H.B. 427

1

DEPOSITORY INSTITUTIONS INSURANCE
2 POWERS
3 1998 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: John L. Valentine
6 AN ACT RELATING TO DEPOSITORY INSTITUTIONS; PERMITTING DEPOSITORY
7 INSTITUTIONS TO ENGAGE IN INSURANCE ACTIVITIES h ; AND PROVIDING A
7a COORDINATION CLAUSE h .
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 ENACTS:
10 7-1-901, Utah Code Annotated 1953
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 7-1-901 is enacted to read:
13 ARTICLE 9. DEPOSITORY INSTITUTION INSURANCE POWERS
14 7-1-901. Authorized insurance activities of depository institutions.
15 (1) A depository institution authorized to do business in this state under this title may
16 directly, or indirectly through a subsidiary or affiliate, engage in the following insurance activities:
17 (a) engage in the insurance business as defined under Section 31A-1-301 h EXCEPT AS
17a MAY BE LIMITED BY FEDERAL LAW h ;
18 (b) act as an insurance agent, broker, or consultant as defined under Section 31A-23-102;
19 or
20 (c) engage in insurance adjusting as defined in h [ Section 31A-23-102 ]
20a SECTION 31A-26-102 h .
21 (2) A depository institution, subsidiary or affiliate, that engages in insurance activities
22 authorized under Subsection (1) shall h [ comply with ] BE SUBJECT TO h Title 31A, Insurance Code.
22a h Section 2. Coordination clause.
22b IF THIS BILL AND 4th SUBSTITUTE S.B. 76, INSURANCE LAW CHANGES, BOTH PASS, IT IS
22c THE INTENT OF THE LEGISLATURE THAT SUBSECTION 7-1-901(1)(b) BE AMENDED SO THAT THE
22d REFERENCE TO SECTION 31A-23-102 BE CHANGED TO SECTION 31A-1-301. h

lilac-February 20, 1998

Legislative Review Note
as of 1-30-98 11:41 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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