The Utah Legislature concluded its annual 45-day session March 1 with generally favorable results for the property/casualty insurance industry.

For the second year in a row, Utah state Rep. Doug Welton filed a bad faith bill to apply to all lines of insurance, including property/casualty. HB 179 was later amended to apply only to homeowners insurance but mandated that an insured was entitled to reasonable attorney’s fees and double the amount of the claim if a court found the insurer unreasonably delayed or unreasonably denied a claim. In the end, it died in the House Business & Labor Committee.

Another positive development was SB 31, the Utah Insurance Department’s omnibus bill. It enables insurers to deliver policy documents by electronic means as a default with plentiful options for policyholders to opt out and choose paper delivery. The department’s bill also did not include language that would have placed onerous conditions on insurers that provide substitute transportation in third-party claims. That language was removed and, instead, will likely be addressed by rule.

Other bills that passed or were killed include:

  • H.B. 268Punitive Damage Amendments
    • This bill would have allowed plaintiffs to keep all punitive damage awards rather than splitting them with the state, which is current law.
    • Did not pass.
  • H.B. 537Counterfeit Airbag Amendments
    • Established penalties for actions involving a counterfeit or nonfunctional airbag.
    • Passed.
  • S.B. 193 SubstituteArbitration Amendments
    • This bill made changes to the use of arbitration in cases involving a third-party motor vehicle accident. It raised arbitration award cap from $50,000 to the lesser of policy limits or $75,000 and other modifications.
    • Passed.
  • H.B. 437 Third SubstituteFire Amendments
    • Among other things, this positive bill modified definitions related to the State Appropriations and Tax Limitation Act and the Wildland-Urban Interface Prevention, Preparedness, and Mitigation Fund. Go to Utah WRAP through the Division of Forestry website to look at the Risk Assessment Mapping Tool.
    • Passed.
  • H.B. 342Electronic Information Privacy Amendments
    • This bill modified provisions dealing with consumers’ personal information, including the Consumer Protection Act. It included a Gramm-Leach Bliley Act exemption and carved out insurers but added a private right of action. Industry opposed it.
    • Did not pass.
  • H.B. 231 SubstituteMotor Vehicle Insurance Modifications
    • This bill clarifies that certain workers’ compensation benefits do not need to be exhausted before uninsured or underinsured motorist coverage can be paid. It guaranteed no “double-dipping” of benefits.
    • Passed.
  • H.B. 368 SubstitutePresumption of Workers’ Compensation Benefits for Law Enforcement Officers
    • For law enforcement officers, this bill provided a rebuttable presumption that an injury arose out of and in the course of employment if a law enforcement officer is injured while engaging in duties as a law enforcement officer pursuant to the officer’s employment.
    • Did not pass.
Post Details

Publish Date

March 5, 2024

News Type

  • State of the States

Topics

  • Utah

Points of Contact
ward tisdale
Ward Tisdale
Regional Vice President, Southwest