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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 ▸ requires a business entity to maintain uninsured and underinsured motorist coverage
15 if that business entity:
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) Except as provided in Subsections (4)(i) and (5)(b), beginning on July 1, 2018,
82 any policy of a business entity, other than a sole proprietor, that allows an employee to drive a
83 vehicle owned by the business entity shall include uninsured motorist coverage for the
84 employee.
85 (ii) The uninsured motorist coverage of a policy described in Subsection (4)(b)(i) shall
86 be an amount not less than the lesser of:
87 (A) the business entity's motor vehicle liability coverage; or
88 (B) the maximum uninsured motorist coverage limits made available by the insurer
89 under the business entity's motor vehicle policy, but not less than $250,000 per person and
90 $500,000 per occurrence.
91 [
92 the liability coverage until the insured requests, in writing, a change of uninsured motorist
93 coverage from that liability insurer.
94 [
95 or after January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
96 demand for arbitration or filed a complaint in a court of competent jurisdiction.
97 (ii) The Legislature finds that the retroactive application of Subsections (4)(a) and [
98 (c) clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
99 [
100 (i) any policy that is issued which does not include a renewal or reinstatement of an
101 existing policy; or
102 (ii) a change to an existing policy that results in:
103 (A) a named insured being added to or deleted from the policy; or
104 (B) a change in the limits of the named insured's motor vehicle liability coverage.
105 [
106 change that increases the total number of vehicles insured by the policy, and does not include
107 replacement, substitute, or temporary vehicles.
108 (ii) The adding of an additional motor vehicle to an existing personal lines or
109 commercial lines policy does not constitute a new policy for purposes of Subsection (4)[
110 (iii) If an additional motor vehicle is added to a personal lines policy where uninsured
111 motorist coverage has been rejected, or where uninsured motorist limits are lower than the
112 named insured's motor vehicle liability limits, the insurer shall provide a notice to a named
113 insured within 30 days that:
114 (A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose of
115 uninsured motorist coverage; and
116 (B) encourages the named insured to contact the insurance company or insurance
117 producer for quotes as to the additional premiums required to purchase uninsured motorist
118 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
119 liability coverage or the maximum uninsured motorist coverage limits available by the insurer
120 under the named insured's motor vehicle policy.
121 [
122 under Subsection (4)[
123 [
124 January 1, 2001, for which, as of May 1, 2012, an insured has not made a written demand for
125 arbitration or filed a complaint in a court of competent jurisdiction.
126 (ii) The Legislature finds that the retroactive application of Subsection (4):
127 (A) does not enlarge, eliminate, or destroy vested rights; and
128 (B) clarifies legislative intent.
129 [
130 uninsured motorist coverage in an amount that is less than its maximum self-insured retention
131 under Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy statement
132 from the chief financial officer or chief risk officer that declares the:
133 (i) self-insured entity's coverage level; and
134 (ii) process for filing an uninsured motorist claim.
135 [
136 minimum bodily injury limits for motor vehicle liability policies under Section 31A-22-304.
137 [
138 uninsured motorist coverage until the named insured requests, in writing, different uninsured
139 motorist coverage from the insurer.
140 [
141 for policies existing on that date, the insurer shall disclose in the same medium as the premium
142 renewal notice, an explanation of:
143 (A) the purpose of uninsured motorist coverage in the same manner as described in
144 Subsection (4)(a)(iv); and
145 (B) a disclosure of the additional premiums required to purchase uninsured motorist
146 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
147 liability coverage or the maximum uninsured motorist coverage limits available by the insurer
148 under the named insured's motor vehicle policy.
149 (ii) The disclosure required under Subsection (4)[
150 insureds that carry uninsured motorist coverage limits in an amount less than the named
151 insured's motor vehicle liability policy limits or the maximum uninsured motorist coverage
152 limits available by the insurer under the named insured's motor vehicle policy.
153 [
154 insured in a household constitutes notice or disclosure to all insureds within the household.
155 (5) (a) (i) Except as provided in Subsection (5)(b), the named insured may reject
156 uninsured motorist coverage by an express writing to the insurer that provides liability
157 coverage under Subsection 31A-22-302(1)(a).
158 (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
159 explanation of the purpose of uninsured motorist coverage.
160 (iii) This rejection continues for that issuer of the liability coverage until the insured in
161 writing requests uninsured motorist coverage from that liability insurer.
162 (b) (i) All persons, including governmental entities, that are engaged in the business of,
163 or that accept payment for, transporting natural persons by motor vehicle, and all school
164 districts that provide transportation services for their students, shall provide coverage for all
165 motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,
166 uninsured motorist coverage of at least $25,000 per person and $500,000 per accident.
167 (ii) This coverage is secondary to any other insurance covering an injured covered
168 person.
169 (c) Uninsured motorist coverage:
170 (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
171 Compensation Act;
172 (ii) may not be subrogated by the workers' compensation insurance carrier;
173 (iii) may not be reduced by any benefits provided by workers' compensation insurance;
174 (iv) may be reduced by health insurance subrogation only after the covered person has
175 been made whole;
176 (v) may not be collected for bodily injury or death sustained by a person:
177 (A) while committing a violation of Section 41-1a-1314;
178 (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
179 in violation of Section 41-1a-1314; or
180 (C) while committing a felony; and
181 (vi) notwithstanding Subsection (5)(c)(v), may be recovered:
182 (A) for a person under 18 years of age who is injured within the scope of Subsection
183 (5)(c)(v) but limited to medical and funeral expenses; or
184 (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
185 within the course and scope of the law enforcement officer's duties.
