General Assembly Raised Bill No. 5520
February Session, 2016 LCO No. 2363
*_____HB05520INS___031616____*
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
General Assembly
Raised Bill No. 5520
February Session, 2016
LCO No. 2363
*_____HB05520INS___031616____*
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING HOMEOWNERS AND MOTOR VEHICLE INSURANCE POLICIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 38a-663 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):
The following words and phrases, as used in sections 38a-663 to 38a-696, inclusive, shall have the following meanings unless the context otherwise requires:
(1) "Rating organization" means an individual, partnership, corporation, unincorporated association, other than an admitted insurer, whether located within or outside this state, who or that has as a primary object or purpose the making of rates, rating plans or rating systems. Two or more admitted insurers that act in concert for the purpose of making rates, rating plans or rating systems, and that do not operate within the specific authorizations contained in sections 38a-667, 38a-669, 38a-670 and 38a-672 shall be deemed to be a rating organization. No single insurer shall be deemed to be a rating organization.
(2) "Advisory organization" means every group, association or other organization of insurers, whether located within or outside this state, that assists insurers or rating organizations in rate-making by the collection and furnishing of loss or expense statistics, or by the submission of recommendations, provided the term shall not include actuarial, legal or other consultants.
(3) "Member" means an insurer that participates in or is entitled to participate in the management of a rating, advisory or other organization.
(4) "Subscriber" means an insurer that is furnished at its request (A) with rates and rating manuals by a rating organization of which it is not a member, or (B) with advisory services by an advisory organization of which it is not a member.
(5) "Wilful" and "wilfully" in relation to an act or omission that constitutes a violation of sections 38a-663 to 38a-681, inclusive, means with actual knowledge or belief that such act or omission constitutes such violation and with specific intent to commit such violation.
(6) "Market" means the interaction between buyers and sellers consisting of a product market component and a geographic market component, as determined by the commissioner in accordance with the provisions of subsection (b) of section 38a-687.
(7) "Noncompetitive market" means a residual market or a market for which there is a ruling in effect pursuant to section 38a-687, that a reasonable degree of competition does not exist.
(8) "Competitive market" means a market that has not been found to be noncompetitive pursuant to section 38a-687.
(9) "Personal risk insurance" means homeowners, tenants, private passenger nonfleet automobile, mobile manufactured home and other property and casualty insurance for personal, family or household needs except workers' compensation insurance.
(10) "Homeowners insurance" means property and casualty insurance for owner-occupied buildings with four or fewer dwelling units.
[(10)] (11) "Commercial risk insurance" means insurance within the scope of sections 38a-663 to 38a-696, inclusive, that is not personal risk insurance.
[(11)] (12) "Supplementary rate information" includes any manual or plan of rates, classification, rating schedule, minimum premium, rating rule, and any other similar information needed to determine the applicable rate in effect or to be in effect.
[(12)] (13) "Supporting information" means (A) the experience and judgment of the filer and the experience or data of other insurers or organizations relied upon by the filer, (B) the interpretation of any statistical data relied upon by the filer, and (C) descriptions of methods used in making the rates, and other similar information required to be filed by the commissioner.
[(13)] (14) "Residual market" means an arrangement for the provision of insurance in accordance with the provisions of section 38a-328, 38a-329 or 38a-670.
Sec. 2. Section 38a-316d of the general statutes is amended by adding subsection (d) as follows (Effective October 1, 2016):
(NEW) (d) The declination, cancellation or nonrenewal of a homeowners insurance policy or a limit on the amount or provisions of coverage of such policy is prohibited if the declination, cancellation, nonrenewal or limit is based on (1) the property's proximity to another occupied residential dwelling, or (2) the condition of such other occupied residential dwelling.
Sec. 3. Subsection (a) of section 38a-343 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):
(a) No notice of cancellation of a policy to which section 38a-342 applies shall be effective unless sent, by registered or certified mail, [or by mail evidenced by a certificate of mailing, or delivered by the insurer] return receipt requested, to the named insured, and any third party designated pursuant to section 38a-323a, at least forty-five days before the effective date of cancellation, except that (1) where cancellation is for nonpayment of the first premium on a new policy, at least fifteen days' notice of cancellation accompanied by the reason for cancellation shall be given, and (2) where cancellation is for nonpayment of any other premium, at least ten days' notice of cancellation accompanied by the reason for cancellation shall be given. No notice of cancellation of a policy that has been in effect for less than sixty days shall be effective unless mailed or delivered by the insurer to the insured and any third party designee at least forty-five days before the effective date of cancellation, except that (A) at least fifteen days' notice shall be given where cancellation is for nonpayment of the first premium on a new policy, and (B) at least ten days' notice shall be given where cancellation is for nonpayment of any other premium or material misrepresentation. The notice of cancellation shall state or be accompanied by a statement specifying the reason for such cancellation. Any notice of cancellation for nonpayment of the first premium on a new policy may be retroactive to the effective date of such policy, provided at least fifteen days' notice has been given to the insured and any third party designee and payment of such premium has not been received during such notice period.
Sec. 4. Subsection (a) of section 38a-335 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):
(a) (1) Each automobile liability insurance policy shall provide insurance in accordance with the regulations adopted pursuant to section 38a-334 against loss resulting from the liability imposed by law, with limits not less than those specified in subsection (a) of section 14-112, for damages because of bodily injury or death of any person and injury to or destruction of property arising out of the ownership, maintenance or use of a specific motor vehicle or motor vehicles within any state, territory, or possession of the United States of America or Canada.
(2) No such policy shall impose a minimum amount of coverage greater than the amounts specified in subsection (a) of section 14-112 as a condition to issue or renew such policy.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2016 38a-663
Sec. 2 October 1, 2016 38a-316d
Sec. 3 October 1, 2016 38a-343(a)
Sec. 4 October 1, 2016 38a-335(a)
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2016
38a-663
Sec. 2
October 1, 2016
38a-316d
Sec. 3
October 1, 2016
38a-343(a)
Sec. 4
October 1, 2016
38a-335(a)
INS Joint Favorable
INS
Joint Favorable