Licensing requirements applicable to persons soliciting or marketing insurance and for handling claims for Risk Retention Groups or Risk Purchasing Groups

STATE OF CONNECTICUT INSURANCE DEPARTMENT Bulletin L-21 July 31,2014 To: All Risk Retention Groups and Risk Purchasing Groups Chartered or Authorized to Conduct Business in Connecticut. Re: Licensing requirements applicable to persons soliciting or marketing insurance and for handling claims for Risk Retention Groups or Risk Purchasing Groups. Pursuant to Connecticut General Statutes §38a-263, any person acting or offering to act as a producer for a risk retention group or purchasing group within the State ofConnecticut must obtain an appropriate insurance license prior to commencing any such activity. The Insurance Department has updated the description of the requirements for persons seeking to market or solicit insurance and handle claims for Risk Retention Groups or Risk Purchasing Groups. Insurance licensing requirements are applicable to such persons in accordance with the chart stated below. Pursuant to C.G.S . §§38a-263, 38a-769 persons described below shall obtain the appropriate license. Risk Retention Group Authority Function Performed by Licensed Required Code 1 sells insurance to executive officers, none N/A new members travelling salaried employees or members of the group, who do not . . . receive comrmssions or bonuses 2 sells insurance to other than producer (1) casualty new members executive officers, travelling salaried employees or members ofthe group, who do not receive commissions or bonuses (e.g. administrator or sub- administrator) 3 markets out program managing general agent, producer (1) casualty to others who in tum administrator or subsell to new members administrator 4 persons selling for a producer (1) casualty managing general agent www.ct.gov/cid P.O . Box 816 • Hartford, CT 06142-0816 An Equal Opportunity Employer Risk Retention Group Function 5 (a) claim handling (b) claim handling Purchasing Groups Function 1 purchases insurance from an insurance co. for its members 2 sells insurance to new members Performed by Licensed Required executive officers, none travelling salaried employees or members of the group, who do not receive commissions or bonuses other than casualty adjuster executive officers, travelling salaried employees or members of the group, who do not receive commissions or bonuses (e.g. administrators subadministrators or independent adjusters) Performed by Licensed Required executive officers, none travelling salaried employees or members of the group, who do not . . . receive commissions or bonuses executive officers, none travelling salaried employees or members of the group, who do not . . . receive commissions or bonuses (e.g. administrator or sub­ administrator) Authority Code N/A casualty Authority Code N/A N/A Purchasing Groups Function 3 sells insurance to new members 4 markets out program to others who in turn sell to new members 5 persons selling for a managing general agent 6 (a) claim handling 6 (b) claim handling Performed by Licensed Required other than producer (1) executive officers, travelling salaried employees or members of the group, who do not . . . recerve commissions or bonuses (e.g. administrator or subadministrators) managing general agent, administrator or subadministrator executive officers, travelling salaried employees or members of the group, who do not . . . receive commissions or bonuses other than executive officers, travelling salaried employees or members of the group, who do not receive commissions or producer (1) producer (l) none casualty adjuster Authority Code casualty casualty casualty N/A casualty bonuses (e.g. administrators, subadministrators or independent adjusters) If you have any questions on this bulletin, you may contact the Captive Insurance Division, John C. Thomson, at (860)279-3995 or jolm.thomson@ct.gov. £a:e Thomas B. Leonardi Insurance Commissioner