General Assembly Raised Bill No. 6232
January Session, 2011 LCO No. 2320
*02320_______INS*
Referred to Committee on Insurance and Real Estate
Introduced by:
(INS)
General Assembly
Raised Bill No. 6232
January Session, 2011
LCO No. 2320
*02320_______INS*
Referred to Committee on Insurance and Real Estate
Introduced by:
(INS)
AN ACT PERMITTING SUSPENSION OF PRIVATE PASSENGER MOTOR VEHICLE INSURANCE COVERAGE BY ELECTRONIC MAIL.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 38a-371 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
(a) (1) The owner of a private passenger motor vehicle required to be registered in this state shall provide and continuously maintain throughout the registration period security in accordance with sections 38a-334 to 38a-343, inclusive. (2) The owner of a private passenger motor vehicle not required to be registered in this state shall maintain security in accordance with this section, in effect continuously throughout the period of its operation, maintenance or use as a motor vehicle within this state with respect to accidents occurring in this state.
(b) The security required by this section, may be provided by a policy of insurance complying with this section issued by or on behalf of an insurer licensed to transact business in this state or, if the vehicle is registered in another state, by a policy of insurance issued by or on behalf of an insurer licensed to transact business in either this state or the state in which the vehicle is registered.
(c) Subject to approval of the Insurance Commissioner the security required by this section, may be provided by self-insurance by filing with the commissioner in satisfactory form: (1) A continuing undertaking by the owner or other appropriate person to perform all obligations imposed by this section; (2) evidence that appropriate provision exists for the prompt and efficient administration of all claims, benefits, and obligations provided by this section; and (3) evidence that reliable financial arrangements, deposits or commitments exist providing assurance for payment of all obligations imposed by this section substantially equivalent to those afforded by a policy of insurance that would comply with this section. A person who provides security under this subsection is a self-insurer. A municipality may provide the security required under this section by filing with the commissioner a notice that it is a self-insurer.
(d) Except as provided in subsection (b) of section 14-213b, the owner of any private passenger motor vehicle required to be registered in this state who operates it or permits it to be operated in this state is guilty of a class C misdemeanor if he fails to provide the security required by this section.
(e) An owner of a private passenger motor vehicle with respect to which security is required who fails to have such security in effect at the time of an accident shall have all of the rights and obligations of an insurer under sections 38a-363 to 38a-388, inclusive, and shall remain subject to all the obligations of the Financial Responsibility Law, sections 14-112 to 14-133, inclusive.
(f) (1) Upon receipt of a signed written request or a request by electronic mail for suspension from the owner of a registered private passenger motor vehicle stating that such vehicle will not be operated upon any highway during a period of not less than thirty consecutive days, the insurer of such vehicle shall suspend, to the extent requested by the owner, insurance coverage afforded under the policy providing the security required by sections 38a-363 to 38a-388, inclusive, for such vehicle until notified by the owner that the coverage should be reinstated. Each insurer that issues, renews, amends or endorses automobile liability insurance in this state covering a private passenger motor vehicle shall implement a secure method by which such electronic request for suspension shall be submitted to such insurer and shall notify each insured under a private passenger motor vehicle liability insurance policy of such method. (2) During the period of suspension only, the provisions of subsections (a) to (e), inclusive, of this section shall not apply with respect to such vehicle, provided, if such vehicle is operated upon any highway by or with the permission of the owner during the period of suspension, the provisions of said subsections (a) to (e), inclusive, of this section, shall thereupon become applicable. As used in this subsection, "highway" shall be defined as in section 14-1. This subsection shall not apply to a motor vehicle for which proof of financial responsibility is required under the provisions of sections 14-112 to 14-133, inclusive.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2011 38a-371
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2011
38a-371
Statement of Purpose:
To allow owners of private passenger motor vehicles to submit a request for suspension of their automobile liability insurance policies by electronic mail.
[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.]