House of Representatives
State of Utah
Mr. Speaker:
The Transportation Committee has returned H.B. 213, DRIVER LICENSE - APPLICATION OF
MINOR, by Representative D. Litvack, to the Rules Committee without recommendation with the
following amendments:
(1)(a)(iii) driving a covered motor vehicle is at fault in causing an accident; and
Respectfully,
Todd E. Kiser
Voting: --
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This bill modifies the Utah Human Services Code
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This bill:
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and liability requirements may sign the application;
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AMENDS:
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53-3-211, as last amended by Chapter 201, Laws of Utah 2006
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Be it enacted by the Legislature of the state of Utah:
31A-22-303
.
Motor vehicle liability coverage.
(1) (a) In addition to complying with the requirements of Chapter 21, Insurance
Contracts in General, and Chapter 22, Part 2, Liability Insurance in General, a policy of
motor vehicle liability coverage under Subsection
31A-22-302
(1)(a) shall:
(i) name the motor vehicle owner or operator in whose name the policy was
purchased, state that named insured's address, the coverage afforded, the premium
charged, the policy period, and the limits of liability;
(ii) (A) if it is an owner's policy, designate by appropriate reference all the motor
vehicles on which coverage is granted, insure the person named in the policy, insure any
other person using any named motor vehicle with the express or implied permission of the
named insured, and, except as provided in Subsection (7), insure any person included in
Subsection (1)(a)(iii) against loss from the liability imposed by law for damages arising
out of the ownership, maintenance, or use of these motor vehicles within the United
States and Canada, subject to limits exclusive of interest and costs, for each motor
vehicle, in amounts not less than the minimum limits specified under Section
31A-22-304
; or
(B) if it is an operator's policy, insure the person named as insured against loss
from the liability imposed upon him by law for damages arising out of the insured's use of
any motor vehicle not owned by him, within the same territorial limits and with the same
limits of liability as in an owner's policy under Subsection (1)(a)(ii)(A);
(iii) except as provided in Subsection (7), insure 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, to the same extent as the named insured;
(iv) where a claim is brought by the named insured or a person described in
Subsection (1)(a)(iii), the available coverage of the policy may not be reduced or
stepped-down because:
(A) a permissive user driving a covered motor vehicle is at fault in causing an
accident; or
(B) the named insured or any of the persons described in this Subsection
(v) cover damages or injury resulting from a covered driver of a motor vehicle
who is stricken by an unforeseeable paralysis, seizure, or other unconscious condition and
who is not reasonably aware that paralysis, seizure, or other unconscious condition is
about to occur to the extent that a person of ordinary prudence would not attempt to
continue driving.
(b) The driver's liability under Subsection (1)(a)(v) is limited to the insurance
coverage.
(A) the minor resides in a foster home, as defined under Section
62A-2-101,
with a foster parent who is the named insured; and
(B) the foster parent has signed to be jointly and severally liable for
compensatory damages of the minor's operation of a motor vehicle in accordance
with Section
53-3-211
.
(2) (a) A policy containing motor vehicle liability coverage under Subsection
31A-22-302
(1)(a) may:
(i) provide for the prorating of the insurance under that policy with other valid
and collectible insurance;
(ii) grant any lawful coverage in addition to the required motor vehicle liability
coverage;
(iii) if the policy is issued to a person other than a motor vehicle business, limit
the coverage afforded to a motor vehicle business or its officers, agents, or employees to
the minimum limits under Section
31A-22-304
, and to those instances when there is no
other valid and collectible insurance with at least those limits, whether the other insurance
is primary, excess, or contingent; and
(iv) if issued to a motor vehicle business, restrict coverage afforded to anyone
other than the motor vehicle business or its officers, agents, or employees to the minimum
limits under Section
31A-22-304
, and to those instances when there is no other valid and
collectible insurance with at least those limits, whether the other insurance is primary,
excess, or contingent.
(b) (i) The liability insurance coverage of a permissive user of a motor vehicle
owned by a motor vehicle business shall be primary coverage.
(ii) The liability insurance coverage of a motor vehicle business shall be
secondary to the liability insurance coverage of a permissive user as specified under
Subsection (2)(b)(i).
(3) Motor vehicle liability coverage need not insure any liability:
(a) under any workers' compensation law under Title 34A, Utah Labor Code;
(b) resulting from bodily injury to or death of an employee of the named insured,
other than a domestic employee, while engaged in the employment of the insured, or
while engaged in the operation, maintenance, or repair of a designated vehicle; or
(c) resulting from damage to property owned by, rented to, bailed to, or
transported by the insured.
(4) An insurance carrier providing motor vehicle liability coverage has the right
to settle any claim covered by the policy, and if the settlement is made in good faith, the
amount of the settlement is deductible from the limits of liability specified under Section
31A-22-304
.
(5) A policy containing motor vehicle liability coverage imposes on the insurer
the duty to defend, in good faith, any person insured under the policy against any claim or
suit seeking damages which would be payable under the policy.
