State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-21 > 31a-21-303

31A-21-303. Cancellation, issuance, renewal.
(1) (a) Except as otherwise provided in this section, other statutes, or by rule underSubsection (1)(c), this section applies to all policies of insurance:
(i) except for:
(A) life insurance;
(B) accident and health insurance; and
(C) annuities; and
(ii) if the policies of insurance are issued on forms that are subject to filing underSubsection 31A-21-201(1).
(b) A policy may provide terms more favorable to insureds than this section requires.
(c) The commissioner may by rule totally or partially exempt from this section classes ofinsurance policies in which the insureds do not need protection against arbitrary or unannouncedtermination.
(d) The rights provided by this section are in addition to and do not prejudice any otherrights the insureds may have at common law or under other statutes.
(2) (a) As used in this Subsection (2), "grounds" means:
(i) material misrepresentation;
(ii) substantial change in the risk assumed, unless the insurer should reasonably haveforeseen the change or contemplated the risk when entering into the contract;
(iii) substantial breaches of contractual duties, conditions, or warranties;
(iv) attainment of the age specified as the terminal age for coverage, in which case theinsurer may cancel by notice under Subsection (2)(c), accompanied by a tender of proportionalreturn of premium; or
(v) in the case of motor vehicle insurance, revocation or suspension of the driver's licenseof:
(A) the named insured; or
(B) any other person who customarily drives the motor vehicle.
(b) (i) Except as provided in Subsection (2)(e) or unless the conditions of Subsection(2)(b)(ii) are met, an insurance policy may not be canceled by the insurer before the earlier of:
(A) the expiration of the agreed term; or
(B) one year from the effective date of the policy or renewal.
(ii) Notwithstanding Subsection (2)(b)(i), an insurance policy may be canceled by theinsurer for:
(A) nonpayment of a premium when due; or
(B) on grounds defined in Subsection (2)(a).
(c) (i) The cancellation provided by Subsection (2)(b), except cancellation fornonpayment of premium, is effective no sooner than 30 days after the delivery or first-classmailing of a written notice to the policyholder.
(ii) Cancellation for nonpayment of premium is effective no sooner than 10 days afterdelivery or first class mailing of a written notice to the policyholder.
(d) (i) Notice of cancellation for nonpayment of premium shall include a statement of thereason for cancellation.
(ii) Subsection (7) applies to the notice required for grounds of cancellation other thannonpayment of premium.
(e) (i) Subsections (2)(a) through (d) do not apply to any insurance contract that has not

been previously renewed if the contract has been in effect less than 60 days when the writtennotice of cancellation is mailed or delivered.
(ii) A cancellation under this Subsection (2)(e) may not be effective until at least 10 daysafter the delivery to the insured of a written notice of cancellation.
(iii) If the notice required by this Subsection (2)(e) is sent by first-class mail, postageprepaid, to the insured at the insured's last-known address, delivery is considered accomplishedafter the passing, since the mailing date, of the mailing time specified in the Utah Rules of CivilProcedure.
(iv) A policy cancellation subject to this Subsection (2)(e) is not subject to theprocedures described in Subsection (7).
(3) A policy may be issued for a term longer than one year or for an indefinite term if thepolicy includes a clause providing for cancellation by the insurer by giving notice as provided inSubsection (4)(b)(i) 30 days prior to any anniversary date.
(4) (a) Subject to Subsections (2), (3), and (4)(b), a policyholder has a right to have thepolicy renewed:
(i) on the terms then being applied by the insurer to similar risks; and
(ii) (A) for an additional period of time equivalent to the expiring term if the agreed termis one year or less; or
(B) for one year if the agreed term is longer than one year.
(b) Except as provided in Subsections (4)(c) and (5), the right to renewal underSubsection (4)(a) is extinguished if:
(i) at least 30 days prior to the policy expiration or anniversary date a notice of intentionnot to renew the policy beyond the agreed expiration or anniversary date is delivered or sent byfirst-class mail by the insurer to the policyholder at the policyholder's last-known address;
(ii) not more than 45 nor less than 14 days prior to the due date of the renewal premium,the insurer delivers or sends by first-class mail a notice to the policyholder at the policyholder'slast-known address, clearly stating:
(A) the renewal premium;
(B) how the renewal premium may be paid; and
(C) that failure to pay the renewal premium by the due date extinguishes thepolicyholder's right to renewal;
(iii) the policyholder has:
(A) accepted replacement coverage; or
(B) requested or agreed to nonrenewal; or
(iv) the policy is expressly designated as nonrenewable.
(c) Unless the conditions of Subsection (4)(b)(iii) or (iv) apply, an insurer may not fail torenew an insurance policy as a result of a telephone call or other inquiry that:
(i) references a policy coverage; and
(ii) does not result in the insured requesting payment of a claim.
(d) Failure to renew under this Subsection (4) is subject to Subsection (5).
(5) Notwithstanding Subsection (4), an insurer may not fail to renew the followingpersonal lines insurance policies solely on the basis of:
(a) in the case of a motor vehicle insurance policy:
(i) a claim from the insured that:
(A) results from an accident in which:

