H.B. 199 Insured Homeowners Protection Act
Bill Sponsor: ![]() Rep. Shipp, Rex P. | Floor Sponsor: ![]() Sen. Vickers, Evan J. |
- Drafting Attorney: Amy L. West
- Fiscal Analyst: Thomas E. Young
- Bill Text
- Introduced
- Amended
- Enrolled
(Currently Displayed)
- Introduced
- Related Documents
- Information
- Last Action: 24 Mar 2020, Governor Signed
- Last Location: Lieutenant Governor's office for filing
- Effective Date: 12 May 2020
- Session Law Chapter: 088
- Similar Bills
- Sections Affected
Enrolled
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H.B. 199
1 INSURED HOMEOWNERS PROTECTION ACT
22020 GENERAL SESSION
3STATE OF UTAH
4Chief Sponsor: Rex P. Shipp
5Senate Sponsor: Evan J. Vickers
6
7 LONG TITLE
8 General Description:
9 This bill enacts the Insured Homeowners Protection Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ enacts provisions regarding a post-loss assignment of rights or benefits to a
14 residential contractor under a property and casualty insurance policy;
15 ▸ prohibits a residential contract from rebating or offering to rebate any portion of the
16 insured's deductible to induce the sale of a good or service;
17 ▸ requires a residential contractor to provide certain notices to an insured regarding
18 rights and violations of law; and
19 ▸ declares void an assignment of rights or benefits that violates the Insured
20 Homeowners Protection Act.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:
26 AMENDS:
27 13-50-102, as enacted by Laws of Utah 2013, Chapter 160
28 ENACTS:
29 13-50-301, Utah Code Annotated 1953
30 13-50-302, Utah Code Annotated 1953
31 13-50-303, Utah Code Annotated 1953
32 13-50-304, Utah Code Annotated 1953
33
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 13-50-102 is amended to read:
36 13-50-102. Definitions.
37 As used in this chapter:
38 (1) "Rebate" means:
39 (a) any allowance or discount against charged fees; or
40 (b) payment of any form of compensation, except for an item of nominal value, to:
41 (i) an insured; or
42 (ii) a person directly or indirectly associated with a residential building.
43 [(1)] (2) "Repair work" means any work done to siding, gutters, a roof system, or a
44 window system to repair damage caused by wind or hail.
45 [(2)] (3) "Residential building" means a single or multiple family dwelling of up to
46 four units.
47 [(3)] (4) "Residential contractor" means a person that, for compensation, other than
48 wages as an employee, contracts or offers to contract to:
49 (a) perform repair work on a residential building[.];
50 (b) arrange for, manage, or process repair work on a residential building; or
51 (c) serve as a representative, agent, or assignee of the owner or possessor of a
52 residential building for purposes of repair work on the residential building.
53 [(4)] (5) "Roof system" includes roof coverings, roof sheathing, roof weatherproofing,
54 roof framing, roof ventilation, and roof insulation.
55 Section 2. Section 13-50-301 is enacted to read:
56Part 3. Insured Homeowners Protection Act
57 13-50-301. Post-loss assignment of rights or benefits to a residential contractor.
58 (1) A post-loss assignment of rights or benefits to a residential contractor under a
59 property and casualty insurance policy insuring a residential building:
60 (a) may authorize a residential contractor to be named as a copayee for the payment of
61 benefits under a property and casualty insurance policy covering the residential building;
62 (b) shall include:
63 (i) an itemized description of the work to be done on the insured residential building;
64 and
65 (ii) the total amount the insured agreed to pay for the work described in Subsection
66 (1)(b)(i);
67 (c) shall include a statement that the residential contractor has made no assurances that
68 an insurance contract will fully cover the claimed loss;
69 (d) shall include a notice in substantially the following form and in capitalized 14-point
70 type:
71 "YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER
72 YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS DOCUMENT
73 BEFORE SIGNING.
74 THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE SHOWN IN THIS
75 ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER. THE INSURER
76 HAS THE RIGHT TO PAY ONLY FOR THE COST TO REPAIR OR REPLACE
77 DAMAGED PROPERTY CAUSED BY A COVERED PERIL.";
78 (e) may not impair the interest of a mortgagee listed on the declarations page of the
79 property and casualty insurance policy that is the subject of the assignment; and
80 (f) may not prevent or inhibit an insurer from communicating with a named insured
81 listed on the declarations page of the property and casualty insurance policy that is the subject
82 of the assignment.
