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General Assembly Raised Bill No. 5262
February Session, 2026 LCO No. 1565
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING CERTAIN ELECTRONIC NOTICE
REQUIREMENTS FOR PROPERTY AND CASUALTY INSURERS, THE
STATE INSURANCE AND RISK MANAGEMENT BOARD'S RESERVE
FUNDING, REVIEW OF THE MOTOR VEHICLE GLASS REPAIR
NATIONAL MODEL, AND THE OFFICE OF HEALTH STRATEGY'S
REPORTING REQUIREMENTS RELATED TO PRESCRIPTION DRUG
FORMULARIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 38a -292 of the 2026 supplement to the general 1
statutes is repealed and the following is substituted in lieu thereof 2
(Effective October 1, 2026): 3
(a) Notwithstanding any provision of this title, except as provided in 4
subsections (b) and (c) of this section and section 38a -477d, an insurer 5
may post on such insurer's Internet web site any policy, as defined in 6
section 38a -296, and any endorsement thereto in lieu of mailing or 7
delivering such policy or endorsement to an insured, provided such 8
policy or endorsement does not contain any personally identifiable 9
information. 10
(b) If such insurer elects to post such policy or endorsement on such 11
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insurer's Internet web site in lieu of mailing or delivering such policy or 12
endorsement to an insured pursuant to subsection (a) of this section, 13
such insurer shall: 14
[(1) Obtain the insured's agreement to receive such policy or 15
endorsement on such insurer's Internet web site;] 16
[(2)] (1) Post and have accessible on such insurer's Internet web site 17
such policy and any endorsement for as long as such policy is in force 18
and in such manner that enables the insured to save and print such 19
policy and any endorsement using programs or applications that are 20
readily available on the Internet and for which there is not a fee; 21
[(3)] (2) Retain, upon the expiration of a policy, records of such 22
expired policy and any endorsement thereto for a period of five years 23
after the date of such expiration and make such records available upon 24
request; 25
[(4)] (3) Provide to the insured in, or simultaneous with, each 26
declarations page provided to the insured at the time of issuance of the 27
initial policy and any renewals of such policy (A) a description of the 28
specific policy and any endorsement thereto purchased by the insured, 29
(B) a method by which the insured may obtain, free of charge upon 30
request, a paper copy of the policy and any endorsement thereto, and 31
(C) the Internet web site address where such insured's policy and any 32
endorsement are posted; 33
[(5)] (4) Provide notice to the insured, at the time of any changes to 34
the policy or endorsement, of a method by which the insured may 35
obtain, free of charge upon request, a paper copy of the policy and any 36
endorsement thereto and any changes to such policy or endorsement; 37
and 38
[(6)] (5) Provide notice to the insured that such insured may, at any 39
time, submit a request to the insurer to opt out of electronic delivery of 40
such insured's policy and any endorsement thereto. 41
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(c) If an insured [does not agree to electronic delivery or ] submits a 42
request to the insurer to opt out of electronic delivery of such insured's 43
policy and any endorsement thereto, such insurer shall mail or deliver 44
a paper copy of such policy and any endorsement and any changes to 45
such policy or endorsement to such insured in lieu of posting on such 46
insurer's Internet web site any such policy or endorsement as set forth 47
in subsections (a) and (b) of this section. 48
(d) The Insurance Commissioner may adopt regulations, in 49
accordance with the provisions of chapter 54, to implement the 50
provisions of this section. 51
Sec. 2. Section 38a-344 of the 2026 supplement to the general statutes 52
is repealed and the following is substituted in lieu thereof (Effective July 53
1, 2026): 54
Proof of mailing by certified mail, return receipt requested, mail 55
using the United States Postal Service intelligent mail barcode tracking 56
method, as provided in Chapter 204 of the Domestic Mail Manual or any 57
subsequent corresponding document of the United States Postal Service, 58
or any similar tracking method developed by the United States Postal 59
Service, or [, if agreed between an insurer and a named insured, ] 60
delivery by electronic means with proof of a delivery receipt, notice of 61
cancellation, an intention not to renew or of reasons for cancellation, to 62
the named insured and any third party designated pursuant to section 63
38a-323a, as amended by this act, at the address shown in the policy, or 64
by electronic means if agreed between an insurer and a named insured, 65
shall be sufficient proof of notice. 66
Sec. 3. Subdivision (3) of subsection (a) of section 38a-316g of the 2026 67
supplement to the general statutes is repealed and the following is 68
substituted in lieu thereof (Effective July 1, 2026): 69
