Committee hears testimony on ending Utah's motorboat insurance mandate; no vote recorded

Representative Colin Jack presented HB 169, which would remove the statutory requirement that motorboat owners purchase liability insurance. Nicole Brown, senior policy adviser at WEISS Ratings, summarized NAIC filings and said Utah is one of only two states that mandate liability coverage for most motorboats, and that Utah's payout ratio on the NAIC "inland marine" line is about 37.9¢ on the dollar — meaning insurers paid roughly 37.9 cents on each premium dollar collected for that line in the period analyzed — and argued the mandated market produces poor consumer value.

"These numbers alone demonstrate that the current mandate is failing to deliver that fairness," Brown said, arguing that repealing the mandate would return boat insurance to a voluntary market and encourage competition.

Committee members raised public‑safety and liability concerns: some members, including Representative Dunigan and others, said liability would remain even without a mandate but worried victims might have limited recourse if an at‑fault boater lacks assets or insurance. Representative Wayne highlighted alcohol-related boating fatalities as a particular public‑safety concern.

Industry witness Dave Callas of the National Association of Mutual Insurance Companies told the committee his members had no concerns with the bill and that removing reporting burdens for carriers is acceptable to them. Jake Lee of the Utah Association for Justice (testifying online) urged defeat of the bill, saying repeal would allow at‑fault operators to avoid practical financial responsibility and leave injured people without compensation other than suing for personal assets.

The committee heard extensive questions and public comment but did not record a final committee vote on HB 169 in the transcript before adjourning.