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H.B. 259 Enrolled

             1     

INSURANCE AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jim Bird

             5     
Senate Sponsor: Evan J. Vickers

             6     
             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
             20     
             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:
             29          (a) the policyholder may cancel the errors and omissions insurance policy before its


             30      expiration or renewal date according to the procedure for cancellation set forth in the errors and
             31      omissions policy; and
             32          (b) an insurer may not issue an errors and omissions policy that has fully earned
             33      premium upon issuance of the errors and omissions policy.
             34          (3) If the errors and omissions insurance policy is cancelled as provided in Subsection
             35      (2), the insurer shall refund the unearned premium to the policyholder minus any charge
             36      imposed by the insurer.


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