OLR Bill Analysis

HB 6508

AN ACT CONCERNING TIMELY HISTORY REPORTS FOR COMMERCIAL RISK INSURANCE POLICIES.

SUMMARY:

By law, when insurers cancel or do not renew a commercial auto or general liability insurance policy, they must provide their insureds with written reports that include a history of the policy's pricing and premium information, along with a detailed list of incurred losses (i. e. , loss reports). This bill extends the reporting requirement to all types of commercial risk insurance, instead of just commercial auto or general liability, and decreases the timeframe for providing certain reports from 60 days to 10 days.

Additionally, under current law, commercial auto and general liability insurers must provide to principal insureds who request it, a summary of claims information for a period of up to four years before the date of the request. The bill (1) expands the requirement to all commercial risk insurers, (2) permits the insured's authorized producer to submit the request, (3) specifies that the request must be made in writing, and (4) requires the insurer to report within 10 days after receiving the request. By law, the summary report must include each policy number, each coverage period, the number of claims, the amount of paid losses, and the date of each loss.

EFFECTIVE DATE: October 1, 2011

TIMEFRAME TO FURNISH LOSS REPORT

Under current law, when the cancellation or nonrenewal of a policy is due to specified circumstances (e. g. , nonpayment of premium, fraud or material misrepresentation, or willful or reckless acts that increase the hazard insured against), the insurer must provide the loss report, or an updated report needed to properly rate or obtain coverage from a different insurer, to the insured within 60 days of receiving a written request from the insured or the insured's authorized producer. The bill decreases the timeframe to report from 60 days to 10 days.

An insurer that cancels or does not renew a policy for any other reason than those specified must provide the insured or authorized producer with the loss report no later than the date notice of nonrenewal or cancellation is furnished.

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable

Yea

17

Nay

0

(03/10/2011)