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Connecticut Issues New Bulletin Regarding Stop Loss Policies

On August 1, 2018, the Connecticut Insurance Department issued Bulletin HC-120 rescinding and combining provisions from Bulletins HC-95 & PC-75 and HC-108 & PC-80.

The new Bulletin reaffirms that the claim liability limits in stop loss policies should not be set to a point that reaching the specific aggregate amount required to trigger the coverage is an actuarial certainty. Furthermore, the Bulletin highlights the current stop loss attachment point, coverage, and contract provision requirements related to stop loss policies.

Most importantly, Bulletin HC-120 authorizes the issuance of retiree health plans stop loss policies. Due to the magnitude of the risk associated with retiree health plan stop loss coverage, retiree health plans will not be subject to the aforementioned requirements and will instead be reviewed by the Department on a case-by-case basis.

For any questions regarding Bulletin HC-120, or for assistance in compliance matters pertaining to stop loss policies, please contact Westmont Associates, Inc.

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