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[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]

H.B. 167 Enrolled

             1     

MOTOR VEHICLE INSURANCE MODIFICATIONS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Todd E. Kiser

             5     
Senate Sponsor: John L. Valentine

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Insurance Code by amending provisions relating to uninsured and
             10      underinsured motorist coverage.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides a definition of new policy for purposes of determining the limits of
             14      uninsured or underinsured motorist coverage;
             15          .    provides that the definition of new policy applies retroactively to any claim arising
             16      on or after January 1, 2001 for which, as of May 1, 2012, an insured has not made a
             17      written demand for arbitration or filed a complaint in a court of competent
             18      jurisdiction;
             19          .    amends provisions relating to renewal notices for underinsured motorist coverage;
             20      and
             21          .    makes technical changes.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None
             26      Utah Code Sections Affected:
             27      AMENDS:
             28          31A-22-302, as last amended by Laws of Utah 2008, Chapter 36
             29          31A-22-305, as last amended by Laws of Utah 2011, Chapters 297 and 431


             30          31A-22-305.3, as last amended by Laws of Utah 2011, Chapter 431
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 31A-22-302 is amended to read:
             34           31A-22-302. Required components of motor vehicle insurance policies --
             35      Exceptions.
             36          (1) Every policy of insurance or combination of policies purchased to satisfy the
             37      owner's or operator's security requirement of Section 41-12a-301 shall include:
             38          (a) motor vehicle liability coverage under Sections 31A-22-303 and 31A-22-304 ;
             39          (b) uninsured motorist coverage under Section 31A-22-305 , unless affirmatively
             40      waived under Subsection 31A-22-305 [(4)](5);
             41          (c) underinsured motorist coverage under Section 31A-22-305.3 , unless affirmatively
             42      waived under Subsection 31A-22-305.3 [(2)](3); and
             43          (d) except as provided in Subsection (2) and subject to Subsection (3), personal injury
             44      protection under Sections 31A-22-306 through 31A-22-309 .
             45          (2) A policy of insurance or combination of policies, purchased to satisfy the owner's
             46      or operator's security requirement of Section 41-12a-301 for a motorcycle, off-highway vehicle,
             47      street-legal all-terrain vehicle, trailer, or semitrailer is not required to have personal injury
             48      protection under Sections 31A-22-306 through 31A-22-309 .
             49          (3) (a) First party medical coverages may be offered or included in policies issued to
             50      motorcycle, off-highway vehicle, street-legal all-terrain vehicle, trailer, and semitrailer owners
             51      or operators.
             52          (b) Owners and operators of motorcycles, off-highway vehicles, street-legal all-terrain
             53      vehicles, trailers, and semitrailers are not covered by personal injury protection coverages in
             54      connection with injuries incurred while operating any of these vehicles.
             55          (4) First party medical coverage expenses shall be governed by the relative value study
             56      provisions under Subsections 31A-22-307 (2) and (3).
             57          Section 2. Section 31A-22-305 is amended to read:


             58           31A-22-305. Uninsured motorist coverage.
             59          (1) As used in this section, "covered persons" includes:
             60          (a) the named insured;
             61          (b) persons related to the named insured by blood, marriage, adoption, or guardianship,
             62      who are residents of the named insured's household, including those who usually make their
             63      home in the same household but temporarily live elsewhere;
             64          (c) any person occupying or using a motor vehicle:
             65          (i) referred to in the policy; or
             66          (ii) owned by a self-insured; and
             67          (d) any person who is entitled to recover damages against the owner or operator of the
             68      uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
             69      Subsection (1)(a), (b), or (c).
             70          (2) As used in this section, "uninsured motor vehicle" includes:
             71          (a) (i) a motor vehicle, the operation, maintenance, or use of which is not covered
             72      under a liability policy at the time of an injury-causing occurrence; or
             73          (ii) (A) a motor vehicle covered with lower liability limits than required by Section
             74      31A-22-304 ; and
             75          (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
             76      the deficiency;
             77          (b) an unidentified motor vehicle that left the scene of an accident proximately caused
             78      by the motor vehicle operator;
             79          (c) a motor vehicle covered by a liability policy, but coverage for an accident is
             80      disputed by the liability insurer for more than 60 days or continues to be disputed for more than
             81      60 days; or
             82          (d) (i) an insured motor vehicle if, before or after the accident, the liability insurer of
             83      the motor vehicle is declared insolvent by a court of competent jurisdiction; and
             84          (ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the extent
             85      that the claim against the insolvent insurer is not paid by a guaranty association or fund.


             86          (3) [(a)] Uninsured motorist coverage under Subsection 31A-22-302 (1)(b) provides
             87      coverage for covered persons who are legally entitled to recover damages from owners or
             88      operators of uninsured motor vehicles because of bodily injury, sickness, disease, or death.
             89          [(b)] (4) (a) For new policies written on or after January 1, 2001, the limits of
             90      uninsured motorist coverage shall be equal to the lesser of the limits of the named insured's
             91      motor vehicle liability coverage or the maximum uninsured motorist coverage limits available
             92      by the insurer under the named insured's motor vehicle policy, unless [the] a named insured
             93      rejects or purchases coverage in a lesser amount by signing an acknowledgment form that:
             94          (i) is filed with the department;
             95          (ii) is provided by the insurer;
             96          (iii) waives the higher coverage;
             97          (iv) reasonably explains the purpose of uninsured motorist coverage; and
             98          (v) discloses the additional premiums required to purchase uninsured motorist
             99      coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
             100      liability coverage or the maximum uninsured motorist coverage limits available by the insurer
             101      under the named insured's motor vehicle policy.
             102          (b) For purposes of this Subsection (4), "new policy" means:
             103          (i) any policy that is issued which does not include a renewal or reinstatement of an
             104      existing policy; or
             105          (ii) a change to an existing policy that results in:
             106          (A) a named insured being added to or deleted from the policy; or
             107          (B) a change in the limits of the named insured's motor vehicle liability coverage.
             108          (c) (i) As used in this Subsection (4)(c), "additional motor vehicle" means a change
             109      that increases the total number of vehicles insured by the policy, and does not include
             110      replacement, substitute, or temporary vehicles.
             111          (ii) The adding of an additional motor vehicle to an existing personal lines or
             112      commercial lines policy does not constitute a new policy for purposes of Subsection (4)(b).
             113          (iii) If an additional motor vehicle is added to a personal lines policy where uninsured


