S.B. 186 Enrolled

UNINSURED AND UNDERINSURED MOTORIST
COVERAGE
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: Dan R. Eastman
This act modifies the Motor Vehicles Code by amending uninsured and underinsured
motorists provisions. This act provides that a person who exercises unauthorized control
over a vehicle, a passenger who has knowledge that the driver is exercising unauthorized
control, or a person who is committing a felony may not collect uninsured or
underinsured motorist coverage. This act provides that a dependent minor of parents
who reside in separate households may recover uninsured or underinsured benefits from
each parent's policy and each parent's policy is liable only for the percentage of damage
that the limit bears to the total of all uninsured coverage applicable to the accident. This
act provides that an underinsured motor vehicle does not include a named insured's own
vehicle. This act makes technical changes.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
31A-22-302, as last amended by Chapter 1, Laws of Utah 2000
31A-22-305, as last amended by Chapter 59, Laws of Utah 2001
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 31A-22-302 is amended to read:
31A-22-302. Required components of motor vehicle insurance policies --
Exceptions.
(1) Every policy of insurance or combination of policies purchased to satisfy the
owner's or operator's security requirement of Section 41-12a-301 shall include:
(a) motor vehicle liability coverage under Sections 31A-22-303 and 31A-22-304 ;
(b) uninsured motorist coverage under Section 31A-22-305 , unless affirmatively
waived under Subsection 31A-22-305 (4); and
(c) underinsured motorist coverage under Section 31A-22-305 , unless affirmatively

waived under Subsection 31A-22-305 (9)[(c)].
(2) Every policy of insurance or combination of policies, purchased to satisfy the owner's
or operator's security requirement of Section 41-12a-301 , except for motorcycles, trailers, and
semitrailers, shall also include personal injury protection under Sections 31A-22-306 through
31A-22-309 .
(3) (a) First party medical coverages may be offered or included in policies issued to
motorcycle, trailer, and semitrailer owners or operators.
(b) Owners and operators of motorcycles, trailers, and semitrailers are not covered by
personal injury protection coverages in connection with injuries incurred while operating any of
these vehicles.
Section 2. 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:
(i) referred to in the policy; or
(ii) 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 motor 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 motor vehicle covered with lower liability limits than required by Section
31A-22-304 ; and

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(B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
the deficiency;
(b) an unidentified motor vehicle that left the scene of an accident proximately caused by
the motor vehicle operator;
(c) a motor 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 motor vehicle if, before or after the accident, the liability insurer of the
motor vehicle is declared insolvent by a court of competent jurisdiction;
(ii) the motor 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.
(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

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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 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 motor
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.
(ii) This coverage is secondary to any other insurance covering an injured covered
person.
(c) Uninsured motorist coverage:
(i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers' Compensation
Act;

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(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 made whole[.];
(v) may not be collected for bodily injury or death sustained by a person:
(A) while committing a violation of Section 41-1a-1314 ;
(B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated in
violation of Section 41-1a-1314 ; or
(C) while committing a felony; and
(vi) notwithstanding Subsection (4)(c)(v), may be recovered:
(A) for a person under 18 years of age who is injured within the scope of Subsection
(4)(c)(v) but limited to medical and funeral expenses; or
(B) by a law enforcement officer as defined in Section 53-13-103 , who is injured within
the course and scope of the law enforcement officer's duties.
(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 motor 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).

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(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 motor 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 motor 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 motor vehicle covered under the terms of the policy. Except as provided
in Subsection (6) or this Subsection (7), a covered person injured in a motor vehicle described in
a policy that includes uninsured motorist benefits may not elect to collect uninsured motorist
coverage benefits from any 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 one 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) except as provided in Subsection (7)(c), a covered person injured while occupying or
using a motor vehicle that is not owned [by], leased, or furnished, [or available for the regular
use of] to the covered person, to the covered person's [resident] spouse, or to the covered person's
resident [relative] parent or resident sibling.
(c) (i) A covered person may recover benefits from no more than two additional policies,
one additional policy from each parent's household if the covered person is:
(A) a dependent minor of parents who reside in separate households; and