186 (d) As used in this Subsection (5), "motor vehicle" has the same meaning as under
187 Section 41-1a-102.
188 (6) When a covered person alleges that an uninsured motor vehicle under Subsection
189 (2)(b) proximately caused an accident without touching the covered person or the motor
190 vehicle occupied by the covered person, the covered person shall show the existence of the
191 uninsured motor vehicle by clear and convincing evidence consisting of more than the covered
192 person's testimony.
193 (7) (a) The limit of liability for uninsured motorist coverage for two or more motor
194 vehicles may not be added together, combined, or stacked to determine the limit of insurance
195 coverage available to an injured person for any one accident.
196 (b) (i) Subsection (7)(a) applies to all persons except a covered person as defined under
197 Subsection (8)(b)(ii).
198 (ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
199 limits of uninsured motorist coverage afforded for any one motor vehicle that the covered
200 person is the named insured or an insured family member.
201 (iii) This coverage shall be in addition to the coverage on the motor vehicle the covered
202 person is occupying.
203 (iv) Neither the primary nor the secondary coverage may be set off against the other.
204 (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
205 coverage, and the coverage elected by a person described under Subsections (1)(a), (b), and (c)
206 shall be secondary coverage.
207 (8) (a) Uninsured motorist coverage under this section applies to bodily injury,
208 sickness, disease, or death of covered persons while occupying or using a motor vehicle only if
209 the motor vehicle is described in the policy under which a claim is made, or if the motor
210 vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
211 Except as provided in Subsection (7) or this Subsection (8), a covered person injured in a
212 motor vehicle described in a policy that includes uninsured motorist benefits may not elect to
213 collect uninsured motorist coverage benefits from any other motor vehicle insurance policy
214 under which the person is a covered person.
215 (b) Each of the following persons may also recover uninsured motorist benefits under
216 any one other policy in which they are described as a "covered person" as defined in Subsection
217 (1):
218 (i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
219 (ii) except as provided in Subsection (8)(c), a covered person injured while occupying
220 or using a motor vehicle that is not owned, leased, or furnished:
221 (A) to the covered person;
222 (B) to the covered person's spouse; or
223 (C) to the covered person's resident parent or resident sibling.
224 (c) (i) A covered person may recover benefits from no more than two additional
225 policies, one additional policy from each parent's household if the covered person is:
226 (A) a dependent minor of parents who reside in separate households; and
227 (B) injured while occupying or using a motor vehicle that is not owned, leased, or
228 furnished:
229 (I) to the covered person;
230 (II) to the covered person's resident parent; or
231 (III) to the covered person's resident sibling.
232 (ii) Each parent's policy under this Subsection (8)(c) is liable only for the percentage of
233 the damages that the limit of liability of each parent's policy of uninsured motorist coverage
234 bears to the total of both parents' uninsured coverage applicable to the accident.
235 (d) A covered person's recovery under any available policies may not exceed the full
236 amount of damages.
237 (e) A covered person in Subsection (8)(b) is not barred against making subsequent
238 elections if recovery is unavailable under previous elections.
239 (f) (i) As used in this section, "interpolicy stacking" means recovering benefits for a
240 single incident of loss under more than one insurance policy.
241 (ii) Except to the extent permitted by Subsection (7) and this Subsection (8),
242 interpolicy stacking is prohibited for uninsured motorist coverage.
243 (9) (a) When a claim is brought by a named insured or a person described in
244 Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the
245 claimant may elect to resolve the claim:
246 (i) by submitting the claim to binding arbitration; or
247 (ii) through litigation.
248 (b) Unless otherwise provided in the policy under which uninsured benefits are
249 claimed, the election provided in Subsection (9)(a) is available to the claimant only, except that
250 if the policy under which insured benefits are claimed provides that either an insured or the
251 insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
252 arbitrate shall stay the litigation of the claim under Subsection (9)(a)(ii).
253 (c) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii),
254 the claimant may not elect to resolve the claim through binding arbitration under this section
255 without the written consent of the uninsured motorist carrier.
256 (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
257 binding arbitration under Subsection (9)(a)(i) shall be resolved by a single arbitrator.
258 (ii) All parties shall agree on the single arbitrator selected under Subsection (9)(d)(i).
259 (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
260 (9)(d)(ii), the parties shall select a panel of three arbitrators.
261 (e) If the parties select a panel of three arbitrators under Subsection (9)(d)(iii):
262 (i) each side shall select one arbitrator; and
263 (ii) the arbitrators appointed under Subsection (9)(e)(i) shall select one additional
264 arbitrator to be included in the panel.
265 (f) Unless otherwise agreed to in writing:
266 (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
267 under Subsection (9)(d)(i); or
268 (ii) if an arbitration panel is selected under Subsection (9)(d)(iii):
269 (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
270 (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
271 under Subsection (9)(e)(ii).
272 (g) Except as otherwise provided in this section or unless otherwise agreed to in
273 writing by the parties, an arbitration proceeding conducted under this section shall be governed
274 by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
275 (h) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
276 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
277 Subsections (10)(a) through (c) are satisfied.
278 (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
279 shall be determined based on the claimant's specific monetary amount in the written demand
280 for payment of uninsured motorist coverage benefits as required in Subsection (10)(a)(i)(A).
281 (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
282 arbitration claims under this part.
283 (i) All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
284 (j) A written decision by a single arbitrator or by a majority of the arbitration panel
285 shall constitute a final decision.
286 (k) (i) Except as provided in Subsection (10), the amount of an arbitration award may
287 not exceed the uninsured motorist policy limits of all applicable uninsured motorist policies,
288 including applicable uninsured motorist umbrella policies.
289 (ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
290 applicable uninsured motorist policies, the arbitration award shall be reduced to an amount
291 equal to the combined uninsured motorist policy limits of all applicable uninsured motorist
292 policies.
