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House passes insurance-contracts bill restricting discretionary clauses after floor debate
Summary
The Utah House approved First Substitute Senate Bill 135 on March 5, 2018, banning discretionary authority clauses in certain insurance policies to preserve a de novo standard of judicial review; the bill passed 53–13 after floor debate about effects on local insurers.
First Substitute Senate Bill 135, which seeks to prohibit so-called discretionary authority clauses in life, health and disability insurance contracts, passed the Utah House on March 5, 2018, by a vote of 53–13.
The bill’s House sponsor, Representative King, opened floor remarks by declaring a personal conflict of interest: “I need to declare conflict of interest,” he said on the floor, and then described the measure’s purpose. King told colleagues the bill would ban clauses that he said can change the standard of judicial…
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