All Roll Calls
Yes: 216 • No: 5
UtahH.B. 232025 General SessionHouseWALLET
Insurance Modifications
Sponsored By: James A. Dunnigan (Republican)
Signed by Governor
Health InsuranceInsuranceInsurance DepartmentBusinessTitle and Escrow
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Bill Overview
Analyzed Economic Effects
26 provisions identified: 10 benefits, 6 costs, 10 mixed.
New cancellation and renewal protections
Beginning May 7, 2025, insurers cannot cancel policies covered by Utah’s cancellation rules solely because someone reaches the policy’s stated ending age. Other legal reasons for cancellation remain. Insurers using a specific process to end renewal rights must mail or deliver notice 14–45 days before renewal premiums are due. That notice window does not apply to every renewal notice.
More groups can seek health coverage
Beginning May 7, 2025, groups eligible for group life insurance under two Utah provisions can also qualify for accident and health group insurance. These groups must be formed and maintained in good faith for a purpose other than getting insurance. Eligibility does not guarantee a policy or a particular price.
Small employers face tighter stop-loss limits
Beginning July 1, 2025, small-employer stop-loss contracts require at least 10 enrolled employees. Stop-loss insurance protects employers against health plan claims above set thresholds. The annual per-person threshold rises from $10,000 to at least $25,000. The annual total-claims threshold rises from 85% to at least 90% of expected claims. Earlier contracts are exempt unless the health plan’s insurance provider changes during the contract period.
Reinstatement rights for individual life policies
Beginning May 7, 2025, the legal requirement to restore lapsed life coverage applies only to individual policies. Insurers must restore eligible policies after a written application within three years of premium default. The deadline is two years for policies with a face amount under $5,000. Applicants must provide satisfactory proof of insurability, pay overdue premiums, and pay or reinstate policy debt with interest. The policy cannot have been surrendered for cash, its cash value exhausted, or any paid-up term coverage expired.
Health claim proof gets 180 days
Beginning May 7, 2025, accident and health policies must allow at least 180 days to submit written proof of loss. For claims involving periodic payments for continuing loss, the clock starts after the period the insurer must cover ends. For other claims, it starts on the date of loss.
Military families avoid adjuster license fees
Beginning May 7, 2025, service members stationed in Utah and their spouses are exempt from the adjuster license fee. Each applicant must hold a current license from a jurisdiction the Insurance Department recognizes and be in good standing there. The law does not state the waived fee amount.
Tax nonpayment alone stops triggering discipline
Beginning May 7, 2025, unpaid Utah income tax alone is no longer grounds to discipline an insurance licensee or applicant. Ignoring an administrative or court order to pay state income tax remains grounds for discipline.
Association captive insurers need less capital
Beginning May 7, 2025, association captive insurers seeking or holding Utah authorization face a lower capital minimum. The required total of unimpaired paid-in capital and surplus falls from $750,000 to $500,000. That reduces the stated minimum by $250,000.
Captive insurers can cover more risks
Beginning May 7, 2025, pure captives can insure controlled unaffiliated businesses, alongside their parents and affiliates. Association captives, sponsored captives, and sponsored captive cells can also cover risks of controlled unaffiliated businesses. Sponsored captive participants are no longer limited to insuring their own risks unless the commissioner approves otherwise.
Captive insurers gain business structure options
Beginning May 7, 2025, Utah recognizes agency captives owned by business entities licensed as insurance producers or managing general agents. Agency captives can insure only risks on policies placed through their owners. Recognized pooling captives share risk among captives and can directly insure risks that participating captives can directly insure. Captives other than branch captives can also form as nonprofits. Captives can meet the governing-body meeting requirement through an annual Utah meeting with a quorum and an out-of-state person physically present, or through the Utah Captive Insurance Association's highest membership level.
Sponsored captives gain flexible cell structures
Beginning May 7, 2025, Utah recognizes incorporated cells as separate participant accounts organized as corporations, limited liability companies, or nonprofits. The law also recognizes unincorporated protected cells. Sponsored captives can combine both cell types with the commissioner's prior approval; only participants and sponsors can hold interests. Separate accounting, asset-separation, reporting, and transaction-approval rules still apply. Sponsors can create risk-pooling arrangements for cell participants with written approval from every protected cell and the commissioner.
Title licensing needs fewer commission approvals
Beginning May 7, 2025, the insurance commissioner can issue or renew title insurance licenses without Title and Escrow Commission concurrence. The commissioner implements title insurance laws unless a specific law assigns authority to the commission. When required concurrence cannot be reached, the commissioner has final authority.
