Introduced Version
HOUSE BILL No. 1043
_____
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
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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.