Section 1. Section 31A-28-301 is enacted to read:3. Access to Insurance Requirements Plan Act31A-28-301. Definitions.As used in this part:(1)"Association" means the Access to Insurance Plan Association created in Section 31A-28-302.(2)"Board" means the board described in Section 31A-28-303.(3)(a)"Commercial property insurance" means insurance against direct loss to commercial real property, including buildings and contents, resulting from fire, extended coverage perils, vandalism, or malicious mischief.(b)"Commercial property insurance" does not include commercial automobile insurance or farm risks.(4)"Member insurer" means an admitted insurer that writes property insurance in this state.(5)"Plan" means the residual market property insurance plan established under Section 31A-28-304.(6)(a)"Property insurance" means insurance against direct loss to residential real property, including buildings and contents, resulting from fire, extended coverage perils, vandalism, or malicious mischief.(b)"Property insurance" does not include automobile insurance or farm risks.

Section 2. Section 31A-28-302 is enacted to read:31A-28-302. Access to Insurance Plan Association.(1)There is created an independent state agency known as the Access to Insurance Plan Association.(2)Each member insurer shall participate in the association as a condition of the member insurer's authority to transact property insurance business in this state.(3)The association shall:(a)operate the plan in accordance with this part;(b)establish, offer, and maintain property insurance and commercial property insurance policies that comply with this part;(c)equitably apportion expenses, income, and losses among member insurers in proportion to each member insurer's direct written premiums for property insurance in this state; and(d)maintain a public website that provides information about the plan and includes a toll-free telephone number.(4)The association may:(a)issue policies under the plan;(b)purchase reinsurance; and(c)transfer risk to the capital markets.

Section 3. Section 31A-28-303 is enacted to read:31A-28-303. Board -- Appointment -- Terms -- Vacancies -- Reports.(1)The board governs the association and administers the plan.(2)The governor shall appoint the board as follows:(a)two members representing mutual corporations writing property insurance in this state;(b)two members representing stock corporations writing property insurance in this state;(c)one member representing a statewide insurance trade organization that represents insurers writing property insurance in this state;(d)one member representing a statewide insurance trade organization that represents insurance producers in this state;(e)one member licensed as an individual producer under Title 31A, Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries, with the property line of authority; and(f)two members representing consumer interests.(3)A board member:(a)serves a three-year term;(b)serves at the pleasure of the governor; and(c)may serve no more than four terms.(4)At the time of appointment, the governor shall adjust the length of terms to ensure that the terms of board members are staggered so that approximately one-third of the members are appointed every year.(5)If a vacancy occurs, the governor shall appoint a replacement to serve the remainder of the unexpired term.(6)On or before April 1 of each year, the board shall submit to the commissioner a report that includes:(a)the financial condition of the plan;(b)the number of policies in force and available coverages;(c)the number and type of claims; and(d)an evaluation of solvency and coverage sufficiency.(7)The commissioner may require the board to submit quarterly reports or may examine the affairs of the association if the commissioner determines that such action is necessary to ensure the continued solvency of the plan.

Section 4. Section 31A-28-304 is enacted to read:31A-28-304. Establishment -- Rates.(1)The board shall establish the plan.(2)The plan shall comply with this part and rules the commissioner makes under this part.(3)Rates for the plan:(a)may not be excessive, inadequate, or unfairly discriminatory;(b)shall be actuarially sound;(c)shall reflect investment income; and(d)shall reflect reinsurance and risk transfer costs.(4)The association shall file rates in accordance with this chapter.

Section 5. Section 31A-28-305 is enacted to read:31A-28-305. Plan of operation -- Contents -- Commissioner review.(1)The board shall submit a plan of operation to the commissioner for approval.(2)The plan of operation shall include:(a)lines of coverage;(b)coverage limits;(c)policy forms;(d)covered perils;(e)underwriting standards, including mitigation and inspection requirements;(f)producer compensation;(g)assessment methodology;(h)administrative procedures; and(i)any other matter necessary to assure access to a plan.(3)The plan and amendments become effective upon the commissioner's written approval.(4)If the board fails to submit or maintain a compliant plan, the commissioner may adopt rules necessary to implement this part.(5)The commissioner may revoke approval of a plan after notice and opportunity for hearing and may require revisions.

