H.B. 250 Enrolled

PROPERTY AND CASUALTY INSURANCE LAW
AMENDMENTS
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: Todd E. Kiser

LONG TITLE
General Description:
This bill modifies the Insurance Code related to property and casualty insurance.
Highlighted Provisions:
This bill:
. addresses procedures for rate filings;
. expands prohibition of premium increases for certain claims or inquiries to personal
lines insurance;
. modifies provisions related to uninsured and underinsured motorist coverage;
. addresses personal injury protection coverages and benefits;
. addresses title insurance producer's business; and
. makes technical changes.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
31A-19a-203, as renumbered and amended by Chapter 130, Laws of Utah 1999
31A-19a-212, as last amended by Chapter 252, Laws of Utah 2003
31A-22-305, as last amended by Chapters 76 and 218, Laws of Utah 2003
31A-22-307, as last amended by Chapters 59 and 116, Laws of Utah 2001
31A-23a-406, as renumbered and amended by Chapter 298, Laws of Utah 2003

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 31A-19a-203 is amended to read:
31A-19a-203. Rate filings.
(1) (a) Except as provided in Subsections (4) and (5), every authorized insurer and every
rate service organization licensed under Section 31A-19a-301 that has been designated by any
insurer for the filing of pure premium rates under Subsection 31A-19a-205 (2) shall file with the
commissioner the following for use in this state:
(i) all rates;
(ii) all supplementary information; and
(iii) all changes and amendments to rates and supplementary information.
(b) An insurer shall file its rates by filing:
(i) its final rates; or
(ii) either of the following to be applied to pure premium rates that have been filed by a
rate service organization on behalf of the insurer as permitted by Section 31A-19a-205 :
(A) a multiplier; or
(B) (I) a multiplier; and
(II) an expense constant adjustment.
(c) Every filing under this Subsection (1) shall state:
(i) the effective date of the rates; and
(ii) the character and extent of the coverage contemplated.
(d) Except for workers' compensation rates filed under Sections 31A-19a-405 and
31A-19a-406 , each filing shall be within 30 days after the rates and supplementary information,
changes, and amendments are effective.
(e) A rate filing is considered filed when it has been received [by the commissioner]:
(i) with the applicable filing fee as prescribed under Section 31A-3-103 ; and
(ii) pursuant to procedures established by the commissioner.
(f) The commissioner may by rule prescribe procedures for submitting rate filings by

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electronic means.
(2) (a) To show compliance with Section 31A-19a-201 , at the same time as the filing of
the rate and supplementary rate information, an insurer shall file all supporting information to be
used in support of or in conjunction with a rate.
(b) If the rate filing provides for a modification or revision of a previously filed rate, the
insurer is required to file only the supporting information that supports the modification or
revision.
(c) If the commissioner determines that the insurer did not file sufficient supporting
information, the commissioner shall inform the insurer in writing of the lack of sufficient
supporting information.
(d) If the insurer does not provide the necessary supporting information within 45
calendar days of the date on which the commissioner mailed notice under Subsection (2)(c), the
rate filing may be:
(i) considered incomplete and unfiled; and
(ii) returned to the insurer as:
(A) not filed; and
(B) not available for use.
(e) Notwithstanding Subsection (2)(d), the commissioner may extend the time period for
filing supporting information.
(f) If a rate filing is returned to an insurer as not filed and not available for use under
Subsection (2)(d), the insurer may not use the rate filing for any policy issued or renewed on or
after 60 calendar days from the date the rate filing was returned.
(3) At the request of the commissioner, an insurer using the services of a rate service
organization shall provide a description of the rationale for using the services of the rate service
organization, including the insurer's:
(a) own information; and
(b) method of use of the rate service organization's information.
(4) (a) An insurer may not make or issue a contract or policy except in accordance with

