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House passes HB233 to update property and casualty guarantee protections
Summary
The Utah House passed House Bill 233 on Feb. 7, 2001, updating state protections for policyholders in insurer failures and lowering a coverage threshold referenced in debate; the measure passed the House 71-0 and was referred to the Senate.
The Utah House on Feb. 7, 2001, voted 71-0 to pass House Bill 233, the Property and Casualty Guarantee Association Act, sending the bill to the Senate for further consideration.
Representative Gary Adair, who presented the measure on the House floor, said the bill updates the state’s insurance title to protect policyholders when state-regulated insurance companies fail. Adair described two guarantee associations covered by the bill — one for life and health policies and one for property and casualty policies — and said their purpose is to protect policyholders “least able to afford insurance.” He told colleagues the proposal reduces a threshold discussed on the floor to $50,000,000 and would limit certain protections to smaller companies (as described in the bill text).
Adair said these associations would return a prorated portion of premiums in the event of a company insolvency and explained the types of coverage involved, noting that property covers homes, cars and businesses while health covers accidents and medical needs. He framed the changes as refinement of existing state protections under Utah’s insurance laws.
The vote was announced on the House floor as 71 yes, 0 no. The House Clerk recorded that HB233 has passed the House and the bill will be referred to the Senate for further consideration.
