Servicemembers Insurance Relief Act of 2014

To allow servicemembers to maintain their domicile for auto insurance purposes. 1. Short title This Act may be cited as the Servicemembers Insurance Relief Act of 2014 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 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. 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. 4. Definitions In this Act: (a) Member of a household The term member of a household (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 section 30102(a)(6) (c) Servicemember The term servicemember section 101(a) (d) State The term State (e) Temporarily moved The term temporarily moved

Summary: Servicemembers Insurance Relief Act of 2014 - Declares that a member of a servicemember's household neither loses nor acquires a residence or domicile for purposes of insuring a motor vehicle primarily for personal, family, or household use if: (1) the servicemember has temporarily moved to comply with any temporary duty or permanent change of station order, or (2) the member of the household has temporarily moved to accompany a servicemember who is complying with such an order. Defines: (1) "servicemember" as a member of the uniformed services, the National Guard, or reserve components; and (2) "member of a household" as the servicemember, the spouse of a servicemember, or any dependent residing with such a servicemember or a servicemember's spouse. Requires insurers to provide a member of a servicemember's household with a servicemembers insurance choice notice if a household member notifies the insurer of such a move. Directs the Federal Insurance Office of the Department of the Treasury to promulgate a standard servicemembers insurance choice notice that: (1) summarizes 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; (2) notifies the servicemember that the insurer will explain the coverage options available to the servicemember as a result of the move; and (3) requires no alterations or additions for an insurer to be in compliance with such notification requirements. Prohibits this Act from requiring an insurer to continue providing coverage to such a member. Provides enforcement authority to the states in which the relevant auto insurance policy was issued or renewed.