Insurance companies typically conclude disclaimer letters by inviting their insureds to submit additional information which might have a bearing on the coverage issues and the reasons for the disclaimer. Effective January 1, 2004, however, companies writing “personal risk insurance” in Connecticut can no longer simply conclude their denial letters with such language. “Personal risk insurance” is defined in Connecticut General Statutes Section 38a-366(i) to include “homeowners, tenants, private passenger nonfleet automobile, mobile manufactured home and other property and casualty insurance for personal, family or household needs except workers’ compensation insurance.” While the invitation to the insured to submit additional information should continue to be included in any disclaimer letter, the legislature has mandated additional language to be included in the final paragraph of all disclaimer letters regarding such insurance. Public Act 03-55, which was signed by the governor on June 3, 2003, and which becomes effective January 1, 2004, mandates that a personal risk insurer that denies a claim under a policy issued in this state shall provide the insured with written notice of the denial. The written notice of denial must include the following statement, which shall appear in the concluding paragraph of the notice in not less than 12 point type:
If you do not agree with this decision, you may contact the Division of Consumer Affairs within the Insurance Department. T
he notice must also include the address and toll free telephone number for the Division of Consumer Affairs as well as the Department’s Internet address. The specific address, telephone number and email address to be used in the notice are set forth below as they appear in the Insurance Department’s Bulletin CL-4, dated September 3, 2003
.Address: Connecticut Insurance Department
Consumer Affairs Division
P.O. Box 816
Hartford, CT 06142-0816
Telephone number:
800-203-3447 (Connecticut only)
860-297-3900 (Hartford area or outside of Connecticut)
Email address: ctinsdept.consumeraffairs@po.state.ct.us
Significantly, a failure to comply with Public Act 03-55 will subject the carrier to the penalty provisions of Connecticut General Statutes Section 38a-2, which provide for a fine of up to $7,500.00. Therefore, insurers should pay close attention to their disclaimer letters to make sure that they comply with this new law.
This Alert is provided for informational and educational purposes only and is not intended as legal advice. This publication may be considered advertising under applicable state laws. ã 2004 Halloran & Sage LLP
For more information regarding this Alert, please contact:
Daniel Scapellati
(860) 297-4622
scapellati@halloransage.com