S.B. 189 Enrolled

MOTOR VEHICLE INSURANCE POLICY COVERAGE
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: Michael G. Waddoups
AN ACT RELATING TO INSURANCE; AMENDING UNINSURED AND UNDERINSURED
MOTORIST COVERAGE PROVISIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
31A-22-305, as last amended by Chapter 158, Laws of Utah 1999
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 31A-22-305 is amended to read:
31A-22-305. Uninsured and underinsured motorist coverage.
(1) As used in this section, "covered persons" includes:
(a) the named insured;
(b) persons related to the named insured by blood, marriage, adoption, or guardianship,
who are residents of the named insured's household, including those who usually make their home
in the same household but temporarily live elsewhere;
(c) any person occupying or using a motor vehicle referred to in the policy or owned by
a self-insurer; and
(d) any person who is entitled to recover damages against the owner or operator of the
uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
Subsection (1)(a), (b), or (c).
(2) As used in this section, "uninsured motor vehicle" includes:
(a) (i) a vehicle, the operation, maintenance, or use of which is not covered under a liability
policy at the time of an injury-causing occurrence; or
(ii) (A) a vehicle covered with lower liability limits than required by Section 31A-22-304 ;
(B) the vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of the
deficiency;
(b) an unidentified vehicle that left the scene of an accident proximately caused by the

vehicle operator;
(c) a vehicle covered by a liability policy, but coverage for an accident is disputed by the
liability insurer for more than 60 days or, beginning with the effective date of this act, continues to
be disputed for more than 60 days; or
(d) (i) an insured vehicle if, before or after the accident, the liability insurer of the vehicle is
declared insolvent by a court of competent jurisdiction;
(ii) the vehicle described in Subsection (2)(d)(i) is uninsured only to the extent that the claim
against the insolvent insurer is not paid by a guaranty association or fund.
(3) (a) Uninsured motorist coverage under Subsection 31A-22-302 (1)(b) provides coverage
for covered persons who are legally entitled to recover damages from owners or operators of
uninsured motor vehicles because of bodily injury, sickness, disease, or death [in limits that at least
equal the minimum bodily injury limits for motor vehicle liability policies under Section 31A-22-304 ].
(b) For new policies written on or after January 1, 2001, the limits of uninsured motorist
coverage shall be equal to the lesser of the limits of the insured's motor vehicle liability coverage or
the maximum uninsured motorist coverage limits available by the insurer under the insured's motor
vehicle policy, unless the insured purchases coverage in a lesser amount by signing an
acknowledgment form provided by the insurer that:
(i) waives the higher coverage;
(ii) reasonably explains the purpose of uninsured motorist coverage; and
(iii) discloses the additional premiums required to purchase uninsured motorist coverage with
limits equal to the lesser of the limits of the insured's motor vehicle liability coverage or the maximum
uninsured motorist coverage limits available by the insurer under the insured's motor vehicle policy.
(c) Uninsured motorist coverage may not be sold with limits that are less than the minimum
bodily injury limits for motor vehicle liability policies under Section 31A-22-304 .
(d) The acknowledgment under Subsection (3)(b) continues for that issuer of the uninsured
motorist coverage until the insured, in writing, requests different uninsured motorist coverage from
the insurer.
(e) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for policies

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existing on that date, the insurer shall disclose in the same medium as the premium renewal notice,
an explanation of the purpose of uninsured motorist coverage and the costs associated with increasing
the coverage in amounts up to and including the maximum amount available by the insurer under the
insured's motor vehicle policy.
(ii) The disclosure shall be sent to all insureds that carry uninsured motorist coverage limits
in an amount less than the insured's motor vehicle liability policy limits or the maximum uninsured
motorist coverage limits available by the insurer under the insured's motor vehicle policy.
(4) (a) (i) Except as provided in Subsection (4)(b), the named insured may reject uninsured
motorist coverage by an express writing to the insurer that provides liability coverage under
Subsection 31A-22-302 (1)(a).
(ii) This rejection shall be on a form provided by the insurer that includes a reasonable
explanation of the purpose of uninsured motorist coverage.
(iii) This rejection continues for that issuer of the liability coverage until the insured in writing
requests uninsured motorist coverage from that liability insurer.
(b) (i) All persons, including governmental entities, that are engaged in the business of, or
that accept payment for, transporting natural persons by motor vehicle, and all school districts that
provide transportation services for their students, shall provide coverage for all vehicles used for that
purpose, by purchase of a policy of insurance or by self-insurance, uninsured motorist coverage of
at least $25,000 per person and $500,000 per accident.
[(i)] (ii) This coverage is secondary to any other insurance covering an injured covered
person.
[(ii)] (c) [This coverage does not apply to an employee, who is injured by an uninsured
motorist, whose exclusive remedy is] Uninsured motorist coverage:
(i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers' Compensation
Act[.];
(ii) may not be subrogated by the Workers' Compensation insurance carrier;
(iii) may not be reduced by any benefits provided by Workers' Compensation insurance; and
(iv) may be reduced by health insurance subrogation only after the covered person has been