(3) No notice of cancellation required under subdivision (1) of this 70
subsection shall be effective unless such notice is sent to the named 71
insured by registered mail, certified mail or mail evidenced by a 72
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certificate of mailing, mail using the United States Postal Service 73
intelligent mail barcode tracking method, as provided in Chapter 204 of 74
the Domestic Mail Manual or any subsequent corresponding document 75
of the United States Postal Service, or any similar tracking method 76
developed by the United States Postal Service, or [, if agreed by the 77
insurer and the named insured, ] by electronic means evidenced by a 78
delivery receipt. 79
Sec. 4. Subsection (a) of section 38a-323 of the 2026 supplement to the 80
general statutes is repealed and the following is substituted in lieu 81
thereof (Effective July 1, 2026): 82
(a) (1) No insurer shall refuse to renew any policy that is subject to 83
the requirements of sections 38a -663 to 38a -696, inclusive, unless such 84
insurer or its agent sends, by registered or certified mail or by mail 85
evidenced by a certificate of mailing, or delivers to the named insured, 86
at the address shown in the policy, mail using the United States Postal 87
Service intelligent mail barcode tracking method, as provided in 88
Chapter 204 of the Domestic Mail Manual or any subsequent 89
corresponding document of the United States Postal Service, or any 90
similar tracking method developed by the United States Postal Service, 91
or [, if agreed between the insurer and the named insured,] by electronic 92
means, at least sixty days' advance notice of its intention not to renew. 93
The notice of intent not to renew shall state or be accompanied by a 94
statement specifying the reason for such nonrenewal. This section shall 95
not apply: (A) In case of nonpayment of premium; (B) if the insured fails 96
to pay any advance premium required by the insurer for renewal, 97
provided, notwithstanding the failure of an insurer to comply with this 98
subsection, with respect to automobile liability insurance policies the 99
policy shall terminate on the effective date of any other insurance policy 100
with respect to any automobile designated in both policies; or (C) if the 101
policy is transferred from the insurer to an affiliate of such insurer for 102
another policy with no interruption of coverage and contains the same 103
terms, conditions and provisions, including policy limits, as the 104
transferred policy, except that the insurer to which the policy is 105
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transferred shall not be prohibited from applying its rates and rating 106
plans at the time of renewal. With respect to an automobile or 107
homeowners policy, each insurer that sends or delivers a notice of 108
nonrenewal pursuant to this subsection shall use the same method to 109
send or deliver such notice to any third party designated pursuant to 110
section 38a-323a, as amended by this act. 111
(2) If an insurer intends to renew any policy that is subject to the 112
requirements of sections 38a -663 to 38a -696, inclusive, under terms or 113
conditions less favorable to the insured than provided under the 114
existing policy, the insurer shall send a conditional renewal notice in the 115
manner required for a notice of nonrenewal under subdivision (1) of this 116
subsection. The conditional renewal notice shall clearly state or be 117
accompanied by a statement clearly identifying any reduction in 118
coverage limits, coverage provisions added or revised that reduce 119
coverage or increases in deductibles, under the renewal policy. 120
Sec. 5. Subsection (b) of section 38a -323a of the 2026 supplement to 121
the general statutes is repealed and the following is substituted in lieu 122
thereof (Effective July 1, 2026): 123
(b) No designation form shall be effective unless it contains a written 124
acceptance by the third party designee to receive copies of notices of 125
cancellation or nonrenewal from the insurer on behalf of the individual. 126
The third party designation shall be effective not later than ten business 127
days after the date the insurer receives the designation form and the 128
acceptance of the third party. The third party may terminate the status 129
as a third party designee by providing written notice to both the insurer 130
and the insured individual. The individual may terminate the third 131
party designation by providing written notice to the insurer and the 132
third party designee. The insurer may require the individual and the 133
third party to send the notices to the insurer by certified mail, return 134
receipt requested, mail using the United States Postal Service intelligent 135
mail barcode tracking method, as provided in Chapter 204 of the 136
Domestic Mail Manual or any subsequent corresponding document of 137
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the United States Postal Service, or any similar tracking method 138