293 (l) The arbitrator or arbitration panel may not decide the issues of coverage or
294 extra-contractual damages, including:
295 (i) whether the claimant is a covered person;
296 (ii) whether the policy extends coverage to the loss; or
297 (iii) any allegations or claims asserting consequential damages or bad faith liability.
298 (m) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
299 class-representative basis.
300 (n) If the arbitrator or arbitration panel finds that the action was not brought, pursued,
301 or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
302 and costs against the party that failed to bring, pursue, or defend the claim in good faith.
303 (o) An arbitration award issued under this section shall be the final resolution of all
304 claims not excluded by Subsection (9)(l) between the parties unless:
305 (i) the award was procured by corruption, fraud, or other undue means;
306 (ii) either party, within 20 days after service of the arbitration award:
307 (A) files a complaint requesting a trial de novo in the district court; and
308 (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
309 under Subsection (9)(o)(ii)(A).
310 (p) (i) Upon filing a complaint for a trial de novo under Subsection (9)(o), the claim
311 shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules
312 of Evidence in the district court.
313 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
314 request a jury trial with a complaint requesting a trial de novo under Subsection (9)(o)(ii)(A).
315 (q) (i) If the claimant, as the moving party in a trial de novo requested under
316 Subsection (9)(o), does not obtain a verdict that is at least $5,000 and is at least 20% greater
317 than the arbitration award, the claimant is responsible for all of the nonmoving party's costs.
318 (ii) If the uninsured motorist carrier, as the moving party in a trial de novo requested
319 under Subsection (9)(o), does not obtain a verdict that is at least 20% less than the arbitration
320 award, the uninsured motorist carrier is responsible for all of the nonmoving party's costs.
321 (iii) Except as provided in Subsection (9)(q)(iv), the costs under this Subsection (9)(q)
322 shall include:
323 (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
324 (B) the costs of expert witnesses and depositions.
325 (iv) An award of costs under this Subsection (9)(q) may not exceed $2,500 unless
326 Subsection (10)(h)(iii) applies.
327 (r) For purposes of determining whether a party's verdict is greater or less than the
328 arbitration award under Subsection (9)(q), a court may not consider any recovery or other relief
329 granted on a claim for damages if the claim for damages:
330 (i) was not fully disclosed in writing prior to the arbitration proceeding; or
331 (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
332 Procedure.
333 (s) If a district court determines, upon a motion of the nonmoving party, that the
334 moving party's use of the trial de novo process was filed in bad faith in accordance with
335 Section 78B-5-825, the district court may award reasonable attorney fees to the nonmoving
336 party.
337 (t) Nothing in this section is intended to limit any claim under any other portion of an
338 applicable insurance policy.
339 (u) If there are multiple uninsured motorist policies, as set forth in Subsection (8), the
340 claimant may elect to arbitrate in one hearing the claims against all the uninsured motorist
341 carriers.
342 (10) (a) Within 30 days after a covered person elects to submit a claim for uninsured
343 motorist benefits to binding arbitration or files litigation, the covered person shall provide to
344 the uninsured motorist carrier:
345 (i) a written demand for payment of uninsured motorist coverage benefits, setting forth:
346 (A) subject to Subsection (10)(l), the specific monetary amount of the demand,
347 including a computation of the covered person's claimed past medical expenses, claimed past
348 lost wages, and the other claimed past economic damages; and
349 (B) the factual and legal basis and any supporting documentation for the demand;
350 (ii) a written statement under oath disclosing:
351 (A) (I) the names and last known addresses of all health care providers who have
352 rendered health care services to the covered person that are material to the claims for which
353 uninsured motorist benefits are sought for a period of five years preceding the date of the event
354 giving rise to the claim for uninsured motorist benefits up to the time the election for
355 arbitration or litigation has been exercised; and
356 (II) the names and last known addresses of the health care providers who have rendered
357 health care services to the covered person, which the covered person claims are immaterial to
358 the claims for which uninsured motorist benefits are sought, for a period of five years
359 preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
360 time the election for arbitration or litigation has been exercised that have not been disclosed
361 under Subsection (10)(a)(ii)(A)(I);
362 (B) (I) the names and last known addresses of all health insurers or other entities to
363 whom the covered person has submitted claims for health care services or benefits material to
364 the claims for which uninsured motorist benefits are sought, for a period of five years
365 preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
366 time the election for arbitration or litigation has been exercised; and
367 (II) the names and last known addresses of the health insurers or other entities to whom
368 the covered person has submitted claims for health care services or benefits, which the covered
369 person claims are immaterial to the claims for which uninsured motorist benefits are sought,
370 for a period of five years preceding the date of the event giving rise to the claim for uninsured
371 motorist benefits up to the time the election for arbitration or litigation have not 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 uninsured 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 uninsured motorist carrier to only obtain records
382 and billings from the individuals or entities disclosed under Subsections (10)(a)(ii)(A)(I),
383 (B)(I), and (C).
384 (b) (i) If the uninsured motorist carrier determines that the disclosure of undisclosed
385 health care providers or health care insurers under Subsection (10)(a)(ii) is reasonably
386 necessary, the uninsured 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 uninsured 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 uninsured 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 (10)(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 uninsured motorist carrier that receives an election for arbitration or a notice
401 of filing litigation and the demand for payment of uninsured motorist benefits under Subsection
402 (10)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand and
403 receipt of the items specified in Subsections (10)(a)(i) through (iii), to:
404 (A) provide a written response to the written demand for payment provided for in
405 Subsection (10)(a)(i);
406 (B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of the
407 uninsured 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 uninsured motorist carrier's determination of the amount owed
412 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 uninsured motorist carrier under Subsection (10)(c)(i)
419 is the total amount of the uninsured motorist policy limits, the tendered amount shall be
420 accepted by the covered person.
