Connecticut House Bill HB06866

Connecticut 2015 Regular Session

• Introduced: 2/20/15
• Refer: 2/20/15

Caption

An Act Limiting Private Passenger Nonfleet Automobile Insurance Underwriting Factors And Increasing The Motor Vehicle Minimum Amount Of Proof Of Financial Responsibility For Property Damage.

Impact

The legislative intention behind HB 6866 is to create a more equitable and transparent framework for insurance underwriting. By restricting the criteria used to determine insurance rates, the bill seeks to reduce unfair discrimination based on inappropriate metrics such as credit history, ultimately making insurance more accessible to individuals with lower credit ratings. This change could decrease the influence of factors unrelated to driving performance on insurance pricing, which advocates believe will yield fairer outcomes for consumers.

Summary

House Bill 6866 proposes significant changes regarding private passenger nonfleet automobile insurance in the state. The bill aims to limit the underwriting and rating of these insurance policies to specific criteria including driving history, number of miles driven annually, and years of driving experience. A notable feature of the bill is the increase in the minimum amount of proof of financial responsibility for property damage to $25,000, which is intended to enhance consumer protection and ensure adequate coverage in instances of accidents.

Contention

However, the bill has drawn attention from various stakeholders. Critics notably express concern that limiting underwriting factors could lead insurance companies to raise premiums overall to offset potential risks associated with less data-driven decision-making. Insurers argue that broadening the criteria helps to assess risks more accurately, thus preserving market competition. The balance between protecting consumers and ensuring robust underwriting practices remains a point of contention in discussions around the bill.