Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 199 (2020GS)

Sponsor

Rep. Shipp, R.P.

Final action

Governor Signed 3/24/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• enacts provisions regarding a post-loss assignment of rights or benefits to a residential contractor under a property and casualty insurance policy;
• prohibits a residential contract from rebating or offering to rebate any portion of the insured's deductible to induce the sale of a good or service;
• requires a residential contractor to provide certain notices to an insured regarding rights and violations of law; and
• declares void an assignment of rights or benefits that violates the Insured Homeowners Protection Act.

Every vote on this bill

Bill text

INSURED HOMEOWNERS PROTECTION ACT
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Rex P. Shipp
Senate Sponsor: 
Evan J. Vickers
LONG TITLE
General Description:
This bill enacts the Insured Homeowners Protection Act.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ enacts provisions regarding a post-loss assignment of rights or benefits to a
residential contractor under a property and casualty insurance policy;
▸ prohibits a residential contract from rebating or offering to rebate any portion of the
insured's deductible to induce the sale of a good or service;
▸ requires a residential contractor to provide certain notices to an insured regarding
rights and violations of law; and
▸ declares void an assignment of rights or benefits that violates the Insured
Homeowners Protection Act.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
13-50-102
, as enacted by Laws of Utah 2013, Chapter 160
ENACTS:
13-50-301
, Utah Code Annotated 1953
13-50-302
, Utah Code Annotated 1953
13-50-303
, Utah Code Annotated 1953
13-50-304
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
13-50-102
 is amended to read:
13-50-102.
Definitions.
As used in this chapter:
(1) "Rebate" means:
(a) any allowance or discount against charged fees; or
(b) payment of any form of compensation, except for an item of nominal value, to:
(i) an insured; or
(ii) a person directly or indirectly associated with a residential building.
[
(1)
] 
(2)
 "Repair work" means any work done to siding, gutters, a roof system, or a
window system to repair damage caused by wind or hail.
[
(2)
] 
(3)
 "Residential building" means a single or multiple family dwelling of up to
four units.
[
(3)
] 
(4)
 "Residential contractor" means a person that, for compensation, other than
wages as an employee, contracts or offers to contract to
:
(a)
 perform repair work on a residential building[
.
]
;
(b) arrange for, manage, or process repair work on a residential building; or
(c) serve as a representative, agent, or assignee of the owner or possessor of a
residential building for purposes of repair work on the residential building.
[
(4)
] 
(5)
 "Roof system" includes roof coverings, roof sheathing, roof weatherproofing,
roof framing, roof ventilation, and roof insulation.
Section 2. Section 
13-50-301
 is enacted to read:
Part 3. Insured Homeowners Protection Act
 13-50-301.
Post-loss assignment of rights or benefits to a residential contractor.
(1) A post-loss assignment of rights or benefits to a residential contractor under a
property and casualty insurance policy insuring a residential building:
(a) may authorize a residential contractor to be named as a copayee for the payment of
benefits under a property and casualty insurance policy covering the residential building;
(b) shall include:
(i) an itemized description of the work to be done on the insured residential building;
and
(ii) the total amount the insured agreed to pay for the work described in Subsection
(1)(b)(i);
(c) shall include a statement that the residential contractor has made no assurances that
an insurance contract will fully cover the claimed loss;
(d) shall include a notice in substantially the following form and in capitalized 14-point
type:
"YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER
YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS DOCUMENT
BEFORE SIGNING.
THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE SHOWN IN THIS
ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER. THE INSURER
HAS THE RIGHT TO PAY ONLY FOR THE COST TO REPAIR OR REPLACE
DAMAGED PROPERTY CAUSED BY A COVERED PERIL.";
(e) may not impair the interest of a mortgagee listed on the declarations page of the
property and casualty insurance policy that is the subject of the assignment; and
(f) may not prevent or inhibit an insurer from communicating with a named insured
listed on the declarations page of the property and casualty insurance policy that is the subject
of the assignment.
(2) A party receiving the assignment described in Subsection (1) shall:
(a) deliver the assignment to the insurer of the residential building within five business
days after the earlier of the day on which:
(i) the assignment is executed; or
(ii) repair work begins on the residential building; and
(b) cooperate with the insurer of the residential building in an investigation into the
claimed loss by:
(i) providing each document and record the insurer requests; and
(ii) complying with each post-loss duty included in the insurance policy.
Section 3. Section 
13-50-302
 is enacted to read:
 13-50-302.
Residential contractor, prohibited acts.
A residential contractor may not rebate or offer to rebate any portion of an insurance
deductible as an inducement to the sale of a good or service.
Section 4. Section 
13-50-303
 is enacted to read:
 13-50-303.
Violation notice.
(1) Any written contract, repair estimate, or work order that a residential contractor
prepares to provide a good or service paid for from the proceeds of a property and casualty
insurance policy shall include a notice of the prohibition described in Section 
13-50-302
 in
substantially the following form and in capitalized 14-point type:
"IT IS A VIOLATION OF UTAH LAW FOR A RESIDENTIAL CONTRACTOR TO
REBATE ANY PORTION OF AN INSURANCE DEDUCTIBLE AS AN INDUCEMENT TO
THE INSURED TO ACCEPT A RESIDENTIAL CONTRACTOR'S PROPOSAL TO
REPAIR DAMAGED PROPERTY. REBATE OF A DEDUCTIBLE INCLUDES GRANTING
ANY ALLOWANCE OR OFFERING ANY DISCOUNT AGAINST THE FEES TO BE
CHARGED FOR WORK TO BE PERFORMED OR PAYING THE INSURED
POLICYHOLDER THE DEDUCTIBLE AMOUNT SET FORTH IN THE INSURANCE
POLICY.
THE INSURED POLICY HOLDER IS PERSONALLY RESPONSIBLE FOR
PAYMENT OF THE DEDUCTIBLE.".
(2) Under any agreement in which a residential contractor provides a good or service
paid for from the proceeds of a property and casualty insurance policy, no payment may be
made to the residential contractor until:
(a) the named insured signs the notice described in Subsection (1); and
(b) the residential contractor delivers the notice signed in accordance with Subsection
(2)(a) to the named insured's insurance company.
Section 5. Section 
13-50-304
 is enacted to read:
 13-50-304.
Violation of part.
A post-loss assignment of rights or benefits entered into with a residential contractor is
void if the residential contractor violates a provision of this part.