Connecticut House Bill HB05111

Connecticut 2011 Regular Session

• Introduced: 1/7/11
• Refer: 1/7/11

Caption

An Act Requiring Advance Payment Under A Fire Insurance Policy.

Impact

The passage of HB 5111 would represent a significant evolution in how fire insurance policies operate within the state. By instituting a requirement for advance payments, the bill not only seeks to protect policyholders during times of distress but also aims to ensure they have the resources necessary to recover and rebuild effectively. This change is poised to potentially increase the level of consumer protection in the insurance sector, promoting enhanced accountability among insurers to assist their clients promptly following a loss.

Summary

House Bill 5111 aims to amend existing fire insurance policy regulations in the state by mandating insurers to provide advance payments to policyholders who have experienced a covered loss. This legislation is designed to address the financial burdens that insured individuals often face immediately following a detrimental event, such as a fire, that incurs damages to their property. Specifically, the bill requires insurers to issue these advance payments upon a policyholder's request and demonstration of need, thus facilitating quicker financial support during a time of crisis.

Contention

While the bill has garnered support for its intention to aid individuals in dire circumstances, there may also be opposition regarding the ramifications it could have on insurance companies. Critics might argue that requiring advance payments could impose additional burdens or liabilities on insurers, possibly leading to increased premiums for consumers. The debate around HB 5111 could center on finding a balance between supporting policyholders and ensuring that insurance companies maintain sustainable business practices.