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the rate filings that are in effect for the insurer as provided in this chapter.
(b) Subsection (4)(a) does not apply to contracts or policies for inland marine risks for
which filings are not required.
(5) Subsection (1) does not apply to inland marine risks, which, by general custom, are
not written according to standardized manual rules or rating plans.
(6) (a) The insurer may file a written application, stating the insurer's reasons for using a
higher rate than that otherwise applicable to a specific risk.
(b) If the application described in Subsection (6)(a) is filed with and not disapproved by
the commissioner within ten days after filing, the higher rate may be applied to the specific risk.
(c) The rate described in this Subsection (6) may be disapproved without a hearing.
(d) If disapproved, the rate otherwise applicable applies from the effective date of the
policy, but the insurer may cancel the policy pro rata on ten days' notice to the policyholder.
(e) If the insurer does not cancel the policy under Subsection (6)(d), the insurer shall
refund any excess premium from the effective date of the policy.
(7) (a) Agreements may be made between insurers on the use of reasonable rate
modifications for insurance provided under Section 31A-22-310 .
(b) [These] The rate modifications described in Subsection (7)(a) shall be filed [with the
commissioner] immediately upon agreement by the insurers.
Section 2. Section 31A-19a-212 is amended to read:
31A-19a-212. Premium increases prohibited for certain claims or inquiries.
(1) Each rate, rating schedule, and rating manual filed [with the commissioner] for
personal lines insurance [covering a vehicle or the operation of a vehicle] may not permit a
premium increase due to:
(a) a telephone call or other inquiry that does not result in the insured requesting payment
of a claim; or
(b) a claim under a policy of insurance covering a motor vehicle or the operation of a
motor vehicle resulting from any incident, including acts of vandalism, in which the person named
in the policy or any other person using the insured motor vehicle with the express or implied

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permission of the named insured is not at fault.
(2) Subsection (1) prohibits a premium increase when:
(a) a policy is issued; or
(b) a policy is renewed.
(3) This section is an exception to Section 31A-19a-201 .
Section 3. 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] self-insured; 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
(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

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by the liability insurer for more than 60 days or 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; and
(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) [Self-insurers] A self-insured, including a governmental [entities] entity, may elect to
provide uninsured motorist coverage in an amount that is less than [their] its maximum
self-insured retention under Subsections (3)(b) and (4)(a) by issuing a declaratory memorandum
or policy statement from the chief financial officer or chief risk officer that declares the:
(i) self-insured entity's coverage level; and
(ii) process for filing an uninsured motorist claim.
(d) 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 .
(e) 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.
(f) (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:
(A) the purpose of uninsured motorist coverage; and
(B) 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 required under this Subsection (3)(f) 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;
(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).
(ii) A covered person as defined under Subsection (7)(b)(ii) is entitled to the highest limits

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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] the person 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, leased, or furnished[,]:
(A) to the covered person[,];
(B) to the covered person's spouse[,]; or
(C) to the covered person's resident 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
(B) injured while occupying or using a motor vehicle that is not owned, leased, or

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furnished:
(I) to the covered person[,];
(II) to the covered person's resident parent[,]; or
(III) 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] both parents' uninsured coverage applicable to the accident.
(d) A covered person's recovery under any available policies may not exceed the full
amount of damages.
(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;
(ii) an uninsured motor vehicle as defined in Subsection (2); or
(iii) a motor vehicle owned or leased by:
(A) the named insured[,];
(B) the named insured's spouse[,]; or
(C) 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

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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.
(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) [Self-insurers] A self-insured, including a governmental [entities] entity, may elect to
provide underinsured motorist coverage in an amount that is less than [their] its maximum
self-insured retention under Subsections (9)(b) and (9)(g) by issuing a declaratory memorandum
or policy statement from the chief financial officer or chief risk officer that declares the:
(i) self-insured entity's coverage level; and
(ii) process for filing an underinsured motorist claim.
(d) Underinsured motorist coverage may not be sold with limits that are less than:
(i) $10,000 for one person in any one accident; and
(ii) at least $20,000 for two or more persons in any one accident.
(e) 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.
(f) (i) 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

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vehicle, as described in Subsection (8).
(ii) 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.
(g) (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.
(iii) This rejection continues for that issuer of the liability coverage until the insured in
writing requests underinsured motorist coverage from that liability insurer.
(h) (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:
(A) the purpose of underinsured motorist coverage; and
(B) 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 required by this Subsection (9)(h) 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) (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.
(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.