Insurance professionals face broader conduct oversight
Beginning May 7, 2025, insurance licensees must immediately report judgments or injunctions based on conduct involving payment of money. Licensees and applicants face discipline when more than 60 days past due on a final judgment. The judgment no longer needs to be described as enforceable. Discipline also covers admitted or established fraud and unfair trade practices, including practices unrelated to insurance. The commissioner must make disciplinary findings in a formal proceeding.
Captive insurers face fees and enforcement
Beginning May 7, 2025, sponsored captive cells owe nonrefundable application, initial certificate-year, and renewal fees set by the Insurance Department. Captives can lose their authority for unpaid annual fees, examination costs, or other prescribed insurance fees. The commissioner must find a listed ground and consider the public's and policyholders' best interests. Specified captive fee revenue above $1.65 million in fiscal 2025 becomes General Fund revenue. The threshold is $1.6685 million for fiscal 2026 and later.
Captive insurers face stronger management rules
Beginning May 7, 2025, captive insurers must have at least three different principal officers. Their duties must match those of a president, treasurer, and secretary. Applicants to operate sponsored captive insurers must explain how they will track each cell’s financial history, losses, and expenses. They must make cell financial records available for the commissioner’s inspection and fairly divide expenses among cells.
Older title businesses face capital requirements
Beginning May 7, 2025, the law revises capital and net-worth calculations for title entities licensed before May 14, 2019. Required rates are 2.5% for 2024, 3% for 2025, 3.5% for 2026, 4% for 2027, and 4.5% for 2028. These rates apply to average annual gross revenue over the preceding two calendar years, capped at $150,000. From January 1, 2029, the requirement is the greater of $50,000 or 5% of that average, capped at $150,000. Annual calculation dates move from February 1 to January 1.
Title businesses pay statutory enforcement assessments
Beginning May 7, 2025, statutory calculations govern annual title insurance enforcement assessments rather than commission determination after consultation. Office assessments remain capped at $250 for the first office in a county and $150 for each additional office. Title insurers also pay a share based on their Utah premium market share. The Title and Escrow Commission approves covered prior-year costs during each fiscal year's first quarter. Collections support the nonlapsing Title Licensee Enforcement Restricted Account.
Translated insurance policies, but English controls
Beginning May 7, 2025, insurers can provide policies and related materials in languages other than English for Utah customers. Insurers must certify that translated policies come from English policies that comply with Utah law. Translated policies, endorsements, and riders must include matching English text and a disclaimer in both languages. The English coverage controls disputes and complaints. Insurers do not have to file the certification or translated form with the insurance commissioner.
Public insurance funds gain legal protections
Beginning May 7, 2025, qualifying public agency insurance funds receive governmental status, rights, and immunity protections. These funds must be established by political subdivisions to cover losses to their assets for legally authorized purposes. They are exempt from most Insurance Code rules, but specified surplus lines taxes still apply. Public agency funds providing health insurance must use a licensed third-party administrator, an admitted insurer, or an authorized public employee program.
Insurance applicants gain waivers, face checks
Beginning May 7, 2025, qualifying nonresident applicants receive a waiver of specified Utah insurance licensing requirements. They must hold a current home-state or designated-home-state license in good standing, apply, pay fees, and accept Utah jurisdiction. The Insurance Department can require criminal background checks for individuals seeking an insurance license or consent to conduct insurance business. Applicants required to submit fingerprints can be charged the combined Utah and federal background-check costs.
Captive cells gain options, face duties
Beginning May 7, 2025, the sponsored captive, rather than its sponsor, must front insurance business for protected cells. It can use a controlled unaffiliated contract or an eligible insurer, subject to applicable authorization, reinsurance, or trust-security requirements. Incorporated cells can instead write business directly with the sponsored captive's prior approval. They can also continue using fronting arrangements through the sponsored captive.
Captive dormancy expands but excludes some
Beginning May 7, 2025, industrial insured captives and sponsored captive cells cannot receive dormancy certificates. Other eligible captives must stop insurance business and have no remaining insurance liabilities or obligations. The commissioner can disregard liabilities or obligations that are sufficiently funded or secured. Eligible captives can renew dormancy certificates without the former five-renewal limit. They must pay the annual dormancy renewal fee by July 1.
Captive insurers gain loans, face safeguards
Beginning May 7, 2025, each sponsored captive cell's assets can pay only that cell's claims and expenses, not other obligations. The sponsored captive's own capital and surplus cannot pay cell claims or expenses. Captive capital or surplus distributions need prior commissioner approval, and ongoing payment plans must require retained capital or surplus. Pure and industrial insured captives lose their broad investment-rule exemption; the exemption now covers only the specified allowable-investment rules. Incorporated cells can lend to parents or affiliates, but cannot use required paid-in capital and need prior written approvals and an approved note from the commissioner and, when applicable, the sponsor.