(I) the insured is not at fault; and
(II) the driver of the motor vehicle that is covered by the motor vehicle insurance policyis 21 years of age or older; and
(B) is the only claim meeting the condition of Subsection (5)(a)(i)(A) within a 36-monthperiod;
(ii) a single traffic violation by an insured that:
(A) is a violation of a speed limit under Title 41, Chapter 6a, Traffic Code;
(B) is not in excess of 10 miles per hour over the speed limit;
(C) is not a traffic violation under:
(I) Section 41-6a-601;
(II) Section 41-6a-604; or
(III) Section 41-6a-605;
(D) is not a violation by an insured driver who is younger than 21 years of age; and
(E) is the only violation meeting the conditions of Subsections (5)(a)(ii)(A) through (D)within a 36-month period; or
(iii) a claim for damage that:
(A) results solely from:
(I) wind;
(II) hail;
(III) lightning; or
(IV) an earthquake;
(B) is not preventable by the exercise of reasonable care; and
(C) is the only claim meeting the conditions of Subsections (5)(a)(iii)(A) and (B) withina 36-month period; and
(b) in the case of a homeowner's insurance policy, a claim by the insured that is fordamage that:
(i) results solely from:
(A) wind;
(B) hail; or
(C) lightning;
(ii) is not preventable by the exercise of reasonable care; and
(iii) is the only claim meeting the conditions of Subsections (5)(b)(i) and (ii) within a36-month period.
(6) (a) (i) Subject to Subsection (6)(b), if the insurer offers or purports to renew thepolicy, but on less favorable terms or at higher rates, the new terms or rates take effect on therenewal date if the insurer delivered or sent by first-class mail to the policyholder notice of thenew terms or rates at least 30 days prior to the expiration date of the prior policy.
(ii) If the insurer did not give the prior notification described in Subsection (6)(a)(i) tothe policyholder, the new terms or rates do not take effect until 30 days after the notice isdelivered or sent by first-class mail, in which case the policyholder may elect to cancel therenewal policy at any time during the 30-day period.
(iii) Return premiums or additional premium charges shall be calculated proportionatelyon the basis that the old rates apply.
(b) Subsection (6)(a) does not apply if the only change in terms that is adverse to thepolicyholder is:

