[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4669 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4669
To allow servicemembers to maintain their domicile for auto insurance
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 19, 2014
Mr. Royce (for himself and Ms. Duckworth) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To allow servicemembers to maintain their domicile for auto insurance
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Servicemembers Insurance Relief Act
of 2014''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds the following:
(1) When servicemembers move from one State to another they
are required to go through a burdensome process of changing
their auto insurance policies.
(2) The Servicemembers Civil Relief Act (50 U.S.C. App. 501
et seq.) allows the men and women serving in the United States
Armed Forces to keep a stable domicile with respect to auto
licensing and fees even if they are forced to move temporarily
in compliance with military orders.
(3) The Federal Insurance Office of the U.S. Department of
the Treasury, in its report of December 12, 2013, on how to
modernize and improve the system of insurance regulation in the
United States, found that ``an individual on active duty can
transfer credit cards, checking accounts, and other financial
services simply by submitting a change of address form. By
contrast, an individual moving from one state to another may be
required to obtain a new auto insurance policy on each
transfer''. Furthermore the report called on interested parties
``to identify a more accommodating approach for service members
who have personal auto policies and are required to move across
state lines''.
(4) Relief should be provided with respect to auto
insurance policies for servicemembers and their families that
are required to move in compliance with any temporary duty or
permanent change of station order.
(b) Purpose.--The purpose of this Act is to reduce the burdens and
increase the protections involved in changing auto insurance policies
for servicemembers and their families who are required to move in
compliance with a temporary duty or permanent change of station order.
SEC. 3. MAINTENANCE OF DOMICILE FOR INSURANCE PURPOSES.
(a) In General.--A member of a household of a servicemember shall
neither lose nor acquire a residence or domicile for purposes of
insuring a motor vehicle used primarily for personal, family, or
household use if--
(1) in the case of a member of the household who is a
servicemember, such servicemember has temporarily moved to
comply with any temporary duty or permanent change of station
order; or
(2) in the case of any other member of the household, such
member has temporarily moved to accompany a servicemember of
such household who is complying with any temporary duty or
permanent change of station order.
(b) Notice.--
(1) Requirement.--If a member of a household of a
servicemember notifies an insurer of a motor vehicle of such
member of a move referred to in subsection (a), such insurer
shall provide such member with a servicemembers insurance
choice notice under paragraph (2).
(2) Servicemembers insurance choice notice.--The Director
of the Federal Insurance Office of the Department of the
Treasury shall promulgate, in compliance with the rulemaking
requirements of subchapter II of chapter 5 of title 5, United
States Code (commonly known as the Administrative Procedure
Act)--
(A) a standard servicemembers insurance choice
notice that shall--
(i) summarize clearly and in plain language
the right of servicemembers and members of
their households, in addition to options
available under current law, to continue an
existing auto insurance policy as allowed by
the insurer with appropriate adjustments that
relate only to location risk factors;
(ii) include language notifying the
servicemember that the insurer to whom the
servicemember provided the notice of a move
shall explain the coverage options available to
the servicemember as a result of the move; and
(iii) include standard language that
requires no alterations or additions for an
insurer providing the notice to be fully in
compliance with paragraph (1); and
(B) standards regarding methods for transmittal of
such notice to a member of a household of a
servicemember that are sufficient to comply with
paragraph (1).
(3) Safe harbor.--Paragraph (1) may not be construed to
impose any duty on an insurer who is notified of a move
referred to in subsection (a) to determine whether the person
providing such notice is a servicemember.
(c) Limitations.--Nothing in this section shall be construed to--
(1) require a person to maintain an existing auto insurance
policy;
(2) allow an insurer to impose any penalties against a
member of a household of a servicemember based solely on a
decision to maintain or not maintain an existing auto insurance
policy, as allowed by the insurer with appropriate adjustments
that relate only to location risk factors; or
(3) require an insurer to continue providing coverage to
such a member.
(d) Preemption.--The provisions of this Act shall supersede any and
all State or local laws that conflict with this Act, including--
(1) any State or local law that requires a member of a
household of a servicemember to change the auto insurance
policy of such member;
(2) any State or local law that seeks to assert control
over the regulation of such policy other than by the State in
which the auto insurance policy was issued or renewed; and
(3) any State or local law regarding proof of insurance
that prohibits the electronic delivery of insurance documents.
(e) Liability Limits.--Notwithstanding subsection (d)(2), the
minimum security requirements for motor vehicles of the State where a
servicemember resides shall apply to an auto insurance policy of a
member of such servicemember's household.
(f) Enforcement.--Authority to examine and enforce insurer
compliance with the provisions of this Act shall be held by the State
in which the auto insurance policy was issued or renewed.
SEC. 4. DEFINITIONS.
In this Act:
(a) Member of a Household.--The term ``member of a household''
means, with respect to a servicemember--
(1) the servicemember;
(2) the spouse of the servicemember; or
(3) any dependent residing with the servicemember or the
spouse of the servicemember.
(b) Motor Vehicle.--The term ``motor vehicle'' has the meaning
given the term in section 30102(a)(6) of title 49, United States Code.
(c) Servicemember.--The term ``servicemember'' means a member of
the uniformed services, as such term is defined in section 101(a) of
title 10, United States Code, or of the National Guard or the reserve
components thereof.
(d) State.--The term ``State'' means each of the several States of
the United States, the District of Columbia, and any commonwealth,
territory, or possession of the United States.
(e) Temporarily Moved.--The term ``temporarily moved'' means, with
respect to a person, that the person has moved from one State to
another but has not decided to reside indefinitely in the State to
which such person moved.
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