Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 11 First Substitute (2016GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/21/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• prohibits continued automatic charges after an insured person cancels a policy;
• prohibits reinstatement of a cancelled policy without the consent of the insured; and
• provides a penalty for insurers who violate this section.

Every vote on this bill

Bill text

CANCELLATION OF AUTO INSURANCE COVERAGE
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Eric K. Hutchings
LONG TITLE
General Description:
This bill prohibits automatic charges for, or reinstatement of, cancelled auto insurance
policies.
Highlighted Provisions:
This bill:
▸ prohibits continued automatic charges after an insured person cancels a policy;
▸ prohibits reinstatement of a cancelled policy without the consent of the insured; and
▸ provides a penalty for insurers who violate this section.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
31A-22-322
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
31A-22-322
 is enacted to read:
 31A-22-322.
Improper administration of cancelled auto insurance coverage.
(1) Upon cancellation by an insured of auto insurance coverage, the insurer shall
discontinue any automatic payments and withdrawals related to the cancelled policy before the
later of:
(a) 15 days after the request for cancellation; or
(b) 15 days after the effective date of the cancellation.
(2) After cancellation by an insured of auto insurance coverage, the insurer may not
reinstate the cancelled policy without the express consent of the insured.
(3) After cancellation by an insured of auto insurance coverage, the insurer shall refund
any funds collected by the insurer to which the insurer is not entitled, calculated according to
the terms of the insurance policy, before the later of:
(a) 30 days after the request for cancellation; or
(b) 30 days after the effective date of the cancellation.
(4) The commissioner may order an insurer who violates this section to forfeit to the
state not more than $2,500 for each violation.