[Congressional Record Volume 145, Number 23 (Tuesday, February 9, 1999)]
[Extensions of Remarks]
[Page E174]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                RE: AUTOMOBILE INSURANCE, MARCH 11, 1997

                                 ______
                                 

                           HON. PATSY T. MINK

                               of hawaii

                    in the house of representatives

                       Tuesday, February 9, 1999

  Mrs. MINK of Hawaii. Mr. Speaker, I am introducing a bill to require 
notice to automobile insurance policy holders before a paid up policy 
can be either canceled or renewal refused.
  Many of my constituents without warning or for insignificant reasons 
are being cut off of automobile insurance coverage and with little time 
allowed to find another company.
  My bill will require at least 180 days notice before a cancellation 
or decision not to renew can take effect provided the premiums are 
fully paid up and there is no court order cancelling the holder's 
driver's license.
  In many places in my district the only means of transportation is 
one's automobile. To have to drive without insurance coverage is a 
public hazard. People need to be told well in advance if a company is 
refusing to renew or plans to discontinue coverage.
  This is not interference with the company's right to decide who to 
cover or not cover. It is only a requirement of due notice. I urge my 
colleagues to support this bill.

                                 H.R.--

       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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