Insurers need approval to transfer covered policies

Insurers must get the Insurance Commissioner's approval for covered transfers and send policyholders notice explaining the transfer and how to accept or reject it. The rules apply to insurers authorized in Connecticut that assume or transfer obligations or risks under a covered agreement. The rules cover assumption reinsurance agreements intended to make the assuming insurer directly responsible to policyholders and end the transferring insurer's obligations. Several transfers are excluded, including transactions where the original insurer remains directly liable and certain mergers or consolidations governed by law. These provisions take effect October 1, 2026. If a policyholder does not respond to a second notice within one month, consent is treated as given.

Health carriers must make their drug lists available for review each year before open enrollment. These rules apply to health carriers offering Connecticut plans with drug coverage and a list of covered drugs. The lists must show drugs being removed and drugs covered for the new plan year. During a plan year, a carrier may remove a drug after at least 90 days' notice in specified safety or nonprescription cases. It may move a brand-name drug to a higher-cost tier if it adds an FDA-approved generic at a lower-cost tier. The annual list requirement takes effect January 1, 2027.

Insurers must explain a premium increase when a named insured requests an explanation. This applies to personal risk insurance policies covered by the premium notice rules, excluding workers' compensation policies. The request may be in writing or by another method set by the commissioner. The insurer's response must explain the basic reason in terms an average policyholder can understand. The premium notice must give the insurer's contact information and explain how to ask for the reason. These requirements take effect January 1, 2027.