             114      motorist coverage has been rejected, or where uninsured motorist limits are lower than the
             115      named insured's motor vehicle liability limits, the insurer shall provide a notice to a named
             116      insured within 30 days that:
             117          (A) reasonably explains the purpose of uninsured motorist coverage; and
             118          (B) encourages the named insured to contact the insurance company or insurance
             119      producer for quotes as to the additional premiums required to purchase uninsured motorist
             120      coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
             121      liability coverage or the maximum uninsured motorist coverage limits available by the insurer
             122      under the named insured's motor vehicle policy.
             123          (d) A change in policy number resulting from any policy change not identified under
             124      Subsection (4)(b)(ii) does not constitute a new policy.
             125          (e) (i) Subsection (4)(b) applies retroactively to any claim arising on or after January 1,
             126      2001 for which, as of May 1, 2012, an insured has not made a written demand for arbitration or
             127      filed a complaint in a court of competent jurisdiction.
             128          (ii) The Legislature finds that the retroactive application of Subsection (4):
             129          (A) does not enlarge, eliminate, or destroy vested rights; and
             130          (B) clarifies legislative intent.
             131          [(c)] (f) A self-insured, including a governmental entity, may elect to provide
             132      uninsured motorist coverage in an amount that is less than its maximum self-insured retention
             133      under Subsections [(3)(b)] (4)(a) and [(4)] (5)(a) by issuing a declaratory memorandum or
             134      policy statement from the chief financial officer or chief risk officer that declares the:
             135          (i) self-insured entity's coverage level; and
             136          (ii) process for filing an uninsured motorist claim.
             137          [(d)] (g) Uninsured motorist coverage may not be sold with limits that are less than the
             138      minimum bodily injury limits for motor vehicle liability policies under Section 31A-22-304 .
             139          [(e)] (h) The acknowledgment under Subsection [(3)(b)] (4)(a) continues for that issuer
             140      of the uninsured motorist coverage until the named insured requests, in writing, [requests]
             141      different uninsured motorist coverage from the insurer.


             142          [(f)] (i) (i) In conjunction with the first two renewal notices sent after January 1, 2001,
             143      for policies existing on that date, the insurer shall disclose in the same medium as the premium
             144      renewal notice, an explanation of:
             145          (A) the purpose of uninsured motorist coverage; and
             146          [(B) the costs associated with increasing the coverage in amounts up to and including
             147      the maximum amount available by the insurer under the insured's motor vehicle policy.]
             148          (B) a disclosure of the additional premiums required to purchase uninsured motorist
             149      coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
             150      liability coverage or the maximum uninsured motorist coverage limits available by the insurer
             151      under the named insured's motor vehicle policy.
             152          (ii) The disclosure required under [this] Subsection [(3)(f)] (4)(i)(i) shall be sent to all
             153      named insureds that carry uninsured motorist coverage limits in an amount less than the named
             154      insured's motor vehicle liability policy limits or the maximum uninsured motorist coverage
             155      limits available by the insurer under the named insured's motor vehicle policy.
             156          (j) For purposes of this Subsection (4), a notice or disclosure sent to a named insured in
             157      a household constitutes notice or disclosure to all insureds within the household.
             158          [(4)] (5) (a) (i) Except as provided in Subsection [(4)] (5)(b), the named insured may
             159      reject uninsured motorist coverage by an express writing to the insurer that provides liability
             160      coverage under Subsection 31A-22-302 (1)(a).
             161          (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
             162      explanation of the purpose of uninsured motorist coverage.
             163          (iii) This rejection continues for that issuer of the liability coverage until the insured in
             164      writing requests uninsured motorist coverage from that liability insurer.
             165          (b) (i) All persons, including governmental entities, that are engaged in the business of,
             166      or that accept payment for, transporting natural persons by motor vehicle, and all school
             167      districts that provide transportation services for their students, shall provide coverage for all
             168      motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,
             169      uninsured motorist coverage of at least $25,000 per person and $500,000 per accident.


             170          (ii) This coverage is secondary to any other insurance covering an injured covered
             171      person.
             172          (c) Uninsured motorist coverage:
             173          (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
             174      Compensation Act;
             175          (ii) may not be subrogated by the workers' compensation insurance carrier;
             176          (iii) may not be reduced by any benefits provided by workers' compensation insurance;
             177          (iv) may be reduced by health insurance subrogation only after the covered person has
             178      been made whole;
             179          (v) may not be collected for bodily injury or death sustained by a person:
             180          (A) while committing a violation of Section 41-1a-1314 ;
             181          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
             182      in violation of Section 41-1a-1314 ; or
             183          (C) while committing a felony; and
             184          (vi) notwithstanding Subsection [(4)(c)(v)] (5)(c)(v), may be recovered:
             185          (A) for a person under 18 years of age who is injured within the scope of Subsection
             186      [(4)(c)(v)] (5)(c)(v) but limited to medical and funeral expenses; or
             187          (B) by a law enforcement officer as defined in Section 53-13-103 , who is injured
             188      within the course and scope of the law enforcement officer's duties.
             189          (d) As used in this Subsection [(4)] (5), "motor vehicle" has the same meaning as under
             190      Section 41-1a-102 .
             191          [(5)] (6) When a covered person alleges that an uninsured motor vehicle under
             192      Subsection (2)(b) proximately caused an accident without touching the covered person or the
             193      motor vehicle occupied by the covered person, the covered person shall show the existence of
             194      the uninsured motor vehicle by clear and convincing evidence consisting of more than the
             195      covered person's testimony.
             196          [(6)] (7) (a) The limit of liability for uninsured motorist coverage for two or more
             197      motor vehicles may not be added together, combined, or stacked to determine the limit of


             198      insurance coverage available to an injured person for any one accident.
             199          (b) (i) Subsection [(6)] (7)(a) applies to all persons except a covered person as defined
             200      under Subsection [(7)] (8)(b)(ii).
             201          (ii) A covered person as defined under Subsection [(7)] (8)(b)(ii) is entitled to the
             202      highest limits of uninsured motorist coverage afforded for any one motor vehicle that the
             203      covered person is the named insured or an insured family member.
             204          (iii) This coverage shall be in addition to the coverage on the motor vehicle the covered
             205      person is occupying.
             206          (iv) Neither the primary nor the secondary coverage may be set off against the other.
             207          (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
             208      coverage, and the coverage elected by a person described under Subsections (1)(a) and (b) shall
             209      be secondary coverage.
             210          [(7)] (8) (a) Uninsured motorist coverage under this section applies to bodily injury,
             211      sickness, disease, or death of covered persons while occupying or using a motor vehicle only if
             212      the motor vehicle is described in the policy under which a claim is made, or if the motor
             213      vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
             214      Except as provided in Subsection [(6)] (7) or this Subsection [(7)] (8), a covered person injured
             215      in a motor vehicle described in a policy that includes uninsured motorist benefits may not elect
             216      to collect uninsured motorist coverage benefits from any other motor vehicle insurance policy
             217      under which the person is a covered person.
             218          (b) Each of the following persons may also recover uninsured motorist benefits under
             219      any one other policy in which they are described as a "covered person" as defined in Subsection
             220      (1):
             221          (i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
             222          (ii) except as provided in Subsection [(7)] (8)(c), a covered person injured while
             223      occupying or using a motor vehicle that is not owned, leased, or furnished:
             224          (A) to the covered person;
             225          (B) to the covered person's spouse; or