(i) a rate increase generally applicable to the class of business to which the policybelongs;
(ii) a rate increase resulting from a classification change based on the altered nature orextent of the risk insured against; or
(iii) a policy form change made to make the form consistent with Utah law.
(7) (a) If a notice of cancellation or nonrenewal under Subsection (2)(c) does not statewith reasonable precision the facts on which the insurer's decision is based, the insurer shall sendby first-class mail or deliver that information within 10 working days after receipt of a writtenrequest by the policyholder.
(b) A notice under Subsection (2)(c) is not effective unless it contains information aboutthe policyholder's right to make the request.
(8) (a) An insurer that gives a notice of nonrenewal or cancellation of insurance on amotor vehicle insurance policy issued in accordance with the requirements of Chapter 22, Part 3,Motor Vehicle Insurance, for nonpayment of a premium shall provide notice of nonrenewal orcancellation to a lienholder if the insurer has been provided the name and mailing address of thelienholder.
(b) The notice described in Subsection (8)(a) shall be provided to the lienholder by firstclass mail or, if agreed by the parties, any electronic means of communication.
(c) A lienholder shall provide a current physical address of notification or an electronicaddress of notification to an insurer that is required to make a notification under Subsection(8)(a).
(9) If a risk-sharing plan under Section 31A-2-214 exists for the kind of coverageprovided by the insurance being cancelled or nonrenewed, a notice of cancellation or nonrenewalrequired under Subsection (2)(c) or (4)(b)(i) may not be effective unless it contains instructionsto the policyholder for applying for insurance through the available risk-sharing plan.
(10) There is no liability on the part of, and no cause of action against, any insurer, itsauthorized representatives, agents, employees, or any other person furnishing to the insurerinformation relating to the reasons for cancellation or nonrenewal or for any statement made orinformation given by them in complying or enabling the insurer to comply with this sectionunless actual malice is proved by clear and convincing evidence.
(11) This section does not alter any common law right of contract rescission for materialmisrepresentation.

Amended by Chapter 190, 2010 General Session

State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-21 > 31a-21-303

31A-21-303. Cancellation, issuance, renewal.
(1) (a) Except as otherwise provided in this section, other statutes, or by rule underSubsection (1)(c), this section applies to all policies of insurance:
(i) except for:
(A) life insurance;
(B) accident and health insurance; and
(C) annuities; and
(ii) if the policies of insurance are issued on forms that are subject to filing underSubsection 31A-21-201(1).
(b) A policy may provide terms more favorable to insureds than this section requires.
(c) The commissioner may by rule totally or partially exempt from this section classes ofinsurance policies in which the insureds do not need protection against arbitrary or unannouncedtermination.
(d) The rights provided by this section are in addition to and do not prejudice any otherrights the insureds may have at common law or under other statutes.
(2) (a) As used in this Subsection (2), "grounds" means:
(i) material misrepresentation;
(ii) substantial change in the risk assumed, unless the insurer should reasonably haveforeseen the change or contemplated the risk when entering into the contract;
(iii) substantial breaches of contractual duties, conditions, or warranties;
(iv) attainment of the age specified as the terminal age for coverage, in which case theinsurer may cancel by notice under Subsection (2)(c), accompanied by a tender of proportionalreturn of premium; or
(v) in the case of motor vehicle insurance, revocation or suspension of the driver's licenseof:
(A) the named insured; or
(B) any other person who customarily drives the motor vehicle.
(b) (i) Except as provided in Subsection (2)(e) or unless the conditions of Subsection(2)(b)(ii) are met, an insurance policy may not be canceled by the insurer before the earlier of:
(A) the expiration of the agreed term; or
(B) one year from the effective date of the policy or renewal.
(ii) Notwithstanding Subsection (2)(b)(i), an insurance policy may be canceled by theinsurer for:
(A) nonpayment of a premium when due; or
(B) on grounds defined in Subsection (2)(a).
(c) (i) The cancellation provided by Subsection (2)(b), except cancellation fornonpayment of premium, is effective no sooner than 30 days after the delivery or first-classmailing of a written notice to the policyholder.
(ii) Cancellation for nonpayment of premium is effective no sooner than 10 days afterdelivery or first class mailing of a written notice to the policyholder.
(d) (i) Notice of cancellation for nonpayment of premium shall include a statement of thereason for cancellation.
(ii) Subsection (7) applies to the notice required for grounds of cancellation other thannonpayment of premium.
(e) (i) Subsections (2)(a) through (d) do not apply to any insurance contract that has not

