Ask PIA

Rate filing

What is the process in Connecticut to obtain a carrier’s rate filing?

Disruptive client—agency refusal to write coverage

What do you do with a client that you don’t want anymore? We have an insured that is very disruptive when he comes into the office to make a payment.

Premium billing notice

Who is responsible to deliver the premium billing notice for policy renewals?

Rebating

Along with their homeowners insurance policy, a company included a discount coupon from a company that sells alarm systems. Would this be a form of rebating?

Company withdrawal

One of the insurers we represent is withdrawing from Connecticut, although it has not terminated our agency contract. Now it has started sending out nonrenewal notices, with only 30 days’ advance notice to the insured. Is this correct?

Credit card premium payments

Does Connecticut have any laws concerning the issue of whether an insurance agent may accept premium payments through the use of credit cards?

Sexual harassment

What are the rules governing sexual harassment affecting Connecticut businesses. Could you explain them?

Family Leave Act—who pays?

I would like a clarification of the Family and Medical Leave Act of 1993. Who pays for the employee’s medical coverage if the employee takes a leave under this federal act?

Management services for 401(k) plans

I think I saw something about a new law that lets insurance agents provide investment advice in connection with 401(k) plans. Can you give me the details? Does this have anything to do with Enron?

Captive insurers

Can PIA provide me with some information on captive insurance companies?

C.L.U.E. reports

Does a company using Comprehensive Loss Underwriting Exchange, a data bank maintained by LexisNexis, have to release a copy of the C.L.U.E. report to the agent of the client?

Bad check exposure

Is there any way to avoid liability for earned premium when my customer pays me with a bad check, and I have paid the company with an agency check?

Waive DOL overtime

Can my employees waive their right to overtime?

The mailbox rule

My client received a notice of cancellation for nonpayment and mailed the premium before the date of cancellation. If the payment isn’t received until after the date of cancellation, can the carrier cancel the policy?

DOL overtime—bonuses

I have an employee who makes $22,000 a year, but he receives a $3,000 bonus every year in December. Would this employee meet the overtime salary threshold?

Cut-throughs

What is a “cut through”? If an insurance company becomes insolvent, are the company’s reinsurers responsible to pay claims against it, whether or not a cut through is in place?

Lost policy

We have a client who is involved in a dispute with an insurance company over pollution coverage. The issue involves an old policy; our client no longer has the contract. The company long ago destroyed its records and is denying any coverage. The company is putting the burden of proof on the client to produce a policy. What are our client’s chances of collecting?

OSHA log form sources

How do we get OSHA log forms? What forms are needed?

Reformation of policy language

In a settlement agreement we saw recently, the company consented to a “reformation” of its policy. Specifically, the company stated that its renewal policy was improperly issued, and that its intent was to cover the loss in question. What does the term “reformation” mean in this context?

Connecticut comparative negligence law

How does Connecticut’s comparative negligence law work when there are multiple defendants?

Mass-marketing plans

What are the rules governing mass-marketing programs in Connecticut?

Punitive damages

How are punitive damages treated in Connecticut?

Subpoenas

I just received a subpoena in connection with policies placed on behalf of my client. What is it and how should I respond?

Rebates

What can you tell me about rebates in Connecticut?

Referral fees

Can an insurance agent pay a referral fee to an unlicensed person, or a licensed person with different authorities than mine?

Mandatory SR-22 forms

Are SR-22 forms still mandatory?

Statute of limitations in subrogation action

My client, ABC Swim Club, has a commercial general liability policy with Small Insurance Co. ABC had a swim meet at XYZ Swim Club who has a commercial general liability policy with Medium Insurance Co. A member of ABC injured herself while diving into XYZ’s pool. The injured member has sued XYZ, but not ABC. Medium has asked Small to share in the loss, claiming ABC did not supervise the member correctly. ABC’s officers want to know why Small has a reserve on the books if ABC has not been served suit by the member and the statute of limitations has expired? What do I tell them?

Subrogation time frame

Is there a time frame when a company has to advise an insured that they are subrogating and is there a time limit on filing the subrogation action? We would like the answer in the context of Connecticut law.

Waiver of subrogation vs. waiver of transfer of rights

If our insured is contractually required to name the other party as an additional insured on his policy, wouldn’t the request to also attach the Waiver of Transfer of Rights of Recovery Against Others to Us (CG 24 04) endorsement be redundant?

Is a “waiver of subrogation” the same as a “waiver of transfer of rights?” We have seen both terms used. Do they both mean that the insurer will not subrogate?

Disclosure of commission

As a result of Sarbanes-Oxley, we have to show our commission on either the rate schedule or declaration page. Really? Is it PIA's interpretation of Sarbanes-Oxley that the amount of commission to brokers has to be shown in the policy?

Acceptable proof of insurance

My insured currently has a package policy covering multiple commercial buildings and is in the process of buying an additional building. I added the new building to the current package policy and sent proof of insurance to the bank. The bank will not deem the proof of insurance regarding the package policy acceptable, and is requiring the new building to be insured on a separate policy. Can the bank force the insured to cover the building on a separate policy?

W-9 IRS tax forms—request by policyholder

We have been asked by a client to provide a W-9 Form. What is this and why does the client need it?

Website accessibility

Does my website have to be accessible to people with disabilities?

Under-age alcohol possession charges and license suspension

I’ve heard that in Connecticut, when a minor is cited for possession of alcohol, even if he or she was not driving or in a vehicle, his or her license will be suspended. Is this really the case?

Approval of underwriting guidelines

Does the Connecticut Insurance Department require underwriting guidelines to be filed or approved by the commissioner’s office?

Agents legal duty at the time of procurement of coverage

Which statement most accurately describes the legal duty of an insurance agent at the time of procurement of coverage?

Illegal discrimination

In Connecticut, an insurance company may not engage in illegal discrimination. Would refusing to issue, renew, cancel or limit the amount or provisions of coverage when the condition of adjacent or nearby properties present objectively identifiable hazards associated with such properties which significantly increase the risk?

Failure of agent to pay premium

I received notice from the commissioner of the Insurance Department that my license is being suspended for failure to pay premiums to the insurance company. Can they do this?

Connecticut prejudice rule

I heard that the law regarding late notice of claim changed in Connecticut. Is this true? If so, what does it mean?

Disclosure of customer’s records—pending lawsuit

Do the Gramm-Leach-Bliley Act (GLBA) privacy rules that restrict the disclosure of nonpublic financial information prohibit me from sharing or disclosing a customer’s records in response to a lawsuit regardless of whether the customer has exercised his or her opt-out rights?

Recreational drone registration

My client just bought a drone for each of her sons and herself. Does she have to register them and how does she go about doing so?

Raffle to current customers

Our agency wants to run a raffle to increase our visibility. We plan to reach out to our existing homeowners insurance customers and give away a cruise vacation package worth $1,000 if they allow us to quote their auto insurance. Is this permissible in New Jersey? What about other states in the Northeast?

Exemptions from DOL overtime

How do I know if my employees are exempt from overtime?

DOL overtime—biweekly pay

Employees in my agency are on a biweekly pay schedule. If one of my employees who is eligible for overtime works over 40 hours in the first week of a pay period, can I have them work less in the second week in order to avoid paying overtime?

DOL overtime—outside-sales exemption

Will my producers qualify for the outside-sales exemption, even though many of them maintain office space at the agency?

Hemp and marijuana

What is the difference between hemp and marijuana under the 2018 Farm Bill?