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8 LONG TITLE
9 General Description:
10 This bill amends provisions related to motor vehicle insurance to disallow rejection of
11 uninsured and underinsured motorist coverage in certain instances.
12 Highlighted Provisions:
13 This bill:
14 ▸ disallows a person from rejecting uninsured and underinsured motorist coverage if
15 that person:
16 • employs an employee; and
17 • the employee drives a vehicle insured by the employer; and
18 ▸ makes technical changes.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 31A-22-305, as last amended by Laws of Utah 2014, Chapters 290 and 300 and further
26 amended by Revisor Instructions, Laws of Utah 2014, Chapters 290 and 300
27 31A-22-305.3, as last amended by Laws of Utah 2016, Chapter 361
28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 31A-22-305 is amended to read:
31 31A-22-305. Uninsured motorist coverage.
32 (1) As used in this section, "covered persons" includes:
33 (a) the named insured;
34 (b) for a claim arising on or after May 13, 2014, the named insured's dependent minor
35 children;
36 (c) persons related to the named insured by blood, marriage, adoption, or guardianship,
37 who are residents of the named insured's household, including those who usually make their
38 home in the same household but temporarily live elsewhere;
39 (d) any person occupying or using a motor vehicle:
40 (i) referred to in the policy; or
41 (ii) owned by a self-insured; and
42 (e) any person who is entitled to recover damages against the owner or operator of the
43 uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
44 Subsection (1)(a), (b), (c), or (d).
45 (2) As used in this section, "uninsured motor vehicle" includes:
46 (a) (i) a motor vehicle, the operation, maintenance, or use of which is not covered
47 under a liability policy at the time of an injury-causing occurrence; or
48 (ii) (A) a motor vehicle covered with lower liability limits than required by Section
49 31A-22-304; and
50 (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
51 the deficiency;
52 (b) an unidentified motor vehicle that left the scene of an accident proximately caused
53 by the motor vehicle operator;
54 (c) a motor vehicle covered by a liability policy, but coverage for an accident is
55 disputed by the liability insurer for more than 60 days or continues to be disputed for more than
56 60 days; or
57 (d) (i) an insured motor vehicle if, before or after the accident, the liability insurer of
58 the motor vehicle is declared insolvent by a court of competent jurisdiction; and
59 (ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the extent
60 that the claim against the insolvent insurer is not paid by a guaranty association or fund.
61 (3) Uninsured motorist coverage under Subsection 31A-22-302(1)(b) provides
62 coverage for covered persons who are legally entitled to recover damages from owners or
63 operators of uninsured motor vehicles because of bodily injury, sickness, disease, or death.
64 (4) (a) [
65 after January 1, 2001, the limits of uninsured motorist coverage shall be equal to the lesser of
66 the limits of the named insured's motor vehicle liability coverage or the maximum uninsured
67 motorist coverage limits available by the insurer under the named insured's motor vehicle
68 policy, unless a named insured rejects or purchases coverage in a lesser amount by signing an
69 acknowledgment form that:
70 (i) is filed with the department;
71 (ii) is provided by the insurer;
72 (iii) waives the higher coverage;
73 (iv) need only state in this or similar language that uninsured motorist coverage
74 provides benefits or protection to you and other covered persons for bodily injury resulting
75 from an accident caused by the fault of another party where the other party has no liability
76 insurance; and
77 (v) discloses the additional premiums required to purchase uninsured motorist
78 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
79 liability coverage or the maximum uninsured motorist coverage limits available by the insurer
80 under the named insured's motor vehicle policy.
81 (b) (i) A person that employs an employee and allows the employee to drive a vehicle
82 insured by the person may not reject uninsured motorist coverage for the employee.
83 (ii) A person that employs an employee and allows the employee to drive a vehicle
84 insured by the person shall purchase uninsured motorist coverage for the employee in an
85 amount not less than the lesser of:
86 (A) the named insured's motor vehicle liability coverage; or
87 (B) the maximum uninsured motorist coverage limits made available by the insurer
88 under the named insured's motor vehicle policy, but not less than $250,000 per person and
89 $500,000 per occurrence.
90 [
91 the liability coverage until the insured requests, in writing, a change of uninsured motorist
92 coverage from that liability insurer.
93 [
94 or after January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
95 demand for arbitration or filed a complaint in a court of competent jurisdiction.
96 (ii) The Legislature finds that the retroactive application of Subsections (4)(a) and [
97 (c) clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
98 [
99 (i) any policy that is issued which does not include a renewal or reinstatement of an
100 existing policy; or
101 (ii) a change to an existing policy that results in:
102 (A) a named insured being added to or deleted from the policy; or
103 (B) a change in the limits of the named insured's motor vehicle liability coverage.
104 [
105 change that increases the total number of vehicles insured by the policy, and does not include
106 replacement, substitute, or temporary vehicles.
107 (ii) The adding of an additional motor vehicle to an existing personal lines or
108 commercial lines policy does not constitute a new policy for purposes of Subsection (4)[
109 (iii) If an additional motor vehicle is added to a personal lines policy where uninsured
110 motorist coverage has been rejected, or where uninsured motorist limits are lower than the
111 named insured's motor vehicle liability limits, the insurer shall provide a notice to a named
112 insured within 30 days that:
113 (A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose of
114 uninsured motorist coverage; and
115 (B) encourages the named insured to contact the insurance company or insurance
116 producer for quotes as to the additional premiums required to purchase uninsured motorist
117 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
118 liability coverage or the maximum uninsured motorist coverage limits available by the insurer
119 under the named insured's motor vehicle policy.
120 [
121 under Subsection (4)[
122 [
123 January 1, 2001, for which, as of May 1, 2012, an insured has not made a written demand for
124 arbitration or filed a complaint in a court of competent jurisdiction.
125 (ii) The Legislature finds that the retroactive application of Subsection (4):
126 (A) does not enlarge, eliminate, or destroy vested rights; and
127 (B) clarifies legislative intent.