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(B) injured while occupying or using a motor vehicle that is not owned, leased, or
furnished to the covered person, the covered person's resident parent, or to the covered person's
resident sibling.
(ii) Each parent's policy under this Subsection (7)(c) is liable only for the percentage of
the damages that the limit of liability of each parent's policy of uninsured motorist coverage bears
to the total of all uninsured coverage applicable to the accident.
(d) A covered person's recovery under any available policies may not exceed the full
amount of damages.
[(c)] (e) 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 motor 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)[.]; or
(iii) a motor vehicle owned or leased by the named insured, the named insured's spouse,
or any dependant of the named insured.
(9) (a) (i) 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.
(ii) A covered person occupying or using a motor vehicle owned, leased, or furnished to
the covered person, the covered person's spouse, or covered person's resident relative may
recover underinsured benefits only if the motor vehicle is:
(A) described in the policy under which a claim is made; or
(B) a newly acquired or replacement motor vehicle covered under the terms of the policy.

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(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;
(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.
(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.
(f) (i) 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.

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(iii) This rejection continues for that issuer of the liability coverage until the insured in
writing requests underinsured motorist coverage from that liability insurer.
(g) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
policies existing on that date, the insurer shall disclose in the same medium as the premium
renewal notice, an explanation of 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.]
(i) Except as provided in this Subsection (10), a covered person injured in a motor
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)] (ii) 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)(d)(i)(B).]
(iii) Subsection (10)(a)(ii) applies to all persons except a covered person as defined under
Subsections (10)(b)(i) and (ii).

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(b) (i) Except as provided in Subsection (10)(b)(ii), a covered person injured while
occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
covered person, the covered person's spouse, or the covered person's resident parent or resident
sibling, may also recover benefits under any one other policy under which they are a covered
person.
(ii) (A) A covered person may recover benefits from no more than two additional
policies, one additional policy from each parent's household if the covered person is:
(I) a dependent minor of parents who reside in separate households; and
(II) injured while occupying or using a motor vehicle that is not owned, leased, or
furnished to the covered person, the covered person's resident parent, or the covered person's
resident sibling.
(B) Each parent's policy under this Subsection (10)(b)(ii) is liable only for the percentage
of the damages that the limit of liability of each parent's policy of underinsured motorist coverage
bears to the total of all underinsured coverage applicable to the accident.
(iii) A covered person's recovery under any available policies may not exceed the full
amount of damages.
[(iii) Coverage] (iv) Underinsured 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.
(v) The primary and the secondary coverage may not be set off against the other.
(vi) A covered person as defined under Subsection (10)(b)(i) is entitled to the highest
limits of underinsured motorist coverage under only one additional policy per household
applicable to that covered person as a named insured, spouse, or relative.
(vii) A covered injured person is not barred against making subsequent elections if
recovery is unavailable under previous elections.
(c) Underinsured motorist coverage:
(i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers' Compensation
Act;

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(ii) may not be [subrograted] 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 made whole[.];
[(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)(d)(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.]
[(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.]
(v) may not be collected for bodily injury or death sustained by a person:
(A) while committing a violation of Section 41-1a-1314 ;
(B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated in

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violation of Section 41-1a-1314 ; or
(C) while committing a felony; and
(vi) notwithstanding Subsection (10)(c)(v), may be recovered:
(A) for a person under 18 years of age who is injured within the scope of Subsection
(10)(c)(v) but limited to medical and funeral expenses; or
(B) by a law enforcement officer as defined in Section 53-13-103 , who is injured within
the course and scope of the law enforcement officer's duties.
(11) The inception of the loss under Subsection 31A-21-313 (1) for underinsured motorist
claims occurs upon the date of the last liability policy payment.
(12) (a) Within five business days after notification in a manner specified by the
department that all liability insurers have tendered their liability policy limits, the underinsured
carrier shall either:
(i) waive any subrogation claim the underinsured carrier may have against the person
liable for the injuries caused in the accident; or
(ii) pay the insured an amount equal to the policy limits tendered by the liability carrier.
(b) If neither option is exercised under Subsection (12)(a), the subrogation claim is
deemed to be waived by the underinsured carrier.
(13) Except as otherwise provided in this section, a covered person may seek, subject to
the terms and conditions of the policy, additional coverage under any policy:
(a) that provides coverage for damages resulting from motor vehicle accidents; and
(b) that is not required to conform to Section 31A-22-302 .

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