Connecticut HB 5378: AN ACT CONCERNING SELF-FUNDED MULTIPLE EMPLOYER WELFARE ARRANGEMENTS AND REQUIRING A STUDY OF THE FEASIBILITY OF ESTABLISHING THE CONNECTICUT OPTION PROGRAM.

Bill Text

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General Assembly  
Substitute Bill No. 5378  
February Session, 2026 
 
 
 
 
 
AN ACT CONCERNING SELF-FUNDED MULTIPLE EMPLOYER 
WELFARE ARRANGEMENTS AND REQUIRING A STUDY OF THE 
FEASIBILITY OF ESTABLISHING THE CONNECTICUT OPTION 
PROGRAM.  
Be  it  enacted  by  the  Senate  and  House  of  Representatives  in  General 
Assembly convened: 
 
Section  1.  Section  38a-1  of  the  general  statutes  is  repealed  and  the 1 
following is substituted in lieu thereof (Effective January 1, 2027): 2 
Terms  used  in  this  title and  sections  2  and  3  of  this  act,  unless  it 3 
appears  from  the  context  to  the contrary,  shall  have  a  scope  and 4 
meaning as set forth in this section. 5 
(1) "Affiliate" or "affiliated" means a person that directly, or indirectly 6 
through  one  or  more  intermediaries,  controls,  is  controlled  by  or  is 7 
under common control with another person. 8 
(2) "Alien insurer" means any insurer that has been chartered by or 9 
organized or constituted within or under the laws of any jurisdiction or 10 
country without the United States. 11 
(3) "Annuities"  means  all  agreements  to  make  periodical  payments 12 
where  the  making  or  continuance  of  all  or  some  of  the  series  of  the 13 
payments,  or  the  amount  of  the  payment,  is  dependent  upon  the 14 
continuance  of  human  life  or  is  for  a  specified  term  of  years.  This 15 

Substitute Bill No. 5378 
 
 
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definition  does  not  apply  to  payments  made  under  a  policy  of  life 16 
insurance. 17 
(4) "Commissioner" means the Insurance Commissioner. 18 
(5) "Control", "controlled by" or "under common control with" means 19 
the  possession,  direct  or  indirect,  of  the  power  to  direct  or  cause  the 20 
direction of the management and policies of a person, whether through 21 
the ownership of voting securities, by contract other than a commercial 22 
contract for goods or nonmanagement services, or otherwise, unless the 23 
power is the result of an official position with the person. 24 
(6) "Domestic insurer" means any insurer that has been chartered by, 25 
incorporated, organized or constituted within or under the laws of this 26 
state. 27 
(7) "Domestic surplus lines insurer" means any domestic insurer that 28 
has   been   authorized   by   the   commissioner   to   write   surplus   lines 29 
insurance. 30 
(8) "Foreign country" means any jurisdiction not in any state, district 31 
or territory of the United States. 32 
(9) "Foreign insurer" means any insurer that has been chartered by or 33 
organized or constituted within or under the laws of another state or a 34 
territory of the United States. 35 
(10) "Insolvency"  or  "insolvent"  means,  for  any  insurer,  that  it  is 36 
unable to pay its obligations when they are due, or when its admitted 37 
assets  do  not  exceed  its  liabilities  plus  the  greater  of:  (A)  Capital  and 38 
surplus  required  by  law  for  its  organization  and  continued  operation; 39 
or (B) the total par or stated value of its authorized and issued capital 40 
stock. For purposes of this subdivision "liabilities" shall include but not 41 
be limited to reserves required by statute or by regulations adopted by 42 
the  commissioner  in  accordance  with  the  provisions  of  chapter  54  or 43 
specific  requirements  imposed  by  the  commissioner  upon  a  subject 44 
company at the time of admission or subsequent thereto. 45 

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(11) "Insurance"  means  any  agreement  to  pay  a  sum  of  money, 46 
provide  services  or  any  other  thing  of  value  on  the  happening  of  a 47 
particular  event  or  contingency  or  to  provide  indemnity  for  loss  in 48 
respect   to   a   specified   subject   by   specified   perils   in   return   for   a 49 
consideration.  In  any  contract  of  insurance,  an  insured  shall  have  an 50 
interest  which  is  subject  to  a  risk  of  loss  through  destruction  or 51 
impairment  of  that  interest,  which  risk  is  assumed  by  the  insurer  and 52 
such  assumption  shall  be  part  of  a general  scheme  to  distribute  losses 53 
among  a  large  group  of  persons  bearing  similar  risks  in  return  for  a 54 
ratable contribution or other consideration. 55 
(12) "Insurer"   or   "insurance   company"   includes   any   person   or 56 
combination  of  persons  doing  any  kind  or  form  of  insurance  business 57 
other than a fraternal benefit society, and shall include a receiver of any 58 
insurer when the context reasonably permits. 59 
(13) "Insured"  means  a  person  to  whom  or  for  whose  benefit  an 60 
insurer  makes  a  promise  in  an  insurance  policy.  The  term  includes 61 
policyholders,  subscribers,  members  and  beneficiaries.  This  definition 62 
applies  only  to  the  provisions  of  this  title  and  does  not  define  the 63 
meaning of this word as used