421 (d) A covered person who receives a written response from an uninsured motorist
422 carrier as provided for in Subsection (10)(c)(i), may:
423 (i) elect to accept the amount tendered in Subsection (10)(c)(i) as payment in full of all
424 uninsured motorist claims; or
425 (ii) elect to:
426 (A) accept the amount tendered in Subsection (10)(c)(i) as partial payment of all
427 uninsured motorist claims; and
428 (B) continue to litigate or arbitrate the remaining claim in accordance with the election
429 made under Subsections (9)(a), (b), and (c).
430 (e) If a covered person elects to accept the amount tendered under Subsection (10)(c)(i)
431 as partial payment of all uninsured motorist claims, the final award obtained through
432 arbitration, litigation, or later settlement shall be reduced by any payment made by the
433 uninsured motorist carrier under Subsection (10)(c)(i).
434 (f) In an arbitration proceeding on the remaining uninsured claims:
435 (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
436 under Subsection (10)(c)(i) until after the arbitration award has been rendered; and
437 (ii) the parties may not disclose the amount of the limits of uninsured motorist benefits
438 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 (10)(a)(i) and the uninsured motorist carrier's initial written response provided for in
442 Subsection (10)(c)(i), the uninsured 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 uninsured 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 uninsured 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
457 (10)(g)(ii) 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 uninsured motorist
460 coverage benefits to binding arbitration or files litigation as specified in Subsection (10)(a).
461 (ii) If the information under Subsection (10)(i)(i) is not disclosed, the covered person
462 may not recover costs or any amounts in excess of the policy under Subsection (10)(g).
463 (j) This Subsection (10) does not limit any other cause of action that arose or may arise
464 against the uninsured motorist carrier from the same dispute.
465 (k) The provisions of this Subsection (10) only apply to motor vehicle accidents that
466 occur on or after March 30, 2010.
467 (l) (i) The written demand requirement in Subsection (10)(a)(i)(A) does not affect the
468 covered person's requirement to provide a computation of any other economic damages
469 claimed, and the one or more respondents shall have a reasonable time after the receipt of the
470 computation of any other economic damages claimed to conduct fact and expert discovery as to
471 any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
472 Section 10, and Chapter 300, Section 10, to this Subsection (10)(l) and Subsection
473 (10)(a)(i)(A) apply to a claim submitted to binding arbitration or through litigation on or after
474 May 13, 2014.
475 (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
476 300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim submitted to
477 binding arbitration or through litigation on or after May 13, 2014.
478 Section 2. Section 31A-22-305.3 is amended to read:
479 31A-22-305.3. Underinsured motorist coverage.
480 (1) As used in this section:
481 (a) "Covered person" has the same meaning as defined in Section 31A-22-305.
482 (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
483 maintenance, or use of which is covered under a liability policy at the time of an injury-causing
484 occurrence, but which has insufficient liability coverage to compensate fully the injured party
485 for all special and general damages.
486 (ii) The term "underinsured motor vehicle" does not include:
487 (A) a motor vehicle that is covered under the liability coverage of the same policy that
488 also contains the underinsured motorist coverage;
489 (B) an uninsured motor vehicle as defined in Subsection 31A-22-305(2); or
490 (C) a motor vehicle owned or leased by:
491 (I) a named insured;
492 (II) a named insured's spouse; or
493 (III) a dependent of a named insured.
494 (2) (a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides
495 coverage for a covered person who is legally entitled to recover damages from an owner or
496 operator of an underinsured motor vehicle because of bodily injury, sickness, disease, or death.
497 (b) A covered person occupying or using a motor vehicle owned, leased, or furnished
498 to the covered person, the covered person's spouse, or covered person's resident relative may
499 recover underinsured benefits only if the motor vehicle is:
500 (i) described in the policy under which a claim is made; or
501 (ii) a newly acquired or replacement motor vehicle covered under the terms of the
502 policy.
503 (3) (a) For purposes of this Subsection (3), "new policy" means:
504 (i) any policy that is issued that does not include a renewal or reinstatement of an
505 existing policy; or
506 (ii) a change to an existing policy that results in:
507 (A) a named insured being added to or deleted from the policy; or
508 (B) a change in the limits of the named insured's motor vehicle liability coverage.
509 (b) [
510 after January 1, 2001, the limits of underinsured motorist coverage shall be equal to the lesser
511 of the limits of the named insured's motor vehicle liability coverage or the maximum
512 underinsured motorist coverage limits available by the insurer under the named insured's motor
513 vehicle policy, unless a named insured rejects or purchases coverage in a lesser amount by
514 signing an acknowledgment form that:
515 (i) is filed with the department;
516 (ii) is provided by the insurer;
517 (iii) waives the higher coverage;
518 (iv) need only state in this or similar language that "underinsured motorist coverage
519 provides benefits or protection to you and other covered persons for bodily injury resulting
520 from an accident caused by the fault of another party where the other party has insufficient
521 liability insurance"; and
522 (v) discloses the additional premiums required to purchase underinsured motorist
523 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
524 liability coverage or the maximum underinsured motorist coverage limits available by the
525 insurer under the named insured's motor vehicle policy.
526 (c) (i) Except as provided in Subsection (3)(i), beginning on July 1, 2018, any policy of
527 a business entity, other than a sole proprietor, that allows an employee to drive a vehicle owned
528 by the business entity shall include underinsured motorist coverage for the employee.
