1     
MOTOR VEHICLE INSURANCE AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stephen H. Urquhart

5     
House Sponsor: V. Lowry Snow

6     

7     LONG TITLE
8     General Description:
9          This bill amends motor vehicle insurance provisions relating to subrogation.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies the rights of subrogation on the part of an underinsured motorist carrier;
13     and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          31A-22-305.3, as last amended by Laws of Utah 2014, Chapters 290 and 300 and
22     further amended by Revisor Instructions, Laws of Utah 2014, Chapters 290 and 300
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 31A-22-305.3 is amended to read:
26          31A-22-305.3. Underinsured motorist coverage.
27          (1) As used in this section:
28          (a) "Covered person" has the same meaning as defined in Section 31A-22-305.
29          (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,

30     maintenance, or use of which is covered under a liability policy at the time of an injury-causing
31     occurrence, but which has insufficient liability coverage to compensate fully the injured party
32     for all special and general damages.
33          (ii) The term "underinsured motor vehicle" does not include:
34          (A) a motor vehicle that is covered under the liability coverage of the same policy that
35     also contains the underinsured motorist coverage;
36          (B) an uninsured motor vehicle as defined in Subsection 31A-22-305(2); or
37          (C) a motor vehicle owned or leased by:
38          (I) a named insured;
39          (II) a named insured's spouse; or
40          (III) a dependent of a named insured.
41          (2) (a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides
42     coverage for a covered person who is legally entitled to recover damages from an owner or
43     operator of an underinsured motor vehicle because of bodily injury, sickness, disease, or death.
44          (b) A covered person occupying or using a motor vehicle owned, leased, or furnished
45     to the covered person, the covered person's spouse, or covered person's resident relative may
46     recover underinsured benefits only if the motor vehicle is:
47          (i) described in the policy under which a claim is made; or
48          (ii) a newly acquired or replacement motor vehicle covered under the terms of the
49     policy.
50          (3) (a) For purposes of this Subsection (3), "new policy" means:
51          (i) any policy that is issued that does not include a renewal or reinstatement of an
52     existing policy; or
53          (ii) a change to an existing policy that results in:
54          (A) a named insured being added to or deleted from the policy; or
55          (B) a change in the limits of the named insured's motor vehicle liability coverage.
56          [(a)] (b) For new policies written on or after January 1, 2001, the limits of underinsured
57     motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle

58     liability coverage or the maximum underinsured motorist coverage limits available by the
59     insurer under the named insured's motor vehicle policy, unless a named insured rejects or
60     purchases coverage in a lesser amount by signing an acknowledgment form that:
61          (i) is filed with the department;
62          (ii) is provided by the insurer;
63          (iii) waives the higher coverage;
64          (iv) need only state in this or similar language that "underinsured motorist coverage
65     provides benefits or protection to you and other covered persons for bodily injury resulting
66     from an accident caused by the fault of another party where the other party has insufficient
67     liability insurance"; and
68          (v) discloses the additional premiums required to purchase underinsured motorist
69     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
70     liability coverage or the maximum underinsured motorist coverage limits available by the
71     insurer under the named insured's motor vehicle policy.
72          [(b)] (c) Any selection or rejection under Subsection (3)[(a)](b) continues for that
73     issuer of the liability coverage until the insured requests, in writing, a change of underinsured
74     motorist coverage from that liability insurer.
75          [(c)] (d) (i) Subsections (3)[(a)](b) and [(b)] (c) apply retroactively to any claim arising
76     on or after January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
77     demand for arbitration or filed a complaint in a court of competent jurisdiction.
78          (ii) The Legislature finds that the retroactive application of Subsections (3)[(a)](b) and
79     [(b)] (c) clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
80          [(d) For purposes of this Subsection (3), "new policy" means:]
81          [(i) any policy that is issued which does not include a renewal or reinstatement of an
82     existing policy; or]
83          [(ii) a change to an existing policy that results in:]
84          [(A) a named insured being added to or deleted from the policy; or]
85          [(B) a change in the limits of the named insured's motor vehicle liability coverage.]

