
			 Once a retroactive date is established with an insured, it may be advanced only
			 with the written consent of the named insured. Prior to the advancement of the
			 retroactive date by an insurance company, such insurer must obtain the written
			 acknowledgment of the named insured that the named insured has been advised of
			 the right to purchase the additional extended reporting period coverage. If no
			 retroactive date is specified in the policy, coverage is afforded for injury or
			 damage occurring prior to the inception date of the policy.
(b) Each claims-made policy shall provide an
			 automatic extended reporting period of at least thirty (30) days upon
			 termination of coverage.
(c) A
			 claim will be deemed "first made" when the insurer receives written notice of a
			 claim from the insured or a third party, but this shall not preclude an insurer
			 from utilizing either written notice of incident as the trigger of coverage
			 under the policy.
(d)
(1) Additional extended reporting period
			 coverage shall be made available for purchase by the named insured at any time
			 during the policy term and not later than thirty (30) days following
			 termination of coverage, including termination for non-payment of premium. Such
			 additional extended reporting period coverage shall apply only in regard to
			 that coverage terminated, and shall be made available on the same terms and
			 conditions as those specified in the policy.
(2) Where premium is due to the insurer for
			 coverage under the claims-made policy, any monies received by the insurer from
			 the insured as payment for the additional extended reporting period coverage
			 shall be first applied to such premium owing for the policy. The additional
			 extended reporting period coverage will not take effect until the premium owing
			 for the policy is paid in full and unless the premium owing for the additional
			 extended reporting period coverage is paid promptly when due.
(3) The insurer must advise the named insured
			 in writing of the automatic extended reporting period coverage and the
			 availability of, the premium for, and the importance of purchasing additional
			 extended reporting period coverage. This advice must be sent no earlier than
			 the date of notification of termination of coverage nor later than fifteen (15)
			 days after termination of coverage.
(4) The named insured shall have the greater
			 of thirty (30) days from the effective date of termination of coverage, or
			 fifteen (15) days from the date of mailing or delivery of the advice required
			 by subdivision (3) of this subsection, to submit written acceptance of
			 additional extended reporting period coverage.
(5) The premium charged for additional
			 extended reporting period coverage shall be based upon the rates for such
			 coverage in effect on the later of the date the policy was issued or last
			 renewed, and the insurer shall not charge a different premium for such coverage
			 due to any change in its rates, rating plans or rating rules subsequent to
			 issuance or last renewal of the policy.
(6) Upon termination of a claims-made policy
			 each insurer shall offer additional extended reporting period coverage for at
			 least the following specified durations:
(A)
			 unlimited extended reporting period coverage for professional liability
			 insurance policies;
(B) a minimum
			 one year period for policies covering (i) directors and officers liability,
			 employee benefits liability and fiduciary liability, and (ii) pollution and
			 environmental impairment liability; or
(C) a minimum three year period for all other
			 claims-made policies.