S.B. 44

1

MOTOR VEHICLE INSURANCE - TRANSFER OF AGENT
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Joseph L. Hull
5 AN ACT RELATING TO INSURANCE; ALLOWING AN INSURED TO MAINTAIN AN
6 EXISTING MOTOR VEHICLE INSURANCE POLICY WHEN THE INSURED'S AGENT
7 OR BROKER IS NO LONGER APPOINTED BY AND THE INSURER.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 ENACTS:
10 31A-22-320, Utah Code Annotated 1953
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 31A-22-320 is enacted to read:
13 31A-22-320. Continuation of policy after relationship with agent or broker is
14 terminated.
15 If an insured is covered by a motor vehicle policy obtained through an agent or broker who
16 ceases to be appointed by the insurer and the insurer continues to offer motor vehicle policies
17 within the state through other agents or brokers, the insurer shall, without altering the terms, level
18 of coverage, or premium of the insured's existing motor vehicle policy:
19 (1) transfer the insured's policy to another agent or broker in the state whose place of
20 business, if possible, is in the general proximity of the insured's mailing address; and
21 (2) provide to the insured in writing:
22 (a) notice of:
23 (i) the cessation of the insured's agent or broker's appointment; and
24 (ii) the transfer of the insured's policy to another agent or broker;
25 (b) a list of agents and brokers who are currently appointed by the insurer; and
26 (c) the right, within 30 days of this notice being sent, to:
27 (i) select an agent or broker listed under Subsection (2)(b) in place of the agent or broker

1 to whom the policy was transferred; or
2 (ii) cancel the policy.




Legislative Review Note
as of 12-31-96 9:14 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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