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7 LONG TITLE
8 General Description:
9 This bill creates a new program for personal injury protection arbitration.
10 Highlighted Provisions:
11 This bill:
12 . requires the commissioner of insurance to issue a request for proposal for an
13 organization to administer personal injury protection actions through arbitration;
14 . sets requirements for the request for proposal; and
15 . requires the commissioner to make rules regarding the process.
16 Money Appropriated in this Bill:
18 Other Special Clauses:
20 Utah Code Sections Affected:
22 78B-10a-101, Utah Code Annotated 1953
23 78B-10a-102, Utah Code Annotated 1953
24 78B-10a-103, Utah Code Annotated 1953
25 78B-10a-104, Utah Code Annotated 1953
26 78B-10a-105, Utah Code Annotated 1953
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 78B-10a-101 is enacted to read:
31 78B-10a-101. Title.
32 This part is known as the "Personal Injury Protection Arbitration Act."
33 Section 2. Section 78B-10a-102 is enacted to read:
34 78B-10a-102. Definition.
35 As used in this part, "commissioner" means the commissioner of insurance.
36 Section 3. Section 78B-10a-103 is enacted to read:
37 78B-10a-103. Personal Injury Protection Arbitration Program.
38 (1) Any dispute regarding the recovery of medical expense benefits or other benefits
39 provided under personal injury protection coverage pursuant to Section 31A-22-307 arising out
40 of the operation, ownership, maintenance, or use of an automobile may be submitted to
41 arbitration on the initiative of any party to the dispute.
42 (2) This chapter also applies to any arbitration required under Subsection
43 31A-22-309 (6)(a)(ii).
44 (3) Dispute resolution proceedings under this chapter shall include simplified
45 arbitration procedures that promote efficiency and cost savings through the utilization of
46 electronic filing and administration.
47 (4) Program costs shall be paid from fees generated from the users of the program.
48 (5) A request for dispute resolution may be made by an injured party, the insured, a
49 provider who is an assignee of personal injury protection benefits, or the insurer.
50 (6) All decisions of the dispute resolution professional shall:
51 (a) be in writing, in a form prescribed by the commissioner;
52 (b) state the issues in dispute, findings, and conclusions on which the decision is based;
54 (c) be signed by the dispute resolution professional.
55 (7) The dispute resolution professional may award expenses, interest, and attorney fees
56 pursuant to Section 31A-22-309 .
57 (8) The final determination of the dispute resolution professional shall be binding upon
58 the parties unless vacated, modified, or corrected by review under Title 78B, Chapter 11, Utah
59 Uniform Arbitration Act.
60 Section 4. Section 78B-10a-104 is enacted to read:
61 78B-10a-104. Arbitration administrator -- Dispute resolution plan.
62 (1) The commissioner shall select, in accordance with Section 78B-10a-105 , an
63 organization for the purpose of administering arbitration provided for by this chapter.
64 (2) The organization shall establish a dispute resolution plan, which shall include:
65 (a) procedures and arbitration rules governing the dispute resolution process; and
66 (b) provisions for monitoring the dispute resolution process to ensure adherence to the
67 standards of performance established by the commissioner.
68 (3) The plan, and any amendments, shall be subject to approval by the commissioner.
69 (4) The organization shall utilize qualified dispute resolution professionals who meet
70 standards of competency and performance to ensure the independence and fairness of the
71 review process, including:
72 (a) standards relative to the professional qualifications of the professionals presiding
73 over the dispute resolution process; and
74 (b) standards to ensure that no conflict of interest exists that would prevent the
75 performance of the professional's duties in an impartial manner.
76 (5) Compensation for the dispute resolution professionals shall be approved by the
78 Section 5. Section 78B-10a-105 is enacted to read:
79 78B-10a-105. Request for proposal.
80 (1) Not later than November 1, 2011, the commissioner shall issue a request for
81 proposal for an organization to oversee and administer the personal injury protection arbitration
83 (2) The request for proposal shall include requirements regarding:
84 (a) organizational structure;
85 (b) operations;
86 (c) arbitration rules; and
87 (d) arbitrators to handle disputes involving automobile insurance personal injury
88 protection benefit claims.
89 (3) The commissioner shall make rules in accordance with Title 63G, Chapter 3, Utah
90 Administrative Rulemaking Act, that contain the specific qualifications necessary for bidders
91 and information about how the administrator shall conduct its operations as well as the conduct
92 of the dispute resolution proceedings as set forth in this chapter.
93 (4) The organization selected shall have experience administering dispute resolution
94 programs of similar scope and size.
Legislative Review Note
as of 2-22-11 8:06 AM