Requires notice of reinstatement of a previously canceled casualty insurance policy. (1/1/21)
The enactment of SB 195 will have a significant impact on state insurance laws by enhancing the transparency and communication requirements for insurance providers. Effective January 1, 2021, this law will require insurers to take additional steps to ensure that all relevant parties are kept informed about changes to their policy status. This could potentially reduce misunderstandings and disputes related to coverage, as stakeholders will be notified promptly of reinstatements following cancellations.
Senate Bill 195, proposed by Senator Bernard, addresses the procedural requirements surrounding the cancellation and reinstatement of casualty insurance policies. Specifically, it mandates that insurers who issue a notice of cancellation to a policyholder must also provide a notice of reinstatement should they choose to reinstate the canceled policy. This provision is aimed at ensuring that all interested parties, including policyholders and any other individuals with an interest in potential losses under the policy, are adequately informed about the status of their insurance coverage.
General sentiment around SB 195 appears to be supportive, particularly among consumer advocacy groups and policyholders who would benefit from improved notification processes. The bill seeks to protect the rights of policyholders and ensure they are not left unaware of changes that could affect their coverage, thus garnering support from those championing consumer protections in the insurance market. However, there may also be some concern from insurance providers regarding the administrative burden that may accompany the need to provide additional notifications.
While there has not been significant contention reported in the discussions surrounding SB 195, potential opposition could stem from insurance companies concerned about the operational ramifications of the new notification requirements. The requirement to inform all interested parties may impose additional operational costs or complicate the cancellation and reinstatement processes. Nonetheless, the overarching goal of the bill is to enhance consumer protection in the face of insurance policy cancellations.