Connecticut House Bill HB05896

Connecticut 2011 Regular Session

• Introduced: 1/24/11
• Refer: 1/24/11

Caption

An Act Adjusting The Territorial Classifications For Private Passenger Nonfleet Automobile Insurance.

Impact

The bill's impact focuses on the insurance marketplace, particularly how premiums are determined for automobile insurance policies. By modifying the weighting of territorial classifications, the bill seeks to provide a more equitable rate structure that may benefit certain drivers in lower-loss geographic areas. This change could lead to lower premiums for some individuals while simultaneously establishing a more competitive environment for insurance providers operating in the state.

Summary

House Bill 05896, introduced by Rep. Clemons, aims to amend existing statutes related to private passenger nonfleet automobile insurance by adjusting the weight of individual territorial loss cost indications in rating plans. The primary change proposed in this bill is to reduce the weight assigned to these indications from seventy-five percent to sixty-five percent. This adjustment reflects an attempt to alter how insurance rates are calculated based on geographical areas, potentially influencing premiums for drivers across various territories.

Contention

One notable point of contention surrounding HB 05896 stems from the diverse opinions held by stakeholders in the insurance industry. Proponents argue that the changes will promote fairness in insurance pricing, particularly for drivers in regions that may have been adversely affected by prior classifications. Critics, however, may express concerns regarding the potential for unanticipated consequences, such as increased premiums for drivers in lower-loss areas or an increased administrative burden on insurance companies as they adapt to the new rating framework.