been previously renewed if the contract has been in effect less than 60 days when the writtennotice of cancellation is mailed or delivered.
(ii) A cancellation under this Subsection (2)(e) may not be effective until at least 10 daysafter the delivery to the insured of a written notice of cancellation.
(iii) If the notice required by this Subsection (2)(e) is sent by first-class mail, postageprepaid, to the insured at the insured's last-known address, delivery is considered accomplishedafter the passing, since the mailing date, of the mailing time specified in the Utah Rules of CivilProcedure.
(iv) A policy cancellation subject to this Subsection (2)(e) is not subject to theprocedures described in Subsection (7).
(3) A policy may be issued for a term longer than one year or for an indefinite term if thepolicy includes a clause providing for cancellation by the insurer by giving notice as provided inSubsection (4)(b)(i) 30 days prior to any anniversary date.
(4) (a) Subject to Subsections (2), (3), and (4)(b), a policyholder has a right to have thepolicy renewed:
(i) on the terms then being applied by the insurer to similar risks; and
(ii) (A) for an additional period of time equivalent to the expiring term if the agreed termis one year or less; or
(B) for one year if the agreed term is longer than one year.
(b) Except as provided in Subsections (4)(c) and (5), the right to renewal underSubsection (4)(a) is extinguished if:
(i) at least 30 days prior to the policy expiration or anniversary date a notice of intentionnot to renew the policy beyond the agreed expiration or anniversary date is delivered or sent byfirst-class mail by the insurer to the policyholder at the policyholder's last-known address;
(ii) not more than 45 nor less than 14 days prior to the due date of the renewal premium,the insurer delivers or sends by first-class mail a notice to the policyholder at the policyholder'slast-known address, clearly stating:
(A) the renewal premium;
(B) how the renewal premium may be paid; and
(C) that failure to pay the renewal premium by the due date extinguishes thepolicyholder's right to renewal;
(iii) the policyholder has:
(A) accepted replacement coverage; or
(B) requested or agreed to nonrenewal; or
(iv) the policy is expressly designated as nonrenewable.
(c) Unless the conditions of Subsection (4)(b)(iii) or (iv) apply, an insurer may not fail torenew an insurance policy as a result of a telephone call or other inquiry that:
(i) references a policy coverage; and
(ii) does not result in the insured requesting payment of a claim.
(d) Failure to renew under this Subsection (4) is subject to Subsection (5).
(5) Notwithstanding Subsection (4), an insurer may not fail to renew the followingpersonal lines insurance policies solely on the basis of:
(a) in the case of a motor vehicle insurance policy:
(i) a claim from the insured that:
(A) results from an accident in which:

(I) the insured is not at fault; and
(II) the driver of the motor vehicle that is covered by the motor vehicle insurance policyis 21 years of age or older; and
(B) is the only claim meeting the condition of Subsection (5)(a)(i)(A) within a 36-monthperiod;
(ii) a single traffic violation by an insured that:
(A) is a violation of a speed limit under Title 41, Chapter 6a, Traffic Code;
(B) is not in excess of 10 miles per hour over the speed limit;
(C) is not a traffic violation under:
(I) Section 41-6a-601;
(II) Section 41-6a-604; or
(III) Section 41-6a-605;
(D) is not a violation by an insured driver who is younger than 21 years of age; and
(E) is the only violation meeting the conditions of Subsections (5)(a)(ii)(A) through (D)within a 36-month period; or
(iii) a claim for damage that:
(A) results solely from:
(I) wind;
(II) hail;
(III) lightning; or
(IV) an earthquake;
(B) is not preventable by the exercise of reasonable care; and
(C) is the only claim meeting the conditions of Subsections (5)(a)(iii)(A) and (B) withina 36-month period; and
(b) in the case of a homeowner's insurance policy, a claim by the insured that is fordamage that:
(i) results solely from:
(A) wind;
(B) hail; or
(C) lightning;
(ii) is not preventable by the exercise of reasonable care; and
(iii) is the only claim meeting the conditions of Subsections (5)(b)(i) and (ii) within a36-month period.
(6) (a) (i) Subject to Subsection (6)(b), if the insurer offers or purports to renew thepolicy, but on less favorable terms or at higher rates, the new terms or rates take effect on therenewal date if the insurer delivered or sent by first-class mail to the policyholder notice of thenew terms or rates at least 30 days prior to the expiration date of the prior policy.
(ii) If the insurer did not give the prior notification described in Subsection (6)(a)(i) tothe policyholder, the new terms or rates do not take effect until 30 days after the notice isdelivered or sent by first-class mail, in which case the policyholder may elect to cancel therenewal policy at any time during the 30-day period.
(iii) Return premiums or additional premium charges shall be calculated proportionatelyon the basis that the old rates apply.
(b) Subsection (6)(a) does not apply if the only change in terms that is adverse to thepolicyholder is:

