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House approves 10-day notice requirement for insurance renewals to prevent coverage gaps
Summary
The Utah House passed HB 76 unanimously, requiring insurers to provide notice at renewal similar to midterm cancellations so policyholders have at least 10 days to renew and avoid a lapse; sponsors called it a compromise with the industry.
The Utah House of Representatives on Feb. 23 passed HB 76, the insurance cancellation and nonrenewal amendments, to require clearer notice for policy renewals and reduce the risk of coverage gaps.
Representative Andrick, the sponsor, said the bill extends the protection consumers now get for midterm cancellations to the renewal period. "If the insurance company doesn't send out the notice of cancellation until the expiration of the existing policy, the insured will have 10 days from that notice, in order to renew the policy," Andrick said. The bill allows renewal notices to be sent as early as 45 days and as few as 15 days prior to the expiration, while preserving a consumer's 10-day period to cure the lapse.
Andrick described the measure as a negotiated compromise with industry representatives that aims to balance consumer protection against the risk of bad actors avoiding premium payment. The House opened and closed voting the same day; HB 76 passed 67-0 and will be referred to the Senate for further consideration.
The bill's sponsor and supporters framed the measure as limited and narrowly focused on notice timing to ensure policyholders do not inadvertently experience a lapse in coverage. No recorded amendments or dissenting floor debate preceded the final vote.
The next step for HB 76 is consideration by the Utah Senate.
