This email summarizes laws enacted during the 2025 Session of the Connecticut General Assembly that are enforced by the Connecticut Insurance Department (CID) or that otherwise relate to the insurance industry. The summary is intended only as notice of passage of the legislation and is not a representation of the CID’s interpretation of the new laws.*  You may obtain a copy of specific laws passed during the 2025 Session by accessing the Connecticut General Assembly’s Legislative Commissioner’s Office website, or by contacting the State Library.

CID Agency Bills: The following are short summaries of the CID’s agency bills, now Public Acts.

1. HB 6434 AN ACT CONCERNING REVISIONS TO THE HEALTH INSURANCE STATUTES - Public Act 25-132 
   
   Summary: This Public Act makes several procedural updates to existing insurance statutes to streamline operations and align requirements with current practices.  
   
   First, Section 1 removes the existing requirement that the Insurance Commissioner contract with specific entities—now defunct—for reviews of mandated health benefits. Instead, the Department is permitted (but not required) to engage other individuals or organizations to support these reviews. This provides flexibility while maintaining the Department’s ability to assess proposed and existing health benefit mandates using external expertise as needed. 
   
   Second, Section 2 postpones the current annual reporting timelines for pharmacy benefits manager (PBM) to submit rebate data to the CID, and for the CID to report to the Insurance and Real Estate Committee on such data by one month each. This adjustment permits the PBMs to submit complete data for the full prior year, rather than only eleven months.
   
   Lastly, Sections 3 and 4 amend the law granting the Insurance Commissioner the authority to adopt regulations related to medically necessary wheelchair repairs and replacements making the adoption of any such regulations permissive rather than compulsory. This change allows the CID to exercise discretion in its determination of the need for additional regulatory oversight of this process.
   
   Effective Date
   October 1, 2025: Sec 1   
   Effective From Passage: Sec 2, Sec 3, Sec 4  
   Bill History Page
   Fiscal Note
   Public Act 25-132 
   
    
2. HB 6433 - AN ACT CONCERNING CAPTIVE INSURANCE - Public Act 25-130 
   
   Summary: This Public Act updates Connecticut’s captive insurance laws to promote the state as a competitive and attractive location for captive insurers. It focuses on increasing operational flexibility for sponsored captive insurance companies— a captive insurer that includes a core entity and one or multiple segregated “protected cells”. Each “protected cell” insures the participant(s) of the protected cell. The legislation allows captive insurance companies to convert into protected cells without disrupting the captive insurer’s existing assets, liabilities, or obligations. It also permits protected cells to be sold, transferred, or assigned to new or existing captive insurers while maintaining continuity in their operations. To ensure proper regulatory oversight, in addition to the protected cells participant(s) consent, the bill clarifies that the sponsor, not the sponsored captive insurer, must submit an application to the CID, for approval, before such transactions occur. 
   
   In addition to these structural changes, the bill strengthens the Department’s regulatory authority. The bill explicitly includes captive insurers within the scope of the state’s general penalty statutes, giving the Department clear enforcement tools. It also authorizes the Department to separate insolvent protected cells from the sponsored captive core, enabling targeted intervention without jeopardizing the financial health of the broader entity. These changes bring Connecticut in line with best practices in other leading captive insurance states and reinforce both flexibility and consumer protection.  
   
   Effective Date: October 1, 2025 
   Bill History Page
   Fiscal Note
   Public Act 25-130 
   
    
3. HB 6435 - AN ACT CONCERNING THE INSURANCE DEPARTMENT'S AUTOMOBILE PHYSICAL AND PROPERTY DAMAGE ARBITRATION PROCESS  - Public Act 25-131
   
   Summary: This Public Act modifies CGS section 38a-9 to require insurance companies to reimburse the CID for the full cost of arbitration in auto physical and property damage claims, under specific conditions. To implement this legislation, insurers will now be required to make a pre-arbitration offer of compromise following the CID’s claim mediation process. If the claimant rejects the pre-arbitration offer of compromise, the parties proceed to arbitration and the arbitrator makes an award that is greater than the offer of compromise amount, the insurer must pay the CID’s costs for conducting the arbitration. If the insurer prevails or if the claimant’s arbitration award is less than a pre-arbitration offer of compromise, the CID continues to bear the costs of the arbitration. 
   
   Effective Date: October 1, 2025 
   Bill History Page
   Fiscal Note
   Public Act No. 25-131

Additional Acts Affecting Insurance

The General Assembly’s Office of Legislative Research (OLR) produces an annual report with summaries of new laws (public acts) significantly affecting insurance enacted during the 2025 regular legislative session. Not all provisions of the acts are included in this summary report. To access the public acts in their entirety, visit the Legislative Commissioner’s Office website, or contact the State Library. View the OLR insurance report: 2025AA-0103_2025 Acts Affecting Insurance.pdf.

I trust you will find this information useful.

Sincerely,

Andrew N. Mais
Commissioner

*All regulated entities should refer to the Connecticut State Statutes for the complete text of these recently enacted 2025 Public Acts. Regulated entities are advised that other bills passed by the General Assembly and not referenced here and within the OLR report may also affect their business operations in Connecticut.