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H.B. 259

This document includes House Committee Amendments incorporated into the bill on Mon, Feb 4, 2013 at 11:28 AM by jeyring. -->              1     




Chief Sponsor: Jim Bird

Senate Sponsor: Evan J. Vickers

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Insurance Code to address cancellation and refund of premium.
             10      Highlighted Provisions:
             11          This bill:
             12          .    addresses refund of premium for cancelled errors and omissions insurance.
             13      Money Appropriated in this Bill:
             14          None
             15      Other Special Clauses:
             16          None
             17      Utah Code Sections Affected:
             18      ENACTS:
             19          31A-22-1309, Utah Code Annotated 1953
             21      Be it enacted by the Legislature of the state of Utah:
             22          Section 1. Section 31A-22-1309 is enacted to read:
             23          31A-22-1309. Return of unearned premium upon cancellation of errors and
             24      omissions insurance.
             25          (1) As used in this section, "unearned premium" means the amount of the premium that
             26      is collected by the insurer in excess of premium earned as of the date of the cancellation of the
             27      errors and omissions insurance policy.

             28          (2) For an errors and omissions policy issued on or after May 14, 2013 H. [ , ] :
             28a          (a) .H the
             29      policyholder may cancel the errors and omissions insurance policy before its expiration or
             30      renewal date H. according to the procedure for cancellation set forth in the errors and
             30a      omissions policy; and
             30b          (b) an insurer may not issue an errors and omissions policy that has fully earned
             30c      premium upon issuance of the errors and omissions policy .H .
             31          (3) If the errors and omissions insurance policy is cancelled as provided in Subsection
             32      (2), the insurer shall refund the unearned premium to the policyholder minus any charge
             33      imposed by the insurer.
             34           H. [ (4) The insurer shall pay the amount due under Subsection (3) by no later than 30 days
             35      from the day on which the errors and omissions insurance policy is cancelled.
] .H

Legislative Review Note
    as of 9-27-12 10:34 AM

Office of Legislative Research and General Counsel

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