1     
AVIATION LIABILITY INSURANCE AMENDMENTS

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Cheryl K. Acton

5     
Senate Sponsor: Wayne A. Harper

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to aircraft liability insurance requirements.
10     Highlighted Provisions:
11          This bill:
12          ▸     establishes requirements for aircraft public liability insurance coverage;
13          ▸     requires an owner of an aircraft to provide proof of public liability insurance as part
14     of a lease agreement with a term of six months or more between the aircraft owner
15     and a public airport; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          31A-22-1300, as last amended by Laws of Utah 1998, Chapter 270
24          72-10-117, as last amended by Laws of Utah 2019, Chapter 431
25     ENACTS:
26          72-10-111.5, Utah Code Annotated 1953
27     

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 31A-22-1300 is amended to read:
30          31A-22-1300. Aircraft public liability insurance.
31          [Subsections 72-10-117(5) and (6) apply to aircraft liability insurance.]
32          Policies containing aircraft public liability insurance coverage for an aircraft shall
33     include minimum coverage of:
34          (1) $50,000 per person for bodily injury or death in any one accident;
35          (2) $50,000 for property damage in any one accident; and
36          (3) $100,000 in any one accident, whether for property damage, or bodily injury or
37     death.
38          Section 2. Section 72-10-111.5 is enacted to read:
39          72-10-111.5. Aircraft public liability insurance requirements -- Proof of public
40     liability insurance.
41          (1) Subject to Subsection (2), an aircraft owner shall:
42          (a) maintain public liability insurance coverage for the aircraft that conforms to the
43     requirements described in Section 31A-22-1300; and
44          (b) provide a certificate of insurance issued by an insurer as proof of the owner's valid
45     public liability insurance covering the aircraft as part of any lease agreement with a term of six
46     months or more between the aircraft owner and a public airport.
47          (2) Subsection (1) applies to an aircraft only if the aircraft is:
48          (a) an operable fixed-wing aircraft; and
49          (b) used for flight.
50          Section 3. Section 72-10-117 is amended to read:
51          72-10-117. Aircraft landing permits -- Eligible aircraft -- Special licenses -- Rules
52     -- Proof of insurance -- Bonds.
53          (1) (a) The county executive of any county may issue [permits] a permit authorizing an
54     aircraft to land on or take off from designated county roads.
55          (b) [Permits may be issued] The county executive of any county may issue a permit to
56     an aircraft operated:
57          (i) as an air [ambulances] ambulance;
58          (ii) as a pesticide [applicators] applicator; or
59          (iii) by or under contract with a public [utilities] utility and used in connection with
60     inspection, maintenance, installation, operation, construction, or repair of property owned or
61     operated by the public utility.
62          (2) [Permits may also be issued by the county executive] The county executive of any
63     county may issue a permit under this section to other aircraft under rules made by the
64     department.
65          (3) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
66     the department shall make rules for issuing a special license to:
67          (i) an aircraft permitted by a county executive to land on a county road; and
68          (ii) a pilot permitted to operate an aircraft licensed under this subsection from a county
69     road.
70          (b) The rules made under this subsection shall include provisions for the safety of the
71     flying and motoring public.
72          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
73     department shall make rules for the landing and taking off of aircraft to which permits have
74     been issued under this section, which may include annual reports of activities of the aircraft.
75          (5) [Prior to obtaining a permit or license to any aircraft] Before obtaining a permit or
76     license under this section, the applicant shall file with the county executive and the department
77     [a certificate of insurance executed by an insurance company or association authorized to
78     transact business in this state upon a form prescribed by the department that there is in full
79     force and effect a policy of insurance covering the aircraft for liability against:] proof of public
80     liability insurance coverage that meets the requirements described in Section 31A-22-1300.
81          [(a) personal injury or death for any one person in an amount of $50,000 or more;]
82          [(b) any one accident in an amount of $100,000 or more; and]
83          [(c) property damage in an amount of $50,000 or more.]
84          (6) In addition to the insurance required under this section, either the county executive
85     or the department may require the posting of a bond to indemnify the county or department
86     against liability resulting from issuing the permit or license under this section.