Connecticut Senate Bill SB00324

Connecticut 2019 Regular Session

• Introduced: 1/23/19
• Refer: 1/23/19

Caption

An Act Requiring Property And Casualty Insurers To Send Notice To Homeowners Concerning Homeowners Insurance Premiums.

Impact

The bill proposes amendments to Title 38a of the general statutes, establishing clear communication requirements between insurers and homeowners. By ensuring that homeowners are promptly notified in situations involving payment receipt from mortgage companies or premium hikes, the bill aims to empower homeowners with vital information regarding their insurance policies. This measure could potentially lead to homeowners being more engaged in monitoring their insurance terms and costs, ultimately fostering a more informed consumer base.

Summary

SB00324, introduced by Senator Kelly, mandates property and casualty insurers to notify homeowners when they receive premium payments from mortgage companies on behalf of the homeowners or when there is an increase in premiums. This legislation aims to enhance transparency in the homeowners insurance market and inform policyholders about critical changes that may affect their insurance coverage and financial obligations.

Contention

While the bill is generally supported as a consumer protection measure, discussions may arise regarding the potential administrative burden on insurers to comply with these notification requirements. Insurers may argue about the feasibility of implementing such communication systems and the associated costs. However, proponents of the bill assert that the benefits of keeping homeowners informed outweigh these concerns, as it is crucial for homeowners to receive timely information that could impact their financial decisions regarding insurance coverage.