Captive investments gain flexibility and oversight
Beginning May 7, 2025, captive insurers, including industrial insured captives, must follow Utah insurance investment rules unless an exception applies. Surplus above required minimum capital can be invested outside the usual authorized classes, but illegal or otherwise prohibited investments remain barred. The commissioner can approve other reliable methods for valuing and rating investments. The commissioner can also block or limit investments that threaten an insurer’s ability to pay obligations or access needed cash.
Sponsored captives gain limited funding flexibility
Beginning May 7, 2025, one or more sponsors or participants can provide a sponsored captive's required capital and surplus. Contributions must still meet the legal minimum. An approved sponsor can provide all or part of the required amount. A sponsor can provide more than the statutory amount only when the commissioner orders an increase and finds it necessary.
Title agents face limits on roles
Beginning May 7, 2025, individual title licensees cannot conduct title business while conducting business under specified mortgage, real estate, or appraiser credentials. The law also removes two specific disciplinary grounds for dual-licensed title licensees. Those grounds covered providing title services without required approval and knowingly giving false or misleading information in the required statement.
Sponsors & Cosponsors
Sponsor
James A. Dunnigan
Republican • House
Cosponsors
Evan J. Vickers
Republican • Senate
Roll Call Votes
House vote • 2/28/2025
House/ concurs with Senate amendment
Yes: 65 • No: 0
Senate vote • 2/27/2025
Senate/ passed 3rd reading
Yes: 21 • No: 2
Senate vote • 2/27/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/26/2025
Senate/ floor amendment
Yes: 0 • No: 0
Senate vote • 2/26/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/20/2025
Senate/ passed 2nd reading
Yes: 21 • No: 2
Senate vote • 2/14/2025
Senate Comm - Favorable Recommendation
Yes: 7 • No: 0
Senate vote • 2/14/2025
Senate Comm - Substitute Recommendation
Yes: 7 • No: 0
House vote • 2/10/2025
House/ passed 3rd reading
Yes: 74 • No: 0
House vote • 2/10/2025
House/ circled
Yes: 0 • No: 0
House vote • 2/10/2025
House/ uncircled
Yes: 0 • No: 0
House vote • 2/10/2025
House/ floor amendment
Yes: 0 • No: 0
House vote • 2/10/2025
House/ floor amendment
Yes: 0 • No: 0
House vote • 1/31/2025
House Comm - Favorable Recommendation
Yes: 10 • No: 1
House vote • 1/31/2025
House Comm - Substitute Recommendation
Yes: 11 • No: 0
House vote • Unknown
House/ circled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ floor amendment
Yes: 0 • No: 0
House vote • Unknown
House/ floor amendment
Yes: 0 • No: 0
House vote • Unknown
House/ floor amendment
Yes: 0 • No: 0
House vote • Unknown
House/ uncircled
Yes: 0 • No: 0
Actions Timeline
Governor Signed
3/25/2025House/ to Governor
3/12/2025HouseHouse/ received enrolled bill from Printing
3/12/2025HouseHouse/ enrolled bill to Printing
3/7/2025HouseEnrolled Bill Returned to House or Senate
3/7/2025Draft of Enrolled Bill Prepared
3/4/2025Bill Received from House for Enrolling
3/4/2025House/ signed by Speaker/ sent for enrolling
3/3/2025HouseHouse/ received from Senate
3/3/2025HouseSenate/ to House
3/3/2025SenateSenate/ signed by President/ returned to House
3/3/2025SenateSenate/ received from House
3/3/2025SenateHouse/ to Senate
2/28/2025HouseHouse/ concurs with Senate amendment
2/28/2025HouseHouse/ placed on Concurrence Calendar
2/27/2025HouseHouse/ received from Senate
2/27/2025HouseSenate/ to House with amendments
2/27/2025SenateSenate/ passed 3rd reading
2/27/2025SenateSenate/ uncircled
2/27/2025SenateSenate/ circled
2/26/2025SenateSenate/ floor amendment
2/26/2025SenateSenate/ placed on 3rd Reading Calendar table
2/20/2025SenateSenate/ 3rd reading
2/20/2025SenateSenate/ passed 2nd reading
2/20/2025SenateSenate/ 2nd reading
2/20/2025Senate
Bill Text
Enrolled
3/7/2025
Amended 2/26/2025 12:33:000
2/26/2025
Substitute #2
2/13/2025
Amended 2/10/2025 15:02:659
2/10/2025
Substitute #1
1/31/2025
Introduced
12/17/2024