Sec. 38a-271. (Formerly Sec. 38-263). Definitions. Acts of doing an insurance business. Exceptions.
Sec. 38a-271. (Formerly Sec. 38-263). Definitions. Acts of doing an insurance
business. Exceptions. (a) Unless otherwise indicated, as used in sections 38a-27, and
38a-271 to 38a-278, inclusive, "insurer" includes all corporations, associations, partnerships and individuals engaged as principals in the business of insurance and also includes
interinsurance exchanges, mutual benefit societies and health care centers and "commissioner" means the Insurance Commissioner. Any of the following acts effected in this
state by mail or otherwise is defined to be doing an insurance business in this state: (1)
The making of or proposing to make, as an insurer, an insurance contract; (2) the making
of or proposing to make, as guarantor or surety, any contract of guaranty or suretyship
as a vocation and not merely incidental to any other legitimate business or activity of
the guarantor or surety; (3) the taking or receiving of any application for insurance; (4)
the receiving or collection of any premium, commission, membership fees, assessments,
dues or other consideration for any insurance or any part thereof; (5) the issuance or
delivery of contracts of insurance to residents of this state or to persons authorized to
do business in this state; (6) directly or indirectly acting as an agent for or otherwise
representing or aiding on behalf of another any person or insurer in the solicitation,
negotiation, procurement or effectuation of insurance or renewals thereof or in the dissemination of information as to coverage or rates, or forwarding of applications, or
delivery of policies or contracts, or inspection of risks, a filing of rates or investigation
or adjustment of claims or losses or in the transaction of matters subsequent to effectuation of the contract and arising out of it, or in any other manner representing or assisting
a person or insurer in the transaction of insurance with respect to subjects of insurance
resident, located or to be performed in this state. The provisions of this subdivision shall
not operate to prohibit full-time salaried employees of a corporate insured from acting
in the capacity of an insurance manager or buyer in placing insurance in behalf of such
employer; (7) the doing of or proposing to do any insurance business in substance equivalent to any of the foregoing in a manner designed to evade the provisions of the general
statutes relating to insurance; and (8) any other transactions of business in this state by
an insurer. The venue of an act committed by mail is at the point where the matter
transmitted by mail is delivered and takes effect.
(b) The provisions of sections 38a-271 to 38a-278, inclusive, other than section
38a-277, do not apply to: (1) The lawful transaction of surplus lines insurance; (2) the
lawful transaction of reinsurance by insurers; (3) transactions, in this state, involving a
policy lawfully solicited, written and delivered outside of this state covering only subjects of insurance not resident, located or expressly to be performed in this state at the
time of issuance, and which transactions are subsequent to the issuance of such policy;
(4) transactions involving contracts of insurance independently procured pursuant to
the unsolicited application of the insured or his agent which are reported and on which
a premium tax is paid in accordance with section 38a-277; (5) attorneys acting in the
ordinary relation of attorney-client in the adjustment of claims or losses; (6) transactions,
in this state, involving contracts of insurance issued to one or more industrial insureds,
provided nothing herein shall relieve an industrial insured from the taxation imposed
upon independently procured insurance in subsection (c) of section 38a-277. For the
purpose of this subdivision, an "industrial insured" shall mean an insured (i) which
procures the insurance of any risk by the use of the services of a full-time employee
acting as an insurance manager or buyer, or the services of a regularly and continuously
retained qualified insurance consultant and (ii) whose aggregate annual premiums for
insurance, excluding life, accident and health insurance, total at least fifty thousand
dollars; (7) transactions involving contracts issued by a life insurance or annuity company, organized and operated without profit, to any private shareholder or individual
exclusively for the purpose of aiding and strengthening educational institutions or charitable, health and welfare organizations by issuing insurance and annuity contracts only
to or for the benefit of such institutions or organizations and individuals engaged in the
service of such institutions or organizations; (8) transactions in this state involving group
life and group sickness and accident or franchise sickness and accident insurance or
group annuities where the master policy of such groups was lawfully issued and delivered in and pursuant to the laws of a state in which the insurer was authorized to do an
insurance business to a group organized for purposes other than the procurement of
insurance, and where the policyholder is domiciled or otherwise has a bona fide situs;
(9) transactions in this state involving any policy of insurance or annuity contract issued
prior to January 1, 1970.
(c) The provisions of section 38a-27 do not apply to: (1) The lawful transaction of
surplus lines insurance; (2) transactions, in this state, involving a policy lawfully solicited, written and delivered outside of this state covering only subjects of insurance not
resident, located or expressly to be performed in this state at the time of issuance, and
which transactions are subsequent to the issuance of such policy; (3) transactions involving contracts of insurance independently procured pursuant to the unsolicited application
of the insured or his agent which are reported and on which a premium tax is paid in
accordance with section 38a-277; (4) attorneys acting in the ordinary relation of attorney-client in the adjustment of claims or losses; (5) transactions, in this state, involving
contracts of insurance issued to one or more industrial insureds, provided nothing in this
section shall relieve an industrial insured from the taxation imposed upon independently
procured insurance in subsection (c) of section 38a-277; (6) transactions involving contracts issued by a life insurance or annuity company, organized and operated without
profit, to any private shareholder or individual exclusively for the purpose of aiding and
strengthening educational institutions or charitable, health and welfare organizations
by issuing insurance and annuity contracts only to or for the benefit of such institutions
or organizations and individuals engaged in the service of such institutions or organizations; (7) transactions in this state involving group life and group sickness and accident
or franchise sickness and accident insurance or group annuities where the master policy
of such group was lawfully issued and delivered in and pursuant to the laws of a state
in which the insurer was authorized to do an insurance business to a group organized
for purposes other than the procurement of insurance, and where the policyholder is
domiciled or otherwise has a bona fide situs; (8) transactions in this state involving any
policy of insurance or annuity contract, other than a reinsurance contract, issued prior
to January 1, 1970. For the purposes of subdivision (5) of this subsection, an "industrial
insured" means an insured (A) which procures the insurance of any risk by the use of
the services of a full-time employee acting as an insurance manager or buyer, or the
services of a regularly and continuously retained qualified insurance consultant, and
(B) whose aggregate annual premiums for insurance, excluding life, accident and health
insurance, total at least fifty thousand dollars.
(1969, P.A. 561, S. 1; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 319, 348; P.A. 90-243, S. 149; P.A. 93-239, S. 3; P.A.
96-78, S. 2; P.A. 98-98, S. 5.)
History: P.A. 77-614 placed insurance commissioner within the department of business regulation and made insurance
department a division within that department, effective January 1, 1979; P.A. 80-482 restored insurance commissioner
and division to prior independent status and abolished the department of business regulation; P.A. 90-243 substituted
"surplus lines" for "excess line" insurance in Subsec. (b); Sec. 38-263 transferred to Sec. 38a-271 in 1991; P.A. 93-239
made technical corrections for statutory consistency; P.A. 96-78 amended Subsec. (b) to delete the reference to Sec. 38a-27 and added a new Subsec. (c) re exemptions to provisions of Sec. 38a-27; P.A. 98-98 amended definition of "insurer"
in Subsec. (a) to include health care centers.
Provisions of Subsec. (b) exempting reinsurers from this statute prevent the application of Subsec. (c), exempting
industrial insureds from the provisions of Sec. 38a-27, to such reinsurers. 103 CA 319.