developed by the United States Postal Service, or [, if agreed between 139
the insurer and the individual or the insurer and the third party, ] by 140
electronic means. 141
Sec. 6. Subsection (a) of section 38a-324 of the 2026 supplement to the 142
general statutes is repealed and the following is substituted in lieu 143
thereof (Effective July 1, 2026): 144
(a) After a policy of commercial risk insurance, other than workers' 145
compensation insurance and automobile insurance issued under a 146
residual market mechanism as described in section 38a-329, has been in 147
effect for more than sixty days, or after the effective date of a renewal 148
policy, no insurer may cancel any policy unless the cancellation is based 149
on the occurrence, after the effective date of the policy or renewal, of one 150
or more of the following conditions: (1) Nonpayment of premium; (2) 151
conviction of a crime arising out of acts increasing the hazard insured 152
against; (3) discovery of fraud or material misrepresentation by the 153
insured in obtaining the policy or in perfecting any claim thereunder; 154
(4) discovery of any wilful or reckless act or omission by the insured 155
increasing the hazard insured against; (5) physical changes in the 156
property which increase the hazard insured against; (6) a determination 157
by the commissioner that continuation of the policy would violate or 158
place the insurer in violation of the law; (7) a material increase in the 159
hazard insured against; or (8) a substantial loss of reinsurance by the 160
insurer affecting this particular line of insurance. If the basis for 161
cancellation is nonpayment of premium, at least ten days' advance 162
notice shall be given and the insured may continue the coverage and 163
avoid the effect of the cancellation by payment in full at any time prior 164
to the effective date of cancellation. If the basis for cancellation is 165
conviction of a crime arising out of acts increasing the hazard insured 166
against, discovery of fraud or material misrepresentation by the insured 167
in obtaining the policy or in perfecting any claim thereunder, discovery 168
of any wilful or reckless act or omission by the insured increasing the 169
hazard insured against or a determination by the commissioner that 170
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continuation of the policy would violate or place the insurer in violation 171
of the law, at least ten days' advance notice shall be given. In all other 172
cases, at least sixty days' advance notice shall be given. Notwithstanding 173
the provisions of this section, the advance notice period for cancellation 174
of any professional liability policy, as defined in section 38a -393, shall 175
be at least ninety days. No notice of cancellation shall be required if such 176
policy is transferred from an insurer to an affiliate of such insurer for 177
another policy with no interruption of coverage and contains the same 178
terms, conditions and provisions, including policy limits, as the 179
transferred policy, except that the insurer to which the policy is 180
transferred shall not be prohibited from applying its rates and rating 181
plans at the time of renewal. No notice of cancellation shall be effective 182
unless it is sent, by registered or certified mail, mail evidenced by a 183
United States Post Office certificate of mailing, mail using the United 184
States Postal Service intelligent mail barcode tracking method, as 185
provided in Chapter 204 of the Domestic Mail Manual or any 186
subsequent corresponding document of the United States Postal Service, 187
or any similar tracking method developed by the United States Postal 188
Service, or [, if agreed between the insurer and the named insured, ] by 189
electronic means evidenced by a delivery receipt, or delivered by the 190
insurer to the named insured by the required date. 191
Sec. 7. Subsection (a) of section 38a-343 of the 2026 supplement to the 192
general statutes is repealed and the following is substituted in lieu 193
thereof (Effective July 1, 2026): 194
(a) No notice of cancellation of a policy to which section 38a -342 195
applies shall be effective unless the notice is delivered or sent by the 196
insurer to the named insured, and any third party designated pursuant 197
to section 38a-323a, as amended by this act, by registered mail, certified 198
mail, mail evidenced by a certificate of mailing, mail using the United 199
States Postal Service intelligent mail barcode tracking method, as 200
provided in Chapter 204 of the Domestic Mail Manual or any 201
subsequent corresponding document of the United States Postal Service, 202
or any similar tracking method developed by the United States Postal 203
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Service, or [, if agreed between the insurer and the named insured, ] by 204
electronic means, at least forty -five days before the effective date of 205
cancellation, except that (1) where cancellation is for nonpayment of the 206