83 (2) A party receiving the assignment described in Subsection (1) shall:
84 (a) deliver the assignment to the insurer of the residential building within five business
85 days after the earlier of the day on which:
86 (i) the assignment is executed; or
87 (ii) repair work begins on the residential building; and
88 (b) cooperate with the insurer of the residential building in an investigation into the
89 claimed loss by:
90 (i) providing each document and record the insurer requests; and
91 (ii) complying with each post-loss duty included in the insurance policy.
92 Section 3. Section 13-50-302 is enacted to read:
93 13-50-302. Residential contractor, prohibited acts.
94 A residential contractor may not rebate or offer to rebate any portion of an insurance
95 deductible as an inducement to the sale of a good or service.
96 Section 4. Section 13-50-303 is enacted to read:
97 13-50-303. Violation notice.
98 (1) Any written contract, repair estimate, or work order that a residential contractor
99 prepares to provide a good or service paid for from the proceeds of a property and casualty
100 insurance policy shall include a notice of the prohibition described in Section 13-50-302 in
101 substantially the following form and in capitalized 14-point type:
102 "IT IS A VIOLATION OF UTAH LAW FOR A RESIDENTIAL CONTRACTOR TO
103 REBATE ANY PORTION OF AN INSURANCE DEDUCTIBLE AS AN INDUCEMENT TO
104 THE INSURED TO ACCEPT A RESIDENTIAL CONTRACTOR'S PROPOSAL TO
105 REPAIR DAMAGED PROPERTY. REBATE OF A DEDUCTIBLE INCLUDES GRANTING
106 ANY ALLOWANCE OR OFFERING ANY DISCOUNT AGAINST THE FEES TO BE
107 CHARGED FOR WORK TO BE PERFORMED OR PAYING THE INSURED
108 POLICYHOLDER THE DEDUCTIBLE AMOUNT SET FORTH IN THE INSURANCE
109 POLICY.
110 THE INSURED POLICY HOLDER IS PERSONALLY RESPONSIBLE FOR
111 PAYMENT OF THE DEDUCTIBLE.".
112 (2) Under any agreement in which a residential contractor provides a good or service
113 paid for from the proceeds of a property and casualty insurance policy, no payment may be
114 made to the residential contractor until:
115 (a) the named insured signs the notice described in Subsection (1); and
116 (b) the residential contractor delivers the notice signed in accordance with Subsection
117 (2)(a) to the named insured's insurance company.
118 Section 5. Section 13-50-304 is enacted to read:
119 13-50-304. Violation of part.
120 A post-loss assignment of rights or benefits entered into with a residential contractor is
121 void if the residential contractor violates a provision of this part.
2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill enacts the Insured Homeowners Protection Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ enacts provisions regarding a post-loss assignment of rights or benefits to a
14 residential contractor under a property and casualty insurance policy;
15 ▸ prohibits a residential contract from rebating or offering to rebate any portion of the
16 insured's deductible to induce the sale of a good or service;
17 ▸ requires a residential contractor to provide certain notices to an insured regarding
18 rights and violations of law; and
19 ▸ declares void an assignment of rights or benefits that violates the Insured
20 Homeowners Protection Act.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:
26 AMENDS:
27 13-50-102, as enacted by Laws of Utah 2013, Chapter 160
28 ENACTS:
29 13-50-301, Utah Code Annotated 1953
30 13-50-302, Utah Code Annotated 1953
31 13-50-303, Utah Code Annotated 1953
32 13-50-304, Utah Code Annotated 1953
33
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 13-50-102 is amended to read:
36 13-50-102. Definitions.
37 As used in this chapter:
38 (1) "Rebate" means:
39 (a) any allowance or discount against charged fees; or
40 (b) payment of any form of compensation, except for an item of nominal value, to:
41 (i) an insured; or
42 (ii) a person directly or indirectly associated with a residential building.
43 [
44 window system to repair damage caused by wind or hail.
45 [
46 four units.
47 [
48 wages as an employee, contracts or offers to contract to:
49 (a) perform repair work on a residential building[
50 (b) arrange for, manage, or process repair work on a residential building; or
51 (c) serve as a representative, agent, or assignee of the owner or possessor of a
52 residential building for purposes of repair work on the residential building.