128 [
129 uninsured motorist coverage in an amount that is less than its maximum self-insured retention
130 under Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy statement
131 from the chief financial officer or chief risk officer that declares the:
132 (i) self-insured entity's coverage level; and
133 (ii) process for filing an uninsured motorist claim.
134 [
135 minimum bodily injury limits for motor vehicle liability policies under Section 31A-22-304.
136 [
137 uninsured motorist coverage until the named insured requests, in writing, different uninsured
138 motorist coverage from the insurer.
139 [
140 for policies existing on that date, the insurer shall disclose in the same medium as the premium
141 renewal notice, an explanation of:
142 (A) the purpose of uninsured motorist coverage in the same manner as described in
143 Subsection (4)(a)(iv); and
144 (B) a disclosure of the additional premiums required to purchase uninsured motorist
145 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
146 liability coverage or the maximum uninsured motorist coverage limits available by the insurer
147 under the named insured's motor vehicle policy.
148 (ii) The disclosure required under Subsection (4)[
149 insureds that carry uninsured motorist coverage limits in an amount less than the named
150 insured's motor vehicle liability policy limits or the maximum uninsured motorist coverage
151 limits available by the insurer under the named insured's motor vehicle policy.
152 [
153 insured in a household constitutes notice or disclosure to all insureds within the household.
154 (5) (a) (i) Except as provided in Subsection (5)(b), the named insured may reject
155 uninsured motorist coverage by an express writing to the insurer that provides liability
156 coverage under Subsection 31A-22-302(1)(a).
157 (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
158 explanation of the purpose of uninsured motorist coverage.
159 (iii) This rejection continues for that issuer of the liability coverage until the insured in
160 writing requests uninsured motorist coverage from that liability insurer.
161 (b) (i) All persons, including governmental entities, that are engaged in the business of,
162 or that accept payment for, transporting natural persons by motor vehicle, and all school
163 districts that provide transportation services for their students, shall provide coverage for all
164 motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,
165 uninsured motorist coverage of at least $25,000 per person and $500,000 per accident.
166 (ii) This coverage is secondary to any other insurance covering an injured covered
167 person.
168 (c) Uninsured motorist coverage:
169 (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
170 Compensation Act;
171 (ii) may not be subrogated by the workers' compensation insurance carrier;
172 (iii) may not be reduced by any benefits provided by workers' compensation insurance;
173 (iv) may be reduced by health insurance subrogation only after the covered person has
174 been made whole;
175 (v) may not be collected for bodily injury or death sustained by a person:
176 (A) while committing a violation of Section 41-1a-1314;
177 (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
178 in violation of Section 41-1a-1314; or
179 (C) while committing a felony; and
180 (vi) notwithstanding Subsection (5)(c)(v), may be recovered:
181 (A) for a person under 18 years of age who is injured within the scope of Subsection
182 (5)(c)(v) but limited to medical and funeral expenses; or
183 (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
184 within the course and scope of the law enforcement officer's duties.
185 (d) As used in this Subsection (5), "motor vehicle" has the same meaning as under
186 Section 41-1a-102.
187 (6) When a covered person alleges that an uninsured motor vehicle under Subsection
188 (2)(b) proximately caused an accident without touching the covered person or the motor
189 vehicle occupied by the covered person, the covered person shall show the existence of the
190 uninsured motor vehicle by clear and convincing evidence consisting of more than the covered
191 person's testimony.
192 (7) (a) The limit of liability for uninsured motorist coverage for two or more motor
193 vehicles may not be added together, combined, or stacked to determine the limit of insurance
194 coverage available to an injured person for any one accident.
195 (b) (i) Subsection (7)(a) applies to all persons except a covered person as defined under
196 Subsection (8)(b)(ii).
197 (ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
198 limits of uninsured motorist coverage afforded for any one motor vehicle that the covered
199 person is the named insured or an insured family member.
200 (iii) This coverage shall be in addition to the coverage on the motor vehicle the covered
201 person is occupying.
202 (iv) Neither the primary nor the secondary coverage may be set off against the other.
203 (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
204 coverage, and the coverage elected by a person described under Subsections (1)(a), (b), and (c)
205 shall be secondary coverage.
206 (8) (a) Uninsured motorist coverage under this section applies to bodily injury,
207 sickness, disease, or death of covered persons while occupying or using a motor vehicle only if
208 the motor vehicle is described in the policy under which a claim is made, or if the motor
209 vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
210 Except as provided in Subsection (7) or this Subsection (8), a covered person injured in a
211 motor vehicle described in a policy that includes uninsured motorist benefits may not elect to
212 collect uninsured motorist coverage benefits from any other motor vehicle insurance policy
213 under which the person is a covered person.
214 (b) Each of the following persons may also recover uninsured motorist benefits under
215 any one other policy in which they are described as a "covered person" as defined in Subsection
216 (1):
217 (i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
218 (ii) except as provided in Subsection (8)(c), a covered person injured while occupying
219 or using a motor vehicle that is not owned, leased, or furnished:
220 (A) to the covered person;
221 (B) to the covered person's spouse; or
222 (C) to the covered person's resident parent or resident sibling.
223 (c) (i) A covered person may recover benefits from no more than two additional
224 policies, one additional policy from each parent's household if the covered person is:
225 (A) a dependent minor of parents who reside in separate households; and
226 (B) injured while occupying or using a motor vehicle that is not owned, leased, or
227 furnished:
228 (I) to the covered person;
229 (II) to the covered person's resident parent; or
230 (III) to the covered person's resident sibling.
231 (ii) Each parent's policy under this Subsection (8)(c) is liable only for the percentage of
232 the damages that the limit of liability of each parent's policy of uninsured motorist coverage
233 bears to the total of both parents' uninsured coverage applicable to the accident.
234 (d) A covered person's recovery under any available policies may not exceed the full
235 amount of damages.
236 (e) A covered person in Subsection (8)(b) is not barred against making subsequent
237 elections if recovery is unavailable under previous elections.
