H.B. 562
FailedHomeowners Insurance Amendments
Homeowners Insurance Amendments
Introduction
Feb 13
House Rules
Mar 5
House Committee
Feb 27
House Floor Vote
Senate Rules
Senate Committee
Senate 2nd Reading
Senate 3rd Reading
Governor
What This Bill Does
This bill creates an independent state agency to provide real property insurance coverage when such coverage is not available from insurers.
Key Provisions
This bill:
- defines terms;
- enacts the Access to Insurance Plan Act;
- creates the Access to Insurance Plan Association as an independent state agency;
- requires each admitted insurer that writes property insurance in the state to participate in the association as a condition of transacting business;
- requires the association to establish and operate a residual market property insurance plan (fair plan);
- authorizes the fair plan to provide residential and commercial property insurance when coverage is not available in the admitted market;
- establishes governance of the association by a board of directors that the governor appoints;
- requires the board to adopt and submit a plan of operation to the insurance commissioner for approval;
- establishes requirements for rates, underwriting standards, coverage limits, and policy forms under the fair plan;
- requires an applicant to demonstrate that at least three admitted insurers declined coverage before obtaining coverage through the fair plan;
- authorizes the association to assess member insurers to fund startup costs and ongoing financial obligations;
- authorizes member insurers to recover certain assessments through policyholder surcharges;
- grants the insurance commissioner oversight, enforcement authority, and rulemaking authority; and
- provides for judicial review of final administrative actions.
Plain-Language Summary
AI-generated summary. We recommend consulting the bill text for important decisions.
Utah currently has no state backstop for homeowners who can't find property insurance on the private market. This bill creates a new independent state agency — the Access to Insurance Plan Association — that operates a "fair plan," a last-resort insurance option for homeowners and businesses that have been rejected by at least three private insurers. Every insurance company licensed to sell property insurance in Utah must join the association as a condition of doing business, and those companies share the financial costs of the plan in proportion to how much property insurance they already sell in the state; they can recover some of those costs by adding a surcharge to their existing policyholders' bills. A governor-appointed board runs the association, sets rates and coverage rules, and reports annually to the state insurance commissioner, who has authority to approve the plan, make rules, and penalize insurers that don't comply.
H.B. 562
FailedHomeowners Insurance Amendments
Introduction
Feb 13
House Rules
Mar 5
House Committee
Feb 27
House Floor Vote
Senate Rules
Senate Committee
Senate 2nd Reading
Senate 3rd Reading
Governor
IntroductionFeb 13
House RulesMar 5
House CommitteeFeb 27
House Floor Vote
Senate Rules
Senate Committee
Senate 2nd Reading
Senate 3rd Reading
Governor
What This Bill Does
This bill creates an independent state agency to provide real property insurance coverage when such coverage is not available from insurers.
Key Provisions
This bill:
- defines terms;
- enacts the Access to Insurance Plan Act;
- creates the Access to Insurance Plan Association as an independent state agency;
- requires each admitted insurer that writes property insurance in the state to participate in the association as a condition of transacting business;
- requires the association to establish and operate a residual market property insurance plan (fair plan);
- authorizes the fair plan to provide residential and commercial property insurance when coverage is not available in the admitted market;
- establishes governance of the association by a board of directors that the governor appoints;
- requires the board to adopt and submit a plan of operation to the insurance commissioner for approval;
- establishes requirements for rates, underwriting standards, coverage limits, and policy forms under the fair plan;
- requires an applicant to demonstrate that at least three admitted insurers declined coverage before obtaining coverage through the fair plan;
- authorizes the association to assess member insurers to fund startup costs and ongoing financial obligations;
- authorizes member insurers to recover certain assessments through policyholder surcharges;
- grants the insurance commissioner oversight, enforcement authority, and rulemaking authority; and
- provides for judicial review of final administrative actions.
Plain-Language Summary
AI-generated summary. We recommend consulting the bill text for important decisions.
Utah currently has no state backstop for homeowners who can't find property insurance on the private market. This bill creates a new independent state agency — the Access to Insurance Plan Association — that operates a "fair plan," a last-resort insurance option for homeowners and businesses that have been rejected by at least three private insurers. Every insurance company licensed to sell property insurance in Utah must join the association as a condition of doing business, and those companies share the financial costs of the plan in proportion to how much property insurance they already sell in the state; they can recover some of those costs by adding a surcharge to their existing policyholders' bills. A governor-appointed board runs the association, sets rates and coverage rules, and reports annually to the state insurance commissioner, who has authority to approve the plan, make rules, and penalize insurers that don't comply.
Documents
Committee Hearings
Subjects
Action History15
House/ filed
House file for bills not passed
House/ strike enacting clause
Clerk of the House
House/ comm rpt/ sent to Rules
House Rules Committee
House Comm - Recommends Returned to Rules
House Natural Resources, Agriculture, and Environment Committee
House Comm - Not Considered
House Natural Resources, Agriculture, and Environment Committee
Last updated Mar 26, 2026, 9:42 PM