Senator Kelly Applauds Senate Passage of Domestic Insurance Bill

“This legislation sends a very clear message that the insurance industry is important to the state of Connecticut”

 HARTFORD, Conn. – State Senator Kevin Kelly (R-Stratford) today released the following statement regarding the Senate passage of House Bill 7025, An Act Authorizing Domestic Insurers to Divide.

“I am happy to report that yesterday the Senate passed an insurance bill, that upon approval by the insurance department, would allow domestic insurers to sell segments of their businesses,” said Sen. Kelly. “While this may sound technical, the end result will be more jobs for the Connecticut Insurance Industry. In a job climate that continues to struggle; this is definitely a win for the hard-working families of our state and for the insurance industry as a whole.”

HB 7025 allows a domestic insurer to divide into two or more insurers and allocate assets, including insurance policies, to the new companies. It does so by creating a process that is legally distinct from a merger, consolidation, dissolution or formation. While other states allow for this flexibility, this option does not currently exist in Connecticut state law. The bill has passed in both the Senate and House, and is now headed for the governor’s desk.

“This legislation will provide flexibility to Connecticut insurers to reorganize business operations to reflect their strategies and ultimate end goals,” said Sen. Kelly. “Passage of this legislation sends a very clear message that the insurance industry is important to the state of Connecticut. Our domestic insurers provide numerous jobs and legislation like this helps keep those jobs in the state.”