Get Started

Key Person Insurance in Connecticut

A life policy’s guaranty-association death-benefit protection in Connecticut is capped at $500,000 per insured life. If your business is insuring more than one key person or buying a large benefit, ask how the state limit applies to each insured and to policies held by the same owner. Connecticut requires written consent before an employer or trust procures employee coverage, and the consent must acknowledge that coverage may continue after employment ends. Ask the broker to show you that exact continuation language in the consent form. Compare your ownership and insured’s role with Conn. Gen. Stat. § 38a-291(a)(1)(B)–(C), (2)–(3). 4,1

What Is Key Person?

Key person insurance pays the business, not the person’s family, when a founder, partner or employee it relies on dies. Disability, overhead expense and buyout funding are separate products to discuss on their own. Read the national Key person guide.

What to Watch for in Connecticut

  • Document the Business Interest

    Connecticut requires written consent before an employer or trust procures employee coverage, and the consent must acknowledge that coverage may continue after employment ends. Ask the broker to show you that exact continuation language in the consent form. 1

  • Complete Written Notice and Consent

    Connecticut bars retaliation against employees who refuse employer-owned life insurance. If your proposal covers nonkey or nonmanagerial employees, the amount must also relate reasonably to benefits provided to that group; ask the broker to explain that calculation. 2,3

  • Check the State Guaranty Backstop

    For insolvency coverage, the reported Connecticut limit is $500,000 per life. NOLHGA also reports a $5 million aggregate limit for one owner’s multiple nongroup life policies, including policies covering employees. Check it against the business’s maximum planned death benefit. For issuance, also check Conn. Gen. Stat. § 38a-291(a)(1)(B)–(C), (2)–(3). 4,5,1

Who Regulates Insurance in Connecticut

Connecticut Insurance Department

The Connecticut Insurance Department licenses insurance producers and companies, oversees insurers and regulated insurance activity, and investigates insurance complaints. Its complaint and license-search services let you raise an issue or check an insurance professional or company. 6,7,8

Surplus-lines tax and stamping office

Reported tax rate: 4% of gross premium when Connecticut is the home state When Connecticut is the insured’s home state, surplus-lines tax is 4% of gross premium; certain state and local government insureds are exempt, and broker or policy fees are not part of the premium-tax base. Connecticut’s required notice says these policies are outside the state guaranty association. Most placements require three declinations or an export-list qualification; an exempt commercial purchaser may qualify for the federal § 8205 search exception after disclosure and a written request. 9,10,11

Providers With Documented State Licenses

These providers publish a national listing for Key person; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Connecticut. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 18

Questions to Ask Before You Buy in Connecticut

  1. What Connecticut law supports our business’s insurable interest in this person, and what should we retain to prove the role?
  2. What written notice and consent must the insured receive before this policy is issued, and can coverage continue after employment ends?
  3. How would Connecticut’s guaranty-association limit apply to this policy and our other business-owned life policies?

Key Person in Connecticut: FAQ

How much of a key person life policy is protected if an insurer fails in Connecticut? 4,5

The current state table places Connecticut at $500,000 for life death-benefit protection. That is an insolvency backstop, not the face amount you can insure. NOLHGA reports an aggregate $5 million limit for one owner’s multiple nongroup life policies. 4,5

Does my business need an employee’s consent for key person insurance in Connecticut? 2,3,1

Yes. Federal rules require written notice and consent before issue for the employer-owned life tax exception. Connecticut bars retaliation against employees who refuse employer-owned life insurance. If your proposal covers nonkey or nonmanagerial employees, the amount must also relate reasonably to benefits provided to that group; ask the broker to explain that calculation. Ask for a copy of the dated notice before the carrier issues coverage. For state-law details, check Conn. Gen. Stat. § 38a-291(a)(1)(B)–(C), (2)–(3). 2,3,1

Key Person in Other States

Other Coverage in Connecticut

Sources

  1. 2024 Connecticut General Statutes § 38a-291 — Life Insurance Owned by Employer or Trust. State statute (Justia U.S. Codes and Statutes); Conn. Gen. Stat. § 38a-291(a)(1)(B)–(C), (2)–(3). Accessed 2026-09-28.
  2. 26 U.S.C. § 101(j) — Certain employer-owned life insurance contracts. Office of the Law Revision Counsel, U.S. House of Representatives; 26 U.S.C. § 101(j)(2), (4). Accessed 2026-09-28.
  3. Internal Revenue Bulletin 2009-24 — Employer-Owned Life Insurance Contracts. Internal Revenue Service; Notice 2009-48, Q&A 6–7; written notice and consent. Accessed 2026-09-28.
  4. How You’re Protected: Coverage Levels by State. National Organization of Life & Health Insurance Guaranty Associations; Coverage Levels by State; life insurance death benefits; report current as of May 2025. Accessed 2026-09-28.
  5. Life and Health Insurance Guaranty Association Model Act. National Association of Insurance Commissioners; Section 8(A)(2)(d), owner aggregate benefit cap. Accessed 2026-09-28.
  6. Connecticut Insurance Department. Connecticut Insurance Department; Official Department homepage; mission and department resources. Accessed 2026-09-28.
  7. Licensing. Connecticut Insurance Department; Department licensing resource landing page; links to state agent and company license lookup. Accessed 2026-09-28.
  8. Ask a Question or File a Complaint. Connecticut Insurance Department; Online complaint form and consumer affairs helpline. Accessed 2026-09-28.
  9. FAQs: Surplus Lines Brokers. Connecticut Insurance Department; Current tax rate, tax base and exemptions, diligent-search rules, guaranty-fund notice. Accessed 2026-09-28.
  10. FAQs: Surplus Lines Brokers. Connecticut Insurance Department; Question on surplus-lines notice states Connecticut Insurance Guaranty Association does not cover these policies. Accessed 2026-09-28.
  11. 15 U.S.C. § 8205: Streamlined application for commercial purchasers. U.S. House of Representatives, Office of the Law Revision Counsel; Broker's due-diligence search exception for an exempt commercial purchaser requires prior disclosure that admitted-market insurance may offer greater protection/regulatory oversight and the purchaser's subsequent written request for nonadmitted placement. Accessed 2026-09-28.
  12. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  13. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  14. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  15. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  16. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  17. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  18. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

Get Help With Insurance Buying and Renewals.

Get help buying coverage and managing renewals, with less paperwork for your team. Start with a free consultation.

Talk to Spot