Connecticut has enacted several insurance reforms affecting residents and business owners alike. Understanding these changes is crucial to ensure your coverage remains adequate and compliant. This FAQ addresses common questions about some newer regulations and their implications for various insurance policies.

1. How have auto insurance requirements changed in Connecticut?

As of 2024, Connecticut maintains its minimum auto liability coverage at 25/50/25. However, there is a proposal to increase these limits to 100/300, aiming to provide better protection for drivers. While this change is not yet enacted, it’s advisable to review your current policy and consider higher coverage to safeguard against potential future adjustments. 

2. What are the new protections for homeowners’ insurance policyholders?

Connecticut law now prohibits insurers from canceling, nonrenewing, or increasing premiums on homeowners insurance policies solely due to claims resulting from catastrophic events or previous owners’ claims, provided the associated risks have been mitigated. Additionally, inquiries or claims resulting in payouts under $500 cannot be the sole reason for policy cancellation or premium hikes.

3. How do the recent laws affect long-term care insurance?

In response to significant premium increases in long-term care insurance, Connecticut has introduced reforms to protect policyholders. These include capping annual rate increases at 10% for certain policies, offering a 20% tax credit on annual premiums, and requiring public hearings for rate hike requests exceeding 10%. These measures aim to enhance transparency and affordability for consumers. 

4. What changes have been made regarding captive insurance for businesses?

Public Act No. 24-138, effective October 1, 2024, provides greater flexibility for captive insurance companies in Connecticut. Notably, it allows protected cells within sponsored captive insurers to convert into standalone captives without disrupting existing obligations. This change supports businesses in customizing their risk management strategies and potentially reducing insurance costs. 

5. Are there any updates to health insurance options for small businesses?

Connecticut is exploring initiatives to make health insurance more affordable for small businesses. One proposal would allow small businesses to band together to purchase health plans to lower premiums and expand coverage options. While this legislation is still pending, it reflects the state’s commitment to addressing healthcare affordability for small employers.

Staying informed about Connecticut’s evolving insurance laws is essential for both residents and business owners. Regularly reviewing your policies and consulting with insurance professionals can help ensure you maintain adequate coverage and comply with new regulations.