A bill in the House of Representatives would allow military personnel keep their auto insurance when they move from state to state transferring to new bases.  Reps. Ed Royce, R-Calif. and Tammy Duckworth, D-Ill., introduced the bill, the Servicemembers Insurance Relief Act (H.R. 4669) Monday in the House.  Royce said that he wanted to introduce the bill because it makes it an easier transition on the military and their families when they are having to move from base to base.

The bill will allow all of the military, including the Reserves and the National Guard, to keep their current insurance policies when they receive Temporary Duty Assignment orders or Permanent Change of Station orders.   USAA immediately supported the bill.

The president and CEO of Insurance Information Institute, Robert Hartman, says that he feels that the state insurance regulators would also support this bill.   “I think no one wants roadblocks to exist in the path of servicemembers who are frequently transferred from one state to another,” he said.

The bill would require insurance companies who are notified of a military customer’s orders to move to let the servicemember know that they can keep the same policy or they can seek a new one.  The insurance companies would, however, be allowed to make ratings adjustments to the policy for things such as risk factors if the new location has a higher risk of auto theft, for example.

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