S.B. 130

1

AMENDMENTS TO INSURANCE BENEFIT FOR
2 ADOPTIVE PARENTS
3 1999 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Ed P. Mayne
6 AN ACT RELATING TO INSURANCE; EXTENDING FROM 30 DAYS TO 90 DAYS THE
7 PERIOD DURING WHICH A CHILD MUST BE PLACED WITH AN ADOPTIVE PARENT
8 FOR THE PARENT TO QUALIFY FOR AN ADOPTION INDEMNITY BENEFIT; AND
9 MAKING TECHNICAL CHANGES.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 31A-22-610.1, as last amended by Chapter 329, Laws of Utah 1998
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 31A-22-610.1 is amended to read:
15 31A-22-610.1. Adoption indemnity benefit.
16 (1) (a) If an insured has coverage for maternity benefits S ON THE DATE OF AN ADOPTIVE
16a PLACEMENT s , the insured's policy shall provide
17 an adoption indemnity benefit payable to the insured, if [the] a child is placed for adoption with
18 the insured within [30] 90 days of the child's birth.
19 (b) An insurer that has paid the adoption indemnity benefit under Subsection (1)(a) may
20 seek reimbursement of the benefit if:
21 (i) the postplacement evaluation disapproves the adoption placement; and
22 (ii) a court rules the adoption may not be finalized because of an act or omission of an
23 adoptive parent or parents that affects the child's health or safety.
24 (c) The commissioner shall:
25 (i) establish, by rule, the amount of the adoption indemnity benefit provided under
26 Subsection (1) at a minimum of $2,500; and
27 (ii) review the amount of the adoption indemnity benefit every two years to make any

28 necessary and reasonable adjustments, taking into account the average insurance cost of an
29 uncomplicated birth.
30 (d) Each insurer shall pay its pro rata share of the adoption indemnity benefit if each
31 adoptive parent:
32 (i) has coverage for maternity benefits with a different insurer; and
33 (ii) makes a claim for the adoption indemnity benefit provided in Subsection (1)(a).
34 (2) If a policy offers optional maternity benefits, it shall also offer coverage for adoption
35 indemnity benefits if:
36 (a) [the] a child is placed for adoption with the insured within [30] 90 days of the child's
37 birth; and
38 (b) the adoption is finalized within one year of the child's birth.




Legislative Review Note
as of 1-27-99 10:36 AM

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

Office of Legislative Research and General Counsel