Connecticut House Bill HB05230

Connecticut 2012 Regular Session

• Introduced: 2/22/12
• Refer: 2/22/12
• Report Pass: 3/15/12
• Refer: 3/23/12
• Report Pass: 3/29/12
• Engrossed: 4/18/12
• Report Pass: 4/20/12
• Chaptered: 5/30/12
• Enrolled: 5/31/12
• Passed: 6/15/12

Caption

An Act Concerning Various Changes To Property And Casualty Insurance Statutes.

Impact

The legislation, effective July 1, 2012, directly influences statutes regulating how insurers handle homeowners policies. Specifically, it prevents insurers from using the installation of storm shutters as a basis for declining coverage. Furthermore, the introduction of hurricane deductibles during hurricane warnings is anticipated to incentivize better storm preparation and potentially lead to quicker claims processes and evaluations of damage, aligning local insurance policies closer to the realities of climate-related risks faced by homeowners.

Summary

House Bill 05230, known as An Act Concerning Various Changes To Property And Casualty Insurance Statutes, focuses on updating several provisions within the realm of property and casualty insurance in Connecticut. Key changes include stipulations concerning the refusal to issue or renew homeowners insurance policies based solely on the absence of permanent storm shutters, as well as instituting hurricane deductibles that insurance companies can impose during specific hurricane warning periods. These adjustments aim to enhance consumer protections and ensure coverage during severe weather events, reflecting a more adaptive approach to the demand for property insurance in the state.

Sentiment

The sentiment regarding HB 05230 appears generally positive, particularly among homeowners and consumer advocacy groups that welcome the increased protections. Proponents argue that the bill addresses critical gaps in existing insurance practices, notably in relation to severe weather preparedness. However, there remains a level of concern among some stakeholders about the implications of implementing hurricane deductibles, with worries that this could lead to increased out-of-pocket costs for policyholders during situations where immediate financial support is crucial.

Contention

Notable points of contention arise around the logistics and implications of the hurricane deductible provisions. Critics of these measures raise concerns about how such deductibles could financially strain homeowners, particularly in low-income areas where residents are less capable of absorbing sudden, high costs following a disaster. Additionally, further dialogue is needed regarding the adequacy of consumer education related to such changes, ensuring that affected homeowners understand their policies and potential costs adequately.