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Second Substitute S.B. 219

Senator Stephen H. Urquhart proposes the following substitute bill:




Chief Sponsor: Stephen H. Urquhart

House Sponsor: V. Lowry Snow

             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:
             15              .    for $2,500 or more; and
             16              .    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
             25      Be it enacted by the Legislature of the state of Utah:

             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 named
             30      insured in which the named insured certifies that the provider satisfactorily 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) "Mitigation service" means labor, equipment, or material provided on damaged
             38      property for the purpose of performing repairs necessary to prevent further damage caused by
             39      the covered peril, including cleanup.
             40          (f) "Provider" means a person that provides a mitigation service under a service
             41      agreement.
             42          (g) "Service agreement" means a written agreement between 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.
             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 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 money owed for a mitigation service provided under a
             52      service agreement;
             53          (ii) the name, address, and telephone number of the insured;
             54          (iii) the date of the service agreement; and
             55          (iv) the amount still owed to the provider for the mitigation service provided under the
             56      service agreement, if any.

             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:
             61          (a) for $2,500 or more; and
             62          (b) intended to pay for the mitigation service described in the provider's notice of
             63      completion and certificate of satisfactory completion.

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