OLR Bill Analysis

sSB 212 (File 115, as amended by Senate "A")*

AN ACT LIMITING CANCELLATION FEES FOR AUTOMOBILE INSURANCE POLICYHOLDERS WHO CANCEL THEIR POLICIES MID-TERM.

SUMMARY:

This bill prohibits an insurer that renews, amends, or endorses a private passenger automobile insurance policy in Connecticut from charging the insured more than $ 100 for canceling the policy before the policy term ends. It also makes technical changes.

*Senate Amendment “A” makes a technical change.

EFFECTIVE DATE: October 1, 2009

BACKGROUND

Related Law

Any person or corporation that violates any provision of the insurance laws that does not have a specific penalty is subject to a fine of up to $ 15,000 (CGS § 38a-2a; Rizzo v. Price, 162 Conn. 504, 507 (1972)).

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute