INSURANCE LAW: Connecticut Supreme Court Holds That an Insurer Cannot be Held Responsible Under The Unfair Trade Practices Act Without a Violation of CUIPA or Another Statute

The Supreme Court reasons that because the Connecticut Unfair Insurance Practices Act (CUIPA) provides the exclusive and comprehensive source of public policy with regard to insurance practices, unless an insurance-related practice violates CUIPA or some other statute regulating a specific type of insurance-related conduct, it does not violate Connecticut public policy and, therefore, it does not violate the Unfair Trade Practices Act.  The court therefore rejects the State of Connecticut’s claim that the failure to disclose contingent commission agreements breached a fiduciary duty, and that said breach provided a basis for a finding of an unfair trade practice.

State v. Acordia, Inc., SC 18756 (August 27, 2013)