Senate Bill No. 1173
               Senate Bill No. 1173

              PUBLIC ACT NO. 97-303


AN  ACT  CONCERNING  THE  EXTENSION  OF PRIOR RATE
APPROVAL   FOR   PRIVATE   PASSENGER    AUTOMOBILE
INSURANCE.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section 38a-389 of  the  general  statutes  is
repealed and the  following is substituted in lieu
thereof:
    (a) The General  Assembly  finds and concludes
that the system  of bodily injury liability, basic
and added reparations  benefits  and uninsured and
underinsured motorist insurance, as amended by the
provisions of public  act  93-297*,  will generate
premium  savings  for   policyholders   with  such
coverages.
    (b)  [Every] EACH  insurer  licensed  to  sell
private  passenger automobile  insurance  in  this
state   shall   refile,    with    the   Insurance
Commissioner, its base rates for such coverages to
reflect the elimination  of  mandatory  basic  and
added reparations benefits  pursuant to public act
93-297*  and  any   additional   premium   savings
attributable to said  act.  Such  rates  shall  be
refiled, as soon  as  practicable,  for  use  with
policies effective on or after January 1, 1994.
    (c) Upon receipt  of  the  initial  base  rate
filing  made under  this  section,  the  Insurance
Commissioner,  before permitting  such  filing  to
become   effective,   shall    consult   with   an
independent actuary for  the  purpose  of assuring
that such rates  reflect  both  (1)  the insurer's
rates on file  on  May  1, 1993, adjusted for cost
trends from the date of filing to January 1, 1994;
and (2) the  elimination  of  mandatory  basic and
added reparations benefits  pursuant to public act
93-297*  and  any   additional   premium   savings
attributable to said act. Such revised rates shall
be applicable to  all  new  and  renewal  policies
effective on or after January 1, 1994.
    (d) [For the  period  from January 1, 1994, to
December 31, 1997,]  THE  base  rates  for  bodily
injury  liability  coverage   and   uninsured  and
underinsured  motorist  coverage  that  are  filed
subsequent to the  initial  filing  of  base rates
pursuant to this section shall be subject to prior
rate  approval  in   the   same  manner  as  in  a
noncompetitive market pursuant  to subdivision (2)
of subsection (a) of section 38a-688.

Approved July 8, 1997