53 [
54 roof framing, roof ventilation, and roof insulation.
55 Section 2. Section 13-50-301 is enacted to read:
56
57 13-50-301. Post-loss assignment of rights or benefits to a residential contractor.
58 (1) A post-loss assignment of rights or benefits to a residential contractor under a
59 property and casualty insurance policy insuring a residential building:
60 (a) may authorize a residential contractor to be named as a copayee for the payment of
61 benefits under a property and casualty insurance policy covering the residential building;
62 (b) shall include:
63 (i) an itemized description of the work to be done on the insured residential building;
64 and
65 (ii) the total amount the insured agreed to pay for the work described in Subsection
66 (1)(b)(i);
67 (c) shall include a statement that the residential contractor has made no assurances that
68 an insurance contract will fully cover the claimed loss;
69 (d) shall include a notice in substantially the following form and in capitalized 14-point
70 type:
71 "YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER
72 YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS DOCUMENT
73 BEFORE SIGNING.
74 THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE SHOWN IN THIS
75 ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER. THE INSURER
76 HAS THE RIGHT TO PAY ONLY FOR THE COST TO REPAIR OR REPLACE
77 DAMAGED PROPERTY CAUSED BY A COVERED PERIL.";
78 (e) may not impair the interest of a mortgagee listed on the declarations page of the
79 property and casualty insurance policy that is the subject of the assignment; and
80 (f) may not prevent or inhibit an insurer from communicating with a named insured
81 listed on the declarations page of the property and casualty insurance policy that is the subject
82 of the assignment.
83 (2) A party receiving the assignment described in Subsection (1) shall:
84 (a) deliver the assignment to the insurer of the residential building within five business
85 days after the earlier of the day on which:
86 (i) the assignment is executed; or
87 (ii) repair work begins on the residential building; and
88 (b) cooperate with the insurer of the residential building in an investigation into the
89 claimed loss by:
90 (i) providing each document and record the insurer requests; and
91 (ii) complying with each post-loss duty included in the insurance policy.
92 Section 3. Section 13-50-302 is enacted to read:
93 13-50-302. Residential contractor, prohibited acts.
94 A residential contractor may not rebate or offer to rebate any portion of an insurance
95 deductible as an inducement to the sale of a good or service.
96 Section 4. Section 13-50-303 is enacted to read:
97 13-50-303. Violation notice.
98 (1) Any written contract, repair estimate, or work order that a residential contractor
99 prepares to provide a good or service paid for from the proceeds of a property and casualty
100 insurance policy shall include a notice of the prohibition described in Section 13-50-302 in
101 substantially the following form and in capitalized 14-point type:
102 "IT IS A VIOLATION OF UTAH LAW FOR A RESIDENTIAL CONTRACTOR TO
103 REBATE ANY PORTION OF AN INSURANCE DEDUCTIBLE AS AN INDUCEMENT TO
104 THE INSURED TO ACCEPT A RESIDENTIAL CONTRACTOR'S PROPOSAL TO
105 REPAIR DAMAGED PROPERTY. REBATE OF A DEDUCTIBLE INCLUDES GRANTING
106 ANY ALLOWANCE OR OFFERING ANY DISCOUNT AGAINST THE FEES TO BE
107 CHARGED FOR WORK TO BE PERFORMED OR PAYING THE INSURED
108 POLICYHOLDER THE DEDUCTIBLE AMOUNT SET FORTH IN THE INSURANCE
109 POLICY.
110 THE INSURED POLICY HOLDER IS PERSONALLY RESPONSIBLE FOR
111 PAYMENT OF THE DEDUCTIBLE.".
112 (2) Under any agreement in which a residential contractor provides a good or service
113 paid for from the proceeds of a property and casualty insurance policy, no payment may be
114 made to the residential contractor until:
115 (a) the named insured signs the notice described in Subsection (1); and
116 (b) the residential contractor delivers the notice signed in accordance with Subsection
117 (2)(a) to the named insured's insurance company.
118 Section 5. Section 13-50-304 is enacted to read:
119 13-50-304. Violation of part.
120 A post-loss assignment of rights or benefits entered into with a residential contractor is
121 void if the residential contractor violates a provision of this part.