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(iii) Subsection (10)(a)(ii) applies to all persons except a covered person [as defined]
described under Subsections (10)(b)(i) and (ii).
(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] both parents' underinsured coverage applicable to the accident.
(iii) A covered person's recovery under any available policies may not exceed the full
amount of damages.
(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] described 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:

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(i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers' Compensation
Act;
(ii) may not be subrogated by the workers' compensation insurance carrier;
(iii) may not be reduced by any benefits provided by workers' compensation insurance;
(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 (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] considered 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:

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(a) that provides coverage for damages resulting from motor vehicle accidents; and
(b) that is not required to conform to Section 31A-22-302 .
Section 4. Section 31A-22-307 is amended to read:
31A-22-307. Personal injury protection coverages and benefits.
(1) Personal injury protection coverages and benefits include:
(a) the reasonable value of all expenses for necessary medical, surgical, X-ray, dental,
rehabilitation, including prosthetic devices, ambulance, hospital, and nursing services, not to
exceed [a] the total minimum required coverage of $3,000 per person;
(b) (i) the lesser of $250 per week or 85% of any loss of gross income and loss of earning
capacity per person from inability to work, for a maximum of 52 consecutive weeks after the loss,
except that this benefit need not be paid for the first three days of disability, unless the disability
continues for longer than two consecutive weeks after the date of injury; and
(ii) a special damage allowance not exceeding $20 per day for a maximum of 365 days,
for services actually rendered or expenses reasonably incurred for services that, but for the injury,
the injured person would have performed for [his] the injured person's household, except that this
benefit need not be paid for the first three days after the date of injury unless the person's inability
to perform these services continues for more than two consecutive weeks;
(c) funeral, burial, or cremation benefits not to exceed a total of $1,500 per person; and
(d) compensation on account of death of a person, payable to [his] the person's heirs, in
the total of $3,000.
(2) (a) (i) To determine the reasonable value of the medical expenses provided for in
Subsection (1) and under Subsection 31A-22-309 (1)(a)(v), the commissioner shall conduct a
relative value study of services and accommodations for the diagnosis, care, recovery, or
rehabilitation of an injured person in the most populous county in the state to assign a unit value
and determine the 75th percentile charge for each type of service and accommodation.
(ii) The relative value study shall be updated every other year.
(iii) In conducting the relative value study, the department may consult or contract with
appropriate public and private medical and health agencies or other technical experts.

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(iv) The costs and expenses incurred in conducting, maintaining, and administering the
relative value study shall be funded by the tax created under Section 59-9-105 .
(v) Upon completion of the relative value study, the department shall prepare and publish
a relative value study which sets forth the unit value and the 75th percentile charge assigned to
each type of service and accommodation.
(b) (i) The reasonable value of any service or accommodation is determined by applying
the unit value and the 75th percentile charge assigned to the service or accommodation under the
relative value study.
(ii) If a service or accommodation is not assigned a unit value or the 75th percentile
charge under the relative value study, the value of the service or accommodation shall equal the
reasonable cost of the same or similar service or accommodation in the most populous county of
this state.
(c) This Subsection (2) does not preclude the department from adopting a schedule
already established or a schedule prepared by persons outside the department, if it meets the
requirements of this Subsection (2).
(d) Every insurer shall report to the commissioner [of Insurance] any [patterns] pattern of
overcharging, excessive treatment, or other improper actions by a health provider within 30 days
after [such] the insurer has knowledge of [such] the pattern.
(e) (i) In disputed cases, a court on its own motion or on the motion of either party may
designate an impartial medical panel of not more than three licensed physicians to examine the
claimant and testify on the issue of the reasonable value of the claimant's medical services or
expenses.
(ii) An impartial medical panel designated under Subsection (2)(e)(i) shall consist of a
majority of health care professionals within the same license classification and specialty as the
provider of the claimant's medical services or expenses.
(3) Medical expenses as provided for in Subsection (1)(a) and in Subsection 31A-22-309
(1)(a)(v) include expenses for any nonmedical remedial care and treatment rendered in accordance
with a recognized religious method of healing.