             226          (C) to the covered person's resident parent or resident sibling.
             227          (c) (i) A covered person may recover benefits from no more than two additional
             228      policies, one additional policy from each parent's household if the covered person is:
             229          (A) a dependent minor of parents who reside in separate households; and
             230          (B) injured while occupying or using a motor vehicle that is not owned, leased, or
             231      furnished:
             232          (I) to the covered person;
             233          (II) to the covered person's resident parent; or
             234          (III) to the covered person's resident sibling.
             235          (ii) Each parent's policy under this Subsection [(7)] (8)(c) is liable only for the
             236      percentage of the damages that the limit of liability of each parent's policy of uninsured
             237      motorist coverage bears to the total of both parents' uninsured coverage applicable to the
             238      accident.
             239          (d) A covered person's recovery under any available policies may not exceed the full
             240      amount of damages.
             241          (e) A covered person in Subsection [(7)] (8)(b) is not barred against making subsequent
             242      elections if recovery is unavailable under previous elections.
             243          (f) (i) As used in this section, "interpolicy stacking" means recovering benefits for a
             244      single incident of loss under more than one insurance policy.
             245          (ii) Except to the extent permitted by Subsection [(6)] (7) and this Subsection [(7)] (8),
             246      interpolicy stacking is prohibited for uninsured motorist coverage.
             247          [(8)] (9) (a) When a claim is brought by a named insured or a person described in
             248      Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the
             249      claimant may elect to resolve the claim:
             250          (i) by submitting the claim to binding arbitration; or
             251          (ii) through litigation.
             252          (b) Unless otherwise provided in the policy under which uninsured benefits are
             253      claimed, the election provided in Subsection [(8)] (9)(a) is available to the claimant only.


             254          (c) Once the claimant has elected to commence litigation under Subsection [(8)]
             255      (9)(a)(ii), the claimant may not elect to resolve the claim through binding arbitration under this
             256      section without the written consent of the uninsured motorist carrier.
             257          (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
             258      binding arbitration under Subsection [(8)] (9)(a)(i) shall be resolved by a single arbitrator.
             259          (ii) All parties shall agree on the single arbitrator selected under Subsection [(8)]
             260      (9)(d)(i).
             261          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
             262      [(8)] (9)(d)(ii), the parties shall select a panel of three arbitrators.
             263          (e) If the parties select a panel of three arbitrators under Subsection [(8)] (9)(d)(iii):
             264          (i) each side shall select one arbitrator; and
             265          (ii) the arbitrators appointed under Subsection [(8)] (9)(e)(i) shall select one additional
             266      arbitrator to be included in the panel.
             267          (f) Unless otherwise agreed to in writing:
             268          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
             269      under Subsection [(8)] (9)(d)(i); or
             270          (ii) if an arbitration panel is selected under Subsection [(8)] (9)(d)(iii):
             271          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
             272          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
             273      under Subsection [(8)] (9)(e)(ii).
             274          (g) Except as otherwise provided in this section or unless otherwise agreed to in
             275      writing by the parties, an arbitration proceeding conducted under this section shall be governed
             276      by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
             277          (h) The arbitration shall be conducted in accordance with Rules 26 through 37, 54, and
             278      68 of the Utah Rules of Civil Procedure.
             279          (i) All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
             280          (j) A written decision by a single arbitrator or by a majority of the arbitration panel
             281      shall constitute a final decision.


             282          (k) (i) Except as provided in Subsection [(9)] (10), the amount of an arbitration award
             283      may not exceed the uninsured motorist policy limits of all applicable uninsured motorist
             284      policies, including applicable uninsured motorist umbrella policies.
             285          (ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
             286      applicable uninsured motorist policies, the arbitration award shall be reduced to an amount
             287      equal to the combined uninsured motorist policy limits of all applicable uninsured motorist
             288      policies.
             289          (l) The arbitrator or arbitration panel may not decide the issues of coverage or
             290      extra-contractual damages, including:
             291          (i) whether the claimant is a covered person;
             292          (ii) whether the policy extends coverage to the loss; or
             293          (iii) any allegations or claims asserting consequential damages or bad faith liability.
             294          (m) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
             295      class-representative basis.
             296          (n) If the arbitrator or arbitration panel finds that the action was not brought, pursued,
             297      or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
             298      and costs against the party that failed to bring, pursue, or defend the claim in good faith.
             299          (o) An arbitration award issued under this section shall be the final resolution of all
             300      claims not excluded by Subsection [(8)] (9)(l) between the parties unless:
             301          (i) the award was procured by corruption, fraud, or other undue means;
             302          (ii) either party, within 20 days after service of the arbitration award:
             303          (A) files a complaint requesting a trial de novo in the district court; and
             304          (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
             305      under Subsection [(8)] (9)(o)(ii)(A).
             306          (p) (i) Upon filing a complaint for a trial de novo under Subsection [(8)] (9)(o), the
             307      claim shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah
             308      Rules of Evidence in the district court.
             309          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may


             310      request a jury trial with a complaint requesting a trial de novo under Subsection [(8)]
             311      (9)(o)(ii)(A).
             312          (q) (i) If the claimant, as the moving party in a trial de novo requested under
             313      Subsection [(8)] (9)(o), does not obtain a verdict that is at least $5,000 and is at least 20%
             314      greater than the arbitration award, the claimant is responsible for all of the nonmoving party's
             315      costs.
             316          (ii) If the uninsured motorist carrier, as the moving party in a trial de novo requested
             317      under Subsection [(8)] (9)(o), does not obtain a verdict that is at least 20% less than the
             318      arbitration award, the uninsured motorist carrier is responsible for all of the nonmoving party's
             319      costs.
             320          (iii) Except as provided in Subsection [(8)] (9)(q)(iv), the costs under this Subsection
             321      [(8)] (9)(q) shall include:
             322          (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
             323          (B) the costs of expert witnesses and depositions.
             324          (iv) An award of costs under this Subsection [(8)] (9)(q) may not exceed $2,500 unless
             325      Subsection [(9)] (10)(h)(iii) applies.
             326          (r) For purposes of determining whether a party's verdict is greater or less than the
             327      arbitration award under Subsection [(8)] (9)(q), a court may not consider any recovery or other
             328      relief granted on a claim for damages if the claim for damages:
             329          (i) was not fully disclosed in writing prior to the arbitration proceeding; or
             330          (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
             331      Procedure.
             332          (s) If a district court determines, upon a motion of the nonmoving party, that the
             333      moving party's use of the trial de novo process was filed in bad faith in accordance with
             334      Section 78B-5-825 , the district court may award reasonable attorney fees to the nonmoving
             335      party.
             336          (t) Nothing in this section is intended to limit any claim under any other portion of an
             337      applicable insurance policy.


