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MINUTES OF THE SENATE BUSINESS & LABOR
 STANDING COMMITTEE
FRIDAY, FEBRUARY 6, 2004, 9:00 A.M.
ROOM 403, STATE CAPITOL BUILDING


Members Present:    Sen. Parley G. Hellewell, Chair
        Sen. Curtis Bramble
        Sen. Thomas V. Hatch         Sen. Ed Mayne
        Sen. Carlene M. Walker
        Sen. Michael Waddoups

Members Absent:    Sen. Gene Davis
        Sen. Dan Eastman
    
Staff Present:    Mark Steinagel, Policy Analyst
        Karen Allred, Committee Secretary

Public Speakers Present:    Christopher Purcell, State Farm Insurance
        Mike Sonntag, Bear River Insurance
        Chris Sloan, Utah Association of Realtors
        Gary Thorup, Property Casualty Insurance Association
        Ross Marchant, Farmers Insurance
        
A list of visitors and a copy of handouts are filed with the committee minutes.

Committee Chair Hellewell called the meeting to order at 9:12 a.m.

     MOTION: Sen. Walker moved to approve the minutes of February 3, 2003.

    The motion passed unanimously with Sens. Mayne and Waddoups absent for the vote.
        
1.     S.B. 52 Insurance Amendments - Loss Histories and Inquiries (T. Hatch)

    Sen. Hatch explained the bill.

    Chris Purcell, State Farm Insurance, and Mike Sonntag, Bear River Insurance, spoke in support of the bill.

    The following amendments were distributed:

1.    Page 2, Lines 33 through 34 :    

             33          (a) a telephone call or other inquiry that does not result in the insured
[[   demanding   ]]        requesting       the

             34
     payment of a claim; or

2.    Page 4, Line 120 through Page 5, Line 123 :    

             120          (c) Unless the conditions of Subsection (4)(b)(iii) or (iv) apply, an insurer may not fail
             121      to renew an insurance policy as a result of a telephone call or other inquiry that:
             122          (i) references a policy coverage; and
             123          (ii) does not result in the insured
[[   demanding   ]]        requesting       payment of a claim [being filed or paid].


3.    Page 7, Lines 191 through 200 :    

             191          (ii) A numerical value, categorization, or classification described in Subsection
             192      (1)(c)(i) is a score if it is developed to predict the likelihood of future insurance claims
             193      regardless of whether it is developed to predict other factors in addition to predicting
[[   the   ]] future

             194      insurance claims.
             195          (2) (a) An insurer may not make an adverse eligibility or rate decision related to
             196      personal lines insurance in whole or in part on the basis of:
             197          (i) a report by a loss reporting agency of a loss if the loss did not result in the insured
             198
[[  
     demanding   ]]
  requesting       the payment of a claim;

             199          (ii) a
[[   report   ]]        telephone call or other inquiry       by an insured of a loss if the loss did not result in the insured      [[   demanding   ]]        requesting      

             200      payment of a claim;

4.    Page 7, Line 212 through Page 8, Line 223 :    

             212          (3) (a) If an insurer uses a score that is derived from information obtained from a loss
             213      reporting agency or an insured, the insurer shall file with the department a
[[   summary of   ]]        certification that       the

             214      method used to derive the score
[[   :

             215          (i) that is in sufficient detail so that the department can determine whether the score

             216      complies with Subsection (2)(a)(iv); and   ]]
  complies with the provisions of Subsection (2)(a)(iv).      

             217          
[[   (ii)   ]]        (b) The insurer shall file a certification required under Subsection (3)(a)       within 30 days of the day on which the score        described in Subsection (3)(a)       is first used by the insurer.

             218          
[[   (b)   ]]        (c)       The department shall classify a      [[   summary   ]]        certification       filed under this Subsection (3) as a

             219      protected record under Subsection 63-2-304 (2) except that the insurer is not required to file the
             220      information specified in Section 63-2-308 .
             221          
[[   (c)   ]]        (d)       In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

             222      commissioner shall make rules providing for the form and procedure of filing the
[[   summary   ]]        certification      

             223      required by Subsection (3)(a).
        
     MOTION: Sen. Mayne moved to adopt the amendments.

    The motion passed unanimously.

    Chris Sloan, Utah Association of Realtors, and Gary Thorup, Property Casualty Insurance     Association, spoke in support of the bill.

     MOTION: Sen. Bramble moved to pass the bill out favorably.

    The motion passed unanimously.

2.    S.B. 147 Condominium Amendments (M. Waddoups)

    Sen. Waddoups explained the bill.

    Ross Marchant, Farmers Insurance, and Chris Purcell, State Farm Insurance, spoke in support     of the bill.

     MOTION: Sen. Walker moved to pass the bill out favorably.

    The motion passed unanimously.


     MOTION: Sen. Walker moved to adjourn.
    
    The motion passed unanimously.

    Chair Hellewell adjourned the meeting at 9:20 a.m.



    

         Sen. Parley G. Hellewell, Chair