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Connecticut Bill Makes Disaster Cancellations Illegal

Connecticut Gov. Dannel Malloy is expected to a sign a bill that would make it illegal for home insurers to turn down or cancel coverage — or refuse to renew a policy — based solely on losses from a tropical storm or other disaster...
June 5, 2013

Connecticut Gov. Dannel Malloy is expected to a sign a bill that would make it illegal for home insurers to turn down or cancel coverage — or refuse to renew a policy — based solely on losses from a tropical storm or other disaster. Malloy supports the bill, as does the state Insurance Department, which regulates the property insurance industry. The legislation also forbids an insurer from canceling or not renewing a homeowners policy — or raising a premium — solely because a policyholder inquired about the policy. The same applies if the insurer makes a payment of less than $500.

An official from the state Insurance Department said an insurer can still cancel or non-renew coverage for other reasons, such as the home has damage that has not been fixed, or if the insurer finds the electric wiring is outdated.

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