OLR Bill Analysis

sSB 954 (File 265, as amended by Senate “A”)*

AN ACT CONCERNING PAYMENTS MADE UNDER UNINSURED AND UNDERINSURED MOTORIST COVERAGE.

SUMMARY:

This bill requires the insurance commissioner, or his designee, to evaluate and make recommendations about (1) reductions of coverage limits for uninsured and underinsured motorist coverage under auto insurance policies in Connecticut and (2) state regulations on minimum provisions of such policies. He must do this within available appropriations and in collaboration with the Insurance Association of Connecticut and the Connecticut Trial Lawyers' Association. He must report his findings or recommendations to the Insurance and Real Estate Committee by February 5, 2014.

The bill requires the evaluation to include:

1. current industry practices under state law and regulations,

2. relevant case law,

3. terminology used in current auto insurance policies, and

4. policyholders' expectations.

*Senate Amendment “A” replaces the underlying file, which required auto insurers to include a disclosure on certain auto insurance policies about reducing uninsured and underinsured motorist coverage limits.

EFFECTIVE DATE: Upon passage

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute

Yea

18

Nay

0

(03/14/2013)

Judiciary Committee

Joint Favorable

Yea

40

Nay

2

(05/01/2013)