Bill Status / Votes
• Senate Actions • House Actions • Fiscal Actions • Other Actions
Date | Action | Location | Vote |
1/27/2020 | Bill Numbered but not Distributed | Legislative Research and General Counsel | |
1/27/2020 | Numbered Bill Publicly Distributed | Legislative Research and General Counsel | |
1/27/2020 | LFA/ bill sent to agencies for fiscal input | Legislative Research and General Counsel | |
1/27/2020 | House/ received bill from Legislative Research | Clerk of the House | |
1/27/2020 | House/ 1st reading (Introduced) | House Rules Committee | |
1/29/2020 | LFA/ fiscal note publicly available | House Rules Committee | |
1/30/2020 | House/ received fiscal note from Fiscal Analyst | House Rules Committee | |
1/30/2020 | House/ to standing committee | House Business and Labor Committee | |
2/3/2020 | House Comm - Favorable Recommendation | House Business and Labor Committee | 7 3 5 |
2/4/2020 (11:12:04 AM) | House/ committee report favorable | House Business and Labor Committee | |
2/4/2020 (11:12:05 AM) | House/ 2nd reading | House 3rd Reading Calendar for House bills | |
2/10/2020 (11:53:03 AM) | House/ 3rd reading | House 3rd Reading Calendar for House bills | |
2/10/2020 (11:57:33 AM) | House/ passed 3rd reading | Senate Secretary | 61 13 1 |
2/10/2020 (11:57:35 AM) | House/ to Senate | Senate Secretary | |
2/10/2020 | Senate/ received from House | Waiting for Introduction in the Senate | |
2/10/2020 | Senate/ 1st reading (Introduced) | Senate Rules Committee | |
2/19/2020 | Senate/ to standing committee | Senate Business and Labor Committee | |
2/19/2020 | Senate Comm - Amendment Recommendation # 1 | Senate Business and Labor Committee | 5 0 3 |
2/19/2020 | Senate Comm - Favorable Recommendation | Senate Business and Labor Committee | 4 0 4 |
2/20/2020 (10:20:36 AM) | Senate/ comm rpt/ amended | Senate Business and Labor Committee | |
2/20/2020 (10:20:37 AM) | Senate/ placed on 2nd Reading Calendar | Senate 2nd Reading Calendar | |
2/26/2020 (11:16:49 AM) | Senate/ 2nd reading | Senate 2nd Reading Calendar | |
2/26/2020 (11:20:40 AM) | Senate/ passed 2nd reading | Senate 3rd Reading Calendar | 23 0 6 |
2/27/2020 (10:52:40 AM) | Senate/ 3rd reading | Senate 3rd Reading Calendar | |
2/27/2020 (10:54:55 AM) | Senate/ passed 3rd reading | Clerk of the House | 27 0 2 |
2/27/2020 (10:54:56 AM) | Senate/ to House with amendments | Clerk of the House | |
2/27/2020 (2:18:40 PM) | House/ received from Senate | Clerk of the House | |
2/27/2020 (2:18:41 PM) | House/ placed on Concurrence Calendar | House Concurrence Calendar | |
2/28/2020 (10:18:35 AM) | House/ concurs with Senate amendment | Senate President | 64 0 11 |
2/28/2020 (10:18:36 AM) | House/ to Senate | Senate President | |
2/28/2020 | Senate/ received from House | Senate President | |
2/28/2020 | Senate/ signed by President/ returned to House | House Speaker | |
2/28/2020 | Senate/ to House | House Speaker | |
2/28/2020 | House/ received from Senate | House Speaker | |
2/28/2020 | House/ signed by Speaker/ sent for enrolling | Legislative Research and General Counsel / Enrolling | |
3/2/2020 | Bill Received from House for Enrolling | Legislative Research and General Counsel / Enrolling | |
3/2/2020 | Draft of Enrolled Bill Prepared | Legislative Research and General Counsel / Enrolling | |
3/20/2020 | Enrolled Bill Returned to House or Senate | Clerk of the House | |
3/20/2020 | House/ enrolled bill to Printing | Clerk of the House | |
3/23/2020 | House/ received enrolled bill from Printing | Clerk of the House | |
3/23/2020 | House/ to Governor | Executive Branch - Governor | |
3/24/2020 | Governor Signed | Lieutenant Governor's office for filing |
Committee Hearings/Floor Debate
- Committee Hearings