S.B. 129 Enrolled

MOTOR VEHICLE ACCIDENT INSURANCE COVERAGE
1998 GENERAL SESSION
STATE OF UTAH
Sponsor: Lorin V. Jones
AN ACT RELATING TO INSURANCE CODE; AMENDING CERTAIN REQUIREMENTS
FOR MOTOR VEHICLE LIABILITY COVERAGE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
31A-22-303, as last amended by Chapter 375, Laws of Utah 1997
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 31A-22-303 is amended to read:
31A-22-303. Motor vehicle liability coverage.
(1) (a) In addition to complying with the requirements of Chapter 21 and Part II of Chapter
22, a policy of motor vehicle liability coverage under Subsection 31A-22-302 (1)(a) shall:
[(a)] (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;
[(b) (i)] (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)[(c)](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
[(ii)] (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)[(b)(i)] (ii)(A); [and]

[(c)] (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[.]; and
(iv) 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)(iv) is limited to the insurance coverage.
(2) A policy containing motor vehicle liability coverage under Subsection 31A-22-302 (1)(a)
may:
(a) provide for the prorating of the insurance under that policy with other valid and
collectible insurance;
(b) grant any lawful coverage in addition to the required motor vehicle liability coverage;
(c) 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
(d) 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.
(3) Motor vehicle liability coverage need not insure any liability:
(a) under any workers' compensation law under Title 34A;
(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

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(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 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.

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