Sec. 38a-343. (Formerly Sec. 38-175h). Receipt of cancellation notice. Reason for cancellation. Notice of cancellation. Requirements.
Sec. 38a-343. (Formerly Sec. 38-175h). Receipt of cancellation notice. Reason
for cancellation. Notice of cancellation. Requirements. (a) No notice of cancellation
of a policy to which section 38a-342 applies may be effective unless sent, by registered
or certified mail or by mail evidenced by a certificate of mailing, or delivered by the
insurer to the named insured, and any third party designated pursuant to section 38a-323a, at least forty-five days before the effective date of cancellation, except that (1)
where cancellation is for nonpayment of the first premium on a new policy, at least
fifteen days' notice of cancellation accompanied by the reason for cancellation shall be
given, and (2) where cancellation is for nonpayment of any other premium, at least ten
days' notice of cancellation accompanied by the reason for cancellation shall be given.
No notice of cancellation of a policy which has been in effect for less than sixty days
may be effective unless mailed or delivered by the insurer to the insured and any third
party designee at least forty-five days before the effective date of cancellation, provided
(A) at least fifteen days' notice shall be given where cancellation is for nonpayment of
the first premium on a new policy, and (B) at least ten days' notice shall be given where
cancellation is for nonpayment of any other premium or material misrepresentation.
The notice of cancellation shall state or be accompanied by a statement specifying the
reason for such cancellation. Any notice of cancellation for nonpayment of the first
premium on a new policy may be retroactive to the effective date of such policy, provided
at least fifteen days' notice has been given to the insured and any third party designee
and payment of such premium has not been received during such notice period.
(b) Where a private passenger motor vehicle liability insurance company sends a
notice of cancellation under subsection (a) of this section to the named insured of a
private passenger motor vehicle liability insurance policy, or a third party designee,
such company shall provide with such notice a warning, in a form approved by the
Commissioner of Motor Vehicles and the Insurance Commissioner, which informs the
named insured that (1) the cancellation will be reported to the Commissioner of Motor
Vehicles; (2) the named insured may be receiving one or more mail inquiries from
the Commissioner of Motor Vehicles, concerning whether or not required insurance
coverage is being maintained, and that the named insured must respond to these inquiries; (3) if the required insurance coverage lapses at any time, the Commissioner of Motor
Vehicles may suspend the registration or registrations for the vehicle or vehicles under
the policy and the number plates will be subject to confiscation and any person operating
any such vehicle will be subject to legal penalties for operating a motor vehicle with a
suspended registration; (4) the named insured will not be able to have the registration
restored or obtain a new registration, or any other registration or renewal in the insured's
name, except upon presentation to the Commissioner of Motor Vehicles of evidence of
required security or coverage and the entering into of a consent agreement with the
commissioner in accordance with the provisions of section 14-12g.
(c) This section shall not apply to nonrenewal or if the private passenger motor
vehicle liability insurance policy is transferred from an insurer to an affiliate of such
insurer for another policy with no interruption of coverage and contains the same terms,
conditions and provisions, including policy limits, as the transferred policy, except that
the insurer to which the policy is transferred shall not be prohibited from applying its
rates and rating plans at the time of renewal.
(1969, P.A. 809, S. 3; P.A. 77-199, S. 4, 12; P.A. 81-289, S. 2; P.A. 82-353, S. 2; P.A. 86-95, S. 1; P.A. 93-298, S. 1,
11; P.A. 98-80, S. 2; P.A. 02-60, S. 2; P.A. 04-10, S. 6; P.A. 05-282, S. 5; P.A. 06-109, S. 4.)
History: P.A. 77-199 required 30, rather than 20, days' notice of cancellation and made notification of reason for
cancellation mandatory in all cases where previously cancellation notice could simply inform insured that reason would
be given "upon written request ... mailed or delivered to the insurer not less than fifteen days next preceding the effective
date of cancellation" in Subsec. (a), deleted Subsec. (b) which had repeated provision of Subsec. (a) re insured's request
for reason for cancellation and relettered former Subsec. (c) accordingly; P.A. 81-289 specified that notice of cancellation
for automobile insurance policies be sent by registered or certified mail or by mail evidenced by certificate of mailing;
P.A. 82-353 amended Subsec. (a), adding a provision concerning cancellation notices for policies in effect for less than
60 days; P.A. 86-95 increased the notice of cancellation requirement from 30 to 45 days; Sec. 38-175h transferred to Sec.
38a-343 in 1991; P.A. 93-298 inserted new Subsec. (b) detailing the cancellation procedure required when a private
passenger motor vehicle liability insurer sends a cancellation notice and relettered former Subsec. (b) accordingly, effective
January 1, 1994; P.A. 98-80 amended Subsec. (a) to insert designators (1), (2), (A) and (B), to require notice of cancellation
based on nonpayment of the first premium on a new policy to be at least 15 days, retaining 10 days' notice for other reasons,
and to allow notice of cancellation for nonpayment of first premium on a new policy to be retroactive to the effective date
of the policy, provided 15 days' notice is given and no payment is received; P.A. 02-60 added references to a third party
designated pursuant to Sec. 38a-323, substituted "for cancellation" for "thereof", "the insured's" for "his" and "provided"
for "provided that" and, in Subsec. (b)(4), inserted a comma; P.A. 04-10 made a technical change in Subsec. (a); P.A. 05-282 amended Subsec. (b) by changing "will" to "may" and "will cancel" to "may suspend", replacing provision re operation
of unregistered motor vehicle with provision re operating a motor vehicle with a suspended registration, replacing provision
re payment of fees for restoration, confiscation and posting of financial responsibility for one year with provision making
restoration of registration or new or renewal registration contingent upon presentation to Commissioner of Motor Vehicles
of evidence of required security or coverage and entering into consent agreement as provided in Sec. 14-12g; P.A. 06-109
amended Subsec. (c) to provide that section shall not apply if private passenger motor vehicle liability insurance policy is
transferred from insurer to affiliate of insurer for another policy.
Annotations to former section 38-175h:
Cited. 160 C. 280. Regulations under this statute make "other insurance" clauses in conflict with the regulations. 161
C. 169.
Cited. 25 CA 95. Cited. 42 CA 177.
Cited. 39 CS 206.
Subsec. (a):
Cited. 1 CA 409.
Annotations to present section:
Cited. 234 C. 182. Cited. 240 C. 86.
Cited. 25 CA 95; Id., 492. Cited. 42 CA 177. Cancellation provisions discussed. 52 CA 497.
Subsec. (a):
Statute only requires certificate of mailing as proof of mailing cancellation notice and does not require firsthand testimony verifying actual delivery to post office, or proof of actual delivery to insured. 275 C. 408.