CHAPTER 701c

CERTIFIED INSURANCE CONSULTANTS

Table of Contents

Sec. 38a-731. (Formerly Sec. 38-92c). Certified insurance consultants, license required.

Sec. 38a-732. (Formerly Sec. 38-92f). Contracts or agreements by certified insurance consultants unenforceable, when.

Sec. 38a-733. (Formerly Sec. 38-92g). Required acknowledgments by certified consultant.

Sec. 38a-734. (Formerly Sec. 38-92h). Certified consultants not to receive payments from insurers or producers for sale of insurance. Exemption for registration under the federal Investment Advisers Act. Disclosures.

Sec. 38a-735. (Formerly Sec. 38-92i). Penalty for acting as certified consultant without license.

Secs. 38a-736 to 38a-739. Reserved


Sec. 38a-731. (Formerly Sec. 38-92c). Certified insurance consultants, license required. No person shall, for a fee received or to be received, offer to examine, or examine or aid in examining, any policy of insurance or any annuity or pure endowment contract for the purpose of giving, or give or offer to give, any advice, counsel, recommendation or information in respect to the terms, conditions, benefits, coverage or premium of any such policy or contract, or in respect to the expediency or advisability of altering, changing, exchanging, converting, replacing, surrendering, continuing, renewing or rejecting any such policy or contract, or of accepting or procuring any such policy or contract from any company, or, in or on advertisements, cards, signs, circulars or letterheads, or elsewhere, or in any other way or manner by which public announcements are made, use the title “certified insurance consultant”, “certified insurance advisor”, “certified insurance specialist”, “certified insurance counselor”, “certified insurance analyst”, “certified policyholders’ advisor”, “certified policyholders’ counselor”, or any other similar title, or any title, word or combination of words indicating that he gives, or is engaged in the business of giving, advice, counsel, recommendation or information to holders of policies of insurance or annuity or pure endowment contracts, unless he holds a license as a certified insurance consultant under the provisions of sections 38a-731 to 38a-735, inclusive, and 38a-786.

(1969, P.A. 817, S. 1; 1971, P.A. 292, S. 1.)

History: 1971 act added “certified” in titles the use of which is prohibited by unlicensed persons and substituted Secs. “38-92c, 38-92d and 38-92f to 38-92i” for Secs. “38-92c to 38-92j”; Sec. 38-92c transferred to Sec. 38a-731 in 1991.

Sec. 38a-732. (Formerly Sec. 38-92f). Contracts or agreements by certified insurance consultants unenforceable, when. No contract or agreement with a certified insurance consultant of the type referred to in section 38a-731 shall be enforceable by him unless it is in writing and executed, in duplicate, by the person to be charged or by his legal representative, nor unless one of such duplicates is delivered to, or retained by, such person when it is signed by him, nor unless it plainly specifies the amount of the fee paid or payable by such person and the services to be rendered by such certified insurance consultant, nor unless it is in a form currently approved by the commissioner.

(1969, P.A. 817, S. 4; 1971, P.A. 292, S. 3.)

History: 1971 act specified applicability to “certified” consultants; Sec. 38-92f transferred to Sec. 38a-732 in 1991.

Sec. 38a-733. (Formerly Sec. 38-92g). Required acknowledgments by certified consultant. A certified insurance consultant who furnishes any advice or counsel as such consultant, makes any recommendation or gives any information except under the terms of a previously executed written contract conforming to section 38a-732 and in full force and effect shall thereupon, in every case, give to the recipient thereof a statement in writing, signed by the consultant, in a form currently approved by the commissioner, specifying the advice, counsel, recommendation or information given, and a receipt, in a form currently approved by the commissioner, for the fee paid to the consultant or a statement, in a form currently approved by the commissioner, of the fee to be received by the consultant therefor. Any person who violates any provision of this section shall be fined not less than two hundred fifty or more than two thousand five hundred dollars.

(1969, P.A. 817, S. 5; 1971, P.A. 292, S. 4; P.A. 08-178, S. 28.)

History: 1971 act specified applicability to “certified” consultants; Sec. 38-92g transferred to Sec. 38a-733 in 1991; P.A. 08-178 made technical changes and increased minimum fine from $50 to $250 and maximum fine from $500 to $2,500.

Sec. 38a-734. (Formerly Sec. 38-92h). Certified consultants not to receive payments from insurers or producers for sale of insurance. Exemption for registration under the federal Investment Advisers Act. Disclosures. No person, acting in the capacity of a certified insurance consultant and as such serving any person, firm, association, organization or corporation, not engaged in the insurance business, for compensation paid or to be paid by the person served, shall directly or indirectly receive any part of any commission or compensation paid by any insurer or producer in connection with the sale or writing of any insurance which is within the subject matter of any such service. The provisions of this section shall not apply to an insurance producer who is an advisory representative of a registered investment adviser registered pursuant to the Investment Advisers Act of 1940, 15 USC 80b-1, et seq., provided the insurance producer makes full disclosure in a written memorandum, signed by the party to be charged, which specifies the amount of such fee or compensation for services performed pursuant to the Investment Advisers Act of 1940 and which also discloses that a commission may be paid to the insurance producer from the sale of any insurance. Any person violating the provisions of this section shall be fined not less than two hundred fifty dollars or more than two thousand five hundred dollars or imprisoned not less than thirty days or more than three months, or both.

(1969, P.A. 817, S. 6; 1971, P.A. 292, S. 5; P.A. 94-160, S. 12, 24; P.A. 96-48, S. 2; P.A. 08-178, S. 29; P.A. 12-80, S. 182.)

History: 1971 act specified applicability to “certified” consultants; Sec. 38-92h transferred to Sec. 38a-734 in 1991; P.A. 94-160 substituted “producer” for “agent of any insurer” to accurately reflect the modernization and nomenclature of the industry, effective January 1, 1996; P.A. 96-48 exempted producers who provide the prescribed disclosures and are advisory representatives of an investment advisor registered under the federal Investment Advisers Act; P.A. 08-178 made technical changes and increased minimum fine from $50 to $250 and maximum fine from $500 to $2,500; P.A. 12-80 replaced maximum term of imprisonment of “ninety days” with “three months” and made technical changes.

Sec. 38a-735. (Formerly Sec. 38-92i). Penalty for acting as certified consultant without license. Any person who acts as a certified insurance consultant without such license or during a suspension of the person’s license shall be fined not less than two hundred fifty or more than two thousand five hundred dollars or be imprisoned not more than six months, or both.

(1969, P.A. 817, S. 7; 1971, P.A. 292, S. 6; P.A. 08-178, S. 30.)

History: 1971 act specified applicability to “certified” consultants; Sec. 38-92i transferred to Sec. 38a-735 in 1991; P.A. 08-178 made technical changes and increased minimum fine from $50 to $250 and maximum fine from $500 to $2,500.

Secs. 38a-736 to 38a-739. Reserved for future use.