Connecticut Legislature Introduces Important Insurance Related Bills in the January Session
The Connecticut Legislature recently introduced four new bills during the January Session which, if passed, will impact the insurance industry in Connecticut.
The first proposed legislation, S.B. No. 22, was introduced by the Insurance and Real Estate Committee. If passed, S.B. No. 22 would allow an insurer to post certain insurance policies and endorsements on its website in lieu of mailing or delivering the policy to its insured. An insurer electing to do so would also have to provide the insured, among other things, the declarations page at the time of issuance of the initial policy, and a method by which the insured may obtain, free of charge upon request, a paper copy of the policy. A public hearing was held on January 29, 2015, no further action has been taken.
H.B. No. 5195, introduced by Representative Robert Sampson of the 80th District, would make uninsured and underinsured motorist coverage optional rather than compulsory and repeal the prohibition on subrogation for underinsured motorist benefits paid or payable by the insurer. H.B. No. 5195, was referred to the Office of Legislative Research for fiscal analysis on February 24, 2015.
H.B. No. 5064, introduced by Representative John Scott of the 40th District, would mandate a single wind deductible for homeowners insurance policies not to exceed 1% of the policy value. H.B. 5064 was presumably introduced in response to significant weather events that have affected Connecticut in recent years. A public hearing was held in late January, and a vote to draft thereafter.
The last of the proposed bills, S.B. No. 13, introduced by Senator Joseph J. Crisco of the 17th District proposes to “prohibit insurance companies from canceling, declining, or nonrenewing a homeowners insurance policy or increasing the premium of such policy based solely on a loss incurred from an adverse weather-related event.” S.B. No. 13 was referred to Committee in early January.