H.B. 213

This document includes House Committee Amendments incorporated into the bill on Thu, Feb 22, 2007 at 12:42 PM by ddonat. --> 1

DRIVER LICENSE - APPLICATION OF
2 MINOR
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: David Litvack
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Utah Human Services Code H. , Insurance Code, .H and the
10a Driver Licensing Act by
11 amending provisions relating to driver license applications by certain minors.
12 Highlighted Provisions:
13 This bill:
13a H. . clarifies that a guardianship between a foster parent and a minor who is in the
13b custody of the Division of Child and Family Services is included in the relationships that are
13c covered under certain insurance policies; .H
14 . provides that if a minor applicant for a temporary learner permit, practice permit, or
15 provisional driver license is in the legal custody of the Division of Child and Family
16 Services, a parent or responsible adult who is willing to assume certain obligations
17 and liability requirements may sign the application;
17a H. . limits the liability of foster parents who sign the application for or furnish a
17b motor vehicle to a foster child in their care; .H
18 . provides that the Office of Licensing within the Department of Human Services
19 shall require a child placing agency that provides foster home services to notify a
20 foster parent of the liability requirements when signing as a responsible adult for a
21 foster child to receive a driver license;
22 . grants the Office of Licensing rulemaking authority to establish procedures for a

23 child placing agency to provide the notifications; and
24 . makes technical changes.
25 Monies Appropriated in this Bill:
26 None
27 Other Special Clauses:

28 None
29 Utah Code Sections Affected:
30 AMENDS:
30a H. 31A-22-303, as last amended by Chapter 295, Laws of Utah 2005 .H
31 53-3-211, as last amended by Chapter 201, Laws of Utah 2006
31a H. 53-3-212, as renumbered and amended by Chapter 234, Laws of Utah 1993 .H
32 ENACTS:
33 62A-2-108.5, Utah Code Annotated 1953
34
35 Be it enacted by the Legislature of the state of Utah:
35a H. Section 1. Section 31A-22-303 is amended to read:
35b 31A-22-303. Motor vehicle liability coverage.
35c (1) (a) In addition to complying with the requirements of Chapter 21, Insurance Contracts in
35d General, and Chapter 22, Part 2, Liability Insurance in General, a policy of motor vehicle liability
35e coverage under Subsection 31A-22-302(1)(a) shall:
35f (i) name the motor vehicle owner or operator in whose name the policy was purchased, state
35g that named insured's address, the coverage afforded, the premium charged, the policy period, and the
35h limits of liability;
35i (ii) (A) if it is an owner's policy, designate by appropriate reference all the motor vehicles on
35j which coverage is granted, insure the person named in the policy, insure any other person using any
35k named motor vehicle with the express or implied permission of the named insured, and, except as
35l provided in Subsection (7), insure any person included in Subsection (1)(a)(iii) against loss from the
35m liability imposed by law for damages arising out of the ownership, maintenance, or use of these motor
35n vehicles within the United States and Canada, subject to limits exclusive of interest and costs, for each
35o motor vehicle, in amounts not less than the minimum limits specified under Section 31A-22-304; or
35p (B) if it is an operator's policy, insure the person named as insured against loss from the
35q liability imposed upon him by law for damages arising out of the insured's use of any motor vehicle not
35r owned by him, within the same territorial limits and with the same limits of liability as in an owner's
35s policy under Subsection (1)(a)(ii)(A);
35t (iii) except as provided in Subsection (7), insure persons related to the named insured by
35u blood, marriage, adoption, or guardianship who are residents of the named insured's household,
35v including those who usually make their home in the same household but temporarily live elsewhere, to
35w the same extent as the named insured;
35x (iv) where a claim is brought by the named insured or a person described in Subsection
35y (1)(a)(iii), the available coverage of the policy may not be reduced or stepped-down because:

35z (A) a permissive user driving a covered motor vehicle is at fault in causing an accident; or

