Bill Lets Military Members Keep Car Insurance When Moving to New State

By | May 19, 2014

Members of the military and their families would be able keep their current auto insurance policies when moving from one state to another state under a bill introduced in Congress.

U.S. Rep. Ed Royce (R-Calif.), a senior member of the House Financial Services Committee, and U.S. Rep. Tammy Duckworth (D-Ill.), a veteran of the Iraq war and a member of the House Armed Services Committee, introduced the Servicemembers Insurance Relief Act (H.R. 4669) yesterday. The bill is expected to be referred to the House Financial Services Committee.

The bill aims to make the state-based insurance regulatory system more accommodating to service members who currently have to change auto insurance policies every time they relocate across state lines.

“This bipartisan legislation makes a simple but meaningful change to current law that will lessen the burden on service members and their families during times of transition,” said Rep. Royce.

In a December, 2013 report on modernizing insurance regulation, the Federal Insurance Office linked the issue facing the military to a lack of uniformity in insurance products approved at the state level. The FIO said it would work with states and the industry to make it easier for relocating service members to retain their insurance, possibly developing a common personal lines auto insurance form for active service members that would be recognized by all states.

Topics Auto Legislation

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