238 (f) (i) As used in this section, "interpolicy stacking" means recovering benefits for a
239 single incident of loss under more than one insurance policy.
240 (ii) Except to the extent permitted by Subsection (7) and this Subsection (8),
241 interpolicy stacking is prohibited for uninsured motorist coverage.
242 (9) (a) When a claim is brought by a named insured or a person described in
243 Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the
244 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 uninsured benefits are
248 claimed, the election provided in Subsection (9)(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 (9)(a)(ii).
252 (c) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii),
253 the claimant may not elect to resolve the claim through binding arbitration under this section
254 without the written consent of the uninsured motorist carrier.
255 (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
256 binding arbitration under Subsection (9)(a)(i) shall be resolved by a single arbitrator.
257 (ii) All parties shall agree on the single arbitrator selected under Subsection (9)(d)(i).
258 (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
259 (9)(d)(ii), the parties shall select a panel of three arbitrators.
260 (e) If the parties select a panel of three arbitrators under Subsection (9)(d)(iii):
261 (i) each side shall select one arbitrator; and
262 (ii) the arbitrators appointed under Subsection (9)(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 (9)(d)(i); or
267 (ii) if an arbitration panel is selected under Subsection (9)(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 (9)(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 shall be governed
273 by 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 (10)(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 (10)(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) All issues 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 shall constitute a final decision.
285 (k) (i) Except as provided in Subsection (10), the amount of an arbitration award may
286 not exceed the uninsured motorist policy limits of all applicable uninsured motorist policies,
287 including applicable uninsured motorist umbrella policies.
288 (ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
289 applicable uninsured motorist policies, the arbitration award shall be reduced to an amount
290 equal to the combined uninsured motorist policy limits of all applicable uninsured motorist
291 policies.
292 (l) The arbitrator or arbitration panel may not decide the issues 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) any allegations or claims 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 action was 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 claim 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 (9)(l) between the parties unless:
304 (i) the award was 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 (9)(o)(ii)(A).
309 (p) (i) Upon filing a complaint for a trial de novo under Subsection (9)(o), the claim
310 shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules
311 of 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 (9)(o)(ii)(A).
314 (q) (i) If the claimant, as the moving party in a trial de novo requested under
315 Subsection (9)(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 uninsured motorist carrier, as the moving party in a trial de novo requested
318 under Subsection (9)(o), does not obtain a verdict that is at least 20% less than the arbitration
319 award, the uninsured motorist carrier is responsible for all of the nonmoving party's costs.
320 (iii) Except as provided in Subsection (9)(q)(iv), the costs under this Subsection (9)(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 (9)(q) may not exceed $2,500 unless
325 Subsection (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 (9)(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 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 (8), the
339 claimant may elect to arbitrate in one hearing the claims against all the uninsured motorist
340 carriers.
341 (10) (a) Within 30 days after a covered person elects to submit a claim for uninsured
342 motorist benefits to binding arbitration or files litigation, the covered person shall provide to
343 the uninsured motorist carrier:
344 (i) a written demand for payment of uninsured motorist coverage benefits, setting forth:
345 (A) subject to Subsection (10)(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 the 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
352 uninsured motorist benefits are sought for a period of five years preceding the date of the event
353 giving rise to the claim for uninsured 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 uninsured motorist benefits are sought, for a period of five years
358 preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
359 time the election for arbitration or litigation has been exercised that have not been disclosed
360 under Subsection (10)(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 uninsured motorist benefits are sought, for a period of five years
364 preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
365 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 uninsured motorist benefits are sought,
369 for a period of five years preceding the date of the event giving rise to the claim for uninsured
370 motorist benefits up to the time the election for arbitration or litigation have not been disclosed;
371 (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
372 employers of the covered person for a period of five years preceding the date of the event
373 giving rise to the claim for uninsured motorist benefits up to the time the election for
374 arbitration or litigation has been exercised;
375 (D) other documents to reasonably support the claims being asserted; and
376 (E) all state and federal statutory lienholders including a statement as to whether the
377 covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
378 Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
379 or if the claim is subject to any other state or federal statutory liens; and
380 (iii) signed authorizations to allow the uninsured motorist carrier to only obtain records
381 and billings from the individuals or entities disclosed under Subsections (10)(a)(ii)(A)(I),
382 (B)(I), and (C).
383 (b) (i) If the uninsured motorist carrier determines that the disclosure of undisclosed
384 health care providers or health care insurers under Subsection (10)(a)(ii) is reasonably
385 necessary, the uninsured motorist carrier may:
386 (A) make a request for the disclosure of the identity of the health care providers or
387 health care insurers; and
388 (B) make a request for authorizations to allow the uninsured motorist carrier to only
389 obtain records and billings from the individuals or entities not disclosed.
390 (ii) If the covered person does not provide the requested information within 10 days:
391 (A) the covered person shall disclose, in writing, the legal or factual basis for the
392 failure to disclose the health care providers or health care insurers; and
393 (B) either the covered person or the uninsured motorist carrier may request the
394 arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
395 provided if the covered person has elected arbitration.
396 (iii) The time periods imposed by Subsection (10)(c)(i) are tolled pending resolution of
397 the dispute concerning the disclosure and production of records of the health care providers or
398 health care insurers.
399 (c) (i) An uninsured motorist carrier that receives an election for arbitration or a notice
400 of filing litigation and the demand for payment of uninsured motorist benefits under Subsection
401 (10)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand and
402 receipt of the items specified in Subsections (10)(a)(i) through (iii), to:
403 (A) provide a written response to the written demand for payment provided for in
404 Subsection (10)(a)(i);
405 (B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of the
406 uninsured motorist carrier's determination of the amount owed to the covered person; and
407 (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
408 Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
409 Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
410 tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed
411 to the covered person less:
412 (I) if the amount of the state or federal statutory lien is established, the amount of the
413 lien; or
414 (II) if the amount of the state or federal statutory lien is not established, two times the
415 amount of the medical expenses subject to the state or federal statutory lien until such time as
416 the amount of the state or federal statutory lien is established.
