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7 LONG TITLE
8 General Description:
9 This bill revises provisions applicable to certain insurance policies.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms; and
13 ▸ prohibits an insurer from denying coverage under a personal lines insurance policy
14 for liability arising out of a business pursuit of the insured unless the insurer
15 establishes certain factors.
16 Money Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 ENACTS:
22 31A-22-1310, Utah Code Annotated 1953
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24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 31A-22-1310 is enacted to read:
26 31A-22-1310. Business pursuit exclusion -- Limitation.
27 (1) As used in this section:
28 (a) "Business pursuit" means any activity engaged in by a person insured under a
29 personal lines insurance policy that:
30 (i) is undertaken for the purpose of financial gain or economic profit; and
31 (ii) involves the use of real or personal property insured under the personal lines
32 insurance policy.
33 (b) "Personal lines insurance" means the same as that term is defined in Section
34 31A-1-301.
35 (2) An insurer that issues a personal lines insurance policy may not deny a claim for
36 loss, liability, or damage arising out of a business pursuit of the insured unless the insurer
37 establishes that:
38 (a) the insured regularly engaged in the business pursuit;
39 (b) the business pursuit materially and substantially increased the risk of loss, liability,
40 or damage to the insurer; and
41 (c) the loss, liability, or damage was actually caused by the business pursuit.