ShareThisNAMIC Calls Utah’s Legislative Session ‘A Glass Half Full’
INDIANAPOLIS (March 24, 2005)—A glass half full in Utah is much preferred to one that is empty, according to the National Association of Mutual Insurance Companies (NAMIC). Western Region State Affairs Manager Christian Rataj said that his organization is pleased that the Utah Legislature’s 2005 property/casualty approved legislation contains some elements sought by NAMIC member companies.
“The Legislature adopted industry supported amendments to its insurance cancellation and nonrenewal restrictions bill,” Rataj continued. “The Legislature also took a reasoned approach in the area of uninsured motorist property damage coverage.”
While the Insurance Cancellation and Nonrenewal Restrictions Bill, SB 48, places new restrictions on underwriting freedom, NAMIC applauds the Utah Legislature for adopting several insurance industry supported amendments that ameliorated some of the onerous provisions of the new restrictions on insurance cancellation and nonrenewal. SB 48 would prohibit cancellation or nonrenewal of motor vehicle or homeowner’s policies based solely on specified circumstances.
NAMIC generally opposes legislation mandating insurance coverages because it is contrary to the concept of underwriting freedom. However, SB 4 takes a reasoned approach to the new mandate that uninsured motorist property damage coverage UMPD coverage must be provided to insurance consumers by:
- allowing for a reasonable damage limit for the policy;
- preventing claims for loss of use of the vehicle;
- requiring the insured to provide the license plate number of the uninsured motor vehicle; and
- requiring the insured to report the occurrence within 10 days of the accident to the insurer.
SB 4 allows an insurer to offer additional uninsured motorist property damage coverages at appropriate premium rates.
A complete list and description of Utah’s 2005 property/casualty approved legislation can be read on NAMIC’s website, NAMIC Online.
Posted: Thursday, March 24, 2005 12:00:00 AM. Modified: Thursday, March 24, 2005 12:42:45 PM.
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