(i) a rate increase generally applicable to the class of business to which the policybelongs;
(ii) a rate increase resulting from a classification change based on the altered nature orextent of the risk insured against; or
(iii) a policy form change made to make the form consistent with Utah law.
(7) (a) If a notice of cancellation or nonrenewal under Subsection (2)(c) does not statewith reasonable precision the facts on which the insurer's decision is based, the insurer shall sendby first-class mail or deliver that information within 10 working days after receipt of a writtenrequest by the policyholder.
(b) A notice under Subsection (2)(c) is not effective unless it contains information aboutthe policyholder's right to make the request.
(8) (a) An insurer that gives a notice of nonrenewal or cancellation of insurance on amotor vehicle insurance policy issued in accordance with the requirements of Chapter 22, Part 3,Motor Vehicle Insurance, for nonpayment of a premium shall provide notice of nonrenewal orcancellation to a lienholder if the insurer has been provided the name and mailing address of thelienholder.
(b) The notice described in Subsection (8)(a) shall be provided to the lienholder by firstclass mail or, if agreed by the parties, any electronic means of communication.
(c) A lienholder shall provide a current physical address of notification or an electronicaddress of notification to an insurer that is required to make a notification under Subsection(8)(a).
(9) If a risk-sharing plan under Section 31A-2-214 exists for the kind of coverageprovided by the insurance being cancelled or nonrenewed, a notice of cancellation or nonrenewalrequired under Subsection (2)(c) or (4)(b)(i) may not be effective unless it contains instructionsto the policyholder for applying for insurance through the available risk-sharing plan.
(10) There is no liability on the part of, and no cause of action against, any insurer, itsauthorized representatives, agents, employees, or any other person furnishing to the insurerinformation relating to the reasons for cancellation or nonrenewal or for any statement made orinformation given by them in complying or enabling the insurer to comply with this sectionunless actual malice is proved by clear and convincing evidence.
(11) This section does not alter any common law right of contract rescission for materialmisrepresentation.

Amended by Chapter 190, 2010 General Session


State Codes and Statutes


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State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-21 > 31a-21-303

31A-21-303. Cancellation, issuance, renewal.
(1) (a) Except as otherwise provided in this section, other statutes, or by rule underSubsection (1)(c), this section applies to all policies of insurance:
(i) except for:
(A) life insurance;
(B) accident and health insurance; and
(C) annuities; and
(ii) if the policies of insurance are issued on forms that are subject to filing underSubsection 31A-21-201(1).
(b) A policy may provide terms more favorable to insureds than this section requires.
(c) The commissioner may by rule totally or partially exempt from this section classes ofinsurance policies in which the insureds do not need protection against arbitrary or unannouncedtermination.
(d) The rights provided by this section are in addition to and do not prejudice any otherrights the insureds may have at common law or under other statutes.
(2) (a) As used in this Subsection (2), "grounds" means:
(i) material misrepresentation;
(ii) substantial change in the risk assumed, unless the insurer should reasonably haveforeseen the change or contemplated the risk when entering into the contract;
(iii) substantial breaches of contractual duties, conditions, or warranties;
(iv) attainment of the age specified as the terminal age for coverage, in which case theinsurer may cancel by notice under Subsection (2)(c), accompanied by a tender of proportionalreturn of premium; or
(v) in the case of motor vehicle insurance, revocation or suspension of the driver's licenseof:
(A) the named insured; or
(B) any other person who customarily drives the motor vehicle.
(b) (i) Except as provided in Subsection (2)(e) or unless the conditions of Subsection(2)(b)(ii) are met, an insurance policy may not be canceled by the insurer before the earlier of:
(A) the expiration of the agreed term; or
(B) one year from the effective date of the policy or renewal.
(ii) Notwithstanding Subsection (2)(b)(i), an insurance policy may be canceled by theinsurer for:
(A) nonpayment of a premium when due; or
(B) on grounds defined in Subsection (2)(a).
(c) (i) The cancellation provided by Subsection (2)(b), except cancellation fornonpayment of premium, is effective no sooner than 30 days after the delivery or first-classmailing of a written notice to the policyholder.
(ii) Cancellation for nonpayment of premium is effective no sooner than 10 days afterdelivery or first class mailing of a written notice to the policyholder.
(d) (i) Notice of cancellation for nonpayment of premium shall include a statement of thereason for cancellation.
(ii) Subsection (7) applies to the notice required for grounds of cancellation other thannonpayment of premium.
(e) (i) Subsections (2)(a) through (d) do not apply to any insurance contract that has not

