Unfair and Prohibited Practices

What this document is

Connecticut General Statutes Chapter 704 - Unfair and Prohibited Practices (Secs. 38a-815 through 38a-835) is a state statute published by Connecticut General Assembly (cga.ct.gov). It is one of the Connecticut documents that insurance license exam questions are written from, including connecticut life & health, connecticut property & casualty practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Conn. Gen. Stat. Chapter 704 § 38a-816(6)(G) (Compelling Insureds to Institute Litigation)

  “(G) compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds;”

• Conn. Gen. Stat. Chapter 704 § 38a-816(3) (Defamation)

  “(3) Defamation. Making, publishing, disseminating or circulating, directly or indirectly, or aiding, abetting or encouraging the making, publishing, disseminating or circulating of, any oral or written statement or any pamphlet, circular, article or literature which is false or maliciously critical...”

• Conn. Gen. Stat. Chapter 704 § 38a-816(6)(N) (Explanation for Denial of a Claim)

  “(N) failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement;”

• Conn. Gen. Stat. Chapter 704 § 38a-816(2) (False Information and Advertising Generally)

  “(2) False information and advertising generally. Making, publishing, disseminating, circulating or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in a newspaper, magazine or other publication, or in the...”

• Conn. Gen. Stat. Chapter 704 § 38a-816(5) (False Financial Statements)

  “(5) False financial statements. Filing with any supervisory or other public official, or making, publishing, disseminating, circulating or delivering to any person, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated or delivered to any...”

• Conn. Gen. Stat. Chapter 704 § 38a-816(6) (Unfair Claim Settlement Practices)

  “Unfair claim settlement practices. Committing or performing with such frequency as to indicate a general business practice any of the following: (A) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue;”

• Conn. Gen. Stat. Chapter 704 § 38a-825(e) (Insurance as Inducement; Advertising Restrictions)

  “No insurance company doing business in this state, attorney, producer or any other person, shall: (1) Offer or provide insurance as an inducement to purchase another policy; or (2) Use the word “free”, the phrase “no cost” or any word or phrase of similar import in any advertisement.”

• Conn. Gen. Stat. Chapter 704 § 38a-816(1) (Misrepresentations and False Advertising of Insurance Policies)

  “(1) Misrepresentations and false advertising of insurance policies. Making, issuing or circulating, or causing to be made, issued or circulated, any estimate, illustration, circular or statement, sales presentation, omission or comparison which: (A) Misrepresents the benefits, advantages,...”

• Conn. Gen. Stat. Chapter 704 § 38a-827a (Discrimination on Basis of Lawful Travel Destination Prohibited)

  “No life insurance company doing business in this state may deny or refuse to accept an application for life insurance, refuse to renew, cancel, restrict or otherwise terminate a policy of life insurance, or make any distinction or discrimination between persons as to the premiums or rates charged...”

• Conn. Gen. Stat. Chapter 704 § 38a-815 (Unfair Practice Prohibited)

  “No person shall engage in this state in any trade practice which is defined in section 38a-816 as, or determined pursuant to sections 38a-817 and 38a-818 to be, an unfair method of competition or an unfair or deceptive act or practice in the business of insurance, nor shall any domestic insurance...”

• Conn. Gen. Stat. Sec. 38a-817(b) (Hearings. Subpoenas. Violations. Penalties. Restitution orders. Appeals)

  “if the act or practice is a violation of section 38a-816 , the commissioner may order any of the following: (1) Payment of a monetary penalty of not more than five thousand dollars for each act or violation but not to exceed an aggregate penalty of fifty thousand dollars unless the person knew or...”

• Conn. Gen. Stat. Sec. 38a-816(16) (Unfair practices defined: constructive total loss)

  “(16) Failure to pay, as part of any claim for a damaged motor vehicle under any automobile insurance policy where the vehicle has been declared to be a constructive total loss, an amount equal to the sum of (A) the settlement amount on such vehicle plus, whenever the insurer takes title to such...”

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More Connecticut sources

• Conn. Gen. Stat. Ch. 700c - Health InsuranceState statute
• Conn. Gen. Stat. Ch. 701a - Insurance Producers, Agents and Third-Party AdministratorsState statute
• Conn. Gen. Stat. Chapter 702 - LicensingState statute
• Conn. Gen. Stat. Ch. 704 - Unfair and Prohibited Practices (Unfair Insurance Practices Act)State statute
• Connecticut General Statutes Chapter 698a - Health Care and Related Service Groups (Secs. 38a-175 through 38a-225)State statute
• Connecticut General Statutes Chapter 699 - Insurance Contracts in General (Secs. 38a-283 through 38a-291)State statute
• Connecticut General Statutes Chapter 699a - Readable Language in Insurance Policies (Secs. 38a-295 through 38a-300)State statute
• Connecticut General Statutes Chapter 700b - Life Insurance, Annuities, Burial Contracts and Life Settlements (Secs. 38a-430 through 38a-465q)State statute