S.B. 236

1

UNINSURED AND UNDERINSURED MOTORIST
2 COVERAGE AMENDMENTS
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Mark B. Madsen
6 House Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Insurance Code by amending uninsured and underinsured
11 motorist coverage provisions.
12 Highlighted Provisions:
13 This bill:
14 . provides that an underinsured motorist coverage carrier shall pay certain awards,
15 fees, and costs if:
16 . the uninsured or underinsured motorist coverage carrier does not offer the
17 insured or other covered person the limits of the uninsured or underinsured
18 motorist coverage policy after the claimant has made a demand for the policy
19 limits or the uninsured or underinsured motorist coverage carrier's offer to pay
20 the insured or other covered person's policy limits after the claimant has made a
21 demand for the policy limits is not made at least 60 days prior to an award being
22 rendered by an arbitration panel or other judicial proceeding; and
23 . the award rendered by an arbitration panel or other judicial proceeding awards
24 the insured or other covered person an amount equal to or greater than the limits
25 of the uninsured or underinsured motorist coverage policy; and
26 . makes technical changes.
27 Monies Appropriated in this Bill:

28 None
29 Other Special Clauses:
30 None
31 Utah Code Sections Affected:
32 ENACTS:
33 31A-22-305.7, Utah Code Annotated 1953
34
35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 31A-22-305.7 is enacted to read:
37 31A-22-305.7. Uninsured and underindersured payment requirements.
38 (1) An underinsured motorist coverage carrier shall pay the award, fees, and costs
39 described in Subsection (2) if:
40 (a) (i) the uninsured or underinsured motorist coverage carrier does not offer to pay the
41 insured or other covered person the limits of the uninsured or underinsured motorist coverage
42 policy after the claimant has made a demand for the policy limits; or
43 (ii) the uninsured or underinsured motorist coverage carrier's offer to pay the insured or
44 other covered person's policy limits after the claimant has made a demand for the policy limits
45 is not made at least 60 days prior to an award being rendered by an arbitration panel or other
46 judicial proceeding; and
47 (b) an award rendered by an arbitration panel or other judicial proceeding awards the
48 insured or other covered person an amount equal to or greater than the limits of the uninsured
49 or underinsured motorist coverage policy.
50 (2) An underinsured motorist coverage carrier that is required to pay the award, fees,
51 and costs under Subsection (1) shall pay:
52 (a) the entire award amount rendered by an arbitration panel or other judicial
53 proceeding, including any amount in excess of the uninsured or underinsured motorist coverage
54 policy limits;
55 (b) attorney fees customarily charged in the locality for similar legal services, in
56 addition to the award amount described in Subsection (2)(a);
57 (c) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
58 (d) the costs of expert witnesses and depositions.

Legislative Review Note
as of 2-24-09 5:09 PM

Office of Legislative Research and General Counsel