American Insurance Association testifies against Connecticut

Copyright 2009 HT Media Ltd.All Rights Reserved Targeted News Service

5 February 2009 Thursday 11:06 PM EST

LENGTH: 365 words


TITLE: American Insurance Association testifies against Connecticut Senate Bill 291

Signature: Targeted News Service

DATELINE: HARTFORD, Conn.



The American Insurance Association has issued the following communiqué:

The American Insurance Association (AIA) presented testimony today in opposition to Connecticut Senate Bill 291, An Act respecting owners' insurance policies for people who own dogs have bitten a person. According to the AIA, the bill that would prohibit insurers from refusing to issue insurance policies for personal risk homeowners who have a dog that has bitten a person, is unfair to both policyholders and insurers.

"Connecticut home insurance market is vast and diverse, and insurers do not all have the same appetite for risk and underwriting guidelines regarding dogs," said Laura Kersey, AIA Northern Region Assistant Vice President. "Although some insurers do not subscribe May an owner who has a dog that has bitten a person, other insurers in May to be ready to write such a risk."

In addition, it is virtually impossible for an insurer to collect enough premiums from the owner of a dangerous dog to cover the probable risk of loss. "This means that owners and dog owners, without the safety of dogs end up subsidizing the premiums for owners of dangerous dogs and probably pay more for their homeowners insurance," said Kersey. "This is an unjust result for homeowners in Connecticut, particularly in the current economic environment."

An analysis by the Insurance Information Institute (III) found that many accidents insurers paid about $ 356.2 million in 2007 for dog bite claims, which represented one third of the total number of owners liability insurance. In 2007, the average cost to settle a dog bite claim was $ 24,500 more. Since 2003, the cost of these claims has risen nearly 28 percent.

Senate Bill 291 is bad public policy at a time when insurers need the flexibility of subscription in order to maintain the availability of homeowners insurance, "said Kersey.

The testimony was presented at a hearing before the Insurance and Real Estate Committee.

Member companies of the AIA to write more than 40 percent of homeowners insurance market in Connecticut.

Contact: Brianne Mallaghan, 617/305-4155

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