Sec. 38a-341. (Formerly Sec. 38-175f). Cancellation of motor vehicle liability policy: Definitions.
Sec. 38a-341. (Formerly Sec. 38-175f). Cancellation of motor vehicle liability
policy: Definitions. As used in sections 38a-341 to 38a-346, inclusive:
(1) "Policy" means an automobile liability insurance policy providing among other
coverage bodily injury liability, delivered or issued for delivery in this state, insuring
a single individual or husband and wife resident of the same household, as named insured, and under which the insured vehicles therein designated are of the following
types only: (A) A motor vehicle of the private passenger or station wagon type that is
not used as a public or livery conveyance for passengers, nor rented to others, or (B)
any other four-wheel motor vehicle with a load capacity of fifteen hundred pounds or
less which is not used in the occupation, profession or business of the insured, provided
said sections shall not apply (i) to any policy insuring more than four automobiles, or
(ii) to any policy covering garage, automobile sales agency, repair shop, service station
or public parking place operation hazards, or (iii) to any policy of insurance issued
principally to cover personal or premises liability of an insured even though the insurance
may also provide some incidental coverage for liability arising out of the ownership,
maintenance or use of a motor vehicle on the premises of the insured or on the ways
immediately adjoining the premises;
(2) "Renewal" or "to renew" means the issuance and delivery by an insurer of a
policy replacing at the end of the policy period a policy previously issued and delivered
by the same insurer, or the issuance and delivery of a certificate or notice extending the
term of the policy beyond its policy period or term. Any policy with a policy period or
term of less than six months shall, for the purpose of sections 38a-341 to 38a-346,
inclusive, be considered as if written for a policy period or term of six months and any
policy written for a term longer than one year or any policy with no fixed expiration
date, shall for the purpose of said sections, be considered as if written for successive
policy periods or terms of one year. Such a policy may be terminated at the expiration
of any annual period upon giving thirty days' notice of cancellation prior to the anniversary date, and such cancellation shall not be subject to any other provisions of said
sections;
(3) "Nonpayment of premium" means failure of the named insured to discharge
when due any of his obligations in connection with the payment of premiums on the
policy, or any installment of such premium, whether the premium is payable directly
to the insurer or its agent or indirectly under any premium finance plan or extension of
credit. Nonpayment of premium includes, but is not limited to, the dishonor of any
check, draft or other remittance upon presentment for payment;
(4) "Declination" means: (A) With respect to a producer, denial in whole or in part
of an applicant's written request for coverage; failure to submit within a reasonable
period of time a completed written application for coverage to a specific insurer which
the producer represents or with which the producer has an account and which is requested
in writing by the applicant; placement of a risk with a residual market, an unauthorized
insurer, or an insurer which specializes in substandard risks; or refusal to provide, upon
written request, an application for coverage; (B) with respect to an insurer which conducts its business through independent licensed insurance producers, refusal to issue a
policy after receipt of a completed written application for coverage from a producer
who represents it or from a producer with whom it has an account; or (C) with respect
to an insurer other than one specified in subparagraph (B), refusal to issue a policy after
receipt of a completed written application, or refusal to provide, upon written request,
an application for coverage.
(1969, P.A. 809, S. 1; P.A. 77-199, S. 3, 12; P.A. 82-353, S. 15; P.A. 83-186, S. 1; P.A. 90-243, S. 128; P.A. 96-193,
S. 11, 36; P.A. 98-80, S. 1.)
History: P.A. 77-199 required 30, rather than 20, days' notice of cancellation; P.A. 82-353 added a definition for
"declination"; P.A. 83-186 removed policies issued under an automobile assigned risk plan from the definition of "policy"
as defined for the purposes of Secs. 38-175f to 38-175l, inclusive; P.A. 90-243 made technical changes for statutory
consistency; Sec. 38-175f transferred to Sec. 38a-341 in 1991; P.A. 96-193 amended definition of "declination" to substitute
"producer" for "agent" and "broker", effective June 3, 1996; P.A. 98-80 redefined "nonpayment of premium" in Subdiv.
(3) to include the dishonor of any check, draft or other remittance upon presentment for payment.
Annotations to former section 38-175f:
Cited. 160 C. 280. Regulations under this statute make "other insurance" clauses in conflict with the regulations. 161
C. 169. Cited. 203 C. 45.
Cited. 1 CA 409. Cited. 42 CA 177.
Annotations to present section:
Cited. 234 C. 182. Cited. 240 C. 86.
Cited. 25 CA 492; judgment reversed, see 222 C. 744. Cited. 42 CA 177.
Subdiv. (2):
Did not require insurer to issue cancellation notice in accordance with Sec. 38a-343 before terminating plaintiff's policy.
52 CA 497.