             338          (u) If there are multiple uninsured motorist policies, as set forth in Subsection [(7)] (8),
             339      the claimant may elect to arbitrate in one hearing the claims against all the uninsured motorist
             340      carriers.
             341          [(9)] (10) (a) Within 30 days after a covered person elects to submit a claim for
             342      uninsured motorist benefits to binding arbitration or files litigation, the covered person shall
             343      provide to the uninsured motorist carrier:
             344          (i) a written demand for payment of uninsured motorist coverage benefits, setting forth:
             345          (A) the specific monetary amount of the demand; and
             346          (B) the factual and legal basis and any supporting documentation for the demand;
             347          (ii) a written statement under oath disclosing:
             348          (A) (I) the names and last known addresses of all health care providers who have
             349      rendered health care services to the covered person that are material to the claims for which
             350      uninsured motorist benefits are sought for a period of five years preceding the date of the event
             351      giving rise to the claim for uninsured motorist benefits up to the time the election for
             352      arbitration or litigation has been exercised; and
             353          (II) whether the covered person has seen other health care providers who have rendered
             354      health care services to the covered person, which the covered person claims are immaterial to
             355      the claims for which uninsured motorist benefits are sought, for a period of five years
             356      preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
             357      time the election for arbitration or litigation has been exercised that have not been disclosed
             358      under Subsection [(9)] (10)(a)(ii)(A)(I);
             359          (B) (I) the names and last known addresses of all health insurers or other entities to
             360      whom the covered person has submitted claims for health care services or benefits material to
             361      the claims for which uninsured motorist benefits are sought, for a period of five years
             362      preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
             363      time the election for arbitration or litigation has been exercised; and
             364          (II) whether the identity of any health insurers or other entities to whom the covered
             365      person has submitted claims for health care services or benefits, which the covered person


             366      claims are immaterial to the claims for which uninsured motorist benefits are sought, for a
             367      period of five years preceding the date of the event giving rise to the claim for uninsured
             368      motorist benefits up to the time the election for arbitration or litigation have not been disclosed;
             369          (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
             370      employers of the covered person for a period of five years preceding the date of the event
             371      giving rise to the claim for uninsured motorist benefits up to the time the election for
             372      arbitration or litigation has been exercised;
             373          (D) other documents to reasonably support the claims being asserted; and
             374          (E) all state and federal statutory lienholders including a statement as to whether the
             375      covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
             376      Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
             377      or if the claim is subject to any other state or federal statutory liens; and
             378          (iii) signed authorizations to allow the uninsured motorist carrier to only obtain records
             379      and billings from the individuals or entities disclosed.
             380          (b) (i) If the uninsured motorist carrier determines that the disclosure of undisclosed
             381      health care providers or health care insurers under Subsection [(9)] (10)(a)(ii) is reasonably
             382      necessary, the uninsured motorist carrier may:
             383          (A) make a request for the disclosure of the identity of the health care providers or
             384      health care insurers; and
             385          (B) make a request for authorizations to allow the uninsured motorist carrier to only
             386      obtain records and billings from the individuals or entities not disclosed.
             387          (ii) If the covered person does not provide the requested information within 10 days:
             388          (A) the covered person shall disclose, in writing, the legal or factual basis for the
             389      failure to disclose the health care providers or health care insurers; and
             390          (B) either the covered person or the uninsured motorist carrier may request the
             391      arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
             392      provided if the covered person has elected arbitration.
             393          (iii) The time periods imposed by Subsection [(9)] (10)(c)(i) are tolled pending


             394      resolution of the dispute concerning the disclosure and production of records of the health care
             395      providers or health care insurers.
             396          (c) (i) An uninsured motorist carrier that receives an election for arbitration or a notice
             397      of filing litigation and the demand for payment of uninsured motorist benefits under Subsection
             398      [(9)] (10)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand
             399      and receipt of the items specified in Subsections [(9)] (10)(a)(i) through (iii), to:
             400          (A) provide a written response to the written demand for payment provided for in
             401      Subsection [(9)] (10)(a)(i);
             402          (B) except as provided in Subsection [(9)] (10)(c)(i)(C), tender the amount, if any, of
             403      the uninsured motorist carrier's determination of the amount owed to the covered person; and
             404          (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
             405      Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
             406      Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
             407      tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed
             408      to the covered person less:
             409          (I) if the amount of the state or federal statutory lien is established, the amount of the
             410      lien; or
             411          (II) if the amount of the state or federal statutory lien is not established, two times the
             412      amount of the medical expenses subject to the state or federal statutory lien until such time as
             413      the amount of the state or federal statutory lien is established.
             414          (ii) If the amount tendered by the uninsured motorist carrier under Subsection [(9)]
             415      (10)(c)(i) is the total amount of the uninsured motorist policy limits, the tendered amount shall
             416      be accepted by the covered person.
             417          (d) A covered person who receives a written response from an uninsured motorist
             418      carrier as provided for in Subsection [(9)] (10)(c)(i), may:
             419          (i) elect to accept the amount tendered in Subsection [(9)] (10)(c)(i) as payment in full
             420      of all uninsured motorist claims; or
             421          (ii) elect to:


             422          (A) accept the amount tendered in Subsection [(9)] (10)(c)(i) as partial payment of all
             423      uninsured motorist claims; and
             424          (B) litigate or arbitrate the remaining claim.
             425          (e) If a covered person elects to accept the amount tendered under Subsection [(9)]
             426      (10)(c)(i) as partial payment of all uninsured motorist claims, the final award obtained through
             427      arbitration, litigation, or later settlement shall be reduced by any payment made by the
             428      uninsured motorist carrier under Subsection [(9)] (10)(c)(i).
             429          (f) In an arbitration proceeding on the remaining uninsured claims:
             430          (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
             431      under Subsection [(9)] (10)(c)(i) until after the arbitration award has been rendered; and
             432          (ii) the parties may not disclose the amount of the limits of uninsured motorist benefits
             433      provided by the policy.
             434          (g) If the final award obtained through arbitration or litigation is greater than the
             435      average of the covered person's initial written demand for payment provided for in Subsection
             436      [(9)] (10)(a)(i) and the uninsured motorist carrier's initial written response provided for in
             437      Subsection [(9)] (10)(c)(i), the uninsured motorist carrier shall pay:
             438          (i) the final award obtained through arbitration or litigation, except that if the award
             439      exceeds the policy limits of the subject uninsured motorist policy by more than $15,000, the
             440      amount shall be reduced to an amount equal to the policy limits plus $15,000; and
             441          (ii) any of the following applicable costs:
             442          (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
             443          (B) the arbitrator or arbitration panel's fee; and
             444          (C) the reasonable costs of expert witnesses and depositions used in the presentation of
             445      evidence during arbitration or litigation.
             446          (h) (i) The covered person shall provide an affidavit of costs within five days of an
             447      arbitration award.
             448          (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
             449      which the uninsured motorist carrier objects.


