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Abstract

Recent criticism of automobile liability insurance practices, in particular the cancellation of policies, led to the enactment of federal legislation authorizing the Secretary of Transportation to conduct a two year comprehensive study of that industry. Such a study may well recommend federal regulation of automobile insurance in a sharp break with the tradition of state regulation. The states, however, have not been entirely unresponsive and several have recently enacted restrictive statutes aimed at correcting the problems raised by cancellation practices. The present comment is a survey, grouping, and analysis of the major types of state legislation addressing the problem of cancellation and presents recommended steps which could be taken to correct the weaknesses of such statutes.

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