been previously renewed if the contract has been in effect less than 60 days when the writtennotice of cancellation is mailed or delivered.
(ii) A cancellation under this Subsection (2)(e) may not be effective until at least 10 daysafter the delivery to the insured of a written notice of cancellation.
(iii) If the notice required by this Subsection (2)(e) is sent by first-class mail, postageprepaid, to the insured at the insured's last-known address, delivery is considered accomplishedafter the passing, since the mailing date, of the mailing time specified in the Utah Rules of CivilProcedure.
(iv) A policy cancellation subject to this Subsection (2)(e) is not subject to theprocedures described in Subsection (7).
(3) A policy may be issued for a term longer than one year or for an indefinite term if thepolicy includes a clause providing for cancellation by the insurer by giving notice as provided inSubsection (4)(b)(i) 30 days prior to any anniversary date.
(4) (a) Subject to Subsections (2), (3), and (4)(b), a policyholder has a right to have thepolicy renewed:
(i) on the terms then being applied by the insurer to similar risks; and
(ii) (A) for an additional period of time equivalent to the expiring term if the agreed termis one year or less; or
(B) for one year if the agreed term is longer than one year.
(b) Except as provided in Subsections (4)(c) and (5), the right to renewal underSubsection (4)(a) is extinguished if:
(i) at least 30 days prior to the policy expiration or anniversary date a notice of intentionnot to renew the policy beyond the agreed expiration or anniversary date is delivered or sent byfirst-class mail by the insurer to the policyholder at the policyholder's last-known address;
(ii) not more than 45 nor less than 14 days prior to the due date of the renewal premium,the insurer delivers or sends by first-class mail a notice to the policyholder at the policyholder'slast-known address, clearly stating:
(A) the renewal premium;
(B) how the renewal premium may be paid; and
(C) that failure to pay the renewal premium by the due date extinguishes thepolicyholder's right to renewal;
(iii) the policyholder has:
(A) accepted replacement coverage; or
(B) requested or agreed to nonrenewal; or
(iv) the policy is expressly designated as nonrenewable.
(c) Unless the conditions of Subsection (4)(b)(iii) or (iv) apply, an insurer may not fail torenew an insurance policy as a result of a telephone call or other inquiry that:
(i) references a policy coverage; and
(ii) does not result in the insured requesting payment of a claim.
(d) Failure to renew under this Subsection (4) is subject to Subsection (5).
(5) Notwithstanding Subsection (4), an insurer may not fail to renew the followingpersonal lines insurance policies solely on the basis of:
(a) in the case of a motor vehicle insurance policy:
(i) a claim from the insured that:
(A) results from an accident in which:

