The Connecticut published a bulletin announcing the new disclosure requirements established through the passing of Public Act 26-69, requiring insurers to explain reasons for personal risk insurance policy premium increases.
Personal risk insurance includes homeowners, tenants, private passenger non-fleet automobile, and other personal property and casualty insurance.
The act requires that on a premium billing notice for a personal risk insurance policy where the premium is increasing on renewal, the insurer must state that the insured can request an explanation for premium increases in writing or other communication methods, as prescribed by the commissioner. The insurer must provide a reasonable explanation within 20 days of receipt of the request.
Under the act, "reasonable explanation" means sufficient information in terms that are understandable to an average policyholder that enables the policyholder to determine the basic nature of any premium increase. Insurers should be able to accommodate requests made by mail, telephone, and email.
The act is effective January 1, 2027. The bulletin can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.