S.B. 4

1

UNINSURED MOTORIST PROPERTY DAMAGE
2 COVERAGE AMENDMENTS
3 2005 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Dan R. Eastman
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Insurance Code to amend uninsured motorist property damage
10 coverage provisions.
11 Highlighted Provisions:
12 This bill:
13 . allows an insurer to offer higher uninsured motorist property damage coverages at
14 appropriate rates; and
15 . makes technical changes.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 31A-22-305.5, as last amended by Chapter 158, Laws of Utah 1999
23
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 31A-22-305.5 is amended to read:
26 31A-22-305.5. Uninsured motorist property damage coverage -- Coverage
27 limitations.

28 (1) (a) At the request of the named insured, every motor vehicle liability policy of
29 insurance under Sections 31A-22-303 and 31A-22-304 or combination of policies purchased to
30 satisfy the owner's or operator's security requirement of Section 41-12a-301 which policy does
31 not provide insurance for collision damage shall provide uninsured motorist property damage
32 coverage for property damage to the motor vehicle described in the policy.
33 (b) The uninsured motorist property damage coverage provided under Subsection
34 (1)(a) shall be for the benefit of covered persons, as defined under Section 31A-22-305 , who
35 are legally entitled to recover damages:
36 (i) from the owner or operator of an uninsured motor vehicle, as defined under
37 Subsections 31A-22-305 (2)(a), (c), and (d)[,]; and
38 (ii) arising out of the operation, maintenance, or use of an uninsured motor vehicle.
39 (2) [The] (a) Except as provided under Subsection (5), the coverage provided under
40 this section shall include payment for loss or damage to the motor vehicle described in the
41 policy, not to exceed the motor vehicle's actual cash value or $3,500, whichever is less.
42 (b) Property damage does not include compensation for loss of use of the motor
43 vehicle.
44 (3) The coverage provided under this section shall be payable only if:
45 (a) the occurrence causing the property damage involves actual physical contact
46 between the covered motor vehicle and an uninsured motor vehicle;
47 (b) the owner, operator, or license plate number of the uninsured motor vehicle is
48 identified; and
49 (c) the insured or someone on his behalf reports the occurrence within ten days to the
50 insurer or his agent.
51 (4) [The] Except as provided under Subsection (5), the coverage provided under this
52 section shall be subject to a $250 deductible and shall be excess to any other insurance
53 covering property damage to the motor vehicle described in the policy.
54 (5) The insurer providing coverage under this section may, at appropriate premium
55 rates, make available additional:
56 (a) coverage above the limits provided under Subsection (2); and
57 (b) deductibles [at appropriate premium rates] for the coverage under Subsection (5)(a)
58 above the limits provided under Subsection (4).

59 (6) [No] A rating surcharge may not be applied to any policy of motor vehicle
60 insurance issued in this state as a result of payment of a claim made under this section.




Legislative Review Note
as of 12-7-04 8:43 AM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel

Interim Committee Note
as of 12-08-04 9:47 AM

The Transportation Interim Committee recommended this bill.