417 (ii) If the amount tendered by the uninsured motorist carrier under Subsection (10)(c)(i)
418 is the total amount of the uninsured motorist policy limits, the tendered amount shall be
419 accepted by the covered person.
420 (d) A covered person who receives a written response from an uninsured motorist
421 carrier as provided for in Subsection (10)(c)(i), may:
422 (i) elect to accept the amount tendered in Subsection (10)(c)(i) as payment in full of all
423 uninsured motorist claims; or
424 (ii) elect to:
425 (A) accept the amount tendered in Subsection (10)(c)(i) as partial payment of all
426 uninsured motorist claims; and
427 (B) continue to litigate or arbitrate the remaining claim in accordance with the election
428 made under Subsections (9)(a), (b), and (c).
429 (e) If a covered person elects to accept the amount tendered under Subsection (10)(c)(i)
430 as partial payment of all uninsured motorist claims, the final award obtained through
431 arbitration, litigation, or later settlement shall be reduced by any payment made by the
432 uninsured motorist carrier under Subsection (10)(c)(i).
433 (f) In an arbitration proceeding on the remaining uninsured claims:
434 (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
435 under Subsection (10)(c)(i) until after the arbitration award has been rendered; and
436 (ii) the parties may not disclose the amount of the limits of uninsured motorist benefits
437 provided by the policy.
438 (g) If the final award obtained through arbitration or litigation is greater than the
439 average of the covered person's initial written demand for payment provided for in Subsection
440 (10)(a)(i) and the uninsured motorist carrier's initial written response provided for in
441 Subsection (10)(c)(i), the uninsured motorist carrier shall pay:
442 (i) the final award obtained through arbitration or litigation, except that if the award
443 exceeds the policy limits of the subject uninsured motorist policy by more than $15,000, the
444 amount shall be reduced to an amount equal to the policy limits plus $15,000; and
445 (ii) any of the following applicable costs:
446 (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
447 (B) the arbitrator or arbitration panel's fee; and
448 (C) the reasonable costs of expert witnesses and depositions used in the presentation of
449 evidence during arbitration or litigation.
450 (h) (i) The covered person shall provide an affidavit of costs within five days of an
451 arbitration award.
452 (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
453 which the uninsured motorist carrier objects.
454 (B) The objection shall be resolved by the arbitrator or arbitration panel.
455 (iii) The award of costs by the arbitrator or arbitration panel under Subsection
456 (10)(g)(ii) may not exceed $5,000.
457 (i) (i) A covered person shall disclose all material information, other than rebuttal
458 evidence, within 30 days after a covered person elects to submit a claim for uninsured motorist
459 coverage benefits to binding arbitration or files litigation as specified in Subsection (10)(a).
460 (ii) If the information under Subsection (10)(i)(i) is not disclosed, the covered person
461 may not recover costs or any amounts in excess of the policy under Subsection (10)(g).
462 (j) This Subsection (10) does not limit any other cause of action that arose or may arise
463 against the uninsured motorist carrier from the same dispute.
464 (k) The provisions of this Subsection (10) only apply to motor vehicle accidents that
465 occur on or after March 30, 2010.
466 (l) (i) The written demand requirement in Subsection (10)(a)(i)(A) does not affect the
467 covered person's requirement to provide a computation of any other economic damages
468 claimed, and the one or more respondents shall have a reasonable time after the receipt of the
469 computation of any other economic damages claimed to conduct fact and expert discovery as to
470 any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
471 Section 10, and Chapter 300, Section 10, to this Subsection (10)(l) and Subsection
472 (10)(a)(i)(A) apply to a claim submitted to binding arbitration or through litigation on or after
473 May 13, 2014.
474 (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
475 300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim submitted to
476 binding arbitration or through litigation on or after May 13, 2014.
477 Section 2. Section 31A-22-305.3 is amended to read:
478 31A-22-305.3. Underinsured motorist coverage.
479 (1) As used in this section:
480 (a) "Covered person" has the same meaning as defined in Section 31A-22-305.
481 (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
482 maintenance, or use of which is covered under a liability policy at the time of an injury-causing
483 occurrence, but which has insufficient liability coverage to compensate fully the injured party
484 for all special and general damages.
485 (ii) The term "underinsured motor vehicle" does not include:
486 (A) a motor vehicle that is covered under the liability coverage of the same policy that
487 also contains the underinsured motorist coverage;
488 (B) an uninsured motor vehicle as defined in Subsection 31A-22-305(2); or
489 (C) a motor vehicle owned or leased by:
490 (I) a named insured;
491 (II) a named insured's spouse; or
492 (III) a dependent of a named insured.
493 (2) (a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides
494 coverage for a covered person who is legally entitled to recover damages from an owner or
495 operator of an underinsured motor vehicle because of bodily injury, sickness, disease, or death.
496 (b) A covered person occupying or using a motor vehicle owned, leased, or furnished
497 to the covered person, the covered person's spouse, or covered person's resident relative may
498 recover underinsured benefits only if the motor vehicle is:
499 (i) described in the policy under which a claim is made; or
500 (ii) a newly acquired or replacement motor vehicle covered under the terms of the
501 policy.
502 (3) (a) For purposes of this Subsection (3), "new policy" means:
503 (i) any policy that is issued that 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 (b) [
509 after January 1, 2001, the limits of underinsured motorist coverage shall be equal to the lesser
510 of the limits of the named insured's motor vehicle liability coverage or the maximum
511 underinsured motorist coverage limits available by the insurer under the named insured's motor
512 vehicle policy, unless a named insured rejects or purchases coverage in a lesser amount by
513 signing an acknowledgment form that:
514 (i) is filed with the department;
515 (ii) is provided by the insurer;
516 (iii) waives the higher coverage;
517 (iv) need only state in this or similar language that "underinsured motorist coverage
518 provides benefits or protection to you and other covered persons for bodily injury resulting
519 from an accident caused by the fault of another party where the other party has insufficient
520 liability insurance"; and
521 (v) discloses the additional premiums required to purchase underinsured motorist
522 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
523 liability coverage or the maximum underinsured motorist coverage limits available by the
524 insurer under the named insured's motor vehicle policy.
