NAMIC OPTIMISTIC ABOUT UTAH’S LEGISLATIVE SESSION:

The National Association of Mutual Insurance Companies is pleased that the Utah Legislature’s 2005 property/casualty approved legislation contains some elements sought by NAMIC member companies. “The Legislature adopted industry supported amendments to its insurance cancellation and nonrenewal restrictions bill,” said Christian Rataj, western region state affairs manager for NAMIC. “The Legislature also took a reasoned approach in the area of uninsured motorist property damage coverage.” While the Insurance Cancellation and Nonrenewal Restrictions Bill, SB 48, places new restrictions on underwriting freedom, NAMIC applauded the Utah Legislature for adopting several insurance industry supported amendments that ameliorated some of the provisions of the new restrictions on insurance cancellation and nonrenewal. SB 48 would prohibit cancellation or nonrenewal of motor vehicle or homeowners policies based solely on specified circumstances. NAMIC generally opposes legislation mandating insurance coverages, but another bill, SB 4, takes a reasoned approach to the new mandate that uninsured motorist property damage coverage must be provided to insurance consumers by: allowing for a reasonable damage limit for the policy; preventing claims for loss of use of the vehicle; requiring the insured to provide the license plate number of the uninsured motor vehicle; and requiring the insured to report the occurrence within 10 days of the accident to the insurer.