86          (e) (i) As used in this Subsection (3)(e), "additional motor vehicle" means a change
87     that increases the total number of vehicles insured by the policy, and does not include
88     replacement, substitute, or temporary vehicles.
89          (ii) The adding of an additional motor vehicle to an existing personal lines or
90     commercial lines policy does not constitute a new policy for purposes of Subsection (3)[(d)](a).
91          (iii) If an additional motor vehicle is added to a personal lines policy where
92     underinsured motorist coverage has been rejected, or where underinsured motorist limits are
93     lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice
94     to a named insured within 30 days that:
95          (A) in the same manner described in Subsection (3)[(a)](b)(iv), explains the purpose of
96     underinsured motorist coverage; and
97          (B) encourages the named insured to contact the insurance company or insurance
98     producer for quotes as to the additional premiums required to purchase underinsured 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 underinsured motorist coverage limits available by the
101     insurer under the named insured's motor vehicle policy.
102          (f) A change in policy number resulting from any policy change not identified under
103     Subsection (3)[(d)](a)(ii) does not constitute a new policy.
104          (g) (i) Subsection (3)[(d)](a) applies retroactively to any claim arising on or after
105     January 1, 2001 for which, as of May 1, 2012, an insured has not made a written demand for
106     arbitration or filed a complaint in a court of competent jurisdiction.
107          (ii) The Legislature finds that the retroactive application of Subsection (3)[(d)](a):
108          (A) does not enlarge, eliminate, or destroy vested rights; and
109          (B) clarifies legislative intent.
110          (h) A self-insured, including a governmental entity, may elect to provide underinsured
111     motorist coverage in an amount that is less than its maximum self-insured retention under
112     Subsections (3)[(a)](b) and (l) by issuing a declaratory memorandum or policy statement from
113     the chief financial officer or chief risk officer that declares the:

114          (i) self-insured entity's coverage level; and
115          (ii) process for filing an underinsured motorist claim.
116          (i) Underinsured motorist coverage may not be sold with limits that are less than:
117          (i) $10,000 for one person in any one accident; and
118          (ii) at least $20,000 for two or more persons in any one accident.
119          (j) An acknowledgment under Subsection (3)[(a)](b) continues for that issuer of the
120     underinsured motorist coverage until the named insured, in writing, requests different
121     underinsured motorist coverage from the insurer.
122          (k) (i) The named insured's underinsured motorist coverage, as described in Subsection
123     (2), is secondary to the liability coverage of an owner or operator of an underinsured motor
124     vehicle, as described in Subsection (1).
125          (ii) Underinsured motorist coverage may not be set off against the liability coverage of
126     the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
127     or stacked upon the liability coverage of the owner or operator of the underinsured motor
128     vehicle to determine the limit of coverage available to the injured person.
129          (l) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
130     policies existing on that date, the insurer shall disclose in the same medium as the premium
131     renewal notice, an explanation of:
132          (A) the purpose of underinsured motorist coverage in the same manner as described in
133     Subsection (3)[(a)](b)(iv); and
134          (B) a disclosure of the additional premiums required to purchase underinsured motorist
135     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
136     liability coverage or the maximum underinsured motorist coverage limits available by the
137     insurer under the named insured's motor vehicle policy.
138          (ii) The disclosure required under this Subsection (3)(l) shall be sent to all named
139     insureds that carry underinsured motorist coverage limits in an amount less than the named
140     insured's motor vehicle liability policy limits or the maximum underinsured motorist coverage
141     limits available by the insurer under the named insured's motor vehicle policy.