35aa H.(B) the named insured or any of the persons described in this Subsection (1)(a)(iii) driving
35ab a covered motor vehicle is at fault in causing an accident; and
35ac (v) cover damages or injury resulting from a covered driver of a motor vehicle who is stricken
35ad by an unforeseeable paralysis, seizure, or other unconscious condition and who is not reasonably
35ae aware that paralysis, seizure, or other unconscious condition is about to occur to the extent that a
35af person of ordinary prudence would not attempt to continue driving.
35ag (b) The driver's liability under Subsection (1)(a)(v) is limited to the insurance coverage.
35ah (c) "Guardianship" under Subsection (1)(a)(iii) includes the relationship between a
35ai foster parent and a minor who is in the legal custody of the Division of Child and Family
35aj Services if:
35ak (A) the minor resides in a foster home, as defined under Section 62A-2-101, with a
35al foster parent who is the named insured; and
35am1 (B) the foster parent has signed to be jointly
35am and severally liable for compensatory damages of the minor's operation of a motor vehicle in
35an accordance with Section 53-3-211.
35ao (2) (a) A policy containing motor vehicle liability coverage under Subsection 31A-22-302(1)(a)
35ap may:
35aq (i) provide for the prorating of the insurance under that policy with other valid and collectible
35ar insurance;
35as (ii) grant any lawful coverage in addition to the required motor vehicle liability coverage;
35at (iii) if the policy is issued to a person other than a motor vehicle business, limit the coverage
35au afforded to a motor vehicle business or its officers, agents, or employees to the minimum limits under
35av Section 31A-22-304, and to those instances when there is no other valid and collectible insurance with
35aw at least those limits, whether the other insurance is primary, excess, or contingent; and
35ax (iv) if issued to a motor vehicle business, restrict coverage afforded to anyone other than the
35ay motor vehicle business or its officers, agents, or employees to the minimum limits under Section
35az 31A-22-304, and to those instances when there is no other valid and collectible insurance with at least
35ba those limits, whether the other insurance is primary, excess, or contingent.
35bb (b) (i) The liability insurance coverage of a permissive user of a motor vehicle owned by a
35bc motor vehicle business shall be primary coverage.
35bd (ii) The liability insurance coverage of a motor vehicle business shall be secondary to the
35be liability insurance coverage of a permissive user as specified under Subsection (2)(b)(i).
35bf (3) Motor vehicle liability coverage need not insure any liability:
35bg (a) under any workers' compensation law under Title 34A, Utah Labor Code;
35bh (b) resulting from bodily injury to or death of an employee of the named insured, other than a
35bi domestic employee, while engaged in the employment of the insured, or while engaged in the
35bj operation, maintenance, or repair of a designated vehicle; or .H

35bk H. (c) resulting from damage to property owned by, rented to, bailed to, or transported by the
35bl insured.
35bm (4) An insurance carrier providing motor vehicle liability coverage has the right to settle any
35bn claim covered by the policy, and if the settlement is made in good faith, the amount of the settlement is
35bo deductible from the limits of liability specified under Section 31A-22-304.
35bp (5) A policy containing motor vehicle liability coverage imposes on the insurer the duty to
35bq defend, in good faith, any person insured under the policy against any claim or suit seeking damages
35br which would be payable under the policy.
35bs (6) (a) If a policy containing motor vehicle liability coverage provides an insurer with the
35bt defense of lack of cooperation on the part of the insured, that defense is not effective against a third
35bu person making a claim against the insurer, unless there was collusion between the third person and the
35bv insured.
35bw (b) If the defense of lack of cooperation is not effective against the claimant, after payment, the
35bx insurer is subrogated to the injured person's claim against the insured to the extent of the payment and
35by is entitled to reimbursement by the insured after the injured third person has been made whole with
35bz respect to the claim against the insured.
35ca (7) A policy of motor vehicle liability coverage under Subsection 31A-22-302(1) may
35cb specifically exclude from coverage a person who is a resident of the named insured's household,
35cc including a person who usually makes his home in the same household but temporarily lives elsewhere,
35cd if:
35ce (a) at the time of the proposed exclusion, each person excluded from coverage satisfies the
35cf owner's or operator's security requirement of Section 41-12a-301, independently of the named
35cg insured's proof of owner's or operator's security;
35ch (b) the named insured and the person excluded from coverage each provide written consent to
35ci the exclusion; and
35cj (c) the insurer includes the name of each person excluded from coverage in the evidence of
35ck insurance provided to an additional insured or loss payee.
35cl (8) A policy of motor vehicle liability coverage may limit coverage to the policy minimum
35cm limits under Section 31A-22-304 if the insured motor vehicle is operated by a person who has
35cn consumed any alcohol or any illegal drug or illegal substance if the policy or a specifically reduced
35co premium was extended to the insured upon express written declaration executed by the insured that
35cp the insured motor vehicle would not be so operated.
35cq (9) (a) When a claim is brought exclusively by a named insured or a person described in
35cr Subsection (1)(a)(iii) and asserted exclusively against a named insured or an individual described in
35cs Subsection (1)(a)(iii), the claimant may elect to resolve the claim:
35ct (i) by submitting the claim to binding arbitration; or

