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S.B. 225

             1     

PERSONAL INJURY PROTECTION ARBITRATION

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen H. Urquhart

             5     
House Sponsor: Don L. Ipson

             6     
             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:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      ENACTS:
             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
             27     


             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 78B-10a-101 is enacted to read:
             30     
Part 1. Personal Injury Protection Arbitration Act

             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;
             53      and
             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
             77      commissioner.
             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
             82      program.
             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


Office of Legislative Research and General Counsel


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