525 (c) (i) A person that employs an employee and allows the employee to drive a vehicle
526 insured by the person may not reject underinsured motorist coverage for the employee.
527 (ii) A person that employs an employee and allows the employee to drive a vehicle
528 insured by the person shall purchase underinsured motorist coverage for the employee in an
529 amount not less than the lesser of:
530 (A) the named insured's motor vehicle liability coverage; or
531 (B) the maximum underinsured motorist coverage limits made available by the insurer
532 under the named insured's motor vehicle policy, but not less than $250,000 per person and
533 $500,000 per occurrence.
534 [
535 the liability coverage until the insured requests, in writing, a change of underinsured motorist
536 coverage from that liability insurer.
537 [
538 or after January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
539 demand for arbitration or filed a complaint in a court of competent jurisdiction.
540 (ii) The Legislature finds that the retroactive application of Subsections (3)(b) and [
541 (d) clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
542 [
543 change that increases the total number of vehicles insured by the policy, and does not include
544 replacement, substitute, or temporary vehicles.
545 (ii) The adding of an additional motor vehicle to an existing personal lines or
546 commercial lines policy does not constitute a new policy for purposes of Subsection (3)(a).
547 (iii) If an additional motor vehicle is added to a personal lines policy where
548 underinsured motorist coverage has been rejected, or where underinsured motorist limits are
549 lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice
550 to a named insured within 30 days that:
551 (A) in the same manner described in Subsection (3)(b)(iv), explains the purpose of
552 underinsured motorist coverage; and
553 (B) encourages the named insured to contact the insurance company or insurance
554 producer for quotes as to the additional premiums required to purchase underinsured motorist
555 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
556 liability coverage or the maximum underinsured motorist coverage limits available by the
557 insurer under the named insured's motor vehicle policy.
558 [
559 under Subsection (3)(a)(ii) does not constitute a new policy.
560 [
561 January 1, 2001 for which, as of May 1, 2012, an insured has not made a written demand for
562 arbitration or filed a complaint in a court of competent jurisdiction.
563 (ii) The Legislature finds that the retroactive application of Subsection (3)(a):
564 (A) does not enlarge, eliminate, or destroy vested rights; and
565 (B) clarifies legislative intent.
566 [
567 underinsured motorist coverage in an amount that is less than its maximum self-insured
568 retention under Subsections (3)(b) and [
569 statement from the chief financial officer or chief risk officer that declares the:
570 (i) self-insured entity's coverage level; and
571 (ii) process for filing an underinsured motorist claim.
572 [
573 (i) $10,000 for one person in any one accident; and
574 (ii) at least $20,000 for two or more persons in any one accident.
575 [
576 underinsured motorist coverage until the named insured, in writing, requests different
577 underinsured motorist coverage from the insurer.
578 [
579 Subsection (2), is secondary to the liability coverage of an owner or operator of an
580 underinsured motor vehicle, as described in Subsection (1).
581 (ii) Underinsured motorist coverage may not be set off against the liability coverage of
582 the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
583 or stacked upon the liability coverage of the owner or operator of the underinsured motor
584 vehicle to determine the limit of coverage available to the injured person.
585 [
586 for policies existing on that date, the insurer shall disclose in the same medium as the premium
587 renewal notice, an explanation of:
588 (A) the purpose of underinsured motorist coverage in the same manner as described in
589 Subsection (3)(b)(iv); and
590 (B) a disclosure of the additional premiums required to purchase underinsured motorist
591 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
592 liability coverage or the maximum underinsured motorist coverage limits available by the
593 insurer under the named insured's motor vehicle policy.
594 (ii) The disclosure required under this Subsection (3)[
595 insureds that carry underinsured motorist coverage limits in an amount less than the named
596 insured's motor vehicle liability policy limits or the maximum underinsured motorist coverage
597 limits available by the insurer under the named insured's motor vehicle policy.
598 [
599 insured in a household constitutes notice or disclosure to all insureds within the household.
600 (4) (a) (i) Except as provided in this Subsection (4), a covered person injured in a
601 motor vehicle described in a policy that includes underinsured motorist benefits may not elect
602 to collect underinsured motorist coverage benefits from another motor vehicle insurance policy.
603 (ii) The limit of liability for underinsured motorist coverage for two or more motor
604 vehicles may not be added together, combined, or stacked to determine the limit of insurance
605 coverage available to an injured person for any one accident.
606 (iii) Subsection (4)(a)(ii) applies to all persons except a covered person described
607 under Subsections (4)(b)(i) and (ii).
608 (b) (i) Except as provided in Subsection (4)(b)(ii), a covered person injured while
609 occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
610 covered person, the covered person's spouse, or the covered person's resident parent or resident
611 sibling, may also recover benefits under any one other policy under which the covered person is
612 also a covered person.
613 (ii) (A) A covered person may recover benefits from no more than two additional
614 policies, one additional policy from each parent's household if the covered person is:
615 (I) a dependent minor of parents who reside in separate households; and
616 (II) injured while occupying or using a motor vehicle that is not owned, leased, or
617 furnished to the covered person, the covered person's resident parent, or the covered person's
618 resident sibling.
619 (B) Each parent's policy under this Subsection (4)(b)(ii) is liable only for the
620 percentage of the damages that the limit of liability of each parent's policy of underinsured
621 motorist coverage bears to the total of both parents' underinsured coverage applicable to the
622 accident.
623 (iii) A covered person's recovery under any available policies may not exceed the full
624 amount of damages.