142          (m) For purposes of this Subsection (3), a notice or disclosure sent to a named insured
143     in a household constitutes notice or disclosure to all insureds within the household.
144          (4) (a) (i) Except as provided in this Subsection (4), a covered person injured in a
145     motor vehicle described in a policy that includes underinsured motorist benefits may not elect
146     to collect underinsured motorist coverage benefits from another motor vehicle insurance policy.
147          (ii) The limit of liability for underinsured motorist coverage for two or more motor
148     vehicles may not be added together, combined, or stacked to determine the limit of insurance
149     coverage available to an injured person for any one accident.
150          (iii) Subsection (4)(a)(ii) applies to all persons except a covered person described
151     under Subsections (4)(b)(i) and (ii).
152          (b) (i) Except as provided in Subsection (4)(b)(ii), a covered person injured while
153     occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
154     covered person, the covered person's spouse, or the covered person's resident parent or resident
155     sibling, may also recover benefits under any one other policy under which the covered person is
156     also a covered person.
157          (ii) (A) A covered person may recover benefits from no more than two additional
158     policies, one additional policy from each parent's household if the covered person is:
159          (I) a dependent minor of parents who reside in separate households; and
160          (II) injured while occupying or using a motor vehicle that is not owned, leased, or
161     furnished to the covered person, the covered person's resident parent, or the covered person's
162     resident sibling.
163          (B) Each parent's policy under this Subsection (4)(b)(ii) is liable only for the
164     percentage of the damages that the limit of liability of each parent's policy of underinsured
165     motorist coverage bears to the total of both parents' underinsured coverage applicable to the
166     accident.
167          (iii) A covered person's recovery under any available policies may not exceed the full
168     amount of damages.
169          (iv) Underinsured coverage on a motor vehicle occupied at the time of an accident is

170     primary coverage, and the coverage elected by a person described under Subsections
171     31A-22-305(1)(a), (b), and (c) is secondary coverage.
172          (v) The primary and the secondary coverage may not be set off against the other.
173          (vi) A covered person as described under Subsection (4)(b)(i) is entitled to the highest
174     limits of underinsured motorist coverage under only one additional policy per household
175     applicable to that covered person as a named insured, spouse, or relative.
176          (vii) A covered injured person is not barred against making subsequent elections if
177     recovery is unavailable under previous elections.
178          (viii) (A) As used in this section, "interpolicy stacking" means recovering benefits for a
179     single incident of loss under more than one insurance policy.
180          (B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
181     prohibited for underinsured motorist coverage.
182          (c) Underinsured motorist coverage:
183          (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
184     Compensation Act;
185          (ii) may not be subrogated by a workers' compensation insurance carrier;
186          (iii) may not be reduced by benefits provided by workers' compensation insurance;
187          (iv) may be reduced by health insurance subrogation only after the covered person is
188     made whole;
189          (v) may not be collected for bodily injury or death sustained by a person:
190          (A) while committing a violation of Section 41-1a-1314;
191          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
192     in violation of Section 41-1a-1314; or
193          (C) while committing a felony; and
194          (vi) notwithstanding Subsection (4)(c)(v), may be recovered:
195          (A) for a person under 18 years of age who is injured within the scope of Subsection
196     (4)(c)(v), but is limited to medical and funeral expenses; or
197          (B) by a law enforcement officer as defined in Section 53-13-103, who is injured

198     within the course and scope of the law enforcement officer's duties.
199          (5) The inception of the loss under Subsection 31A-21-313(1) for underinsured
200     motorist claims occurs upon the date of the last liability policy payment.
201          (6) (a) [Within] Except as provided in Subsection (6)(d), within five business days
202     after notification that all liability insurers have tendered [their liability] the liability insurers'
203     policy limits, the underinsured carrier shall either:
204          (i) waive any subrogation claim the underinsured carrier may have against the person
205     liable for the injuries caused in the accident; or
206          (ii) pay the insured an amount equal to the policy limits tendered by the liability carrier.
207          (b) If neither option is exercised under Subsection (6)(a), the subrogation claim is
208     considered to be waived by the underinsured carrier.
209          (c) The notification under Subsection (6)(a) shall include:
210          (i) the name, address, and phone number for all liability insurers;
211          (ii) the liability insurers' liability policy limits; and
212          (iii) the claim number associated with each liability insurer.
213          (d) (i) A claimant may demand payment of policy limits from all liability insurers by
214     sending notice to all applicable underinsured motorist insurers demanding payment.
215          (ii) The notice under Subsection (6)(d)(i) shall include the name, address, and claim
216     number of all liability insurers from which the claimant has demanded policy limits.
217          (iii) The claimant shall send a copy of the notice to all liability insurers from which the
218     claimant has demanded policy limits.
219          (e) Upon the liability insurer tendering limits to a claimant, the liability insurer shall
220     provide notice of the tender to all underinsured motorist insurers for which the liability insurer
221     received notice under Subsection (6)(d).
222          (f) If a claimant accepts the policy limits tender of each liability insurer, the liability
223     insurer shall pay the claimant the accepted policy limits.
224          (g) (i) The subrogation rights of an underinsured motorist insurer are waived, unless:
225          (A) within five days of delivery of the notice of tender from the liability insurer, the

