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Panel clarifies short-term policy cancellation notice in House Bill 1243
Summary
House Bill 1243, as amended, clarifies notice requirements for property and casualty policies in force 60 days or less by specifying a 20-day notice for cancellations and 10 days for nonpayment; the committee approved it as amended.
The Senate Insurance & Commerce Committee approved House Bill 1243 as amended to clarify notice requirements for property and casualty insurance policies that are in force for 60 days or less.
Russ Galbraith, chief deputy insurance commissioner, told the committee the bill addresses ambiguity in the current statute for short-duration policies. "Right now, if it's in force more than that, a company has to give 20 days if they're going to cancel the policy, 10 days if it's nonpayment," Galbraith said, and HB1243 "clarifies that and says 20 days for cancellation and then 10 days for nonpayment." He said the language will allow the statute to be clearly written so it can be promulgated and understood by the regulated community.
Committee members moved and seconded 'Do pass as amended,' carried the amendment that corrected a typographical error on page 11, and approved the bill by voice vote. The transcript shows 'The ayes have it' but does not list a roll-call tally.
The bill's clarified notice schedule applies to short-term property and casualty policies and aims to resolve current ambiguity for insurers and consumers; committee testimony did not include fiscal estimates or implementation dates beyond standard statutory effect.
