Connecticut House Bill HB05364

Connecticut 2014 Regular Session

• Introduced: 2/26/14
• Refer: 2/26/14

Caption

An Act Requiring Uninsured And Underinsured Motorist Coverage To Be Optional And Concerning Underinsured Motorist Conversion Coverage.

Impact

The enactment of HB 05364 will significantly alter the state's automobile insurance landscape by giving consumers more control over their insurance coverage choices. This could lead to reduced premiums for individuals who decide not to purchase these additional protections. However, it may also result in lower overall protection for drivers involved in accidents with uninsured or underinsured motorists, which could lead to financial strain for those affected by such incidents. Insurance companies will be obligated to comply with the new rules on offering coverage and obtaining consent, which may lead to administrative adjustments within their operations.

Summary

House Bill 05364 aims to amend existing automobile liability insurance regulations by making uninsured and underinsured motorist coverage optional rather than mandatory for insured individuals. The bill proposes that insurance companies must offer this coverage but allows consumers to decline it, provided they sign an informed consent form indicating their choice. This change is intended to provide more flexibility for consumers regarding their insurance options and to reduce premium costs for those who opt out of such coverages. The legislation specifies requirements for insurers to disclose the available options and related costs clearly to ensure understanding and transparency in the process.

Contention

Some points of contention surrounding the bill involve concerns that making uninsured and underinsured motorist coverage optional may increase the financial risk for drivers who may not fully understand the implications of declining coverage. Opponents argue that the change could leave more individuals vulnerable in the event of an accident with an uninsured driver. Proponents, however, claim that the bill empowers consumers to tailor their insurance policies to better fit their financial situations and needs. The debate suggests a need for a balance between consumer choice and adequate protection against potential liabilities arising from accidents.