Exemption of Certain Commercial Lines Property and Casualty Policies From Form, Rate and Rule Filing Requirements (This Bulletin rescinds and replaces Bulletin PC-63-01 , and Bulletin PC-71 )

STATE OF CONNECTICUT INSURANCE DEPARTMENT portal.ct.gov/cid P.O. Box 816 Hartford, CT 06142-0816 An Equal Opportunity Employer Bulletin PC-63-24 July 03, 2024 To: All Companies Licensed to Write Property and Casualty Insurance Re: Exemption of Certain Commercial Lines Property and Casualty Policies From Form, Rate and Rule Filing Requirements Bulletin PC-71 Rescinded This Bulletin rescinds Bulletin PC-71 regarding the exemption from form, rate and rule filing procedures for claims made insurance policies. The Department reviewed a sampling of claims made insurance policy form filings and found various compliance issues. As a result, the Department has determined that all claims made policy filings will require a complete filing review and are removed from the exempted commercial lines of insurance set forth in Appendix A. Bulletin PC-63-01 Replaced In addition, this Bulletin replaces Bulletin PC-63-01 and extends the Department’s program to exempt certain commercial lines policy filings from the filing review procedures under Conn. Agencies Regs. section 38a-676-1 through 38a-676-3. Accordingly, the commercial lines of insurance set forth on Appendix A continue to remain exempt from form filing review procedures under the regulations. This action is taken pursuant to the authority granted to the Insurance Commissioner under Conn. Gen. Stat. section 38a-692. NOTE: Companies are required to continue filing all commercial forms, rates and rule filings (and/or any amendments or endorsements thereto) exempted by this Bulletin. SERFF filers must identify exempt filings with the appropriate “Exempt” designation in the Filing Type field. Insurers are still responsible for following the Department’s filing requirements as outlined in SERFF and Bulletin PC-62. Insurers should be aware that the Department has taken market conduct action in the past as a result of claims made policy forms that do not comply with applicable Connecticut laws and regulations and will do so in the future especially in the case of repeated failures to comply with form filing requirements. As a reminder, an officer of the insurer must certify that form filings under this Bulletin comply with applicable Connecticut insurance laws and regulations and that the filing has not been previously disapproved by the Department. - 2 - Forms, Rates and Rules Not Exempted Under this Bulletin The Commissioner’s action hereunder extends solely to the commercial product lines of insurance set forth in Appendix A. This Bulletin does not extend to any other policy forms, rates or rules required to be filed under Connecticut law including, but not limited to: (i) those used in the personal lines market; (ii) commercial lines policy forms not listed in Appendix A; and (iii) filings made by an Insurance Rating Organization. NOTE: The Commissioner’s actions under this Bulletin do not include a review exemption for the following lines of commercial insurance: • workers’ compensation; • excess workers’ compensation; • medical malpractice; • professional liability; • environmental impairment liability; • policies affording claims made coverage; • policies issued to municipalities and other local government entities; and • any other form, rate or rule filing (including a policy form filing that contains coverages for both an exempt and non-exempt line of business) not set forth in the attached Appendix A. Effective Date Claims made form filings will be subject to full examination by the Department from the date of issuance of this Bulletin. Questions For questions concerning this Bulletin, please contact the Insurance Department’s Property and Casualty Division by email at: cid.pc@ct.gov. Andrew N. Mais Insurance Commissioner - 3 - APPENDIX A Pursuant to this Bulletin, the following commercial lines are exempted from the filing review requirements of Connecticut General Statutes section 38a-676 and the related regulations: • Manuscript policies and endorsements issued to not more than three (3) insureds in Connecticut (excluding claims-made products) • Commercial inland marine (form, rate and rule filings) rates and rules are not required to be filed under Connecticut law, if insurer chooses to submit these filing types – they may also be submitted as exempt • Following form commercial excess and umbrella (form, rate and rule filings) – (excluding claims made products) • Commercial excess and umbrella policies if the underlying policy provides limits of at least $1 million (form, rate and rule filings) – (excluding claims made and excess workers compensation products) • Commercial policies or endorsements for: expropriate coverage; kidnap and ransom coverage; political risk coverage; extortion risk coverage; computer fraud coverage; or trade credit risk (form, rate and rule filings) • Commercial Crime/Burglary & Theft (form, rate and rule filings) • Commercial Credit (form, rate and rule filings) • Crop and hail (form, rate and rule filings) • Mortgage guaranty (form, rate and rule filings) • Commercial flood insurance (form, rate and rule filings) • Commercial earthquake insurance (form, rate and rule filings) • Boiler and machinery (form, rate and rule filings) • Fidelity and Surety Bonds other than bail bonds (form, rate and rule filings) • Manufacturer Output policies with total INSURED VALUES of at least $8,000,000 (form, rate and rule filings) • Highly Protected Risk policies covering: (form, rate and rule filings) 1. Structures that have a design and degree of protection which, together with efficient specialized inspection and engineering services, will have the effect of reducing the relative importance of such factors as exposure, and quality of public fire protection; 2. Structures that have fire-resistive or incombustible, heavy timber or other approved construction, in good state of preservation and repair; 3. Structures that are equipped with fire protection or loss prevention equipment in all physical areas where such protection is necessary; 4. Structures that are provided with satisfactory watchman or alarm service or its equivalent; or 5. Structures that are protected by adequate public/private exterior fire protection system embracing an adequate number of hydrants, hose and necessary miscellaneous equipment with adequate water supply. • Commercial Travel –Baggage (form, rate and rule filings) -- there is no exemption for products including Accident/Health coverage. • Commercial Identity Theft (form, rate and rule filings)