Connecticut Senate Bill SB00198

Connecticut 2020 Regular Session

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

Caption

An Act Extending The Premium Billing Notice Period For Renewal Of Certain Personal And Commercial Risk Insurance Policies.

Impact

The implications of SB00198 on state laws include a more structured and transparent process for policy renewals, which could benefit insured individuals by allowing them more time to make decisions regarding their insurance coverage. This bill effectively shifts some obligations onto insurers to ensure that they are compliant with these notification requirements, potentially reducing misunderstandings or disputes about policy renewals. As part of its provisions, the act also covers conditions under which insurers may refuse to renew certain policies, ensuring that consumers are better informed about their policies and any changes.

Summary

SB00198 is an act focused on extending the premium billing notice period for the renewal of certain personal and commercial risk insurance policies. The bill seeks to alter existing legislation regarding the notice period insurers must provide to their clients before renewing their policies. Specifically, it mandates that the notice must be sent at least 60 days before a policy's renewal or anniversary date, thereby increasing the notice time from previous standards. This change is applicable to various insurance types, including standard liability policies where municipalities are involved as named insureds.

Contention

There are notable points of contention surrounding SB00198. Critics may argue that extending the notice period could impose additional burdens on insurance companies, particularly for smaller firms that operate with tighter margins. They may raise concerns regarding operational impacts and the feasibility of adjusting business processes to comply with the new requirements. Conversely, proponents of the bill advocate that the enhanced notice period empowers consumers by providing them with ample time to review their policy terms and make informed choices regarding their insurance coverage.