HB 213 (BR 1213) - J. Bruce
AN ACT relating to consumer protection.
Create a new section of Subtitle 14 of KRS Chapter 304 to direct the Commissioner of the Department of Insurance to compile a consumer's guide to medicare supplement insurance; provide for distribution to consumers upon request at no charge; allow commissioner to assess insurers for cost of consumer guide; create a new section of Subtitle 15 of KRS Chapter 304 on life insurance to require the insurer to deliver the life insurance policy to the policyowner; require the insurer to retain proof of receipt of the policy by the policyowner; amend KRS 304.20-037 to require each property or casualty insurance premium billing or renewal billing to notify the insured that if the premium is not paid before the policy expiration the insurer is not obligated to pay claims after the expiration date; amend KRS 304.20-040 to provide that an automobile insurance policy in effect less than 60 days is not restricted to the reasons for cancellation listed in the statute unless it is a renewal policy; prohibit a carrier from moving an insured to another company within its group for the purposes of cancellation or nonrenewal; amend KRS 304.30-080 to require a premium finance agreement to be signed by the premium finance applicant; permit the premium finance company to include in the agreement a security interest in the unearned premium due on the policy in the event of a cancellation of the policy; amend KRS 304.30-090 to prohibit a premium finance company from charging or permitting interest to accrue beyond the scheduled final installment date unless the insured defaults; create a new section of Subtitle 30 of KRS Chapter 304 to provide that if an insurer receives notice that the initial down payment has been dishonored by a financial institution the policy shall be voided; amend KRS 304.30-110 to make technical changes; create a new section of Subtitle 30 of KRS Chapter 304 to prohibit a premium finance company from selling, assigning, or transferring its license; prohibit a premium finance company from selling, assigning, or transferring a premium finance agreement unless certain conditions are met; amend KRS 304.39-320 to clarify underinsured motorist coverage; amend KRS 304.47-055 to make technical changes.
HB 213 - AMENDMENTS
HCS - Retain orginal provisions of bill; require each installment billing or billing containing notice of expiration or termination of the policy to notify the insured that if the premium is not received the insurer is not obligated to pay claims; prohibit an auto insurer from moving an insured to another company within its group for the purposes of cancellation within the first sixty (60) days; make technical corrections.
Jan 8-introduced in House
Jan 9-to Banking and Insurance (H)
Jan 10-posted in committee
Jan 23-reported favorably, 1st reading, to Calendar with Committee Substitute
Jan 24-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Friday, January 25, 2002
Jan 25-3rd reading, passed 90-0 with Committee Substitute
Jan 28-received in Senate
Jan 31-to Banking and Insurance (S)