Second Substitute S.B. 219

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Senate 2nd & 3rd Reading Amendments 3-11-2013 lp/crg
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This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Mon, Mar 11, 2013 at 9:07 PM by lpoole. --> Senator Stephen H. Urquhart proposes the following substitute bill:

1 PAYMENT OF INSURANCE PROCEEDS
2 2013 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Stephen H. Urquhart
5 House Sponsor: V. Lowry Snow
6
7 LONG TITLE
8 General Description:
9 This bill enacts provisions related to the payment of certain insurance proceeds.
10 Highlighted Provisions:
11 This bill:
12 . requires a property and casualty insurer, under certain circumstances, to include the
13 provider of a mitigation service as an additional payee on checks issued to the
14 insured S. [ :
15 . for $2,500 or more; and
16 . ] that are .S intended to pay for the mitigation service.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 ENACTS:
23 31A-22-1309, Utah Code Annotated 1953
24
25 Be it enacted by the Legislature of the state of Utah:

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Senate 2nd & 3rd Reading Amendments 3-11-2013 lp/crg
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26 Section 1. Section 31A-22-1309 is enacted to read:
27 31A-22-1309. Payment of insurance proceeds to provider of mitigation service.
28 (1) As used in this chapter:
29 (a) "Certificate of satisfactory completion" means a document signed by a S. provider
29a and at least one .S named
30 insured in which S. :
30a (i) the provider warrants that the provider performed the mitigation service
30b provided under the service agreement in accordance with the generally accepted industry
30c standards applicable to the mitigation service provided; and
30d (ii) .S the named insured S. [ certifies ] verifies .S that the provider satisfactorily
30e completed the
31 mitigation service provided under the service agreement.
32 (b) "Damaged property" means real property that is damaged by a covered peril.
33 (c) "Insurance proceeds" means money payable by an insurer under an insurance policy
34 for a mitigation service.
35 (d) "Insurer" means property and casualty insurer that provides coverage for damage to
36 real property caused by a covered peril.
37 (e) S. (i) .S "Mitigation service" means labor, equipment, or material provided on
37a damaged
38 property for the purpose of performing repairs necessary to prevent further damage caused by
39 the covered peril S. [ , including cleanup ] .S .
39a S. (ii) "Mitigation service" includes:
39b (A) drying interior elements, including drywall, flooring, wall studs, and seal
39c plates;
39d (B) cleaning a sewer overflow; and
39e (C) cleaning fire damage.
39f (iii) "Mitigation service" does not include labor, equipment, or material provided for
39g the purpose of restoring the damaged property to its pre-loss condition. .S
40 (f) "Provider" means a person that provides a mitigation service under a service
41 agreement.
42 (g) "Service agreement" means a written S. [ agreement ] work authorization .S between
42a an owner of property
43 damaged by a covered peril and a provider, under which the provider agrees to perform a
44 mitigation service for the owner's damaged property.

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Senate 2nd & 3rd Reading Amendments 3-11-2013 lp/crg
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45 (2) (a) Within 10 business days after the day on which a provider completes a
46 mitigation service governed by a service agreement, the provider shall S. , if payment for the
46a mitigation service is still owing, .S send to the insurer of the
47 damaged property:
48 (i) a written notice of completion described in Subsection (2)(b); and
49 (ii) a copy of the certificate of satisfactory completion.
50 (b) A notice of completion shall state:
51 (i) that the provider claims S. [ money ] insurance proceeds .S owed for a mitigation
51a service provided under a
52 service agreement;
53 (ii) the name, address, and telephone number of the insured; S. and .S
54 (iii) the date of the service agreement S. [ ; and
55 (iv) the amount still owed to the provider for the mitigation service provided under the
56 service agreement, if any ] .S .

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Senate 2nd & 3rd Reading Amendments 3-11-2013 lp/crg
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57 (3) If a provider satisfies the requirements described in Subsection (2) and has not
58 received the full amount due for the mitigation service described in the provider's notice of
59 completion and certificate of satisfactory completion, the insurer shall include the provider as
60 an additional payee on each check issued to the insured that is S. [ :
61 (a) for $2,500 or more; and
62 (b) ] .S intended to pay for the mitigation service described in the provider's notice of
63 completion and certificate of satisfactory completion.

[Bill Documents]