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made whole.
[(c)] (d) As used in this Subsection (4):
(i) "Governmental entity" has the same meaning as under Section 63-30-2 .
(ii) "Motor vehicle" has the same meaning as under Section 41-1a-102 .
(5) When a covered person alleges that an uninsured motor vehicle under Subsection (2)(b)
proximately caused an accident without touching the covered person or the vehicle occupied by the
covered person, the covered person must show the existence of the uninsured motor vehicle by clear
and convincing evidence consisting of more than the covered person's testimony.
(6) (a) The limit of liability for uninsured motorist coverage for two or more motor vehicles
may not be added together, combined, or stacked to determine the limit of insurance coverage
available to an injured person for any one accident.
(b) (i) Subsection (6)(a) applies to all persons except a covered person as defined under
Subsection (7)(b)(ii).
(ii) A covered person as defined under Subsection (7)(b)(ii) is entitled to the highest limits
of uninsured motorist coverage afforded for any one vehicle that the covered person is the named
insured or an insured family member.
(iii) This coverage shall be in addition to the coverage on the vehicle the covered person is
occupying.
(iv) Neither the primary nor the secondary coverage may be set off against the other.
(c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
coverage, and the coverage elected by a person described under Subsections (1)(a) and (b) shall be
secondary coverage.
(7) (a) Uninsured motorist coverage under this section applies to bodily injury, sickness,
disease, or death of covered persons while occupying or using a motor vehicle only if the motor
vehicle is described in the policy under which a claim is made, or if the motor vehicle is a newly
acquired or replacement vehicle covered under the terms of the policy. Except as provided in
Subsection (6) or (7), a covered person injured in a vehicle described in a policy that includes
uninsured motorist benefits may not elect to collect uninsured motorist coverage benefits from any

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other motor vehicle insurance policy under which he is a covered person.
(b) Each of the following persons may also recover uninsured motorist benefits under any
other policy in which they are described as a "covered person" as defined in Subsection (1):
(i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
(ii) a covered person injured while occupying or using a motor vehicle that is not owned by,
furnished, or available for the regular use of the covered person, the covered person's resident spouse,
or the covered person's resident relative.
(c) A covered person in Subsection (7)(b) is not barred against making subsequent elections
if recovery is unavailable under previous elections.
(8) (a) As used in this section, "underinsured motor vehicle" includes a vehicle, the operation,
maintenance, or use of which is covered under a liability policy at the time of an injury-causing
occurrence, but which has insufficient liability coverage to compensate fully the injured party for all
special and general damages.
(b) The term "underinsured motor vehicle" does not include:
(i) a motor vehicle that is covered under the liability coverage of the same policy that also
contains the underinsured motorist coverage; or
(ii) an uninsured motor vehicle as defined in Subsection (2).
(9) (a) Underinsured motorist coverage under Subsection 31A-22-302 (1)(c) provides
coverage for covered persons who are legally entitled to recover damages from owners or operators
of underinsured motor vehicles because of bodily injury, sickness, disease, or death [in limits of at
least $10,000 for one person in any one accident, and at least $20,000 for two or more persons in any
one accident].
(b) For new policies written on or after January 1, 2001, the limits of underinsured motorist
coverage shall be equal to the lesser of the limits of the insured's motor vehicle liability coverage or
the maximum underinsured motorist coverage limits available by the insurer under the insured's
motor vehicle policy, unless the insured purchases coverage in a lesser amount by signing an
acknowledgment form provided by the insurer that:
(i) waives the higher coverage;