35cu (ii) through litigation. .H

35cv H.(b) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii), the
35cw claimant may not elect to resolve the claim through binding arbitration under this section without
35cx the written consent of both parties and the defendant's liability insurer.
35cy (c) (i) Unless otherwise agreed on in writing by the parties, a claim that is submitted to binding
35cz arbitration under Subsection (9)(a)(i) shall be resolved by a panel of three arbitrators.
35da (ii) Unless otherwise agreed on in writing by the parties, each party shall select an arbitrator.
35db The arbitrators selected by the parties shall select a third arbitrator.
35dc (d) Unless otherwise agreed on in writing by the parties, each party will pay the fees and costs
35dd of the arbitrator that party selects. Both parties shall share equally the fees and costs of the third
35de arbitrator.
35df (e) Except as otherwise provided in this section, an arbitration procedure conducted under this
35dg section shall be governed by Title 78, Chapter 31a, Utah Uniform Arbitration Act, unless otherwise
35dh agreed on in writing by the parties.
35di (f) (i) Discovery shall be conducted in accordance with Rules 26b through 36, Utah Rules of
35dj Civil Procedure.
35dk (ii) All issues of discovery shall be resolved by the arbitration panel.
35dl (g) A written decision of two of the three arbitrators shall constitute a final decision of the
35dm arbitration panel.
35dn (h) Prior to the rendering of the arbitration award:
35do (i) the existence of a liability insurance policy may be disclosed to the arbitration panel; and
35dp (ii) the amount of all applicable liability insurance policy limits may not be disclosed to the
35dq arbitration panel.
35dr (i) The amount of the arbitration award may not exceed the liability limits of all the
35ds defendant's applicable liability insurance policies, including applicable liability umbrella policies. If
35dt the initial arbitration award exceeds the liability limits of all applicable liability insurance policies, the
35du arbitration award shall be reduced to an amount equal to the liability limits of all applicable liability
35dv insurance policies.
35dw (j) The arbitration award is the final resolution of all claims between the parties unless the
35dx award was procured by corruption, fraud, or other undue means.
35dy (k) If the arbitration panel finds that the action was not brought, pursued, or defended in good
35dz faith, the arbitration panel may award reasonable fees and costs against the party that failed to bring,
35ea pursue, or defend the claim in good faith.
35eb (l) Nothing in this section is intended to limit any claim under any other portion of an
35ec applicable insurance policy.
35ed (10) An at-fault driver or an insurer issuing a policy of insurance under this part that is
35ee covering an at-fault driver may not reduce compensation to an injured party based on the

35ef injured party not being covered by a policy of insurance that provides personal injury protection .H

