Substitute House Bill No. 6981, also known as Public Act No. 25-87, modernizes the electronic delivery of insurance documents and the cancellation processes for property and casualty insurance policies, effective October 1, 2025. The bill allows insurers to post policies and endorsements on their websites instead of mailing them, provided they do not contain personally identifiable information, and requires insurers to obtain consent from the insured for electronic delivery. Insurers must also retain records of expired policies for five years and offer options for insured individuals to request paper copies or opt out of electronic delivery. Additionally, the bill amends health insurance communication delivery, allowing plan sponsors to consent to electronic delivery on behalf of covered individuals, and updates proof of mailing requirements for cancellation notices.

The bill further revises existing laws regarding the cancellation of homeowners and automobile insurance policies, mandating written notice of cancellation to be sent via the United States Postal Service's intelligent mail barcode tracking method or electronically if agreed upon. It clarifies that policies can only be canceled for specific reasons, such as nonpayment of premium or fraud, and allows named insured individuals to cancel their policies at any time with written notice. The legislation also introduces provisions for third-party designations for receiving cancellation notices, requires at least sixty days' advance notice for nonrenewals, and establishes new definitions and amendments related to the regulation of insurance companies in Connecticut. Overall, the bill aims to enhance consumer protections and modernize communication methods between insurers and insured individuals while ensuring fair notice periods for policy cancellations.

Statutes affected:
Raised Bill:
INS Joint Favorable Substitute:
File No. 314:
File No. 925:
Public Act No. 25-87: