Volume 2 Number 48
November 28, 2005

Consumer Services HelpLine Number 800-342-2762


The next Standard Personal Line Advisory Committee meeting, originally scheduled for December 6, has been re-scheduled. The meeting will be held on Tuesday, December 13, 2005, in Room 309 in the Capitol from 10:00 a.m. until 4:00 p.m.

CFO Tom Gallagher has appointed an advisory committee to develop standard personal lines policies to submit to the Legislature by January 15, 2006. Insurers would not be required to offer a standard policy unless required by further act of the Legislature.  The advisory committee consists of two representatives selling personal lines residential property insurance coverage, two representatives of property and casualty agents, two representatives of consumers, two representatives of the commissioner of insurance regulation, and the insurance consumer advocate.

The committee is developing policy language for coverage that represents general industry standards in the market for comprehensive coverage under personal lines residential insurance policies and is developing a checklist to be used with each type of personal lines residential property insurance policy. In addition, it will review policies and related forms written by Insurance Services Office, Inc., and file a report containing its recommendations to the President of the Senate and the Speaker of the House of Representatives by January 15, 2006.

The committee's task is to ensure that these policies and checklists are written in a simple format with easily readable language that will enable most consumers to understand the principal benefits and coverage provided in the policy; the principal exclusions and limitations or reductions contained in the policy, including but not limited to, deductibles, coinsurance, and any other limitation or reductions; and any additional coverage provided through any rider or endorsement that accompanies the policy and renewal or cancellation provisions.