529 (ii) The underinsured motorist coverage of a policy described in Subsection (3)(c)(i)
530 shall be an amount not less than the lesser of:
531 (A) the business entity's motor vehicle liability coverage; or
532 (B) the maximum underinsured motorist coverage limits made available by the insurer
533 under the business entity's motor vehicle policy, but not less than $250,000 per person and
534 $500,000 per occurrence.
535 [
536 the liability coverage until the insured requests, in writing, a change of underinsured motorist
537 coverage from that liability insurer.
538 [
539 or after January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
540 demand for arbitration or filed a complaint in a court of competent jurisdiction.
541 (ii) The Legislature finds that the retroactive application of Subsections (3)(b) and [
542 (d) clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
543 [
544 change that increases the total number of vehicles insured by the policy, and does not include
545 replacement, substitute, or temporary vehicles.
546 (ii) The adding of an additional motor vehicle to an existing personal lines or
547 commercial lines policy does not constitute a new policy for purposes of Subsection (3)(a).
548 (iii) If an additional motor vehicle is added to a personal lines policy where
549 underinsured motorist coverage has been rejected, or where underinsured motorist limits are
550 lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice
551 to a named insured within 30 days that:
552 (A) in the same manner described in Subsection (3)(b)(iv), explains the purpose of
553 underinsured motorist coverage; and
554 (B) encourages the named insured to contact the insurance company or insurance
555 producer for quotes as to the additional premiums required to purchase underinsured motorist
556 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
557 liability coverage or the maximum underinsured motorist coverage limits available by the
558 insurer under the named insured's motor vehicle policy.
559 [
560 under Subsection (3)(a)(ii) does not constitute a new policy.
561 [
562 January 1, 2001 for which, as of May 1, 2012, an insured has not made a written demand for
563 arbitration or filed a complaint in a court of competent jurisdiction.
564 (ii) The Legislature finds that the retroactive application of Subsection (3)(a):
565 (A) does not enlarge, eliminate, or destroy vested rights; and
566 (B) clarifies legislative intent.
567 [
568 underinsured motorist coverage in an amount that is less than its maximum self-insured
569 retention under Subsections (3)(b) and [
570 statement from the chief financial officer or chief risk officer that declares the:
571 (i) self-insured entity's coverage level; and
572 (ii) process for filing an underinsured motorist claim.
573 [
574 (i) $10,000 for one person in any one accident; and
575 (ii) at least $20,000 for two or more persons in any one accident.
576 [
577 underinsured motorist coverage until the named insured, in writing, requests different
578 underinsured motorist coverage from the insurer.
579 [
580 Subsection (2), is secondary to the liability coverage of an owner or operator of an
581 underinsured motor vehicle, as described in Subsection (1).
582 (ii) Underinsured motorist coverage may not be set off against the liability coverage of
583 the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
584 or stacked upon the liability coverage of the owner or operator of the underinsured motor
585 vehicle to determine the limit of coverage available to the injured person.
586 [
587 for policies existing on that date, the insurer shall disclose in the same medium as the premium
588 renewal notice, an explanation of:
589 (A) the purpose of underinsured motorist coverage in the same manner as described in
590 Subsection (3)(b)(iv); and
591 (B) a disclosure of the additional premiums required to purchase underinsured motorist
592 coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
593 liability coverage or the maximum underinsured motorist coverage limits available by the
594 insurer under the named insured's motor vehicle policy.
595 (ii) The disclosure required under this Subsection (3)[
596 insureds that carry underinsured motorist coverage limits in an amount less than the named
597 insured's motor vehicle liability policy limits or the maximum underinsured motorist coverage
598 limits available by the insurer under the named insured's motor vehicle policy.
599 [
600 insured in a household constitutes notice or disclosure to all insureds within the household.
601 (4) (a) (i) Except as provided in this Subsection (4), a covered person injured in a
602 motor vehicle described in a policy that includes underinsured motorist benefits may not elect
603 to collect underinsured motorist coverage benefits from another motor vehicle insurance policy.
604 (ii) The limit of liability for underinsured motorist coverage for two or more motor
605 vehicles may not be added together, combined, or stacked to determine the limit of insurance
606 coverage available to an injured person for any one accident.
607 (iii) Subsection (4)(a)(ii) applies to all persons except a covered person described
608 under Subsections (4)(b)(i) and (ii).
609 (b) (i) Except as provided in Subsection (4)(b)(ii), a covered person injured while
610 occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
611 covered person, the covered person's spouse, or the covered person's resident parent or resident
612 sibling, may also recover benefits under any one other policy under which the covered person is
613 also a covered person.
614 (ii) (A) A covered person may recover benefits from no more than two additional
615 policies, one additional policy from each parent's household if the covered person is:
616 (I) a dependent minor of parents who reside in separate households; and
617 (II) injured while occupying or using a motor vehicle that is not owned, leased, or
618 furnished to the covered person, the covered person's resident parent, or the covered person's
619 resident sibling.
620 (B) Each parent's policy under this Subsection (4)(b)(ii) is liable only for the
621 percentage of the damages that the limit of liability of each parent's policy of underinsured
622 motorist coverage bears to the total of both parents' underinsured coverage applicable to the
623 accident.
624 (iii) A covered person's recovery under any available policies may not exceed the full
625 amount of damages.
626 (iv) Underinsured coverage on a motor vehicle occupied at the time of an accident is
627 primary coverage, and the coverage elected by a person described under Subsections
628 31A-22-305(1)(a), (b), and (c) is secondary coverage.
629 (v) The primary and the secondary coverage may not be set off against the other.
630 (vi) A covered person as described under Subsection (4)(b)(i) is entitled to the highest
631 limits of underinsured motorist coverage under only one additional policy per household
632 applicable to that covered person as a named insured, spouse, or relative.
