New bill lets military members retain car insuranc …

New bill lets military members retain car insuranc …

Military members and their families will be able to keep their existing motor insurance policies when they move from one state to another under a new bill that has just been introduced to Congress by Representative Ed Royce and Representative Tammy Duckworth.

Royce, who is a senior member with the House Financial Services Committee, and Duckworth, who is a House Armed Services Committee member and a veteran of the war in Iraq, introduced the Servicemembers Insurance Relief Act to Congress and it is anticipated that the act will be referred to the House Financial Services Committee.  The aim of the bill is to allow the state-based insurance regulatory system to be more accommodating to service members, who under existing rules have to change their motor vehicle insurance policies every time they make a military move across state lines.

The Federal Insurance Office (FIO) issued a report in December last year on the modernizing of insurance regulations, linking the problem the military is faced with to an overall lack of uniformity when it comes to the insurance products approved at state level.  The FIO intends to work with the industry and with states to make it simpler for service members who move across state lines to keep their insurance, perhaps creating a common motor insurance form that would be recognized by all states to be used by active service members.

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