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(4) The insured may waive for the named insured and the named insured's spouse only the
loss of gross income benefits of Subsection (1)(b)(i) if the insured states in writing that:
(a) within 31 days of applying for coverage, neither the insured nor the insured's spouse
received any earned income from regular employment; and
(b) for at least 180 days from the date of the writing and during the period of insurance,
neither the insured nor the insured's spouse will receive earned income from regular employment.
(5) This section does not:
(a) prohibit the issuance of policies of insurance providing coverages greater than the
minimum coverage required under this chapter [nor does it]; or
(b) require the segregation of those minimum coverages from other coverages in the same
policy.
(6) Deductibles are not permitted with respect to the insurance coverages required under
this section.
Section 5. Section 31A-23a-406 is amended to read:
31A-23a-406. Title insurance producer's business.
(1) A title insurance producer may do escrow involving real property transactions if all of
the following exist:
(a) the title insurance producer is licensed with:
(i) the title line of authority; and
(ii) the escrow subline of authority;
(b) the title insurance producer is appointed by a title insurer authorized to do business in
the state;
(c) one or more of the following is to be issued as part of the transaction:
(i) an owner's policy of title insurance; or
(ii) a lender's policy of title insurance;
(d) (i) all funds deposited with the producer in connection with any escrow:
(A) are deposited:
(I) in a federally insured financial institution; and

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(II) in a trust account that is separate from all other trust account funds that are not
related to real estate transactions; and
(B) are the property of the persons entitled to them under the provisions of the escrow;
and
(ii) are segregated escrow by escrow in the records of the producer;
(e) earnings on funds held in escrow may be paid out of the escrow account to any person
in accordance with the conditions of the escrow; and
(f) the escrow does not require the producer to hold:
(i) construction funds; or
(ii) funds held for exchange under Section 1031, Internal Revenue Code.
(2) Notwithstanding Subsection (1), a title insurance producer may engage in the escrow
business if:
(a) the escrow involves:
(i) a mobile home;
(ii) a grazing right;
(iii) a water right; or
(iv) other personal property authorized by the commissioner; and
(b) the title insurance producer complies with all the requirements of this section except
for the requirement of Subsection (1)(c).
(3) Funds held in escrow:
(a) are not subject to any debts of the producer;
(b) may only be used to fulfill the terms of the individual escrow under which the funds
were accepted; and
(c) may not be used until all conditions of the escrow have been met.
(4) Assets or property other than escrow funds received by a producer in accordance with
an escrow shall be maintained in a manner that will:
(a) reasonably preserve and protect the asset or property from loss, theft, or damages;
and

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(b) otherwise comply with all general duties and responsibilities of a fiduciary or bailee.
(5) (a) A check may not be drawn, executed, or dated, or funds otherwise disbursed
unless the segregated escrow account from which funds are to be disbursed contains a sufficient
credit balance consisting of collected or cleared funds at the time the check is drawn, executed, or
dated, or funds are otherwise disbursed.
(b) As used in this Subsection (5), funds are considered to be "collected or cleared," and
may be disbursed as follows:
(i) cash may be disbursed on the same day the cash is deposited;
(ii) a wire transfer may be disbursed on the same day the wire transfer is deposited;
(iii) the following may be disbursed on the day following the date of deposit:
(A) a cashier's check;
(B) a certified check;
(C) a teller's check;
(D) a U.S. Postal Service money order; and
(E) a check drawn on a Federal Reserve Bank or Federal Home Loan Bank; and
(iv) any other check or deposit may be disbursed:
(A) within the time limits provided under the Expedited Funds Availability Act, 12 U.S.C.
Section 4001 et seq., as amended, and related regulations of the Federal Reserve System; or
(B) upon written notification from the financial institution to which the funds have been
deposited, that final settlement has occurred on the deposited item.
(c) Subject to Subsections (5)(a) and (b), before the disbursement of funds, any changes
to any settlement statement made after the final closing documents are executed shall be
authorized or acknowledged by signature of the party or parties affected by the change.
(6) The title insurance producer shall maintain records of all receipts and disbursements of
escrow funds.
(7) The title insurance producer shall comply with:
(a) Section 31A-23a-409 ; and
(b) any rules adopted by the commissioner in accordance with Title 63, Chapter 46a, Utah

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Administrative Rulemaking Act, that govern escrows.

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