Download Zipped Introduced WordPerfect HB0259.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]
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:
15 Other Special Clauses:
17 Utah Code Sections Affected:
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, the
29 policyholder may cancel the errors and omissions insurance policy before its expiration or
30 renewal date.
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 (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.
Legislative Review Note
as of 9-27-12 10:34 AM