CID: News Release 6/8/04

News Release 6/8/04



SUSAN F. COGSWELL
COMMISSIONER

OFFICIAL NEWS RELEASE

FOR IMMEDIATE RELEASE
 CONTACT:     
Kate Kiernan-Pagani
 June 08, 2004
860-297-3864
 

AUTOMOBILE INSURANCE COVERAGE FOR RETURNING MEMBERS OF THE ARMED FORCES

Hartford The Connecticut Insurance Department today issued a letter (rtf, pdf) to automobile insurers informing them that they may not deny reinstatement, refuse to write, or raise premium rates for members of the Armed Forces returning from active duty. At the urging of the National Association of Professional Insurance Agents (PIA), other states have taken similar measures.

There have been no reported instances of U.S. service personnel having difficulty finding auto insurance in Connecticut, but the Insurance Department wants to ensure that the problem does not occur. "We have heard from other states that service personnel have had a difficult time reinstating their insurance when they return home," stated Commissioner Susan F. Cogswell. "We want to make sure that service personnel returning to their homes in Connecticut never have to face the difficulty of reinstating their auto insurance. This is a small issue for companies, but a large issue for these service men and women. It is the last thing that they should have to worry about."

In some cases, service personnel discontinue their automobile insurance coverage while in active military duty overseas. Underwriting and rating standards appropriately take into consideration continuous insurance coverage of applicants. In the case of members of the armed services on active duty, however, those underwriting requirements are inappropriate and should be waived.

The letter states, "As Insurance Commissioner, I expect that returning members of our Armed Services will have any such underwriting or rating requirements waived. These men and women, who have risked their lives on behalf of and in defense of our country, should not be penalized for their services. I would consider use of such underwriting and rating requirements in cases of insureds who have not had continuous coverage because of their service in the Armed Forces to be unfair within the meaning of Conn. Gen. Stat. 38a-818."

Accordingly, if a member of the Armed Forces was a policyholder in good standing at the time of leaving for active duty, and can show proof that such active service was the reason for loss of continuity in insurance coverage, the Insurance Department expects companies to treat the insureds as if coverage was continuous."



Content Last Modified on 6/21/2004 2:28:07 PM