SB 808 — AN ACT INCREASING THE MINIMUM AMOUNT OF INSURANCE COVERAGE REQUIRED TO ISSUE A MOTOR VEHICLE OPERATOR'S LICENSE OR CERTIFICATE OF MOTOR VEHICLE REGISTRATION.

General Assembly   RaisedSubstitute Bill No.

808 January Session, 2017   LCO*_____SB00808INS___030817____* No.AN ACT INCREASING THE MINIMUM AMOUNT OF INSURANCE COVERAGE REQUIRED TO ISSUE A MOTOR VEHICLE OPERATOR'S LICENSE OR CERTIFICATE OF MOTOR VEHICLE REGISTRATION.

3576   *03576_______INS* Referred to Committee on INSURANCE AND REAL ESTATE   Introduced by:

  (INS)   AN ACT INCREASING THE MINIMUM AMOUNT OF INSURANCE COVERAGE REQUIRED TO ISSUE A MOTOR VEHICLE OPERATOR'S LICENSE OR CERTIFICATE OF MOTOR VEHICLE REGISTRATION.

Section 14-112 of the general statutes is repealed and the following is substituted in lieu thereof (Effective JulyJanuary 1, 2017):2018):

(a) To entitle any person to receive or retain a motor vehicle operator's license or a certificate of registration of any motor vehicle when, in the opinion of the commissioner, such person has a record on file with the commissioner which is sufficient, in the opinion of the commissioner, to require evidence of financial responsibility for the reasonable protection of other persons, the commissioner shall require from such person proof of financial responsibility to satisfy any claim for damages by reason of personal injury to, or the death of, any one person, of [twenty] fiftytwenty-five thousand dollars, or by reason of personal injury to, or the death of, more than one person on account of any accident, of at least [forty] onefifty hundred thousand dollars, and for damage to property of at least [ten] twenty-five thousand dollars.

Section 14-44, section 14-80h or 14-80i, sections 14-110, 14-147, 14-217, 14-219, sections 14-228, 14-275 to 14-281, inclusive, or subdivision (1) of subsection (a) of section 53a-123 or any similar provision of the laws of any other state or any territory, or who has been convicted of, or has forfeited any bond taken for appearance for, or has received a suspended judgment or sentence for, a violation of any of said provisions, or a violation of any of the provisions of sections 14-230 to 14-247, inclusive, and 38a-371, within a twelve-month period following a violation of any of said sections, the commissioner may require from such person proof of financial responsibility to satisfy any claim for damages by reason of personal injury to, or the death of, any one person, of [twenty] fiftytwenty-five thousand dollars, or by reason of personal injury to, or the death of, more than one person on account of any accident, of at least [forty] onefifty hundred thousand dollars, and for damage to property of at least [ten] twenty-five thousand dollars.

This(k) actNotwithstanding any provision of this section, nothing in this section shall takebe effectconstrued to abrogate any contract, including, but not limited to, any motor vehicle liability insurance policy, that (1) became effective before January 1, 2018, (2) affords at least the minimum amount of coverage required under subsection (a) or (j) of this section as followsof December 31, 2017, and shall(3) amendsatisfies theall followingother sections:requirements of this section.

SectionAny 1contract Julyor 1,policy 2017that 14-112meets Statementthe requirements of Purpose:subdivisions (1) to (3), inclusive, of this subsection shall be deemed to satisfy the requirements of this section until such contract or policy has been amended, cancelled, terminated or renewed.

ToSec. increase the minimum amount of insurance coverage required to issue a motor vehicle operator's license or certificate of motor vehicle registration.

[Proposed2. deletions are enclosed in brackets.

ProposedSection additions14-70 areof indicatedthe bygeneral underline,statutes exceptis thatrepealed whenand the entirefollowing textis ofsubstituted ain billlieu orthereof resolution(Effective orJanuary a1, section2018): of a bill or resolution is new, it is not underlined.]

The commissioner may deny the application of any person for a license if he determines that:

(a) Such applicant has made a material false statement or concealed a material fact in connection with his application;

(b) such applicant, any officer, director, stockholder or partner, or any other person directly or indirectly interested in the business, was the former holder of a license under this part, or was an officer, director, stockholder or partner in a corporation or partnership which held a license under this part, which license was revoked or suspended by the commissioner;

(c) such applicant or any officer, director, stockholder, partner, employee or any other person directly or indirectly interested in the business has failed to furnish satisfactory evidence of good moral character, reputation and fitness or is an employee of the Department of Motor Vehicles;

(d) such applicant does not have a place of business;

(e) such applicant is not the true owner of the drivers' school;

or (f) the application is not accompanied by a certificate from the applicant's insurance carrier in such form as the commissioner shall prescribe showing that each motor vehicle used by such school has been insured for at least the minimum amounts required by subsection (a) or (k) of section 14-112, as amended by this act, and such certificate shall stipulate that the insurance shall not be cancelled except upon ten days' written notice to the commissioner.

