House Republican Press Release

July 3, 2007

Press Office: 860-240-8700

Marilyn Giuliano Applauds New Law on Storm Shutters

Governor Signs Legislation Prohibiting Insurance Companies from Dropping Homeowners for Not Installing Permanent Storm Shutters to Protect against Hurricanes

A new state law, cosponsored by state Rep. Marilyn Giuliano, R-23, Lyme, Old Lyme, Old Saybrook, Westbrook, will prevent insurance companies from refusing to insure homes without permanent storm shutters.

Instead, the legislation requires insurers to provide a discount to homeowners who install permanent storm shutters or impact resistant glass to minimize loss from hurricanes or other severe storms.

These provisions of the new law took effect July 1, 2007. Governor M. Jodi Rell signed the legislation into law recently in a public ceremony.

The law also will help coastal home owners who are having difficulty buying insurance find an insurance company that will cover their homes.

“This is good news for home owners in coastal towns,” said Rep. Giuliano. “Some insurance companies were threatening not to write insurance or renew policies unless people installed storm-resistant shutter or high-impact glass.”

“Cutting off someone’s home insurance is too drastic,” said Rep. Giuliano. “This legislation will create other options and give homeowners incentives to secure their homes against hurricanes and other severe storms.”

 The legislation, HB 7300:

1. prohibits an insurer from refusing to issue or renew a homeowners insurance policy solely because a person has not installed permanent storm shutters on his or her home to mitigate loss from hurricanes and other severe storms;

2. requires an insurer, starting January 1, 2008, to offer an actuarially sound premium discount to homeowners who install permanent storm shutters or impact-resistant glass to mitigate loss from hurricanes and other severe storms;

3. authorizes the insurance commissioner to establish and adopt regulations for a Coastal Market Assistance Program (CMAP) to help coastal-area residents obtain homeowners insurance;

4. permits the commissioner to require an insurer that does not issue or renew a homeowners policy to tell the homeowner in writing about CMAP; and

5. includes certain owners of mobile dwellings as homeowners for purposes of its provisions.

In applying its requirements, the law includes as a homeowner a person who owns and occupies a mobile dwelling that is (1) equipped for year-round living, (2) permanently attached to a foundation on property the person owns or leases, (3) connected to utilities, (4) assessed as real property for tax purposes, and (5) in conformance with state and local laws and ordinances.

Under the law, the purpose of CMAP is to help homeowners find insurance for residential dwellings located near the state's coastal area. The bill permits CMAP to consist of a voluntary network of participating insurers and insurance producers that operates under the insurance commissioner's guidance to assist homeowners. It permits the commissioner to adopt implementing regulations.

Rep. Giuliano serves the 23^rd Assembly District of Lyme, Old Lyme, Old Saybrook and Westbrook in the state House of Representatives.