OLR Bill Analysis
AN ACT CONCERNING PAYMENTS MADE UNDER UNINSURED AND UNDERINSURED MOTORIST COVERAGE.
This bill requires auto insurers to include a prominent disclosure on the front page of an auto insurance policy if they reduce uninsured and underinsured motorist coverage limits or benefits payable by amounts paid (1) to claimants other than the insured person or (2) by or on behalf of a tortfeasor for property damage. It applies to policies delivered, issued, renewed, amended, or endorsed on or after October 1, 2013.
The disclosure must be in at least 12-point type and include (1) a statement that the insurer reduces uninsured and underinsured limits or benefits and the reduction may be substantial and (2) the types of payments for which the insurer reduces limits or benefits.
EFFECTIVE DATE: October 1, 2013
SB 236, reported favorably by the Judiciary Committee, prohibits auto insurers from denying uninsured motorist coverage to a named insured or related household member solely because he or she is struck as a pedestrian by, and during the theft of, a covered vehicle the insured owns.
Insurance and Real Estate Committee
Joint Favorable Substitute