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S.B. 310

This document includes Senate Committee Amendments incorporated into the bill on Thu, Mar 3, 2011 at 2:32 PM by rday. -->             


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Senate Committee Amendments 3-3-2011 rd/sch
1
    
MOTOR VEHICLE INSURANCE AMENDMENT

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Mark B. Madsen

             5     
House Sponsor: ____________

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Insurance Code by amending provisions relating to motor vehicle
             10      insurance.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides that an individual is subject to the insurance adjusting license requirement
             14      if:
             15              .    the individual is engaged in insurance adjusting as a regular salaried employee
             16      of, and not an independent contractor for, an insurer; and
             17              .    the individual or the insurer that the individual is working for as a regular
             18      salaried employee is found liable for S. [ a bad faith cause of action ] breach of the implied
             18a      covenant of good faith and fair dealing .S with respect to a
             19      motor vehicle insurance coverage policy claim by court of competent
             20      jurisdiction in a final unappealable judgment or order; and
             21          .    makes technical changes.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None
             26      Utah Code Sections Affected:
             27      AMENDS:



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             28
         31A-26-201, as last amended by Laws of Utah 2010, Chapter 10
             29     

             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 31A-26-201 is amended to read:
             32           31A-26-201. Requirement of license.
             33          (1) Except as provided in Subsection (2):
             34          (a) a person may not perform, offer to perform, or solicit the opportunity to perform an
             35      act of insurance adjusting without a valid license under Section 31A-26-203 ; and
             36          (b) a person may not use the insurance adjusting services of another if the person
             37      knows or should know that the one providing these services does not have a license as required
             38      by law.
             39          (2) The following are exempt from the license requirement of Subsection (1), when
             40      acting in the indicated capacity:
             41          (a) except as provided in Subsection (4), an individual engaged in insurance adjusting
             42      as a regular salaried employee of, and not an independent contractor for, an insurer;
             43          (b) an arbitrator or an umpire selected by the claimant and insurer to decide, alone or
             44      with others, whether a claim should be paid and how much should be paid;
             45          (c) an attorney at law acting in an attorney-client relationship;
             46          (d) an insurance producer, but only as to:
             47          (i) a class of insurance for which the insurance producer is licensed under Section
             48      31A-23a-106 ; and
             49          (ii) a claim adjusted on the request of an insurer for which the insurance producer is a
             50      producer;
             51          (e) a regular salaried employee of, and not an independent contractor for, a
             52      policyholder or claimant under an insurance policy;
             53          (f) an employee of a licensed insurance adjuster who provides only administrative or
             54      clerical assistance;
             55          (g) an individual who does not do insurance adjusting under Section 31A-26-102 , but
             56      who is specially employed to obtain facts about a loss for or furnish technical assistance to a
             57      licensed adjuster or a company adjuster, including:
             58          (i) a photographer;



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Senate Committee Amendments 3-3-2011 rd/sch
             59
         (ii) an estimator;
             60          (iii) an appraiser;
             61          (iv) a marine surveyor;
             62          (v) a private detective;
             63          (vi) an engineer; and
             64          (vii) a handwriting expert;
             65          (h) a holder of a group insurance policy, with respect to administrative activities in
             66      connection with that insurance policy, who receives no compensation for the policyholder's
             67      services beyond the actual expenses estimated on a reasonable basis;
             68          (i) an individual engaged in insurance adjusting as a regular salaried employee of, and
             69      not an independent contractor for, an administrator licensed under Chapter 25, Third Party
             70      Administrators; or
             71          (j) a person who gives advice or assistance without compensation or expectation of
             72      compensation, direct or indirect.
             73          (3) A claim settlement between an insurer and an insured or a claimant under an
             74      insurance policy may not be considered invalid as a result of a violation of this section.
             75          (4) (a) Notwithstanding Subsection (2), an individual is subject to the insurance
             76      adjusting license requirement under Subsection (1) if:
             77          (i) the individual is engaged in insurance adjusting as a regular salaried employee of,
             78      and not an independent contractor for, an insurer; and
             79          (ii) the individual or the insurer that the individual is working for as a regular salaried
             80      employee is found liable for S. [ a bad faith cause of action ] breach of the implied covenant of
             80a      good faith and fair dealing, based upon evidence supporting a pattern of conduct as to indicate
             80b      a general business practice by an insurer or a person representing an insurer, .S with respect
             80c      to a motor vehicle
             81      insurance coverage policy claim by court of competent jurisdiction in a final unappealable
             82      judgment or order.
             83          (b) The requirement under Subsection (4)(a) to be licensed shall begin 30 days after the
             84      final unappealable judgment or order is entered that finds the individual or insurer liable for a
             85      bad faith cause of action and shall remain in effect for five years after the final unappealable
             86      judgment or order is entered.



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Legislative Review Note
    as of 2-28-11 8:35 AM


Office of Legislative Research and General Counsel


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