35eg coverage under Sections 31A-22-306 through 31A-22-309. .H
36 Section H. [ 1 ] 2 .H . Section 53-3-211 is amended to read:
37 53-3-211. Application of minors -- Liability of person signing application --
38 Cancellation of cosigning adult's liability -- Behind-the-wheel driving certification.
39 (1) As used in this section, "minor" means any person younger than 18 years of age
40 who is not married or has not been emancipated by adjudication.
41 (2) (a) The application of a minor for a temporary learner permit, practice permit,
42 learner permit, or provisional license shall be signed by the parent or guardian of the applicant.
43 (b) If the minor applicant does not have a parent or guardian or is in the legal custody
44 of the Division of Child and Family Services, then a parent or responsible adult who is willing
45 to assume the obligation imposed under this chapter may sign the application.
46 (3) (a) Except as provided in Subsection (4), the liability of a minor for civil
47 compensatory damages caused when operating a motor vehicle upon a highway is imputed to
48 the person who has signed the application of the minor under Subsection (2).
49 (b) The person who has signed the application under Subsection (2) is jointly and
50 severally liable with the minor as provided in Subsections (3)(a) and (c).
51 (c) The liability imposed under Subsections (3)(a) and (b) is limited to the policy
52 minimum limits established in Section 31A-22-304 .
53 (d) The liability provisions in this Subsection (3) are in addition to the liability
54 provisions in Section 53-3-212 .
55 (4) H. (a) .H If owner's or operator's security covering the minor's operation of the motor
55a vehicle
56 is in effect in amounts as required under Section 31A-22-304 , the person who signed the
57 minor's application under Subsection (2) is not subject to the liability imposed under
58 Subsection (3).
58a H. (b) If a foster parent signs the application under Subsection (2) for a minor
58b who is in the legal custody of the Division of Child and Family Services and who resides
58c with the foster parent, the foster parent's liability may not exceed the minimum liability
58d insurance policy limits established under Section 31A-22-304 or the limits of the foster
58e parent's liability insurance policy established under Section 31A-22-302, whichever are
58f greater. .H

59 (5) (a) A person who has signed the application of a minor under Subsection (2) may
60 file with the division a verified written request that the permit or license of the minor be
61 canceled.
62 (b) The division shall then cancel the permit or license of the minor, and the person
63 who signed the application of the minor under Subsection (2) is relieved from the liability
64 imposed under Subsection (3) or the minor operating a motor vehicle subsequent to the
65 cancellation.
66 (6) (a) The division upon receipt of satisfactory evidence of the death of the person
67 who signed the application of a minor under Subsection (2) shall cancel the permit or license
68 and may not issue a new permit or license until a new application, signed and verified, is made
69 under this chapter.
70 (b) This Subsection (6) does not apply to an application of a person who is no longer a
71 minor.
72 (7) (a) In addition to the liability assumed under this section, the person who signs the
73 application of a minor for a provisional license must certify that the minor applicant, under the
74 authority of a permit issued under this chapter, has completed at least 40 hours of driving a
75 motor vehicle, of which at least ten hours shall be during night hours after sunset.
76 (b) The hours of driving a motor vehicle required under Subsection (7)(a) may include:
77 (i) hours completed in a driver education course as required under Subsection
78 53-3-505.5 (1); and
79 (ii) up to five hours completed by driving simulation practice on a fully interactive
80 driving simulation device at the substitution rate provided under Subsection 53-3-505.5 (2)(b).
80a H. Section 3. Section 53-3-212 is amended to read:
80b 53-3-212. Owner giving permission and minor liable for damages caused by minor driving a
80c motor vehicle.
80d (1) [ The ] Except as provided in Subsection (3), the owner of a motor vehicle causing or
80e knowingly permitting a person younger than 18 years of age to drive the motor vehicle on a highway,
80f or a person who gives or furnishes a motor vehicle to the minor, are each jointly and severally liable
80g with the minor for any damages caused by the negligence of the minor in driving the motor vehicle.
80h (2) This liability provision is in addition to the liability provisions in Section 53-3-211.
80i (3) If a foster parent signs the application under Subsection (2) for a minor who is in the legal
80j custody of the Division of Child and Family Services and who resides with the foster parent, the foster
80k parent's liability may not exceed the minimum liability insurance policy limits established under
80l Section 31A-22-304 or the limits of the foster parent's liability insurance policy established under
80m Section 31A-22-302, whichever are greater. .H

81 Section H. [ 2 ] 4 .H . Section 62A-2-108.5 is enacted to read:
82 62A-2-108.5. Notification requirement for child placing agencies that provide
83 foster home services.
84 (1) The office shall require a child placing agency that provides foster home services to
85 notify a foster parent that if the foster parent signs as the responsible adult for a foster child to
86 receive a driver license under Section 53-3-211 , the foster parent is jointly and severally liable
87 with the minor for civil compensatory damages caused by the minor when operating a motor
88 vehicle upon a highway as provided under Subsections 53-3-211 (2) and (4).
89 (2) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

90 office may makes rules establishing the procedures for a child placing agency to provide the
91 notification required under this section.




Legislative Review Note
as of 12-4-06 9:19 AM

Office of Legislative Research and General Counsel