Bill Text: CT SB00241 | 2015 | General Assembly | Comm Sub
Bill Title: An Act Concerning Continuation Of Private Passenger Automobile Insurance Coverage Following The Death Of The Registered Automobile Owner.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2015-02-18 - Public Hearing 02/26 [SB00241 Detail]
Download: Connecticut-2015-SB00241-Comm_Sub.html
General Assembly |
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January Session, 2015 |
LCO No. 3371 | ||
*03371SB00241INS* | |||
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 CONTINUATION OF PRIVATE PASSENGER AUTOMOBILE INSURANCE COVERAGE FOLLOWING THE DEATH OF THE REGISTERED AUTOMOBILE OWNER.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 38a-343 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(a) No notice of cancellation of a policy to which section 38a-342 applies shall be effective unless sent, by registered or certified mail or by mail evidenced by a certificate of mailing, or delivered by the insurer to the named insured, and any third party designated pursuant to section 38a-323a, at least forty-five days before the effective date of cancellation, except that (1) where cancellation is for nonpayment of the first premium on a new policy, at least fifteen days' notice of cancellation accompanied by the reason for cancellation shall be given, and (2) where cancellation is for nonpayment of any other premium, at least ten days' notice of cancellation accompanied by the reason for cancellation shall be given. No notice of cancellation of a policy that has been in effect for less than sixty days shall be effective unless mailed or delivered by the insurer to the insured and any third party designee at least forty-five days before the effective date of cancellation, except that (A) at least fifteen days' notice shall be given where cancellation is for nonpayment of the first premium on a new policy, and (B) at least ten days' notice shall be given where cancellation is for nonpayment of any other premium or material misrepresentation. The notice of cancellation shall state or be accompanied by a statement specifying the reason for such cancellation. Any notice of cancellation for nonpayment of the first premium on a new policy may be retroactive to the effective date of such policy, provided at least fifteen days' notice has been given to the insured and any third party designee and payment of such premium has not been received during such notice period.
(b) Where [a private passenger motor vehicle liability] an automobile insurance company sends a notice of cancellation under subsection (a) of this section to the named insured of a private passenger motor vehicle liability insurance policy, or a third party designee, such company shall provide with such notice a warning, in a form approved by the Commissioner of Motor Vehicles and the Insurance Commissioner, that informs the named insured that (1) the cancellation will be reported to the Commissioner of Motor Vehicles; (2) the named insured may be receiving one or more mail inquiries from the Commissioner of Motor Vehicles, concerning whether or not required insurance coverage is being maintained, and that the named insured must respond to these inquiries; (3) if the required insurance coverage lapses at any time, the Commissioner of Motor Vehicles may suspend the registration or registrations for the vehicle or vehicles under the policy and the number plates will be subject to confiscation and any person operating any such vehicle will be subject to legal penalties for operating a motor vehicle with a suspended registration; (4) the named insured will not be able to have the registration restored or obtain a new registration, or any other registration or renewal in the insured's name, except upon presentation to the Commissioner of Motor Vehicles of evidence of required security or coverage and the entering into of a consent agreement with the commissioner in accordance with the provisions of section 14-12g.
(c) Where an automobile insurance company is notified of the death of the registered owner of a motor vehicle, a private passenger motor vehicle liability insurance policy issued to such owner by such company shall remain in force for not less than sixty days after such company receives such notice, provided any required premium payment for such policy is made.
[(c) If a passenger motor vehicle liability] (d) If an automobile insurance company cancels a private passenger motor vehicle liability insurance policy pursuant to section 38a-342, such company shall send a written notice of such cancellation to any lienholder shown on the records of such company as having a legal interest in such motor vehicle.
[(d)] (e) Subsections (a) and (b) of this section shall not apply to nonrenewal or if the private passenger motor vehicle liability insurance policy is transferred from an insurer to an affiliate of such insurer for another policy with no interruption of coverage and contains the same terms, conditions and provisions, including policy limits, as the transferred policy, except that the insurer to which the policy is transferred shall not be prohibited from applying its rates and rating plans at the time of renewal.
[(e)] (f) No insurance company that renews, amends or endorses in this state a private passenger motor vehicle liability insurance policy shall charge any fee or other charge exceeding one hundred dollars in the aggregate to an insured who cancels such policy prior to the expiration of such policy.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2015 |
38a-343 |
Statement of Purpose:
To specify that private passenger motor vehicle liability insurance policies shall remain in force for at least sixty days after the issuing automobile insurance company receives notice of the death of the registered owner of the motor vehicle, provided any required premium payment is made.
[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.]