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S.B. 4






Sponsor: Dan R. Eastman

             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
             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.

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