633 (vii) A covered injured person is not barred against making subsequent elections if
634 recovery is unavailable under previous elections.
635 (viii) (A) As used in this section, "interpolicy stacking" means recovering benefits for a
636 single incident of loss under more than one insurance policy.
637 (B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
638 prohibited for underinsured motorist coverage.
639 (c) Underinsured motorist coverage:
640 (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
641 Compensation Act;
642 (ii) may not be subrogated by a workers' compensation insurance carrier;
643 (iii) may not be reduced by benefits provided by workers' compensation insurance;
644 (iv) may be reduced by health insurance subrogation only after the covered person is
645 made whole;
646 (v) may not be collected for bodily injury or death sustained by a person:
647 (A) while committing a violation of Section 41-1a-1314;
648 (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
649 in violation of Section 41-1a-1314; or
650 (C) while committing a felony; and
651 (vi) notwithstanding Subsection (4)(c)(v), may be recovered:
652 (A) for a person under 18 years of age who is injured within the scope of Subsection
653 (4)(c)(v), but is limited to medical and funeral expenses; or
654 (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
655 within the course and scope of the law enforcement officer's duties.
656 (5) The inception of the loss under Subsection 31A-21-313(1) for underinsured
657 motorist claims occurs upon the date of the last liability policy payment.
658 (6) (a) Except as provided in Subsection (6)(d), within five business days after
659 notification that all liability insurers have tendered the liability insurers' policy limits, the
660 underinsured carrier shall either:
661 (i) waive any subrogation claim the underinsured carrier may have against the person
662 liable for the injuries caused in the accident; or
663 (ii) pay the insured an amount equal to the policy limits tendered by the liability carrier.
664 (b) If neither option is exercised under Subsection (6)(a), the subrogation claim is
665 considered to be waived by the underinsured carrier.
666 (c) The notification under Subsection (6)(a) shall include:
667 (i) the name, address, and phone number for all liability insurers;
668 (ii) the liability insurers' liability policy limits; and
669 (iii) the claim number associated with each liability insurer.
670 (d) (i) A claimant may demand payment of policy limits from all liability insurers by
671 sending notice to all applicable underinsured motorist insurers demanding payment.
672 (ii) The notice under Subsection (6)(d)(i) shall include the name, address, and claim
673 number of all liability insurers from which the claimant has demanded policy limits.
674 (iii) The claimant shall send a copy of the notice to all liability insurers from which the
675 claimant has demanded policy limits.
676 (e) Upon the liability insurer tendering limits to a claimant, the liability insurer shall
677 provide notice of the tender to all underinsured motorist insurers for which the liability insurer
678 received notice under Subsection (6)(d).
679 (f) If a claimant accepts the policy limits tender of each liability insurer, the liability
680 insurer shall pay the claimant the accepted policy limits.
681 (g) (i) The subrogation rights of an underinsured motorist insurer are waived, unless:
682 (A) within five days of delivery of the notice of tender from the liability insurer, the
683 underinsured motorist insurer affirmatively asserts the underinsured motorist insurer's rights to
684 subrogation by delivering notice to the liability insurer of the underinsured motorist insurer's
685 rights to subrogate; and
686 (B) the underinsured motorist insurer reimburses the liability insurer for the policy
687 limits paid to the claimant.
688 (ii) If the subrogation rights of an underinsured motorist insurer are not waived under
689 Subsection (6)(g)(i), any liability release signed by the claimant or the claimant's representative
690 is rescinded.
691 (iii) A claimant's underinsured motorist coverage is preserved if the claimant provides
692 notice to the underinsured motorist insurer as described in Subsection (6)(d) .
693 (h) A person providing a notice required in this Subsection (6) shall deliver the notice
694 by a service that provides proof of delivery.
695 (7) Except as otherwise provided in this section, a covered person may seek, subject to
696 the terms and conditions of the policy, additional coverage under any policy:
697 (a) that provides coverage for damages resulting from motor vehicle accidents; and
698 (b) that is not required to conform to Section 31A-22-302.
699 (8) (a) When a claim is brought by a named insured or a person described in
700 Subsection 31A-22-305(1) and is asserted against the covered person's underinsured motorist
701 carrier, the claimant may elect to resolve the claim:
702 (i) by submitting the claim to binding arbitration; or
703 (ii) through litigation.
704 (b) Unless otherwise provided in the policy under which underinsured benefits are
705 claimed, the election provided in Subsection (8)(a) is available to the claimant only, except that
706 if the policy under which insured benefits are claimed provides that either an insured or the
707 insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
708 arbitrate shall stay the litigation of the claim under Subsection (8)(a)(ii).
709 (c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the
710 claimant may not elect to resolve the claim through binding arbitration under this section
711 without the written consent of the underinsured motorist coverage carrier.
712 (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
713 binding arbitration under Subsection (8)(a)(i) shall be resolved by a single arbitrator.
714 (ii) All parties shall agree on the single arbitrator selected under Subsection (8)(d)(i).
715 (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
716 (8)(d)(ii), the parties shall select a panel of three arbitrators.
717 (e) If the parties select a panel of three arbitrators under Subsection (8)(d)(iii):
718 (i) each side shall select one arbitrator; and
719 (ii) the arbitrators appointed under Subsection (8)(e)(i) shall select one additional
720 arbitrator to be included in the panel.
721 (f) Unless otherwise agreed to in writing:
722 (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
723 under Subsection (8)(d)(i); or
724 (ii) if an arbitration panel is selected under Subsection (8)(d)(iii):
725 (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
726 (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
727 under Subsection (8)(e)(ii).