first premium on a new policy, at least fifteen days' notice of cancellation 207
accompanied by the reason for cancellation shall be given, and (2) where 208
cancellation is for nonpayment of any other premium, at least ten days' 209
notice of cancellation accompanied by the reason for cancellation shall 210
be given. No notice of cancellation of a policy that has been in effect for 211
less than sixty days shall be effective unless mailed or delivered by the 212
insurer to the insured and any third party designee at least forty -five 213
days before the effective date of cancellation, except that (A) at least 214
fifteen days' notice shall be given where cancellation is for nonpayment 215
of the first premium on a new policy, and (B) at least ten days' notice 216
shall be given where cancellation is for nonpayment of any other 217
premium or material misrepresentation. The notice of cancellation shall 218
state or be accompanied by a statement specifying the reason for such 219
cancellation. Any notice of cancellation for nonpayment of the first 220
premium on a new policy may be retroactive to the effective date of such 221
policy, provided at least fifteen days' notice has been given to the 222
insured and any third party designee and payment of such premium 223
has not been received during such notice period. 224
Sec. 8. Section 4a -20 of the general statutes is repealed and the 225
following is substituted in lieu thereof (Effective July 1, 2026): 226
The State Insurance and Risk Management Board shall determine the 227
method by which the state shall insure itself against losses by the 228
purchase of insurance governed by the provisions of title 38a to obtain 229
the broadest coverage at the most reasonable cost. [It] Said board shall 230
direct the negotiations for purchase of such insurance and determine 231
whether deductible or other risk retention provisions should be 232
included in the insurance contract. Wherever appropriate , [it] said 233
board shall determine that the state shall act as a self -insurer and may 234
[request funds from the contingency fund to] establish reserves using 235
surplus funds of said board, any funds appropriated to the Department 236
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of Administrative Services for the purpose of said board and any funds 237
made available by the Secretary of the Office of Policy and Management 238
to said board for such purpose , and carry out such practices as are 239
necessary to safeguard the self -insurance activity. Said board may 240
develop and implement risk management and loss prevention 241
programs related to insurance plans established pursuant to the 242
provisions of sections 4a-19 to 4a-21, inclusive, and may recommend to 243
the Governor and the General Assembly the enactment of policies 244
designed to reduce risks and hazards that may result in state liability for 245
tortious conduct. [It] Said board shall designate the agent or agents of 246
record and shall select the companies from whom insurance coverage 247
and surety bonds shall be purchased. Notwithstanding any other 248
provision of the general statutes, including without limitation sections 249
38a-707 and 38a-825, [it] said board shall have full authority to negotiate 250
either a commission or fee structure to compensate the agent or agents 251
of record for services performed. [It] Said board shall also have full 252
authority to retain consulting firms and to negotiate their fee 253
compensation for services performed. Any refund, dividend or other 254
payment from any insurance company in connection with insurance for 255
the state shall be returned to the Department of Administrative Services 256
for deposit in the General Fund. The board shall establish specifications 257
for each contract of insurance and shall request bids for each such 258
contract through the agent of record. Each such contract shall be for a 259
specified period of time. 260
Sec. 9. (Effective from passage ) The Insurance Commissioner shall 261
review the Motor Vehicle Glass Model Act prepared by the National 262
Council of Insurance Legislators . Not later than January 1, 2027 , the 263
commissioner shall submit a report, in accordance with the provisions 264
of section 11 -4a of the general statutes, on the results of the review, 265
including if the commissioner recommends adoption of the model act, 266
to the joint standing committee of the General Assembly having 267
cognizance of matters relating to insurance. 268
Sec. 10. Section 38a -477jj of the general statutes is repealed and the 269
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following is substituted in lieu thereof (Effective from passage): 270
(a) For the purposes of this section: 271
(1) "Affordable Care Act" has the same meaning as provided in 272
section 38a-1080; 273
(2) "Exchange" has the same meaning as provided in section 38a-1080; 274
(3) "Health benefit plan" has the same meaning as provided in section 275
