Connecticut Seal

General Assembly

 

Raised Bill No. 6448

January Session, 2009

 

LCO No. 3301

 

*03301_______INS*

Referred to Committee on Insurance and Real Estate

 

Introduced by:

 

(INS)

 

AN ACT CONCERNING DISCLOSURE OF INSURANCE REQUIREMENTS IN EQUIPMENT LEASES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 42-404 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) A lessor may require that the lessee maintain casualty insurance on the leased goods, or liability insurance against personal injury or property damage caused to others, or both, during the period of the lease. If a lessor requires that the lessee maintain either casualty or liability insurance, or both, [unless the insurance is included in the lease for no additional charge,] the lessor shall disclose in a conspicuous manner in a record: (1) Whether the insurance is included in the lease for no additional charge; (2) if the insurance is not included in the lease or if there is an additional charge for obtaining insurance through the lessor, that the lessee may purchase the required insurance from an insurer of the lessee's choice, subject to the lessor's right to reject that insurer for reasonable cause; and (3) that the insurance policies offered by the lessor may duplicate coverage already provided by a lessee's personal insurance policies.

(b) If casualty insurance on the leased goods is neither required nor provided in a consumer lease, the lease must contain or be accompanied by a conspicuous statement in a record substantially as follows: "No insurance coverage for physical damage to the leased goods, or loss of the leased goods, is provided under this lease."

(c) A lessor may not require the lessee to purchase credit life, accident, health, loss-of-income or similar insurance in connection with a consumer lease. If a lessor provides such insurance in connection with a consumer lease:

(1) The lessor shall disclose in a record that the insurance is not required; and

(2) The lessee's election to purchase the insurance is effective only if after receiving the disclosure the lessee separately signs a record requesting the insurance.

(d) If a lessee becomes obligated to pay an amount for insurance provided by or through the lessor, the lessor shall furnish or arrange to have furnished to the lessee a copy of the policy or certificate of insurance.

Sec. 2. Section 42-390 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

Sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, may be cited as the [Uniform] Consumer Leases Act.

Sec. 3. (NEW) (Effective October 1, 2009) (a) If any insurance is required to be obtained for a lease pursuant to subsection (e) of section 42a-2A-305 of the general statutes, any such agreement as set forth in said subsection shall disclose in a conspicuous manner: (1) Whether the insurance is included in the lease for no additional charge; (2) if the insurance is not included in the lease or if there is an additional charge for obtaining insurance through the lessor, that the lessee may purchase the required insurance from an insurer of the lessee's choice, subject to the lessor's right to reject that insurer for reasonable cause; and (3) that the insurance policies offered by the lessor may duplicate coverage already provided by a lessee's personal insurance policies.

(b) If insurance on the leased goods is neither required nor provided in such lease or by agreement, the lease must contain or be accompanied by a conspicuous statement in a record substantially as follows: "No insurance coverage for the leased goods, or loss of the leased goods, is provided under this lease."

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2009

42-404

Sec. 2

October 1, 2009

42-390

Sec. 3

October 1, 2009

New section

Statement of Purpose:

To require conspicuous disclosure of insurance coverage requirements in equipment leases.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]