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(ii) reasonably explains the purpose of underinsured motorist coverage; and
(iii) discloses the additional premiums required to purchase underinsured motorist coverage
with limits equal to the lesser of the limits of the insured's motor vehicle liability coverage or the
maximum underinsured motorist coverage limits available by the insurer under the insured's motor
vehicle policy.
(c) Underinsured motorist coverage may not be sold with limits that are less than $10,000
for one person in any one accident and at least $20,000 for two or more persons in any one accident.
(d) The acknowledgment under Subsection (9)(b) continues for that issuer of the
underinsured motorist coverage until the insured, in writing, requests different underinsured motorist
coverage from the insurer.
[(b)] (e) The named insured's underinsured motorist coverage, as described in Subsection
(9)(a), is secondary to the liability coverage of an owner or operator of an underinsured motor
vehicle, as described in Subsection (8). Underinsured motorist coverage may not be set off against
the liability coverage of the owner or operator of an underinsured motor vehicle, but shall be added
to, combined with, or stacked upon the liability coverage of the owner or operator of the
underinsured motor vehicle to determine the limit of coverage available to the injured person.
[(c)] (f) (i) [For new policies or contracts written after January 1, 1993, a] A named insured
may reject underinsured motorist coverage by an express writing to the insurer that provides liability
coverage under Subsection 31A-22-302 (1)(a).
(ii) This written rejection shall be on a form provided by the insurer that includes a reasonable
explanation of the purpose of underinsured motorist coverage and when it would be applicable.
(iii) This rejection continues for that issuer of the liability coverage until the insured in writing
requests underinsured motorist coverage from that liability insurer.
[(ii)] (g) In conjunction with the first [three] two renewal notices sent after January 1, [1993]
2001, for policies existing on that date, the insurer shall [notify the insured of the availability of
underinsured motorist coverage along with estimated ranges of premiums for the coverage. The
department shall provide standard language to be used by insurers to fulfill the insurers' duty under
this Subsection (9).] disclose in the same medium as the premium renewal notice, an explanation of

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the purpose of underinsured motorist coverage and the costs associated with increasing the coverage
in amounts up to and including the maximum amount available by the insurer under the insured's
motor vehicle policy.
(ii) The disclosure shall be sent to all insureds that carry underinsured motorist coverage
limits in an amount less than the insured's motor vehicle liability policy limits or the maximum
underinsured motorist coverage limits available by the insurer under the insured's motor vehicle
policy.
(10) (a) Underinsured motorist coverage under this section applies to bodily injury, sickness,
disease, or death of an insured while occupying or using a motor vehicle owned by, furnished, or
available for the regular use of the insured, a resident spouse, or resident relative of the insured, only
if the motor vehicle is described in the policy under which a claim is made, or if the motor vehicle is
a newly acquired or replacement vehicle covered under the terms of the policy. Except as provided
in this Subsection (10), a covered person injured in a vehicle described in a policy that includes
underinsured motorist benefits may not elect to collect underinsured motorist coverage benefits from
any other motor vehicle insurance policy under which he is a named insured.
(b) (i) The limit of liability for underinsured motorist coverage for two or more motor
vehicles may not be added together, combined, or stacked to determine the limit of insurance
coverage available to an injured person for any one accident.
(ii) Subsection (10)(b)(i) applies to all persons except a covered person as defined under
Subsection (10)(c)(i)(B).
(iii) Coverage on a motor vehicle occupied at the time of an accident shall be primary
coverage, and the coverage elected by a person described under Subsections (1)(a) and (b) shall be
secondary coverage.
(c) Underinsured motorist coverage:
(i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers' Compensation
Act;
(ii) may not be subrograted by the Workers' Compensation insurance carrier;
(iii) may not be reduced by any benefits provided by Workers' Compensation insurance; and

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(iv) may be reduced by health insurance subrogation only after the covered person has been
made whole.
[(c)] (d) (i) Each of the following persons may also recover underinsured motorist coverage
benefits under any other policy in which they are described as a "covered person" as defined under
Subsection (1):
(A) a covered person injured as a pedestrian by an underinsured motor vehicle; or
(B) a covered person injured while occupying or using a motor vehicle that is not owned by,
furnished, or available for the regular use of the covered person, the covered person's resident spouse,
or the covered person's resident relative.
(ii) This coverage shall only be available as a secondary source of coverage.
(iii) A covered person as defined under Subsection (10)[(c)] (b)(i)(B) is entitled to the highest
limits of underinsured motorist coverage afforded for any one vehicle that the covered person is the
named insured or an insured family member.
(iv) This coverage shall be in addition to the coverage on the vehicle the covered person is
occupying.
(v) Neither the primary nor the secondary coverage may be set off against the other.
[(d)] (e) A covered injured person is not barred against making subsequent elections if
recovery is unavailable under previous elections.
(11) A claim may not be brought by a covered person against a motor vehicle underinsured
motorist policy more than three years after the date of the last liability policy payment.

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