38a-1080, except that such term shall not include a grandfathered health 276
plan as such term is used in the Affordable Care Act; 277
(4) "Health carrier" has the same meaning as provided in section 38a-278
1080; 279
(5) "Office of Health Strategy" means the Office of Health Strategy 280
established under section 19a-754a; and 281
(6) "Qualified health plan" has the same meaning as provided in 282
section 38a-1080. 283
(b) Notwithstanding any provision of the general statutes and except 284
as provided in subsection (c) of this section, no health carrier offering a 285
health benefit plan in this state on or after January 1, 2022, that includes 286
a pharmacy benefit and uses a drug formulary or list of covered drugs 287
may: 288
(1) Remove a prescription drug from the drug formulary or list of 289
covered drugs during a plan year; or 290
(2) Move a prescription drug from a cost -sharing tier that imposes a 291
lesser coinsurance, copayment or deductible for the prescription drug to 292
a cost -sharing tier that imposes a greater coinsurance, copayment or 293
deductible for the prescription drug during a plan year, unless the 294
prescription drug is subject to an in-network coinsurance, copayment or 295
deductible that is not greater than forty dollars per prescription per 296
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month in any tier. 297
(c) A health carrier offering a health benefit plan in this state on or 298
after January 1, 2022, that includes a pharmacy benefit and uses a drug 299
formulary or list of covered drugs may: 300
(1) Remove a prescription drug from the drug formulary or list of 301
covered drugs, upon at least ninety days' advance notice to a covered 302
person and the covered person's treating physician, if: 303
(A) The federal Food and Drug Administration issues an 304
announcement, guidance, notice, warning or statement concerning the 305
prescription drug that calls into question the clinical safety of the 306
prescription drug, unless the covered person's treating physician states, 307
in writing, that the prescription drug remains medically necessary 308
despite such announcement, guidance, notice, warning or statement; or 309
(B) The prescription drug is approved by the federal Food and Drug 310
Administration for use without a prescription; and 311
(2) Move a brand -name prescription drug from a cost -sharing tier 312
that imposes a lesser coinsurance, copayment or deductible for the 313
brand-name prescription drug to a cost -sharing tier that imposes a 314
greater coinsurance, copayment or deductible for the brand -name 315
prescription drug if the health carrier adds to the drug formulary or list 316
of covered drugs a generic prescription drug that is: 317
(A) Approved by the federal Food and Drug Administration for use 318
as an alternative to such brand-name prescription drug; and 319
(B) In a cost -sharing tier that imposes a coinsurance, copayment or 320
deductible for the generic prescription drug that is lesser than the 321
coinsurance, copayment or deductible that is imposed for such brand -322
name prescription drug. 323
(d) Nothing in this section shall prevent or prohibit a health carrier 324
from adding a prescription drug to a formulary or list of covered drugs 325
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at any time. 326
[(e) (1) The Office of Health Strategy shall, at least annually, conduct 327
a study to determine the impact that the requirements established in 328
subsections (a) to (d), inclusive, of this section have on the cost of health 329
benefit plans offered, delivered, issued for delivery, renewed, amended 330
or continued in this state and qualified health plans offered and sold 331
through the exchange. 332
(2) Not later than January 31, 2023, and annually thereafter, the Office 333
of Health Strategy shall submit a report, in accordance with the 334
provisions of section 11 -4a, to the commissioner and the joint standing 335
committee of the General Assembly having cognizance of matters 336
relating to insurance. Such report shall disclose the results of the study 337
conducted pursuant to subdivision (1) of this subsection for the 338
preceding year.]339
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2026 38a-292
Sec. 2 July 1, 2026 38a-344
Sec. 3 July 1, 2026 38a-316g(a)(3)
Sec. 4 July 1, 2026 38a-323(a)
Sec. 5 July 1, 2026 38a-323a(b)
Sec. 6 July 1, 2026 38a-324(a)
Sec. 7 July 1, 2026 38a-343(a)
Sec. 8 July 1, 2026 4a-20
Sec. 9 from passage New section
Sec. 10 from passage 38a-477jj
Statement of Purpose:
To: (1) Revise certain electronic notice requirements for property and
casualty insurers; (2) allow the State Insurance and Risk Management
Board to fund reserves using certain funds; (3) require the Insurance
Commissioner to conduct a review of the motor vehicle glass repair
national model; and (4) remove the Office of Health Strategy's study and
reporting requirement related to prescription drug formularies.
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[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]