The Connecticut Insurance Department has reminded automobile insurers that they may not deny reinstatement, refuse to write, or raise premium rates for members of the Armed Forces returning from active duty.
At the urging of the National Association of Professional Insurance Agents (PIA), other states have taken similar measures.
There have been no reported instances of U.S. service personnel having difficulty finding auto insurance in Connecticut, but the insurance department said it wants to ensure that the problem does not occur.
“We have heard from other states that service personnel have had a difficult time reinstating their insurance when they return home,” stated Commissioner Susan F. Cogswell. “We want to make sure that service personnel returning to their homes in Connecticut never have to face the difficulty of reinstating their auto insurance. This is a small issue for companies, but a large issue for these service men and women. It is the last thing that they should have to worry about.”
In some cases, service personnel discontinue their automobile insurance coverage while in active military duty overseas. Underwriting and rating standards appropriately take into consideration continuous insurance coverage of applicants. In the case of members of the armed services on active duty, however, those underwriting requirements are inappropriate and should be waived.