Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance Policy topic
No spam. Unsubscribe anytime.
Senate amends insurance bill to reinstate private cause of action, then circles the bill for further review
Summary
The Senate voted to reinstate language allowing insured people to sue insurance adjusters for failing to follow rules, then moved to 'circle' (hold) the bill to allow half-hour further debate and response. The floor debate centered on weighing enforcement against risking the bill’s core 60-day notice provision.
The Utah Senate on Feb. 2 debated and temporarily held Senate Bill 88, a motor-vehicle insurance bill that would require insurers to notify policyholders whether they will cover uninsured motorist claims within 60 days.
Senator John Stevenson, sponsor of SB 88, said the bill’s core provision “sets a 60 day time limit in which an insurance company needs to inform the insured of whether or not they're going to cover them in that accident.” He explained the measure originally included a private cause-of-action allowing suits against adjusters but that language had been removed in committee because it was controversial.
On the floor, Senator Katy Hall moved to reinsert the cause-of-action language that would permit insureds to sue insurance adjusters or companies for failing to comply with department rules and statutes. Senator Stevenson and Senator Hilliard argued the reinstatement would give the law “teeth” and hold adjusters accountable, while others warned it could imperil the bill’s main 60-day notice provision if the House rejected it.
After extended debate and a requested roll-call, the Senate recorded the amendment as adopted (final reported tally 27 ayes, 2 nays). Senator Stevenson said that if the amendment passed he would “circle the bill for a half an hour or so so that we can have a fair debate,” allowing interested parties to prepare for further debate. The motion to circle the bill was adopted, pausing final action until senators have time to consult and respond.
Next steps: SB 88 was circled on the Senate floor; further debate or amendment is expected before the bill is advanced to final reading or to the House.
Sources: floor debate and roll-call recorded on the Senate floor Feb. 2, 1999.
