Sec. 38a-827. (Formerly Sec. 38-93a). Fictitious grouping for insurance purposes prohibited.
Sec. 38a-827. (Formerly Sec. 38-93a). Fictitious grouping for insurance purposes prohibited. (a) As used in this section, a fictitious grouping means a grouping
for rating purposes whereby a differentiation in rate is based solely upon membership
in the group, but does not include a grouping where a common majority ownership is
present, where those grouped are engaged in a joint venture or a common construction
or demolition project or where there is a valid insurable interest on the part of the group.
(b) No insurance company authorized to do business in this state may offer any
organization, association or group of individuals privileged rate or premium on property,
casualty or surety insurance which is based on a fictitious grouping of members of such
organization or association or of such individuals; and no person engaged in the business
of insurance shall pay or allow dividends to such a group other than that offered to
persons or risks not in such group and the public generally.
(c) A fictitious group to which a contract of property, casualty or surety insurance
is issued shall not include a Connecticut resident; and no person engaged in the business
of insurance may solicit a Connecticut resident or group of Connecticut residents for
the purchase of property, casualty or surety insurance to be issued to a fictitious group
at a privileged rate or premium.
(d) This section shall not apply to life or accident and health insurance.
(1967, P.A. 476; P.A. 90-243, S. 47.)
History: P.A. 90-243 divided section into Subsecs. and substituted "may" for "shall" and "property" for "fire" insurance;
Sec. 38-93a transferred to Sec. 38a-827 in 1991.