S.B. 238 Enrolled

1

MOTOR VEHICLE INSURANCE AMENDMENTS
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Sheldon L. Killpack
5 House Sponsor: James A. Dunnigan
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Insurance Code by amending provisions relating to motor vehicle
10 insurance.
11 Highlighted Provisions:
12 This bill:
13 . provides that a rental company's owner's or operator's security applies only when
14 there is no other valid or collectible insurance;
15 . provides that when there is no other valid or collectible insurance for a rental
16 vehicle, a rental company is required to meet the minimum requirements for owner's
17 or operator's security;
18 . clarifies that rental company owner's or operator's security requirements do not
19 expand or reduce liability or impair the rental company's right to indemnity,
20 contribution, or both; and
21 . makes technical changes.
22 Monies Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:
28 31A-22-314, as last amended by Chapters 325 and 329, Laws of Utah 1998
29

30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 31A-22-314 is amended to read:
32 31A-22-314. Mandatory coverage.
33 (1) As used in this section, "owner's or operator's security" has the same meaning as
34 defined in Section 41-12a-103 .
35 [(1)] (2) (a) A rental company shall [provide its renters with primary coverage]
36 maintain owner's or operator's security meeting the requirements of Title 41, Chapter 12a,
37 Financial Responsibility of Motor Vehicle Owners and Operators Act[, unless there is other
38 valid or collectible insurance coverage].
39 [(2) All coverage shall include primary defense costs and may not be waived.]
40 (b) Owner's or operator's security maintained by a rental company under Subsection
41 (2)(a) applies only when there is no other valid or collectible insurance or other form of
42 security meeting the minimum requirements of Title 41, Chapter 12a, Financial Responsibility
43 of Motor Vehicle Owners and Operators Act.
44 (c) If other valid or collectible insurance or other form of security satisfies the
45 minimum requirements of Title 41, Chapter 12a, Financial Responsibility of Motor Vehicle
46 Owners and Operators Act, on a loss involving a rental vehicle, a rental company's obligation
47 under Title 41, Chapter 12a, Financial Responsibility of Motor Vehicle Owners and Operators
48 Act, is satisfied.
49 (d) When no other valid or collectible insurance or other form of security exists
50 meeting the minimum requirements of Title 41, Chapter 12a, Financial Responsibility of Motor
51 Vehicle Owners and Operators Act, a rental company shall provide security meeting the
52 minimum requirements of Title 41, Chapter 12a, Financial Responsibility of Motor Vehicle
53 Owners and Operators Act, for losses involving a rental vehicle.
54 (3) Nothing in this section shall be construed to expand or reduce the liability of a
55 rental company or to impair a rental company's right to indemnity, contribution, or both.