             450          (B) The objection shall be resolved by the arbitrator or arbitration panel.
             451          (iii) The award of costs by the arbitrator or arbitration panel under Subsection [(9)]
             452      (10)(g)(ii) may not exceed $5,000.
             453          (i) (i) A covered person shall disclose all material information, other than rebuttal
             454      evidence, as specified in Subsection [(9)] (10)(a).
             455          (ii) If the information under Subsection [(9)] (10)(i)(i) is not disclosed, the covered
             456      person may not recover costs or any amounts in excess of the policy under Subsection [(9)]
             457      (10)(g).
             458          (j) This Subsection [(9)] (10) does not limit any other cause of action that arose or may
             459      arise against the uninsured motorist carrier from the same dispute.
             460          (k) The provisions of this Subsection [(9)] (10) only apply to motor vehicle accidents
             461      that occur on or after March 30, 2010.
             462          Section 3. Section 31A-22-305.3 is amended to read:
             463           31A-22-305.3. Underinsured motorist coverage.
             464          (1) As used in this section:
             465          (a) "Covered person" has the same meaning as defined in Section 31A-22-305 .
             466          (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
             467      maintenance, or use of which is covered under a liability policy at the time of an injury-causing
             468      occurrence, but which has insufficient liability coverage to compensate fully the injured party
             469      for all special and general damages.
             470          (ii) The term "underinsured motor vehicle" does not include:
             471          (A) a motor vehicle that is covered under the liability coverage of the same policy that
             472      also contains the underinsured motorist coverage;
             473          (B) an uninsured motor vehicle as defined in Subsection 31A-22-305 (2); or
             474          (C) a motor vehicle owned or leased by:
             475          (I) a named insured;
             476          (II) a named insured's spouse; or
             477          (III) a dependent of a named insured.


             478          (2) (a) [(i)] Underinsured motorist coverage under Subsection 31A-22-302 (1)(c)
             479      provides coverage for a covered person who is legally entitled to recover damages from an
             480      owner or operator of an underinsured motor vehicle because of bodily injury, sickness, disease,
             481      or death.
             482          [(ii)] (b) A covered person occupying or using a motor vehicle owned, leased, or
             483      furnished to the covered person, the covered person's spouse, or covered person's resident
             484      relative may recover underinsured benefits only if the motor vehicle is:
             485          [(A)] (i) described in the policy under which a claim is made; or
             486          [(B)] (ii) a newly acquired or replacement motor vehicle covered under the terms of the
             487      policy.
             488          [(b)] (3) (a) For new policies written on or after January 1, 2001, the limits of
             489      underinsured motorist coverage shall be equal to the lesser of the limits of the named insured's
             490      motor vehicle liability coverage or the maximum underinsured motorist coverage limits
             491      available by the insurer under the named insured's motor vehicle policy, unless [the] a named
             492      insured rejects or purchases coverage in a lesser amount by signing an acknowledgment form
             493      that:
             494          (i) is filed with the department;
             495          (ii) is provided by the insurer;
             496          (iii) waives the higher coverage;
             497          (iv) reasonably explains the purpose of underinsured motorist coverage; and
             498          (v) discloses the additional premiums required to purchase underinsured motorist
             499      coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
             500      liability coverage or the maximum underinsured motorist coverage limits available by the
             501      insurer under the named insured's motor vehicle policy.
             502          (b) For purposes of this Subsection (3), "new policy" means:
             503          (i) any policy that is issued which does not include a renewal or reinstatement of an
             504      existing policy; or
             505          (ii) a change to an existing policy that results in:


             506          (A) a named insured being added to or deleted from the policy; or
             507          (B) a change in the limits of the named insured's motor vehicle liability coverage.
             508          (c) (i) As used in this Subsection (3)(c), "additional motor vehicle" means a change
             509      that increases the total number of vehicles insured by the policy, and does not include
             510      replacement, substitute, or temporary vehicles.
             511          (ii) The adding of an additional motor vehicle to an existing personal lines or
             512      commercial lines policy does not constitute a new policy for purposes of Subsection (3)(b).
             513          (iii) If an additional motor vehicle is added to a personal lines policy where
             514      underinsured motorist coverage has been rejected, or where underinsured motorist limits are
             515      lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice
             516      to a named insured within 30 days that:
             517          (A) reasonably explains the purpose of underinsured motorist coverage; and
             518          (B) encourages the named insured to contact the insurance company or insurance
             519      producer for quotes as to the additional premiums required to purchase underinsured motorist
             520      coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
             521      liability coverage or the maximum underinsured motorist coverage limits available by the
             522      insurer under the named insured's motor vehicle policy.
             523          (d) A change in policy number resulting from any policy change not identified under
             524      Subsection (3)(b)(ii) does not constitute a new policy.
             525          (e) (i) Subsection (3)(b) applies retroactively to any claim arising on or after January 1,
             526      2001 for which, as of May 1, 2012, an insured has not made a written demand for arbitration or
             527      filed a complaint in a court of competent jurisdiction.
             528          (ii) The Legislature finds that the retroactive application of Subsection (3):
             529          (A) does not enlarge, eliminate, or destroy vested rights; and
             530          (B) clarifies legislative intent.
             531          [(c)] (f) A self-insured, including a governmental entity, may elect to provide
             532      underinsured motorist coverage in an amount that is less than its maximum self-insured
             533      retention under Subsections [(2)(b)] (3)(a) and [(2)(g)] (3)(j) by issuing a declaratory


