S.B. 171 Enrolled

HOMEOWNER'S INSURANCE
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Millie M. Peterson
AN ACT RELATING TO INSURANCE; REQUIRING AN INSURER TO ADOPT CERTAIN
INTERNAL PROCEDURES IF IT USES CONSUMER REPORTS IN UNDERWRITING
HOMEOWNER'S INSURANCE.
This act affects sections of Utah Code Annotated 1953 as follows:
ENACTS:
31A-22-1307, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 31A-22-1307 is enacted to read:
31A-22-1307. Use of consumer reports by residential dwelling liability insurers.
(1) An insurer who uses consumer reports in connection with the underwriting of
residential dwelling liability insurance shall establish and adhere to written procedures that:
(a) identify the circumstances under which the insurer may request and the manner in
which it will use consumer reports in its underwriting decisions;
(b) provide prior notice of the possible or intended use of a consumer report to an applicant
for a residential liability insurance policy; and
(c) ensure compliance with the Consumer Credit Reporting Act, 15 U.S.C. Sec. 1681 et
seq., including the duties that arise from taking adverse action based on information contained in
a consumer report.
(2) An insurer that requests or uses a consumer report in connection with an application
for a residential dwelling liability insurance policy shall maintain evidence of its compliance with
the written procedures established by the insurer under Subsection (1).
(3) An insurer shall submit to the commissioner, upon request, evidence of compliance
maintained in accordance with Subsection (2).
(4) As used in this section, the terms "consumer report" and "adverse action" are defined
in 15 U.S.C. Sec. 1681a.

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