728 (g) Except as otherwise provided in this section or unless otherwise agreed to in
729 writing by the parties, an arbitration proceeding conducted under this section is governed by
730 Title 78B, Chapter 11, Utah Uniform Arbitration Act.
731 (h) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
732 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
733 Subsections (9)(a) through (c) are satisfied.
734 (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
735 shall be determined based on the claimant's specific monetary amount in the written demand
736 for payment of uninsured motorist coverage benefits as required in Subsection (9)(a)(i)(A).
737 (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
738 arbitration claims under this part.
739 (i) An issue of discovery shall be resolved by the arbitrator or the arbitration panel.
740 (j) A written decision by a single arbitrator or by a majority of the arbitration panel
741 constitutes a final decision.
742 (k) (i) Except as provided in Subsection (9), the amount of an arbitration award may
743 not exceed the underinsured motorist policy limits of all applicable underinsured motorist
744 policies, including applicable underinsured motorist umbrella policies.
745 (ii) If the initial arbitration award exceeds the underinsured motorist policy limits of all
746 applicable underinsured motorist policies, the arbitration award shall be reduced to an amount
747 equal to the combined underinsured motorist policy limits of all applicable underinsured
748 motorist policies.
749 (l) The arbitrator or arbitration panel may not decide an issue of coverage or
750 extra-contractual damages, including:
751 (i) whether the claimant is a covered person;
752 (ii) whether the policy extends coverage to the loss; or
753 (iii) an allegation or claim asserting consequential damages or bad faith liability.
754 (m) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
755 class-representative basis.
756 (n) If the arbitrator or arbitration panel finds that the arbitration is not brought, pursued,
757 or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
758 and costs against the party that failed to bring, pursue, or defend the arbitration in good faith.
759 (o) An arbitration award issued under this section shall be the final resolution of all
760 claims not excluded by Subsection (8)(l) between the parties unless:
761 (i) the award is procured by corruption, fraud, or other undue means;
762 (ii) either party, within 20 days after service of the arbitration award:
763 (A) files a complaint requesting a trial de novo in the district court; and
764 (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
765 under Subsection (8)(o)(ii)(A).
766 (p) (i) Upon filing a complaint for a trial de novo under Subsection (8)(o), a claim shall
767 proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules of
768 Evidence in the district court.
769 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
770 request a jury trial with a complaint requesting a trial de novo under Subsection (8)(o)(ii)(A).
771 (q) (i) If the claimant, as the moving party in a trial de novo requested under
772 Subsection (8)(o), does not obtain a verdict that is at least $5,000 and is at least 20% greater
773 than the arbitration award, the claimant is responsible for all of the nonmoving party's costs.
774 (ii) If the underinsured motorist carrier, as the moving party in a trial de novo requested
775 under Subsection (8)(o), does not obtain a verdict that is at least 20% less than the arbitration
776 award, the underinsured motorist carrier is responsible for all of the nonmoving party's costs.
777 (iii) Except as provided in Subsection (8)(q)(iv), the costs under this Subsection (8)(q)
778 shall include:
779 (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
780 (B) the costs of expert witnesses and depositions.
781 (iv) An award of costs under this Subsection (8)(q) may not exceed $2,500 unless
782 Subsection (9)(h)(iii) applies.
783 (r) For purposes of determining whether a party's verdict is greater or less than the
784 arbitration award under Subsection (8)(q), a court may not consider any recovery or other relief
785 granted on a claim for damages if the claim for damages:
786 (i) was not fully disclosed in writing prior to the arbitration proceeding; or
787 (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
788 Procedure.
789 (s) If a district court determines, upon a motion of the nonmoving party, that a moving
790 party's use of the trial de novo process is filed in bad faith in accordance with Section
791 78B-5-825, the district court may award reasonable attorney fees to the nonmoving party.
792 (t) Nothing in this section is intended to limit a claim under another portion of an
793 applicable insurance policy.
794 (u) If there are multiple underinsured motorist policies, as set forth in Subsection (4),
795 the claimant may elect to arbitrate in one hearing the claims against all the underinsured
796 motorist carriers.
797 (9) (a) Within 30 days after a covered person elects to submit a claim for underinsured
798 motorist benefits to binding arbitration or files litigation, the covered person shall provide to
799 the underinsured motorist carrier:
800 (i) a written demand for payment of underinsured motorist coverage benefits, setting
801 forth:
802 (A) subject to Subsection (9)(l), the specific monetary amount of the demand,
803 including a computation of the covered person's claimed past medical expenses, claimed past
804 lost wages, and all other claimed past economic damages; and
805 (B) the factual and legal basis and any supporting documentation for the demand;
806 (ii) a written statement under oath disclosing:
807 (A) (I) the names and last known addresses of all health care providers who have
808 rendered health care services to the covered person that are material to the claims for which the
809 underinsured motorist benefits are sought for a period of five years preceding the date of the
810 event giving rise to the claim for underinsured motorist benefits up to the time the election for
811 arbitration or litigation has been exercised; and
812 (II) the names and last known addresses of the health care providers who have rendered
813 health care services to the covered person, which the covered person claims are immaterial to
814 the claims for which underinsured motorist benefits are sought, for a period of five years
815 preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
816 the time the election for arbitration or litigation has been exercised that have not been disclosed
817 under Subsection (9)(a)(ii)(A)(I);
818 (B) (I) the names and last known addresses of all health insurers or other entities to
819 whom the covered person has submitted claims for health care services or benefits material to
820 the claims for which underinsured motorist benefits are sought, for a period of five years
821 preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
822 the time the election for arbitration or litigation has been exercised; and
823 (II) the names and last known addresses of the health insurers or other entities to whom
824 the covered person has submitted claims for health care services or benefits, which the covered
825 person claims are immaterial to the claims for which underinsured motorist benefits are sought,
826 for a period of five years preceding the date of the event giving rise to the claim for
827 underinsured motorist benefits up to the time the election for arbitration or litigation have not
828 been disclosed;
829 (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
830 employers of the covered person for a period of five years preceding the date of the event
831 giving rise to the claim for underinsured motorist benefits up to the time the election for
832 arbitration or litigation has been exercised;
833 (D) other documents to reasonably support the claims being asserted; and
834 (E) all state and federal statutory lienholders including a statement as to whether the
835 covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
836 Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
837 or if the claim is subject to any other state or federal statutory liens; and
838 (iii) signed authorizations to allow the underinsured motorist carrier to only obtain
839 records and billings from the individuals or entities disclosed under Subsections
840 (9)(a)(ii)(A)(I), (B)(I), and (C).