             534      memorandum or policy statement from the chief financial officer or chief risk officer that
             535      declares the:
             536          (i) self-insured entity's coverage level; and
             537          (ii) process for filing an underinsured motorist claim.
             538          [(d)] (g) Underinsured motorist coverage may not be sold with limits that are less than:
             539          (i) $10,000 for one person in any one accident; and
             540          (ii) at least $20,000 for two or more persons in any one accident.
             541          [(e)] (h) An acknowledgment under Subsection [(2)(b)] (3)(a) continues for that issuer
             542      of the underinsured motorist coverage until the named insured, in writing, requests different
             543      underinsured motorist coverage from the insurer.
             544          [(f)] (i) (i) The named insured's underinsured motorist coverage, as described in
             545      Subsection (2)[(a)], is secondary to the liability coverage of an owner or operator of an
             546      underinsured motor vehicle, as described in Subsection (1).
             547          (ii) Underinsured motorist coverage may not be set off against the liability coverage of
             548      the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
             549      or stacked upon the liability coverage of the owner or operator of the underinsured motor
             550      vehicle to determine the limit of coverage available to the injured person.
             551          [(g) (i) A named insured may reject underinsured motorist coverage by an express
             552      writing to the insurer that provides liability coverage under Subsection 31A-22-302 (1)(a).]
             553          [(ii) A written rejection under this Subsection (2)(g) shall be on a form provided by the
             554      insurer that includes a reasonable explanation of the purpose of underinsured motorist coverage
             555      and when it would be applicable.]
             556          [(iii) A written rejection under this Subsection (2)(g) continues for that issuer of the
             557      liability coverage until the insured in writing requests underinsured motorist coverage from that
             558      liability insurer.]
             559          (j) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
             560      policies existing on that date, the insurer shall disclose in the same medium as the premium
             561      renewal notice, an explanation of:


             562          (A) the purpose of underinsured motorist coverage; and
             563          (B) a disclosure of the additional premiums required to purchase underinsured motorist
             564      coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
             565      liability coverage or the maximum underinsured motorist coverage limits available by the
             566      insurer under the named insured's motor vehicle policy.
             567          (ii) The disclosure required under this Subsection (3)(j) shall be sent to all named
             568      insureds that carry underinsured motorist coverage limits in an amount less than the named
             569      insured's motor vehicle liability policy limits or the maximum underinsured motorist coverage
             570      limits available by the insurer under the named insured's motor vehicle policy.
             571          (k) For purposes of this Subsection (3), a notice or disclosure sent to a named insured
             572      in a household constitutes notice or disclosure to all insureds within the household.
             573          [(3)] (4) (a) (i) Except as provided in this Subsection [(3)] (4), a covered person injured
             574      in a motor vehicle described in a policy that includes underinsured motorist benefits may not
             575      elect to collect underinsured motorist coverage benefits from another motor vehicle insurance
             576      policy.
             577          (ii) The limit of liability for underinsured motorist coverage for two or more motor
             578      vehicles may not be added together, combined, or stacked to determine the limit of insurance
             579      coverage available to an injured person for any one accident.
             580          (iii) Subsection [(3)] (4)(a)(ii) applies to all persons except a covered person described
             581      under Subsections [(3)] (4)(b)(i) and (ii).
             582          (b) (i) Except as provided in Subsection [(3)] (4)(b)(ii), a covered person injured while
             583      occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
             584      covered person, the covered person's spouse, or the covered person's resident parent or resident
             585      sibling, may also recover benefits under any one other policy under which the covered person is
             586      also a covered person.
             587          (ii) (A) A covered person may recover benefits from no more than two additional
             588      policies, one additional policy from each parent's household if the covered person is:
             589          (I) a dependent minor of parents who reside in separate households; and


             590          (II) injured while occupying or using a motor vehicle that is not owned, leased, or
             591      furnished to the covered person, the covered person's resident parent, or the covered person's
             592      resident sibling.
             593          (B) Each parent's policy under this Subsection [(3)] (4)(b)(ii) is liable only for the
             594      percentage of the damages that the limit of liability of each parent's policy of underinsured
             595      motorist coverage bears to the total of both parents' underinsured coverage applicable to the
             596      accident.
             597          (iii) A covered person's recovery under any available policies may not exceed the full
             598      amount of damages.
             599          (iv) Underinsured coverage on a motor vehicle occupied at the time of an accident is
             600      primary coverage, and the coverage elected by a person described under Subsections
             601      31A-22-305 (1)(a) and (b) is secondary coverage.
             602          (v) The primary and the secondary coverage may not be set off against the other.
             603          (vi) A covered person as described under Subsection [(3)] (4)(b)(i) is entitled to the
             604      highest limits of underinsured motorist coverage under only one additional policy per
             605      household applicable to that covered person as a named insured, spouse, or relative.
             606          (vii) A covered injured person is not barred against making subsequent elections if
             607      recovery is unavailable under previous elections.
             608          (viii) (A) As used in this section, "interpolicy stacking" means recovering benefits for a
             609      single incident of loss under more than one insurance policy.
             610          (B) Except to the extent permitted by this Subsection [(3)] (4), interpolicy stacking is
             611      prohibited for underinsured motorist coverage.
             612          (c) Underinsured motorist coverage:
             613          (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
             614      Compensation Act;
             615          (ii) may not be subrogated by a workers' compensation insurance carrier;
             616          (iii) may not be reduced by benefits provided by workers' compensation insurance;
             617          (iv) may be reduced by health insurance subrogation only after the covered person is


             618      made whole;
             619          (v) may not be collected for bodily injury or death sustained by a person:
             620          (A) while committing a violation of Section 41-1a-1314 ;
             621          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
             622      in violation of Section 41-1a-1314 ; or
             623          (C) while committing a felony; and
             624          (vi) notwithstanding Subsection [(3)] (4)(c)(v), may be recovered:
             625          (A) for a person under 18 years of age who is injured within the scope of Subsection
             626      [(3)] (4)(c)(v), but is limited to medical and funeral expenses; or
             627          (B) by a law enforcement officer as defined in Section 53-13-103 , who is injured
             628      within the course and scope of the law enforcement officer's duties.
             629          [(4)] (5) The inception of the loss under Subsection 31A-21-313 (1) for underinsured
             630      motorist claims occurs upon the date of the last liability policy payment.
             631          [(5)] (6) (a) Within five business days after notification that all liability insurers have
             632      tendered their liability policy limits, the underinsured carrier shall either:
             633          (i) waive any subrogation claim the underinsured carrier may have against the person
             634      liable for the injuries caused in the accident; or
             635          (ii) pay the insured an amount equal to the policy limits tendered by the liability carrier.
             636          (b) If neither option is exercised under Subsection [(5)] (6)(a), the subrogation claim is
             637      considered to be waived by the underinsured carrier.
             638          [(6)] (7) Except as otherwise provided in this section, a covered person may seek,
             639      subject to the terms and conditions of the policy, additional coverage under any policy:
             640          (a) that provides coverage for damages resulting from motor vehicle accidents; and
             641          (b) that is not required to conform to Section 31A-22-302 .
             642          [(7)] (8) (a) When a claim is brought by a named insured or a person described in
             643      Subsection 31A-22-305 (1) and is asserted against the covered person's underinsured motorist
             644      carrier, the claimant may elect to resolve the claim:
             645          (i) by submitting the claim to binding arbitration; or