625 (iv) Underinsured coverage on a motor vehicle occupied at the time of an accident is
626 primary coverage, and the coverage elected by a person described under Subsections
627 31A-22-305(1)(a), (b), and (c) is secondary coverage.
628 (v) The primary and the secondary coverage may not be set off against the other.
629 (vi) A covered person as described under Subsection (4)(b)(i) is entitled to the highest
630 limits of underinsured motorist coverage under only one additional policy per household
631 applicable to that covered person as a named insured, spouse, or relative.
632 (vii) A covered injured person is not barred against making subsequent elections if
633 recovery is unavailable under previous elections.
634 (viii) (A) As used in this section, "interpolicy stacking" means recovering benefits for a
635 single incident of loss under more than one insurance policy.
636 (B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
637 prohibited for underinsured motorist coverage.
638 (c) Underinsured motorist coverage:
639 (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
640 Compensation Act;
641 (ii) may not be subrogated by a workers' compensation insurance carrier;
642 (iii) may not be reduced by benefits provided by workers' compensation insurance;
643 (iv) may be reduced by health insurance subrogation only after the covered person is
644 made whole;
645 (v) may not be collected for bodily injury or death sustained by a person:
646 (A) while committing a violation of Section 41-1a-1314;
647 (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
648 in violation of Section 41-1a-1314; or
649 (C) while committing a felony; and
650 (vi) notwithstanding Subsection (4)(c)(v), may be recovered:
651 (A) for a person under 18 years of age who is injured within the scope of Subsection
652 (4)(c)(v), but is limited to medical and funeral expenses; or
653 (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
654 within the course and scope of the law enforcement officer's duties.
655 (5) The inception of the loss under Subsection 31A-21-313(1) for underinsured
656 motorist claims occurs upon the date of the last liability policy payment.
657 (6) (a) Except as provided in Subsection (6)(d), within five business days after
658 notification that all liability insurers have tendered the liability insurers' policy limits, the
659 underinsured carrier shall either:
660 (i) waive any subrogation claim the underinsured carrier may have against the person
661 liable for the injuries caused in the accident; or
662 (ii) pay the insured an amount equal to the policy limits tendered by the liability carrier.
663 (b) If neither option is exercised under Subsection (6)(a), the subrogation claim is
664 considered to be waived by the underinsured carrier.
665 (c) The notification under Subsection (6)(a) shall include:
666 (i) the name, address, and phone number for all liability insurers;
667 (ii) the liability insurers' liability policy limits; and
668 (iii) the claim number associated with each liability insurer.
669 (d) (i) A claimant may demand payment of policy limits from all liability insurers by
670 sending notice to all applicable underinsured motorist insurers demanding payment.
671 (ii) The notice under Subsection (6)(d)(i) shall include the name, address, and claim
672 number of all liability insurers from which the claimant has demanded policy limits.
673 (iii) The claimant shall send a copy of the notice to all liability insurers from which the
674 claimant has demanded policy limits.
675 (e) Upon the liability insurer tendering limits to a claimant, the liability insurer shall
676 provide notice of the tender to all underinsured motorist insurers for which the liability insurer
677 received notice under Subsection (6)(d).
678 (f) If a claimant accepts the policy limits tender of each liability insurer, the liability
679 insurer shall pay the claimant the accepted policy limits.
680 (g) (i) The subrogation rights of an underinsured motorist insurer are waived, unless:
681 (A) within five days of delivery of the notice of tender from the liability insurer, the
682 underinsured motorist insurer affirmatively asserts the underinsured motorist insurer's rights to
683 subrogation by delivering notice to the liability insurer of the underinsured motorist insurer's
684 rights to subrogate; and
685 (B) the underinsured motorist insurer reimburses the liability insurer for the policy
686 limits paid to the claimant.
687 (ii) If the subrogation rights of an underinsured motorist insurer are not waived under
688 Subsection (6)(g)(i), any liability release signed by the claimant or the claimant's representative
689 is rescinded.
690 (iii) A claimant's underinsured motorist coverage is preserved if the claimant provides
691 notice to the underinsured motorist insurer as described in Subsection (6)(d) .
692 (h) A person providing a notice required in this Subsection (6) shall deliver the notice
693 by a service that provides proof of delivery.
694 (7) Except as otherwise provided in this section, a covered person may seek, subject to
695 the terms and conditions of the policy, additional coverage under any policy:
696 (a) that provides coverage for damages resulting from motor vehicle accidents; and
697 (b) that is not required to conform to Section 31A-22-302.
698 (8) (a) When a claim is brought by a named insured or a person described in
699 Subsection 31A-22-305(1) and is asserted against the covered person's underinsured motorist
700 carrier, the claimant may elect to resolve the claim:
701 (i) by submitting the claim to binding arbitration; or
702 (ii) through litigation.
703 (b) Unless otherwise provided in the policy under which underinsured benefits are
704 claimed, the election provided in Subsection (8)(a) is available to the claimant only, except that
705 if the policy under which insured benefits are claimed provides that either an insured or the
706 insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
707 arbitrate shall stay the litigation of the claim under Subsection (8)(a)(ii).
708 (c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the
709 claimant may not elect to resolve the claim through binding arbitration under this section
710 without the written consent of the underinsured motorist coverage carrier.
711 (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
712 binding arbitration under Subsection (8)(a)(i) shall be resolved by a single arbitrator.
713 (ii) All parties shall agree on the single arbitrator selected under Subsection (8)(d)(i).
714 (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
715 (8)(d)(ii), the parties shall select a panel of three arbitrators.
716 (e) If the parties select a panel of three arbitrators under Subsection (8)(d)(iii):
717 (i) each side shall select one arbitrator; and
718 (ii) the arbitrators appointed under Subsection (8)(e)(i) shall select one additional
719 arbitrator to be included in the panel.
720 (f) Unless otherwise agreed to in writing:
721 (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
722 under Subsection (8)(d)(i); or
723 (ii) if an arbitration panel is selected under Subsection (8)(d)(iii):
724 (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
725 (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
726 under Subsection (8)(e)(ii).