Section 6. Section 31A-28-306 is enacted to read:31A-28-306. Licensed producers -- Required declinations.(1)The association may issue a plan policy only through a licensed producer.(2)A producer shall submit evidence that at least three admitted insurers declined coverage for the risk before the association issues a policy.

Section 7. Section 31A-28-307 is enacted to read:31A-28-307. Assessments.(1)The association may assess member insurers to:(a)fund startup costs; and(b)meet financial obligations.(2)The association shall allocate assessments in proportion to each member insurer's direct written premiums for property insurance in this state.(3)A member insurer may recover an assessment through a surcharge to policyholders.(4)An insurer may not increase base premium rates solely due to an assessment.(5)An assessment is not premium for purposes of Title 59, Chapter 9, Taxation of Admitted Insurers, or producer commission calculations.(6)The board may defer or abate an assessment if payment would impair a member insurer's solvency.(7)The association shall reallocate a deferred or abated amount among other member insurers.(8)If the commissioner determines that the association is or may become unable to meet the association's financial obligations, the commissioner shall direct the board to collect fees in accordance with Subsection (1).

Section 8. Section 31A-28-308 is enacted to read:31A-28-308. Enforcement.(1)After notice and hearing, the commissioner may suspend or revoke the certificate of authority of a member insurer that fails to comply with this part or the plan of operation.(2)As an alternative to a suspension or revocation, the commissioner may impose an administrative fine equal to the greater of:(a)the unpaid assessment plus interest and enforcement costs; or(b)$5,000.

Section 9. Section 31A-28-309 is enacted to read:31A-28-309. Judicial review.A final order issued under this part is subject to judicial review in accordance with Title 63G, Chapter 4, Administrative Procedures Act.

Section 10. Section 31A-28-310 is enacted to read:31A-28-310. Rulemaking.The commissioner may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this part.

Section 11. Section 63E-1-102 is amended to read:63E-1-102. Definitions -- List of independent entities.As used in this title:(1)"Authorizing statute" means the statute creating an entity as an independent entity.(2)"Committee" means the Retirement and Independent Entities Committee created by Section 63E-1-201.(3)"Independent corporation" means a corporation incorporated in accordance with Chapter 2, Independent Corporations Act.(4)(a)"Independent entity" means an entity having a public purpose relating to the state or its citizens that is individually created by the state or is given by the state the right to exist and conduct its affairs as an:(i)independent state agency; or(ii)independent corporation.(b)For purposes of this title, the independent entities are the:(i)Utah Beef Council, created by Section 4-21-103;(ii)Utah Dairy Commission, created by Section 4-22-103;(iii)Heber Valley Historic Railroad Authority, created by Section 63H-4-102;(iv)Utah Housing Corporation, created by Section 63H-8-201;(v)Utah State Retirement Office, created by Section 49-11-201;(vi)School and Institutional Trust Lands Administration, created by Section 53C-1-201;(vii)School and Institutional Trust Fund Office, created by Section 53D-1-201;(viii)Utah Communications Authority, created by Section 63H-7a-201;(ix)Utah Capital Investment Corporation, created by Section 63N-6-301;(x)Military Installation Development Authority, created by Section 63H-1-201; and(xi)Public Service Commission of Utah, created by Section 54-1-1.; and(xii)Access to Insurance Plan Association, created by Section 31A-28-302.(c)Notwithstanding this Subsection (4), "independent entity" does not include:(i)an institution within the state system of higher education;(ii)a city, county, or town;(iii)a local school district;(iv)a special district under Title 17B, Limited Purpose Local Government Entities - Special Districts; or(v)a special service district under Title 17D, Chapter 1, Special Service District Act.(5)"Independent state agency" means an entity that is created by the state, but is independent of the governor's direct supervisory control.(6)"Money held in trust" means money maintained for the benefit of:(a)one or more private individuals, including public employees;(b)one or more public or private entities; or(c)the owners of a quasi-public corporation.(7)"Public corporation" means an artificial person, public in ownership, individually created by the state as a body politic and corporate for the administration of a public purpose relating to the state or its citizens.(8)"Quasi-public corporation" means an artificial person, private in ownership, individually created as a corporation by the state, which has accepted from the state the grant of a franchise or contract involving the performance of a public purpose relating to the state or its citizens.

Section 12. Effective Date.This bill takes effect on May 6, 2026.