Substitute Senate Bill No. 408
          Substitute Senate Bill No. 408

               PUBLIC ACT NO. 98-80


AN   ACT   CONCERNING   NONPAYMENT  OF  AUTOMOBILE
INSURANCE PREMIUMS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section 1. Subdivision  (3) of section 38a-341
of  the  general  statutes  is  repealed  and  the
following is substituted in lieu thereof:
    (3) "Nonpayment of  premium"  means failure of
the named insured to discharge when due any of his
obligations  in connection  with  the  payment  of
premiums on the  policy, or any instalment of such
premium, whether the  premium  is payable directly
to the insurer  or  its  agent or indirectly under
any premium finance  plan  or extension of credit.
NONPAYMENT OF PREMIUM INCLUDES, BUT IS NOT LIMITED
TO, THE DISHONOR  OF  ANY  CHECK,  DRAFT  OR OTHER
REMITTANCE UPON PRESENTMENT FOR PAYMENT.
    Sec. 2. Subsection  (a)  of section 38a-343 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) No notice  of  cancellation  of  policy to
which section 38a-342  applies  may  be  effective
unless sent, by registered or certified mail or by
mail evidenced by  a  certificate  of  mailing, or
delivered by the  insurer  to the named insured at
least forty-five days before the effective date of
cancellation,  [provided] EXCEPT  THAT  (1)  where
cancellation  is  for   nonpayment  of  THE  FIRST
PREMIUM ON A  NEW  POLICY,  AT LEAST FIFTEEN DAYS'
NOTICE OF CANCELLATION  ACCOMPANIED  BY THE REASON
THEREFOR   SHALL   BE   GIVEN,   AND   (2)   WHERE
CANCELLATION  IS  FOR   NONPAYMENT  OF  ANY  OTHER
premium, at least ten days' notice of cancellation
accompanied by the reason therefor shall be given.
No notice of  cancellation  of  a policy which has
been in effect  for  less  than  sixty days may be
effective  unless  mailed   or  delivered  by  the
insurer  at  least   forty-five  days  before  the
effective date of  cancellation, provided that (A)
AT LEAST FIFTEEN DAYS' NOTICE SHALL BE GIVEN WHERE
CANCELLATION  IS  FOR   NONPAYMENT  OF  THE  FIRST
PREMIUM ON A  NEW  POLICY,  AND  (B)  at least ten
days' notice shall  be given where cancellation is
for nonpayment of  ANY  OTHER  premium or material
misrepresentation.  The  notice   of  cancellation
shall  state or  be  accompanied  by  a  statement
specifying the reason  for  such cancellation. ANY
NOTICE OF CANCELLATION FOR NONPAYMENT OF THE FIRST
PREMIUM ON A  NEW POLICY MAY BE RETROACTIVE TO THE
EFFECTIVE DATE OF  SUCH  POLICY, PROVIDED AT LEAST
FIFTEEN DAYS' NOTICE HAS BEEN GIVEN AND PAYMENT OF
SUCH PREMIUM HAS  NOT  BEEN  RECEIVED  DURING SUCH
NOTICE PERIOD.

Approved May 22, 1998