[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 644 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 644

To establish requirements for the cancellation of automobile insurance 
                               policies.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 1999

 Mrs. Mink of Hawaii introduced the following bill; which was referred 
                      to the Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
To establish requirements for the cancellation of automobile insurance 
                               policies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SALES OF AUTOMOBILE INSURANCE POLICIES.

    No State shall authorize the sale of automobile insurance policies 
unless such policies are subject to cancellation in accordance with 
section 2.

SEC. 2. CANCELLATION OF AUTOMOBILE INSURANCE POLICIES.

    A paid-up policy of automobile insurance may be canceled only if--
            (1) a written notice of cancellation is mailed or delivered 
        to the last known mailing address of the named insured as shown 
        in the records of the insurer at least 180 days before the 
        effective date of the cancellation;
            (2) the insurer shows that the named insured had the 
        insured's driver's license suspended or revoked; or
            (3) the insurer shows that the name insured has been 
        convicted of, or forfeited bail for, any action arising out of 
        or in connection with the operation of a motor vehicle that is 
        grounds for suspension or revocation of a driver's license.

SEC. 3. RENEWAL OF AUTOMOBILE INSURANCE POLICIES.

    An insurer shall mail or deliver to an insured a written notice of 
non-renewal of an automobile insurance policy at the last known mailing 
address of the named insured as shown in the records of the insurer at 
least 180 days before the expiration of the policy.

SEC. 4. ENFORCEMENT.

    (a) Insurer.--An insurer which violates section 1, 2, or 3 shall 
with respect to the insured involved in such violation--
            (1) accept an application or written request for automobile 
        insurance coverage at a rate and on the same terms and 
        conditions as are available to its insureds under the insurer's 
        automobile insurance coverage;
            (2) reinstate the automobile insurance coverage for such 
        insured to the end of the applicable policy period.
    (b) Others.--Any person who violates section 1, 2, or 3 shall be 
subject to--
            (1) a cease and desist order issued in accordance with 
        section 5 of the Federal Trade Commission Act (15 U.S.C. 45); 
        or
            (2) a civil penalty not to exceed $1,000.
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