Substitute House Bill No. 5581
          Substitute House Bill No. 5581

              PUBLIC ACT NO. 98-189


AN ACT CONCERNING UNINSURED MOTORIST COVERAGE.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Subsection (g) of section 38a-336
of  the  general  statutes  is  repealed  and  the
following is substituted in lieu thereof:
    (g)  (1)  No  insurance company doing business
in this state may limit the time within which  any
suit  may  be brought against it or any demand for
arbitration  on  a  claim  MAY  be  made  on   the
uninsured  or  underinsured motorist provisions of
an automobile  liability  insurance  policy  to  a
period  of  less than three years from the date of
accident, provided, in the case of an underinsured
motorist claim the insured may toll any applicable
limitation period  [(1)]  (A)  by  notifying  such
insurer  prior to the expiration of the applicable
limitation period, in writing, of any claim  which
the  insured  may  have  for underinsured motorist
benefits and  [(2)]  (B)  by  commencing  suit  or
demanding  arbitration  under  the  terms  of  the
policy not more than one hundred eighty days  from
the  date of exhaustion of the limits of liability
under all automobile bodily injury liability bonds
or automobile insurance policies applicable at the
time of  the  accident  by  settlements  or  final
judgments after any appeals.
    (2)    NOTWITHSTANDING   THE   PROVISIONS   OF
SUBDIVISION (1) OF THIS SUBSECTION, IN THE CASE OF
AN  UNINSURED MOTORIST CLAIM, IF THE MOTOR VEHICLE
OF A TORTFEASOR  IS  AN  UNINSURED  MOTOR  VEHICLE
BECAUSE THE AUTOMOBILE LIABILITY INSURANCE COMPANY
OF SUCH TORTFEASOR  BECOMES  INSOLVENT  OR  DENIES
COVERAGE,  NO  INSURANCE COMPANY DOING BUSINESS IN
THIS STATE MAY LIMIT THE  TIME  WITHIN  WHICH  ANY
SUIT  MAY  BE BROUGHT AGAINST IT OR ANY DEMAND FOR
ARBITRATION  ON  A  CLAIM  MAY  BE  MADE  ON   THE
UNINSURED  MOTORIST  PROVISIONS  OF  AN AUTOMOBILE
LIABILITY INSURANCE POLICY TO  A  PERIOD  OF  LESS
THAN  ONE  YEAR  FROM  THE  DATE OF RECEIPT BY THE
INSURED OF WRITTEN NOTICE OF SUCH  INSOLVENCY  OF,
OR   DENIAL   OF   COVERAGE  BY,  SUCH  AUTOMOBILE
LIABILITY INSURANCE COMPANY.
    Sec.  2. This act shall take effect October 1,
1998,  and  shall  be  applicable   to   insurance
policies  issued or renewed on or after January 1,
1999.

Approved June 4, 1998