Several bills that would have increased insurance costs died as the Connecticut State Legislature adjourned its 2001 regular session, according to the American Insurance Association.
“A number of bills that would have placed onerous restrictions on insurers and increased costs were defeated as the session adjourned,” said Donald Baldini, AIA assistant vice president, Northeast region.
For example, SB 408, which would have prohibited insurers from using credit history in auto insurance rating, was defeated. “Credit history is an accurate predictor of risk. Banning its use in auto insurance rating would make it harder for insurers to accurately price their product,” Baldini noted.
SB 477, which concerned insurance settlements for total loss vehicles, and SB 1062, which concerned totaled vehicles and certificates of title, also were opposed by AIA and were defeated. “These bills would have increased administrative costs for insurers and consumers while providing no real benefits,” Baldini stated.
AIA also opposed SB 479, a proposal to prohibit insurers from discussing auto repair shop options with policyholders, and SB 525, which would have restricted the use of competitive repair parts for auto body repair. Both bills were defeated. “These proposals would have increased auto insurance costs by restricting competition,” Baldini added.
One important insurance bill passed during the session. SB 1096 is a producer-licensing bill that meets the reciprocity standards of the federal Gramm-Leach-Bliley Act (GLBA). “Connecticut now joins the number of states that have reciprocal standards for producer licensing, which helps to move regulatory modernization forward,” Baldini concluded.
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