Senate Bill No. 444

Public Act No. 00-126

An Act Concerning Restitution Orders Under The Unfair Insurance Practices Act.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (b) of section 38a-817 of the general statutes, as amended by section 24 of public act 99-215, is repealed and the following is substituted in lieu thereof:

(b) If, after such hearing, the commissioner determines that the person charged has engaged in an unfair method of competition or an unfair or deceptive act or practice, [he] the commissioner shall reduce [his] the commissioner's findings to writing and shall issue and cause to be served upon the person charged with the violation a copy of such findings and an order requiring such person to cease and desist from engaging in such method of competition, act or practice and if the act or practice is a violation of section 38a-816, as amended, the commissioner may, at [his] the commissioner's discretion order any one or more of the following: [(i)] (1) Payment of a monetary penalty of not more than one thousand dollars for each and every act or violation but not to exceed an aggregate penalty of ten thousand dollars unless the person knew or reasonably should have known [he] that the person was in violation of section 38a-815, 38a-816, as amended, this subsection and subsection (e), in which case the penalty shall be not more than five thousand dollars for each and every act or violation but not to exceed an aggregate penalty of fifty thousand dollars in any six-month period; [(ii)] (2) suspension or revocation of the person's license if [he] the person knew or reasonably should have known [he] the person was in violation of said sections and subsections; (3) restitution of any sums shown to have been obtained in violation of any of the provisions of said sections or any regulation implementing the provisions of said sections.

Sec. 2. Subsection (e) of section 38a-817 of the general statutes, as amended by section 24 of public act 99-215, is repealed and the following is substituted in lieu thereof:

(e) Any person who violates a cease and desist order of the commissioner made pursuant to this section and while such order is in effect shall, after notice and hearing and upon order of the commissioner, be subject to any one or more of the following: [(i)] (1) A monetary penalty of not more than ten thousand dollars for each and every act or violation; or [(ii)] (2) suspension or revocation of such person's license.

Approved May 26, 2000