Bill Text: CT HB06238 | 2011 | General Assembly | Introduced
Bill Title: An Act Concerning The Actual Cash Value Of A Building.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Passed) 2011-07-13 - Signed by the Governor [HB06238 Detail]
Download: Connecticut-2011-HB06238-Introduced.html
General Assembly |
Raised Bill No. 6238 | ||
January Session, 2011 |
LCO No. 2472 | ||
*02472_______INS* | |||
Referred to Committee on Insurance and Real Estate |
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Introduced by: |
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(INS) |
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AN ACT CONCERNING REPLACEMENT COST COVERAGE UNDER HOMEOWNERS INSURANCE AND COMMERCIAL RISK POLICIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 38a-313 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
(a) Nothing contained in section 38a-307 or this section shall be construed to preclude insurance indemnifying the insured against the amount actually expended, in excess of actual cash value at the time any loss or damage occurs, to repair, rebuild or replace the insured property.
(b) Each insurer that delivers, issues for delivery, renews, amends or endorses in this state a homeowners insurance policy for a residential dwelling or a commercial risk insurance policy for real property shall consider, when evaluating the appropriate amount of coverage under such policy, any reasonable cost values for such dwelling or real property that are submitted to such insurer by the insured.
(c) For each homeowners insurance policy delivered, issued for delivery, renewed, amended or endorsed in this state that provides replacement cost coverage, the actual cash value for a residential dwelling shall be the cost to rebuild minus reasonable depreciation. As used in this subsection, "depreciation" means a decrease in value of real property over a period of time due to wear and tear.
(d) Each insurer that delivers, issues for delivery, renews, amends or endorses in this state a homeowners insurance policy that provides replacement cost coverage for a residential dwelling shall pay to the insured the negotiated or settled amount, as applicable, agreed upon by such insurer and insured for a loss covered under such replacement cost coverage. No insurer shall withhold any portion of such payment as a holdback.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2011 |
38a-313 |
Statement of Purpose:
To establish specific insurer practices relating to replacement cost coverage under a homeowners insurance policy for a residential dwelling or a commercial risk insurance policy for real property.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]