             646          (ii) through litigation.
             647          (b) Unless otherwise provided in the policy under which underinsured benefits are
             648      claimed, the election provided in Subsection [(7)] (8)(a) is available to the claimant only.
             649          (c) Once a claimant elects to commence litigation under Subsection [(7)] (8)(a)(ii), the
             650      claimant may not elect to resolve the claim through binding arbitration under this section
             651      without the written consent of the underinsured motorist coverage carrier.
             652          (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
             653      binding arbitration under Subsection [(7)] (8)(a)(i) shall be resolved by a single arbitrator.
             654          (ii) All parties shall agree on the single arbitrator selected under Subsection [(7)]
             655      (8)(d)(i).
             656          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
             657      [(7)] (8)(d)(ii), the parties shall select a panel of three arbitrators.
             658          (e) If the parties select a panel of three arbitrators under Subsection [(7)] (8)(d)(iii):
             659          (i) each side shall select one arbitrator; and
             660          (ii) the arbitrators appointed under Subsection [(7)] (8)(e)(i) shall select one additional
             661      arbitrator to be included in the panel.
             662          (f) Unless otherwise agreed to in writing:
             663          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
             664      under Subsection [(7)] (8)(d)(i); or
             665          (ii) if an arbitration panel is selected under Subsection [(7)] (8)(d)(iii):
             666          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
             667          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
             668      under Subsection [(7)] (8)(e)(ii).
             669          (g) Except as otherwise provided in this section or unless otherwise agreed to in
             670      writing by the parties, an arbitration proceeding conducted under this section is governed by
             671      Title 78B, Chapter 11, Utah Uniform Arbitration Act.
             672          (h) An arbitration shall be conducted in accordance with Rules 26 through 37, 54, and
             673      68 of the Utah Rules of Civil Procedure.


             674          (i) An issue of discovery shall be resolved by the arbitrator or the arbitration panel.
             675          (j) A written decision by a single arbitrator or by a majority of the arbitration panel
             676      constitutes a final decision.
             677          (k) (i) Except as provided in Subsection [(8)] (9), the amount of an arbitration award
             678      may not exceed the underinsured motorist policy limits of all applicable underinsured motorist
             679      policies, including applicable underinsured motorist umbrella policies.
             680          (ii) If the initial arbitration award exceeds the underinsured motorist policy limits of all
             681      applicable underinsured motorist policies, the arbitration award shall be reduced to an amount
             682      equal to the combined underinsured motorist policy limits of all applicable underinsured
             683      motorist policies.
             684          (l) The arbitrator or arbitration panel may not decide an issue of coverage or
             685      extra-contractual damages, including:
             686          (i) whether the claimant is a covered person;
             687          (ii) whether the policy extends coverage to the loss; or
             688          (iii) an allegation or claim asserting consequential damages or bad faith liability.
             689          (m) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
             690      class-representative basis.
             691          (n) If the arbitrator or arbitration panel finds that the arbitration is not brought, pursued,
             692      or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
             693      and costs against the party that failed to bring, pursue, or defend the arbitration in good faith.
             694          (o) An arbitration award issued under this section shall be the final resolution of all
             695      claims not excluded by Subsection [(7)] (8)(l) between the parties unless:
             696          (i) the award is procured by corruption, fraud, or other undue means;
             697          (ii) either party, within 20 days after service of the arbitration award:
             698          (A) files a complaint requesting a trial de novo in the district court; and
             699          (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
             700      under Subsection [(7)] (8)(o)(ii)(A).
             701          (p) (i) Upon filing a complaint for a trial de novo under Subsection [(7)] (8)(o), a claim


             702      shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules
             703      of Evidence in the district court.
             704          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
             705      request a jury trial with a complaint requesting a trial de novo under Subsection [(7)]
             706      (8)(o)(ii)(A).
             707          (q) (i) If the claimant, as the moving party in a trial de novo requested under
             708      Subsection [(7)] (8)(o), does not obtain a verdict that is at least $5,000 and is at least 20%
             709      greater than the arbitration award, the claimant is responsible for all of the nonmoving party's
             710      costs.
             711          (ii) If the underinsured motorist carrier, as the moving party in a trial de novo requested
             712      under Subsection [(7)] (8)(o), does not obtain a verdict that is at least 20% less than the
             713      arbitration award, the underinsured motorist carrier is responsible for all of the nonmoving
             714      party's costs.
             715          (iii) Except as provided in Subsection [(7)] (8)(q)(iv), the costs under this Subsection
             716      [(7)] (8)(q) shall include:
             717          (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
             718          (B) the costs of expert witnesses and depositions.
             719          (iv) An award of costs under this Subsection [(7)] (8)(q) may not exceed $2,500 unless
             720      Subsection [(8)] (9)(h)(iii) applies.
             721          (r) For purposes of determining whether a party's verdict is greater or less than the
             722      arbitration award under Subsection [(7)] (8)(q), a court may not consider any recovery or other
             723      relief granted on a claim for damages if the claim for damages:
             724          (i) was not fully disclosed in writing prior to the arbitration proceeding; or
             725          (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
             726      Procedure.
             727          (s) If a district court determines, upon a motion of the nonmoving party, that a moving
             728      party's use of the trial de novo process is filed in bad faith in accordance with Section
             729      78B-5-825 , the district court may award reasonable attorney fees to the nonmoving party.


             730          (t) Nothing in this section is intended to limit a claim under another portion of an
             731      applicable insurance policy.
             732          (u) If there are multiple underinsured motorist policies, as set forth in Subsection [(3)]
             733      (4), the claimant may elect to arbitrate in one hearing the claims against all the underinsured
             734      motorist carriers.
             735          [(8)] (9) (a) Within 30 days after a covered person elects to submit a claim for
             736      underinsured motorist benefits to binding arbitration or files litigation, the covered person shall
             737      provide to the underinsured motorist carrier:
             738          (i) a written demand for payment of underinsured motorist coverage benefits, setting
             739      forth:
             740          (A) the specific monetary amount of the demand; and
             741          (B) the factual and legal basis and any supporting documentation for the demand;
             742          (ii) a written statement under oath disclosing:
             743          (A) (I) the names and last known addresses of all health care providers who have
             744      rendered health care services to the covered person that are material to the claims for which the
             745      underinsured motorist benefits are sought for a period of five years preceding the date of the
             746      event giving rise to the claim for underinsured motorist benefits up to the time the election for
             747      arbitration or litigation has been exercised; and
             748          (II) whether the covered person has seen other health care providers who have rendered
             749      health care services to the covered person, which the covered person claims are immaterial to
             750      the claims for which underinsured motorist benefits are sought, for a period of five years
             751      preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
             752      the time the election for arbitration or litigation has been exercised that have not been disclosed
             753      under Subsection [(8)] (9)(a)(ii)(A)(I);
             754          (B) (I) the names and last known addresses of all health insurers or other entities to
             755      whom the covered person has submitted claims for health care services or benefits material to
             756      the claims for which underinsured motorist benefits are sought, for a period of five years
             757      preceding the date of the event giving rise to the claim for underinsured motorist benefits up to