(I) the insured is not at fault; and
(II) the driver of the motor vehicle that is covered by the motor vehicle insurance policyis 21 years of age or older; and
(B) is the only claim meeting the condition of Subsection (5)(a)(i)(A) within a 36-monthperiod;
(ii) a single traffic violation by an insured that:
(A) is a violation of a speed limit under Title 41, Chapter 6a, Traffic Code;
(B) is not in excess of 10 miles per hour over the speed limit;
(C) is not a traffic violation under:
(I) Section 41-6a-601;
(II) Section 41-6a-604; or
(III) Section 41-6a-605;
(D) is not a violation by an insured driver who is younger than 21 years of age; and
(E) is the only violation meeting the conditions of Subsections (5)(a)(ii)(A) through (D)within a 36-month period; or
(iii) a claim for damage that:
(A) results solely from:
(I) wind;
(II) hail;
(III) lightning; or
(IV) an earthquake;
(B) is not preventable by the exercise of reasonable care; and
(C) is the only claim meeting the conditions of Subsections (5)(a)(iii)(A) and (B) withina 36-month period; and
(b) in the case of a homeowner's insurance policy, a claim by the insured that is fordamage that:
(i) results solely from:
(A) wind;
(B) hail; or
(C) lightning;
(ii) is not preventable by the exercise of reasonable care; and
(iii) is the only claim meeting the conditions of Subsections (5)(b)(i) and (ii) within a36-month period.
(6) (a) (i) Subject to Subsection (6)(b), if the insurer offers or purports to renew thepolicy, but on less favorable terms or at higher rates, the new terms or rates take effect on therenewal date if the insurer delivered or sent by first-class mail to the policyholder notice of thenew terms or rates at least 30 days prior to the expiration date of the prior policy.
(ii) If the insurer did not give the prior notification described in Subsection (6)(a)(i) tothe policyholder, the new terms or rates do not take effect until 30 days after the notice isdelivered or sent by first-class mail, in which case the policyholder may elect to cancel therenewal policy at any time during the 30-day period.
(iii) Return premiums or additional premium charges shall be calculated proportionatelyon the basis that the old rates apply.
(b) Subsection (6)(a) does not apply if the only change in terms that is adverse to thepolicyholder is:

(i) a rate increase generally applicable to the class of business to which the policybelongs;
(ii) a rate increase resulting from a classification change based on the altered nature orextent of the risk insured against; or
(iii) a policy form change made to make the form consistent with Utah law.
(7) (a) If a notice of cancellation or nonrenewal under Subsection (2)(c) does not statewith reasonable precision the facts on which the insurer's decision is based, the insurer shall sendby first-class mail or deliver that information within 10 working days after receipt of a writtenrequest by the policyholder.
(b) A notice under Subsection (2)(c) is not effective unless it contains information aboutthe policyholder's right to make the request.
(8) (a) An insurer that gives a notice of nonrenewal or cancellation of insurance on amotor vehicle insurance policy issued in accordance with the requirements of Chapter 22, Part 3,Motor Vehicle Insurance, for nonpayment of a premium shall provide notice of nonrenewal orcancellation to a lienholder if the insurer has been provided the name and mailing address of thelienholder.
(b) The notice described in Subsection (8)(a) shall be provided to the lienholder by firstclass mail or, if agreed by the parties, any electronic means of communication.
(c) A lienholder shall provide a current physical address of notification or an electronicaddress of notification to an insurer that is required to make a notification under Subsection(8)(a).
(9) If a risk-sharing plan under Section 31A-2-214 exists for the kind of coverageprovided by the insurance being cancelled or nonrenewed, a notice of cancellation or nonrenewalrequired under Subsection (2)(c) or (4)(b)(i) may not be effective unless it contains instructionsto the policyholder for applying for insurance through the available risk-sharing plan.
(10) There is no liability on the part of, and no cause of action against, any insurer, itsauthorized representatives, agents, employees, or any other person furnishing to the insurerinformation relating to the reasons for cancellation or nonrenewal or for any statement made orinformation given by them in complying or enabling the insurer to comply with this sectionunless actual malice is proved by clear and convincing evidence.
(11) This section does not alter any common law right of contract rescission for materialmisrepresentation.

Amended by Chapter 190, 2010 General Session


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