727 (g) Except as otherwise provided in this section or unless otherwise agreed to in
728 writing by the parties, an arbitration proceeding conducted under this section is governed by
729 Title 78B, Chapter 11, Utah Uniform Arbitration Act.
730 (h) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
731 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
732 Subsections (9)(a) through (c) are satisfied.
733 (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
734 shall be determined based on the claimant's specific monetary amount in the written demand
735 for payment of uninsured motorist coverage benefits as required in Subsection (9)(a)(i)(A).
736 (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
737 arbitration claims under this part.
738 (i) An issue of discovery shall be resolved by the arbitrator or the arbitration panel.
739 (j) A written decision by a single arbitrator or by a majority of the arbitration panel
740 constitutes a final decision.
741 (k) (i) Except as provided in Subsection (9), the amount of an arbitration award may
742 not exceed the underinsured motorist policy limits of all applicable underinsured motorist
743 policies, including applicable underinsured motorist umbrella policies.
744 (ii) If the initial arbitration award exceeds the underinsured motorist policy limits of all
745 applicable underinsured motorist policies, the arbitration award shall be reduced to an amount
746 equal to the combined underinsured motorist policy limits of all applicable underinsured
747 motorist policies.
748 (l) The arbitrator or arbitration panel may not decide an issue of coverage or
749 extra-contractual damages, including:
750 (i) whether the claimant is a covered person;
751 (ii) whether the policy extends coverage to the loss; or
752 (iii) an allegation or claim asserting consequential damages or bad faith liability.
753 (m) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
754 class-representative basis.
755 (n) If the arbitrator or arbitration panel finds that the arbitration is not brought, pursued,
756 or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
757 and costs against the party that failed to bring, pursue, or defend the arbitration in good faith.
758 (o) An arbitration award issued under this section shall be the final resolution of all
759 claims not excluded by Subsection (8)(l) between the parties unless:
760 (i) the award is procured by corruption, fraud, or other undue means;
761 (ii) either party, within 20 days after service of the arbitration award:
762 (A) files a complaint requesting a trial de novo in the district court; and
763 (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
764 under Subsection (8)(o)(ii)(A).
765 (p) (i) Upon filing a complaint for a trial de novo under Subsection (8)(o), a claim shall
766 proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules of
767 Evidence in the district court.
768 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
769 request a jury trial with a complaint requesting a trial de novo under Subsection (8)(o)(ii)(A).
770 (q) (i) If the claimant, as the moving party in a trial de novo requested under
771 Subsection (8)(o), does not obtain a verdict that is at least $5,000 and is at least 20% greater
772 than the arbitration award, the claimant is responsible for all of the nonmoving party's costs.
773 (ii) If the underinsured motorist carrier, as the moving party in a trial de novo requested
774 under Subsection (8)(o), does not obtain a verdict that is at least 20% less than the arbitration
775 award, the underinsured motorist carrier is responsible for all of the nonmoving party's costs.
776 (iii) Except as provided in Subsection (8)(q)(iv), the costs under this Subsection (8)(q)
777 shall include:
778 (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
779 (B) the costs of expert witnesses and depositions.
780 (iv) An award of costs under this Subsection (8)(q) may not exceed $2,500 unless
781 Subsection (9)(h)(iii) applies.
782 (r) For purposes of determining whether a party's verdict is greater or less than the
783 arbitration award under Subsection (8)(q), a court may not consider any recovery or other relief
784 granted on a claim for damages if the claim for damages:
785 (i) was not fully disclosed in writing prior to the arbitration proceeding; or
786 (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
787 Procedure.
788 (s) If a district court determines, upon a motion of the nonmoving party, that a moving
789 party's use of the trial de novo process is filed in bad faith in accordance with Section
790 78B-5-825, the district court may award reasonable attorney fees to the nonmoving party.
791 (t) Nothing in this section is intended to limit a claim under another portion of an
792 applicable insurance policy.
793 (u) If there are multiple underinsured motorist policies, as set forth in Subsection (4),
794 the claimant may elect to arbitrate in one hearing the claims against all the underinsured
795 motorist carriers.
796 (9) (a) Within 30 days after a covered person elects to submit a claim for underinsured
797 motorist benefits to binding arbitration or files litigation, the covered person shall provide to
798 the underinsured motorist carrier:
799 (i) a written demand for payment of underinsured motorist coverage benefits, setting
800 forth:
801 (A) subject to Subsection (9)(l), the specific monetary amount of the demand,
802 including a computation of the covered person's claimed past medical expenses, claimed past
803 lost wages, and all other claimed past economic damages; and
804 (B) the factual and legal basis and any supporting documentation for the demand;
805 (ii) a written statement under oath disclosing:
806 (A) (I) the names and last known addresses of all health care providers who have
807 rendered health care services to the covered person that are material to the claims for which the
808 underinsured motorist benefits are sought for a period of five years preceding the date of the
809 event giving rise to the claim for underinsured motorist benefits up to the time the election for
810 arbitration or litigation has been exercised; and
811 (II) the names and last known addresses of the health care providers who have rendered
812 health care services to the covered person, which the covered person claims are immaterial to
813 the claims for which underinsured motorist benefits are sought, for a period of five years
814 preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
815 the time the election for arbitration or litigation has been exercised that have not been disclosed
816 under Subsection (9)(a)(ii)(A)(I);
817 (B) (I) the names and last known addresses of all health insurers or other entities to
818 whom the covered person has submitted claims for health care services or benefits material to
819 the claims for which underinsured motorist benefits are sought, for a period of five years
820 preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
821 the time the election for arbitration or litigation has been exercised; and
822 (II) the names and last known addresses of the health insurers or other entities to whom
823 the covered person has submitted claims for health care services or benefits, which the covered
824 person claims are immaterial to the claims for which underinsured motorist benefits are sought,
825 for a period of five years preceding the date of the event giving rise to the claim for
826 underinsured motorist benefits up to the time the election for arbitration or litigation have not
827 been disclosed;
828 (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
829 employers of the covered person for a period of five years preceding the date of the event
830 giving rise to the claim for underinsured motorist benefits up to the time the election for
831 arbitration or litigation has been exercised;
832 (D) other documents to reasonably support the claims being asserted; and
833 (E) all state and federal statutory lienholders including a statement as to whether the
834 covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
835 Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
836 or if the claim is subject to any other state or federal statutory liens; and
837 (iii) signed authorizations to allow the underinsured motorist carrier to only obtain
838 records and billings from the individuals or entities disclosed under Subsections
839 (9)(a)(ii)(A)(I), (B)(I), and (C).
