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SB 2417

Automobile insurance; require reinstatement of policy where insurer fails to provide proper notice and insured pays premiums.

2025 Regular Session Introduced by Mike Seymour

SB 2417: Automobile Insurance Reinstatement Act OverviewBill Number: SB 2417 Title: Automobile insurance; require reinstatement of policy where insurer fails to provide proper not

Died In Committee
#insurance
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Bill Summary · SB 2417

SB 2417: Automobile Insurance Reinstatement Act

Overview

Bill Number: SB 2417
Title: Automobile insurance; require reinstatement of policy where insurer fails to provide proper notice and insured pays premiums.
Status: Died In Committee
Introduced: March 12, 2025

Purpose and Intent

The primary goal of SB 2417 is to protect automobile insurance policyholders by requiring insurers to reinstate coverage in cases where the insurer failed to provide proper notice of policy cancellation and the policyholder has continued to pay their premiums. This legislation aims to address situations where policyholders unknowingly have their coverage lapsed due to inadequate notification from their insurance provider.

Key Provisions

  • Requires automobile insurance providers to reinstate a policy if the insurer failed to provide the policyholder with proper written notice of cancellation or non-renewal, as defined by state law.
  • Mandates that the policy be reinstated retroactively to the date of the purported cancellation or non-renewal, as long as the policyholder has continued to pay their premiums.
  • Prohibits insurers from charging any reinstatement fees or requiring the policyholder to reapply for coverage.
  • Establishes a grace period of 30 days for the insurer to provide the required cancellation notice before the policy must be reinstated.

Affected Parties and Impacts

This bill would primarily impact automobile insurance policyholders who have experienced a lapse in coverage due to inadequate notice from their insurance provider. It aims to ensure that responsible policyholders who have continued to pay their premiums are not unfairly penalized by unilateral policy cancellations. Automobile insurance companies would be required to reinstate coverage in these situations, which could result in some administrative and financial impacts.

Procedural and Timeline Considerations

SB 2417 was introduced in the state legislature on March 12, 2025 but ultimately died in committee without receiving a full vote. The bill did not advance further in the legislative process. As it stands, the proposed changes to automobile insurance reinstatement requirements were not enacted into law.

Compiled from official sources — confirm details with the bill’s official record.

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