Introduced Version






HOUSE BILL No. 1043

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 27-1-31.

Synopsis: Commercial property and casualty insurance notice. Extends the notice period required for certain nonrenewals and cancellations of a commercial property and casualty insurance policy from 45 days to 90 days. Requires 90 days notice of a premium increase for a commercial property and casualty insurance policy.

Effective: July 1, 2003.





Ruppel




    January 7, 2003, read first time and referred to Committee on Insurance, Corporations and Small Business.







Introduced

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1043



    A BILL FOR AN ACT to amend the Indiana Code concerning insurance.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 27-1-31-2; (03)IN1043.1.1. -->     SECTION 1. IC 27-1-31-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) An insurer may not cancel a policy of insurance that the insurer has written that has been in effect more than ninety (90) days unless:
        (1) the insured under the policy has failed to pay the premium;
        (2) there is a substantial change in the scale of risk covered by the policy;
        (3) the insured has perpetrated a fraud or material misrepresentation upon the insurer;
        (4) the insured has failed to comply with reasonable safety recommendations; or
        (5) reinsurance of the risk associated with the policy has been cancelled.
    (b) An insurer shall provide a written notice of cancellation to a person insured under a policy issued by the insurer at least:
        (1) forty-five (45) ninety (90) days before cancelling the policy for any reason set forth in subsection (a)(2), (a)(4), or (a)(5);
        (2) twenty (20) days before cancelling the policy for the reason set forth in subsection (a)(3); or
        (3) ten (10) days before cancelling the policy for the reason set forth in subsection (a)(1).
SOURCE: IC 27-1-31-3; (03)IN1043.1.2. -->     SECTION 2. IC 27-1-31-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. If an insurer refuses to renew a policy of insurance written by the insurer, the insurer shall provide written notice of nonrenewal to the insured:
        (1) at least forty-five (45) ninety (90) days before the expiration date of the policy, if the coverage provided is for one (1) year, or less; or
        (2) at least forty-five (45) ninety (90) days before the anniversary date of the policy, if the coverage provided is for more than one (1) year.
SOURCE: IC 27-1-31-4; (03)IN1043.1.3. -->     SECTION 3. IC 27-1-31-4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. An insurer shall provide written notice of a premium increase to an insured not less than ninety (90) days before the effective date of the premium increase.
SOURCE: ; (03)IN1043.1.4. -->     SECTION 4. [EFFECTIVE JULY 1, 2003] IC 27-1-31 , as amended by this act, applies to a policy of insurance that is issued, delivered, amended, or renewed after June 30, 2003.