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Committee endorses insurance code updates including title insurance record protections and wire‑fraud reporting
Summary
The committee adopted a first substitute and gave a favorable recommendation to HB 58, which updates insurance examination procedures, authorizes the department to draw exam costs from insurer reserves, requires title insurance wire‑fraud reporting, and raises a spending cap for captive regulation.
Representative Dunigan and Insurance Commissioner John Pike briefed the House Business, Labor and Commerce Committee on HB 58, a package of insurance code technical changes and several policy provisions.
Dunigan said the bill lets the department take unpaid financial examination fees from an insurer’s required reserves with a subsequent duty for the insurer to restore the reserve. He said the bill also streamlines financial examinations, preserves title insurance records after agencies close, and raises a statutory spending cap for the department’s captive insurance division by $19,000 to cover regulation costs.
John Pike, the insurance commissioner, highlighted additional provisions that require title insurance agencies and agents to report wire fraud to their insurers and the commissioner, and maintain $500,000 of coverage for theft of escrow proceeds. Pike also said the bill adopts consumer protections from the National Association of Insurance Commissioners for public adjuster compensation and sets licensing and investment standards for risk retention groups.
Steve McCaffrey, national director for the American Association of Public Insurance Adjusters, told the committee he supported HB 58 and praised the collaboration between the department and industry. Court Ashton of the Utah Land Title Association said his organization had worked with the Department of Insurance and supported the title insurance provisions.
The committee adopted the first substitute and then voted by voice to give HB 58 a favorable recommendation; the chair announced the bill passed unanimously.