840 (b) (i) If the underinsured motorist carrier determines that the disclosure of undisclosed
841 health care providers or health care insurers under Subsection (9)(a)(ii) is reasonably necessary,
842 the underinsured motorist carrier may:
843 (A) make a request for the disclosure of the identity of the health care providers or
844 health care insurers; and
845 (B) make a request for authorizations to allow the underinsured motorist carrier to only
846 obtain records and billings from the individuals or entities not disclosed.
847 (ii) If the covered person does not provide the requested information within 10 days:
848 (A) the covered person shall disclose, in writing, the legal or factual basis for the
849 failure to disclose the health care providers or health care insurers; and
850 (B) either the covered person or the underinsured motorist carrier may request the
851 arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
852 provided if the covered person has elected arbitration.
853 (iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
854 the dispute concerning the disclosure and production of records of the health care providers or
855 health care insurers.
856 (c) (i) An underinsured motorist carrier that receives an election for arbitration or a
857 notice of filing litigation and the demand for payment of underinsured motorist benefits under
858 Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the
859 demand and receipt of the items specified in Subsections (9)(a)(i) through (iii), to:
860 (A) provide a written response to the written demand for payment provided for in
861 Subsection (9)(a)(i);
862 (B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
863 underinsured motorist carrier's determination of the amount owed to the covered person; and
864 (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
865 Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
866 Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
867 tender the amount, if any, of the underinsured motorist carrier's determination of the amount
868 owed to the covered person less:
869 (I) if the amount of the state or federal statutory lien is established, the amount of the
870 lien; or
871 (II) if the amount of the state or federal statutory lien is not established, two times the
872 amount of the medical expenses subject to the state or federal statutory lien until such time as
873 the amount of the state or federal statutory lien is established.
874 (ii) If the amount tendered by the underinsured motorist carrier under Subsection
875 (9)(c)(i) is the total amount of the underinsured motorist policy limits, the tendered amount
876 shall be accepted by the covered person.
877 (d) A covered person who receives a written response from an underinsured motorist
878 carrier as provided for in Subsection (9)(c)(i), may:
879 (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all
880 underinsured motorist claims; or
881 (ii) elect to:
882 (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
883 underinsured motorist claims; and
884 (B) continue to litigate or arbitrate the remaining claim in accordance with the election
885 made under Subsections (8)(a), (b), and (c).
886 (e) If a covered person elects to accept the amount tendered under Subsection (9)(c)(i)
887 as partial payment of all underinsured motorist claims, the final award obtained through
888 arbitration, litigation, or later settlement shall be reduced by any payment made by the
889 underinsured motorist carrier under Subsection (9)(c)(i).
890 (f) In an arbitration proceeding on the remaining underinsured claims:
891 (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
892 under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
893 (ii) the parties may not disclose the amount of the limits of underinsured motorist
894 benefits provided by the policy.
895 (g) If the final award obtained through arbitration or litigation is greater than the
896 average of the covered person's initial written demand for payment provided for in Subsection
897 (9)(a)(i) and the underinsured motorist carrier's initial written response provided for in
898 Subsection (9)(c)(i), the underinsured motorist carrier shall pay:
899 (i) the final award obtained through arbitration or litigation, except that if the award
900 exceeds the policy limits of the subject underinsured motorist policy by more than $15,000, the
901 amount shall be reduced to an amount equal to the policy limits plus $15,000; and
902 (ii) any of the following applicable costs:
903 (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
904 (B) the arbitrator or arbitration panel's fee; and
905 (C) the reasonable costs of expert witnesses and depositions used in the presentation of
906 evidence during arbitration or litigation.
907 (h) (i) The covered person shall provide an affidavit of costs within five days of an
908 arbitration award.
909 (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
910 which the underinsured motorist carrier objects.
911 (B) The objection shall be resolved by the arbitrator or arbitration panel.
912 (iii) The award of costs by the arbitrator or arbitration panel under Subsection (9)(g)(ii)
913 may not exceed $5,000.
914 (i) (i) A covered person shall disclose all material information, other than rebuttal
915 evidence, within 30 days after a covered person elects to submit a claim for underinsured
916 motorist coverage benefits to binding arbitration or files litigation as specified in Subsection
917 (9)(a).
918 (ii) If the information under Subsection (9)(i)(i) is not disclosed, the covered person
919 may not recover costs or any amounts in excess of the policy under Subsection (9)(g).
920 (j) This Subsection (9) does not limit any other cause of action that arose or may arise
921 against the underinsured motorist carrier from the same dispute.
922 (k) The provisions of this Subsection (9) only apply to motor vehicle accidents that
923 occur on or after March 30, 2010.
924 (l) (i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the
925 covered person's requirement to provide a computation of any other economic damages
926 claimed, and the one or more respondents shall have a reasonable time after the receipt of the
927 computation of any other economic damages claimed to conduct fact and expert discovery as to
928 any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
929 Section 11, and Chapter 300, Section 11, to this Subsection (9)(l) and Subsection (9)(a)(i)(A)
930 apply to a claim submitted to binding arbitration or through litigation on or after May 13, 2014.
931 (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter
932 300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted to
933 binding arbitration or through litigation on or after May 13, 2014.