226     underinsured motorist insurer affirmatively asserts the underinsured motorist insurer's rights to
227     subrogation by delivering notice to the liability insurer of the underinsured motorist insurer's
228     rights to subrogate; and
229          (B) the underinsured motorist insurer reimburses the liability insurer for the policy
230     limits paid to the claimant.
231          (ii) If the subrogation rights of an underinsured motorist insurer are not waived under
232     Subsection (6)(g)(i), any liability release signed by the claimant or the claimant's representative
233     is rescinded.
234          (iii) A claimant's underinsured motorist coverage is preserved if the claimant provides
235     notice to the underinsured motorist insurer as described in Subsection (6)(d) .
236          (h) A person providing a notice required in this Subsection (6) shall deliver the notice
237     by a service that provides proof of delivery.
238          (7) Except as otherwise provided in this section, a covered person may seek, subject to
239     the terms and conditions of the policy, additional coverage under any policy:
240          (a) that provides coverage for damages resulting from motor vehicle accidents; and
241          (b) that is not required to conform to Section 31A-22-302.
242          (8) (a) When a claim is brought by a named insured or a person described in
243     Subsection 31A-22-305(1) and is asserted against the covered person's underinsured motorist
244     carrier, the claimant may elect to resolve the claim:
245          (i) by submitting the claim to binding arbitration; or
246          (ii) through litigation.
247          (b) Unless otherwise provided in the policy under which underinsured benefits are
248     claimed, the election provided in Subsection (8)(a) is available to the claimant only, except that
249     if the policy under which insured benefits are claimed provides that either an insured or the
250     insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
251     arbitrate shall stay the litigation of the claim under Subsection (8)(a)(ii).
252          (c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the
253     claimant may not elect to resolve the claim through binding arbitration under this section

254     without the written consent of the underinsured motorist coverage carrier.
255          (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
256     binding arbitration under Subsection (8)(a)(i) shall be resolved by a single arbitrator.
257          (ii) All parties shall agree on the single arbitrator selected under Subsection (8)(d)(i).
258          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
259     (8)(d)(ii), the parties shall select a panel of three arbitrators.
260          (e) If the parties select a panel of three arbitrators under Subsection (8)(d)(iii):
261          (i) each side shall select one arbitrator; and
262          (ii) the arbitrators appointed under Subsection (8)(e)(i) shall select one additional
263     arbitrator to be included in the panel.
264          (f) Unless otherwise agreed to in writing:
265          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
266     under Subsection (8)(d)(i); or
267          (ii) if an arbitration panel is selected under Subsection (8)(d)(iii):
268          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
269          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
270     under Subsection (8)(e)(ii).
271          (g) Except as otherwise provided in this section or unless otherwise agreed to in
272     writing by the parties, an arbitration proceeding conducted under this section is governed by
273     Title 78B, Chapter 11, Utah Uniform Arbitration Act.
274          (h) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
275     27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
276     Subsections (9)(a) through (c) are satisfied.
277          (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
278     shall be determined based on the claimant's specific monetary amount in the written demand
279     for payment of uninsured motorist coverage benefits as required in Subsection (9)(a)(i)(A).
280          (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
281     arbitration claims under this part.