841 (b) (i) If the underinsured motorist carrier determines that the disclosure of undisclosed
842 health care providers or health care insurers under Subsection (9)(a)(ii) is reasonably necessary,
843 the underinsured motorist carrier may:
844 (A) make a request for the disclosure of the identity of the health care providers or
845 health care insurers; and
846 (B) make a request for authorizations to allow the underinsured motorist carrier to only
847 obtain records and billings from the individuals or entities not disclosed.
848 (ii) If the covered person does not provide the requested information within 10 days:
849 (A) the covered person shall disclose, in writing, the legal or factual basis for the
850 failure to disclose the health care providers or health care insurers; and
851 (B) either the covered person or the underinsured motorist carrier may request the
852 arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
853 provided if the covered person has elected arbitration.
854 (iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
855 the dispute concerning the disclosure and production of records of the health care providers or
856 health care insurers.
857 (c) (i) An underinsured motorist carrier that receives an election for arbitration or a
858 notice of filing litigation and the demand for payment of underinsured motorist benefits under
859 Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the
860 demand and receipt of the items specified in Subsections (9)(a)(i) through (iii), to:
861 (A) provide a written response to the written demand for payment provided for in
862 Subsection (9)(a)(i);
863 (B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
864 underinsured motorist carrier's determination of the amount owed to the covered person; and
865 (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
866 Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
867 Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
868 tender the amount, if any, of the underinsured motorist carrier's determination of the amount
869 owed to the covered person less:
870 (I) if the amount of the state or federal statutory lien is established, the amount of the
871 lien; or
872 (II) if the amount of the state or federal statutory lien is not established, two times the
873 amount of the medical expenses subject to the state or federal statutory lien until such time as
874 the amount of the state or federal statutory lien is established.
875 (ii) If the amount tendered by the underinsured motorist carrier under Subsection
876 (9)(c)(i) is the total amount of the underinsured motorist policy limits, the tendered amount
877 shall be accepted by the covered person.
878 (d) A covered person who receives a written response from an underinsured motorist
879 carrier as provided for in Subsection (9)(c)(i), may:
880 (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all
881 underinsured motorist claims; or
882 (ii) elect to:
883 (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
884 underinsured motorist claims; and
885 (B) continue to litigate or arbitrate the remaining claim in accordance with the election
886 made under Subsections (8)(a), (b), and (c).
887 (e) If a covered person elects to accept the amount tendered under Subsection (9)(c)(i)
888 as partial payment of all underinsured motorist claims, the final award obtained through
889 arbitration, litigation, or later settlement shall be reduced by any payment made by the
890 underinsured motorist carrier under Subsection (9)(c)(i).
891 (f) In an arbitration proceeding on the remaining underinsured claims:
892 (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
893 under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
894 (ii) the parties may not disclose the amount of the limits of underinsured motorist
895 benefits provided by the policy.
896 (g) If the final award obtained through arbitration or litigation is greater than the
897 average of the covered person's initial written demand for payment provided for in Subsection
898 (9)(a)(i) and the underinsured motorist carrier's initial written response provided for in
899 Subsection (9)(c)(i), the underinsured motorist carrier shall pay:
900 (i) the final award obtained through arbitration or litigation, except that if the award
901 exceeds the policy limits of the subject underinsured motorist policy by more than $15,000, the
902 amount shall be reduced to an amount equal to the policy limits plus $15,000; and
903 (ii) any of the following applicable costs:
904 (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
905 (B) the arbitrator or arbitration panel's fee; and
906 (C) the reasonable costs of expert witnesses and depositions used in the presentation of
907 evidence during arbitration or litigation.
908 (h) (i) The covered person shall provide an affidavit of costs within five days of an
909 arbitration award.
910 (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
911 which the underinsured motorist carrier objects.
912 (B) The objection shall be resolved by the arbitrator or arbitration panel.
913 (iii) The award of costs by the arbitrator or arbitration panel under Subsection (9)(g)(ii)
914 may not exceed $5,000.
915 (i) (i) A covered person shall disclose all material information, other than rebuttal
916 evidence, within 30 days after a covered person elects to submit a claim for underinsured
917 motorist coverage benefits to binding arbitration or files litigation as specified in Subsection
918 (9)(a).
919 (ii) If the information under Subsection (9)(i)(i) is not disclosed, the covered person
920 may not recover costs or any amounts in excess of the policy under Subsection (9)(g).
921 (j) This Subsection (9) does not limit any other cause of action that arose or may arise
922 against the underinsured motorist carrier from the same dispute.
923 (k) The provisions of this Subsection (9) only apply to motor vehicle accidents that
924 occur on or after March 30, 2010.
925 (l) (i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the
926 covered person's requirement to provide a computation of any other economic damages
927 claimed, and the one or more respondents shall have a reasonable time after the receipt of the
928 computation of any other economic damages claimed to conduct fact and expert discovery as to
929 any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
930 Section 11, and Chapter 300, