Connecticut: NAMIC Opposes So-Called ‘Junk Fee’ Bills

NAMIC testified at the Feb. 27 hearing of the General Law Committee in opposition to two “junk fee” bills that would place additional regulatory burdens on property/casualty insurers. SB 3 and SB 201 would deem it an unfair or deceptive trade practice for a business to advertise, display, or otherwise offer a consumer good or service at a price that excludes any charge or fee, other than any applicable federal, state, or local tax that such consumer is required to pay to purchase, lease, or otherwise receive the good or service. SB 3 would also deem it an unfair or deceptive trade practice for a business to require a consumer to pay any deceptive or excessive fee to purchase, lease, or otherwise receive a consumer good or service.

NAMIC explained that “current law properly empowers the Connecticut Department of Insurance to regulate property and casualty insurers and products. This provides a fair and uniform regulatory regime that is applied to all P&C insurers reducing the risk that any single insurer would be subject to an arbitrary or capricious government action. Accordingly, Department staff has deep knowledge and expertise in these matters and is uniquely qualified to oversee and enforce these regulations” and urged the committee to amend the bill to exempt property/casualty insurers.