Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 135 First Substitute (2018GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/20/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• prohibits discretionary clauses in certain insurance contracts; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

INSURANCE CONTRACTS AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
Brian S. King
Cosponsors:
Jacob L. Anderegg
Allen M. Christensen
Jim Dabakis
Gene Davis
Luz Escamilla
Deidre M. Henderson
Lyle W. Hillyard
Jani Iwamoto
Peter C. Knudson
Karen Mayne
Evan J. Vickers
Brian Zehnder
LONG TITLE
General Description:
This bill amends provisions related to insurance contracts.
Highlighted Provisions:
This bill:
▸ prohibits discretionary clauses in certain insurance contracts; and
▸ makes technical and conforming changes. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
31A-21-314
, as last amended by Laws of Utah 2015, Chapter 244
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
31A-21-314
 is amended to read:
31A-21-314.
Prohibited provisions.
(1) As used in this section:
(a) "Reserving discretionary authority" means a policy provision that:
(i) has the effect of conferring discretion on an insurer, or other claim administrator, to:
(A) determine eligibility for benefits; or
(B) interpret the terms or provisions of the policy, contract, certificate, or agreement;
and
(ii) could lead to a deferential standard of review by a reviewing court.
(b) "Reserving discretionary authority" does not include a policy provision that:
(i) informs an insured that, as part of the insurer's routine operations, the insurer
applies the terms of the contract for:
(A) making a decision, including making a determination regarding eligibility, or
receipt of benefits or claims; or
(B) explaining the insurer's policies and procedures; and
(ii) does not give rise to a deferential standard of review by a reviewing court.
[
(1)
] 
(2)
 An insurance policy subject to this chapter may not contain [
any
] 
a
 provision:
(a) requiring [
it
] 
the insurance policy
 to be construed according to the laws of another
jurisdiction except as necessary to meet the requirements of compulsory insurance laws of
other jurisdictions;
(b) depriving Utah courts of jurisdiction over an action against the insurer, except as
provided in permissible arbitration provisions; [
or
]
(c) limiting the right of action against the insurer to less than three years from the date
the cause of action accrues[
.
]
; or
(d) for life insurance or accident and health insurance, reserving discretionary
authority.
[
(2)
] 
(3)
 For purposes of Subsection [
(1)
] 
(2)
(c), the cause of action accrues on a
fidelity bond on the date the insurer first denies all or part of a claim made under the fidelity
bond.