(6) (a) If a policy containing motor vehicle liability coverage provides an insurer
with the defense of lack of cooperation on the part of the insured, that defense is not
effective against a third person making a claim against the insurer, unless there was
collusion between the third person and the insured.
(b) If the defense of lack of cooperation is not effective against the claimant,
after payment, the insurer is subrogated to the injured person's claim against the insured
to the extent of the payment and is entitled to reimbursement by the insured after the
injured third person has been made whole with respect to the claim against the insured.
(7) A policy of motor vehicle liability coverage under Subsection
31A-22-302
(1)
may specifically exclude from coverage a person who is a resident of the named insured's
household, including a person who usually makes his home in the same household but
temporarily lives elsewhere, if:
(a) at the time of the proposed exclusion, each person excluded from coverage
satisfies the owner's or operator's security requirement of Section
41-12a-301
,
independently of the named insured's proof of owner's or operator's security;
(b) the named insured and the person excluded from coverage each provide
written consent to the exclusion; and
(c) the insurer includes the name of each person excluded from coverage in the
evidence of insurance provided to an additional insured or loss payee.
(8) A policy of motor vehicle liability coverage may limit coverage to the policy
minimum limits under Section
31A-22-304
if the insured motor vehicle is operated by a
person who has consumed any alcohol or any illegal drug or illegal substance if the policy
or a specifically reduced premium was extended to the insured upon express written
declaration executed by the insured that the insured motor vehicle would not be so
operated.
(9) (a) When a claim is brought exclusively by a named insured or a person
described in Subsection (1)(a)(iii) and asserted exclusively against a named insured or an
individual described in Subsection (1)(a)(iii), the claimant may elect to resolve the claim:
(i) by submitting the claim to binding arbitration; or
(ii) through litigation.
(b) Once the claimant has elected to commence litigation under Subsection
(9)(a)(ii), the claimant may not elect to resolve the claim through binding arbitration
under this section without the written consent of both parties and the defendant's liability
insurer.
(c) (i) Unless otherwise agreed on in writing by the parties, a claim that is
submitted to binding arbitration under Subsection (9)(a)(i) shall be resolved by a panel of
three arbitrators.
(ii) Unless otherwise agreed on in writing by the parties, each party shall select
an arbitrator. The arbitrators selected by the parties shall select a third arbitrator.
(d) Unless otherwise agreed on in writing by the parties, each party will pay the
fees and costs of the arbitrator that party selects. Both parties shall share equally the fees
and costs of the third arbitrator.
(e) Except as otherwise provided in this section, an arbitration procedure
conducted under this section shall be governed by Title 78, Chapter 31a, Utah Uniform
Arbitration Act, unless otherwise agreed on in writing by the parties.
(f) (i) Discovery shall be conducted in accordance with Rules 26b through 36,
Utah Rules of Civil Procedure.
(ii) All issues of discovery shall be resolved by the arbitration panel.
(g) A written decision of two of the three arbitrators shall constitute a final
decision of the arbitration panel.
(h) Prior to the rendering of the arbitration award:
(i) the existence of a liability insurance policy may be disclosed to the arbitration
panel; and
(ii) the amount of all applicable liability insurance policy limits may not be
disclosed to the arbitration panel.
(i) The amount of the arbitration award may not exceed the liability limits of all
the defendant's applicable liability insurance policies, including applicable liability
umbrella policies. If the initial arbitration award exceeds the liability limits of all
applicable liability insurance policies, the arbitration award shall be reduced to an amount
equal to the liability limits of all applicable liability insurance policies.
(j) The arbitration award is the final resolution of all claims between the parties
unless the award was procured by corruption, fraud, or other undue means.
(k) If the arbitration panel finds that the action was not brought, pursued, or
defended in good faith, the arbitration panel may award reasonable fees and costs against
the party that failed to bring, pursue, or defend the claim in good faith.
(l) Nothing in this section is intended to limit any claim under any other portion
of an applicable insurance policy.
(10) An at-fault driver or an insurer issuing a policy of insurance under this part
that is covering an at-fault driver may not reduce compensation to an injured party based
on the injured party not being covered by a policy of insurance that provides personal
injury protection coverage under Sections
31A-22-306
through
31A-22-309
.
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(4)
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is in effect in amounts as required under Section
31A-22-304
, the person who signed the
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minor's application under Subsection (2) is not subject to the liability imposed under
58
Subsection (3).
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driving simulation device at the substitution rate provided under Subsection
53-3-505.5
(2)(b).
53-3-212
.
Owner giving permission and minor liable for damages caused by
minor driving a motor vehicle.
(1)
The
}
Except as provided in Subsection (3), the
owner of a motor
vehicle causing or knowingly permitting a person younger than 18 years of age to drive
the motor vehicle on a highway, or a person who gives or furnishes a motor vehicle to the
minor, are each jointly and severally liable with the minor for any damages caused by the
negligence of the minor in driving the motor vehicle.
(2) This liability provision is in addition to the liability provisions in Section
53-3-211
.
Renumber remaining sections accordingly.
Committee Chair
14 HB0213.HC1.wpd 2/20/07 2:02 pm msteinagel/MBS SCH/MBS
Bill Number