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

310     proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules of
311     Evidence in the district court.
312          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
313     request a jury trial with a complaint requesting a trial de novo under Subsection (8)(o)(ii)(A).
314          (q) (i) If the claimant, as the moving party in a trial de novo requested under
315     Subsection (8)(o), does not obtain a verdict that is at least $5,000 and is at least 20% greater
316     than the arbitration award, the claimant is responsible for all of the nonmoving party's costs.
317          (ii) If the underinsured motorist carrier, as the moving party in a trial de novo requested
318     under Subsection (8)(o), does not obtain a verdict that is at least 20% less than the arbitration
319     award, the underinsured motorist carrier is responsible for all of the nonmoving party's costs.
320          (iii) Except as provided in Subsection (8)(q)(iv), the costs under this Subsection (8)(q)
321     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)(q) may not exceed $2,500 unless
325     Subsection (9)(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)(q), a court may not consider any recovery or other relief
328     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 a moving
333     party's use of the trial de novo process is filed in bad faith in accordance with Section
334     78B-5-825, the district court may award reasonable attorney fees to the nonmoving party.
335          (t) Nothing in this section is intended to limit a claim under another portion of an
336     applicable insurance policy.
337          (u) If there are multiple underinsured motorist policies, as set forth in Subsection (4),

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

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

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

422     carrier as provided for in Subsection (9)(c)(i), may:
423          (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all
424     underinsured motorist claims; or
425          (ii) elect to:
426          (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
427     underinsured motorist claims; and
428          (B) continue to litigate or arbitrate the remaining claim in accordance with the election
429     made under Subsections (8)(a), (b), and (c).
430          (e) If a covered person elects to accept the amount tendered under Subsection (9)(c)(i)
431     as partial payment of all underinsured motorist claims, the final award obtained through
432     arbitration, litigation, or later settlement shall be reduced by any payment made by the
433     underinsured motorist carrier under Subsection (9)(c)(i).
434          (f) In an arbitration proceeding on the remaining underinsured claims:
435          (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
436     under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
437          (ii) the parties may not disclose the amount of the limits of underinsured motorist
438     benefits provided by the policy.
439          (g) If the final award obtained through arbitration or litigation is greater than the
440     average of the covered person's initial written demand for payment provided for in Subsection
441     (9)(a)(i) and the underinsured motorist carrier's initial written response provided for in
442     Subsection (9)(c)(i), the underinsured motorist carrier shall pay:
443          (i) the final award obtained through arbitration or litigation, except that if the award
444     exceeds the policy limits of the subject underinsured motorist policy by more than $15,000, the
445     amount shall be reduced to an amount equal to the policy limits plus $15,000; and
446          (ii) any of the following applicable costs:
447          (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
448          (B) the arbitrator or arbitration panel's fee; and
449          (C) the reasonable costs of expert witnesses and depositions used in the presentation of

450     evidence during arbitration or litigation.
451          (h) (i) The covered person shall provide an affidavit of costs within five days of an
452     arbitration award.
453          (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
454     which the underinsured motorist carrier objects.
455          (B) The objection shall be resolved by the arbitrator or arbitration panel.
456          (iii) The award of costs by the arbitrator or arbitration panel under Subsection (9)(g)(ii)
457     may not exceed $5,000.
458          (i) (i) A covered person shall disclose all material information, other than rebuttal
459     evidence, within 30 days after a covered person elects to submit a claim for underinsured
460     motorist coverage benefits to binding arbitration or files litigation as specified in Subsection
461     (9)(a).
462          (ii) If the information under Subsection (9)(i)(i) is not disclosed, the covered person
463     may not recover costs or any amounts in excess of the policy under Subsection (9)(g).
464          (j) This Subsection (9) does not limit any other cause of action that arose or may arise
465     against the underinsured motorist carrier from the same dispute.
466          (k) The provisions of this Subsection (9) only apply to motor vehicle accidents that
467     occur on or after March 30, 2010.
468          (l) (i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the
469     covered person's requirement to provide a computation of any other economic damages
470     claimed, and the one or more respondents shall have a reasonable time after the receipt of the
471     computation of any other economic damages claimed to conduct fact and expert discovery as to
472     any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
473     Section 11, and Chapter 300, Section 11, to this Subsection (9)(l) and Subsection (9)(a)(i)(A)
474     apply to a claim submitted to binding arbitration or through litigation on or after May 13, 2014.
475          (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter
476     300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted to
477     binding arbitration or through litigation on or after May 13, 2014.

478