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of the general statutes is repealed and the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