PA 11-138—HB 6508
Insurance and Real Estate Committee
AN ACT CONCERNING TIMELY HISTORY REPORTS FOR COMMERCIAL RISK INSURANCE POLICIES
SUMMARY: By law, when insurers or insureds cancel or do not renew a commercial auto or general liability insurance policy, the insurer 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 act 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 30 days.
Additionally, under prior law, commercial auto and general liability insurers had to provide principal insureds who requested it a summary of claims information for a period of up to four years before the date of the request. The act (1) expands the requirement to all commercial risk insurers, (2) requires that the request be made in writing, and (3) requires the insurer to report within 30 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: January 1, 2012
TIMEFRAME TO FURNISH LOSS REPORT
Under prior law, when the cancellation or nonrenewal of a policy was 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 had to 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 act decreases the timeframe to report from 60 days to 30 days.
By law, an insurer that cancels or does not renew a policy for any other reason than those specified above must provide the insured or authorized producer with the loss report no later than the date notice of nonrenewal or cancellation is furnished.
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