             758      the time the election for arbitration or litigation has been exercised; and
             759          (II) whether the identity of any health insurers or other entities to whom the covered
             760      person has submitted claims for health care services or benefits, which the covered person
             761      claims are immaterial to the claims for which underinsured motorist benefits are sought, for a
             762      period of five years preceding the date of the event giving rise to the claim for underinsured
             763      motorist benefits up to the time the election for arbitration or litigation have not been disclosed;
             764          (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
             765      employers of the covered person for a period of five years preceding the date of the event
             766      giving rise to the claim for underinsured motorist benefits up to the time the election for
             767      arbitration or litigation has been exercised;
             768          (D) other documents to reasonably support the claims being asserted; and
             769          (E) all state and federal statutory lienholders including a statement as to whether the
             770      covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
             771      Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
             772      or if the claim is subject to any other state or federal statutory liens; and
             773          (iii) signed authorizations to allow the underinsured motorist carrier to only obtain
             774      records and billings from the individuals or entities disclosed.
             775          (b) (i) If the underinsured motorist carrier determines that the disclosure of undisclosed
             776      health care providers or health care insurers under Subsection [(8)] (9)(a)(ii) is reasonably
             777      necessary, the underinsured motorist carrier may:
             778          (A) make a request for the disclosure of the identity of the health care providers or
             779      health care insurers; and
             780          (B) make a request for authorizations to allow the underinsured motorist carrier to only
             781      obtain records and billings from the individuals or entities not disclosed.
             782          (ii) If the covered person does not provide the requested information within 10 days:
             783          (A) the covered person shall disclose, in writing, the legal or factual basis for the
             784      failure to disclose the health care providers or health care insurers; and
             785          (B) either the covered person or the underinsured motorist carrier may request the


             786      arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
             787      provided if the covered person has elected arbitration.
             788          (iii) The time periods imposed by Subsection [(8)] (9)(c)(i) are tolled pending
             789      resolution of the dispute concerning the disclosure and production of records of the health care
             790      providers or health care insurers.
             791          (c) (i) An underinsured motorist carrier that receives an election for arbitration or a
             792      notice of filing litigation and the demand for payment of underinsured motorist benefits under
             793      Subsection [(8)] (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of
             794      the demand and receipt of the items specified in Subsections [(8)] (9)(a)(i) through (iii), to:
             795          (A) provide a written response to the written demand for payment provided for in
             796      Subsection [(8)] (9)(a)(i);
             797          (B) except as provided in Subsection [(8)] (9)(c)(i)(C), tender the amount, if any, of the
             798      underinsured motorist carrier's determination of the amount owed to the covered person; and
             799          (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
             800      Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
             801      Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
             802      tender the amount, if any, of the underinsured motorist carrier's determination of the amount
             803      owed to the covered person less:
             804          (I) if the amount of the state or federal statutory lien is established, the amount of the
             805      lien; or
             806          (II) if the amount of the state or federal statutory lien is not established, two times the
             807      amount of the medical expenses subject to the state or federal statutory lien until such time as
             808      the amount of the state or federal statutory lien is established.
             809          (ii) If the amount tendered by the underinsured motorist carrier under Subsection [(8)]
             810      (9)(c)(i) is the total amount of the underinsured motorist policy limits, the tendered amount
             811      shall be accepted by the covered person.
             812          (d) A covered person who receives a written response from an underinsured motorist
             813      carrier as provided for in Subsection [(8)] (9)(c)(i), may:


             814          (i) elect to accept the amount tendered in Subsection [(8)] (9)(c)(i) as payment in full
             815      of all underinsured motorist claims; or
             816          (ii) elect to:
             817          (A) accept the amount tendered in Subsection [(8)] (9)(c)(i) as partial payment of all
             818      underinsured motorist claims; and
             819          (B) litigate or arbitrate the remaining claim.
             820          (e) If a covered person elects to accept the amount tendered under Subsection [(8)]
             821      (9)(c)(i) as partial payment of all underinsured motorist claims, the final award obtained
             822      through arbitration, litigation, or later settlement shall be reduced by any payment made by the
             823      underinsured motorist carrier under Subsection [(8)] (9)(c)(i).
             824          (f) In an arbitration proceeding on the remaining underinsured claims:
             825          (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
             826      under Subsection [(8)] (9)(c)(i) until after the arbitration award has been rendered; and
             827          (ii) the parties may not disclose the amount of the limits of underinsured motorist
             828      benefits provided by the policy.
             829          (g) If the final award obtained through arbitration or litigation is greater than the
             830      average of the covered person's initial written demand for payment provided for in Subsection
             831      [(8)] (9)(a)(i) and the underinsured motorist carrier's initial written response provided for in
             832      Subsection [(8)] (9)(c)(i), the underinsured motorist carrier shall pay:
             833          (i) the final award obtained through arbitration or litigation, except that if the award
             834      exceeds the policy limits of the subject underinsured motorist policy by more than $15,000, the
             835      amount shall be reduced to an amount equal to the policy limits plus $15,000; and
             836          (ii) any of the following applicable costs:
             837          (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
             838          (B) the arbitrator or arbitration panel's fee; and
             839          (C) the reasonable costs of expert witnesses and depositions used in the presentation of
             840      evidence during arbitration or litigation.
             841          (h) (i) The covered person shall provide an affidavit of costs within five days of an


             842      arbitration award.
             843          (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
             844      which the underinsured motorist carrier objects.
             845          (B) The objection shall be resolved by the arbitrator or arbitration panel.
             846          (iii) The award of costs by the arbitrator or arbitration panel under Subsection [(8)]
             847      (9)(g)(ii) may not exceed $5,000.
             848          (i) (i) A covered person shall disclose all material information, other than rebuttal
             849      evidence, as specified in Subsection [(8)] (9)(a).
             850          (ii) If the information under Subsection [(8)] (9)(i)(i) is not disclosed, the covered
             851      person may not recover costs or any amounts in excess of the policy under Subsection [(8)]
             852      (9)(g).
             853          (j) This Subsection [(8)] (9) does not limit any other cause of action that arose or may
             854      arise against the underinsured motorist carrier from the same dispute.
             855          (k) The provisions of this Subsection [(8)] (9) only apply to motor vehicle accidents
             856      that occur on or after March 30, 2010.


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