(a)(1) There is imposed a twelve-dollar surcharge on the issuance or renewal of each insurance policy providing:

Terms Used In Connecticut General Statutes 38a-331

  • Commissioner: means the Insurance Commissioner. See Connecticut General Statutes 38a-1
  • Insurance: means any agreement to pay a sum of money, provide services or any other thing of value on the happening of a particular event or contingency or to provide indemnity for loss in respect to a specified subject by specified perils in return for a consideration. See Connecticut General Statutes 38a-1
  • Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy. See Connecticut General Statutes 38a-1
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • nonadmitted insurer: means an insurer that has not been granted a certificate of authority by the commissioner to transact the business of insurance in this state or an insurer transacting business not authorized by a valid certificate. See Connecticut General Statutes 38a-1
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: means an individual, a corporation, a partnership, a limited liability company, an association, a joint stock company, a business trust, an unincorporated organization or other legal entity. See Connecticut General Statutes 38a-1
  • Policy: means any document, including attached endorsements and riders, purporting to be an enforceable contract, which memorializes in writing some or all of the terms of an insurance contract. See Connecticut General Statutes 38a-1
  • State: means any state, district, or territory of the United States. See Connecticut General Statutes 38a-1

(A) Personal risk insurance coverage for an owned dwelling in this state with four or fewer units, except for a mobile home;

(B) Coverage for an individual unit in this state that is part of a condominium, as such terms are defined in § 47-68a; or

(C) Coverage for an individual unit in this state that is part of a common interest community and exclusively used for residential purposes, as such terms are defined in § 47-202.

(2) The surcharge imposed under this subsection shall be assessed on insurance policies issued or renewed during the period beginning on January 1, 2019, and ending on December 31, 2029. Such surcharge is not premium and shall not be considered premium for any purpose.

(b) Payment of the surcharge imposed under subsection (a) of this section shall be the obligation of the person that is first listed as an insured under the policy, provided collection and remittance of such surcharge may be effected in such manner as the insurer, insured and any mortgagee may reasonably determine. Such surcharge is payable in full upon commencement or renewal of coverage, and no portion of such surcharge shall be reimbursed, whether on policy cancellation or otherwise.

(c) (1) Acting on behalf of, and as a collection agent of the Healthy Homes Fund established pursuant to § 8-446, each admitted insurer, or, for nonadmitted insurers, one or more surplus lines brokers licensed pursuant to § 38a-794 procuring from the nonadmitted insurer an insurance policy providing coverage of a type described in subdivision (1) of subsection (a) of this section, shall remit to the Insurance Commissioner, not later than the thirtieth day of April annually, all surcharges imposed under subsection (a) of this section on the named insured that were collected during the calendar year next preceding. Each such remittance shall include documentation, in the form and manner prescribed by the commissioner, to substantiate the total surcharge amount being remitted by such insurer or licensee.

(2) All such remittances under subdivision (1) of this subsection, except for the amount of remittances equal to the cost of funding an administrative officer position at the Insurance Department to facilitate the surcharge collection, shall be deposited in the Healthy Homes Fund established in § 8-446. Not later than thirty days after such deposit in the Healthy Homes Fund, eighty-five per cent of such deposits shall be transferred to the Crumbling Foundations Assistance Fund established in § 8-441.

(3) The surcharge imposed under subsection (a) of this section shall constitute a special purpose assessment for the purposes of § 12-211.

(d) The commissioner may adopt regulations, in accordance with chapter 54, to implement the provisions of this section.

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