Sec.

3.

Subsection (a) of section 38a-335 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):

(a) Each automobile liability insurance policy shall provide insurance in accordance with the regulations adopted pursuant to section 38a-334 against loss resulting from the liability imposed by law, with limits not less than those specified in subsection (a) or (k) of section 14-112, as amended by this act, for damages because of bodily injury or death of any person and injury to or destruction of property arising out of the ownership, maintenance or use of a specific motor vehicle or motor vehicles within any state, territory, or possession of the United States of America or Canada.

Sec.

4.

Subsection (a) of section 38a-336 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):

(a) (1) (A) Each automobile liability insurance policy shall provide insurance, herein called uninsured and underinsured motorist coverage, in accordance with the regulations adopted pursuant to section 38a-334, with limits for bodily injury or death not less than those specified in subsection (a) or (k) of section 14-112, as amended by this act, for the protection of persons insured thereunder who are legally entitled to recover damages because of bodily injury, including death resulting therefrom, from owners or operators of uninsured motor vehicles and underinsured motor vehicles and insured motor vehicles, the insurer of which becomes insolvent prior to payment of such damages.

(B) Each insurer licensed to write automobile liability insurance in this state shall provide uninsured and underinsured motorist coverage with limits requested by any named insured upon payment of the appropriate premium, provided each such insurer shall offer such coverage with limits that are twice the limits of the bodily injury coverage of the policy issued to the named insured.

The insured's selection of uninsured and underinsured motorist coverage shall apply to all subsequent renewals of coverage and to all policies or endorsements that extend, change, supersede or replace an existing policy issued to the named insured, unless changed in writing by any named insured.

(C) No insurer shall be required to provide uninsured and underinsured motorist coverage to (i) a named insured or relatives residing in the named insured's household when occupying, or struck as a pedestrian by, an uninsured or underinsured motor vehicle or a motorcycle that is owned by the named insured, except as provided in subparagraph (D) of this subdivision, or (ii) any insured occupying an uninsured or underinsured motor vehicle or motorcycle that is owned by such insured.

(D) For each automobile liability insurance policy issued or renewed on or after October 1, 2014, an insurer shall not deny uninsured motorist coverage to a named insured or any relative residing in the named insured's household solely on the basis that the named insured or such relative was struck as a pedestrian by a motor vehicle or motorcycle, during the theft of such motor vehicle or motorcycle, that is owned by the named insured and listed as a covered motor vehicle on the named insured's policy.

(2) Notwithstanding any provision of this section, each automobile liability insurance policy issued or renewed on and after January 1, 1994, shall provide uninsured and underinsured motorist coverage with limits for bodily injury and death equal to those purchased to protect against loss resulting from the liability imposed by law unless any named insured requests in writing a lesser amount, but not less than the limits specified in subsection (a) or (k) of section 14-112, as amended by this act.

Such written request shall apply to all subsequent renewals of coverage and to all policies or endorsements that extend, change, supersede or replace an existing policy issued to the named insured, unless changed in writing by any named insured.

No such written request for a lesser amount shall be effective unless any named insured has signed an informed consent form that shall contain:

(A) An explanation of uninsured and underinsured motorist insurance approved by the commissioner;

(B) a list of uninsured and underinsured motorist coverage options available from the insurer;

and (C) the premium cost for each of the coverage options available from the insurer.

Such informed consent form shall contain a heading in twelve-point type and shall state:

"WHEN YOU SIGN THIS FORM, YOU ARE CHOOSING A REDUCED PREMIUM, BUT YOU ARE ALSO CHOOSING NOT TO PURCHASE CERTAIN VALUABLE COVERAGE WHICH PROTECTS YOU AND YOUR FAMILY.

IF YOU ARE UNCERTAIN ABOUT HOW THIS DECISION WILL AFFECT YOU, YOU SHOULD GET ADVICE FROM YOUR INSURANCE AGENT OR ANOTHER QUALIFIED ADVISER." This act shall take effect as follows and shall amend the following sections: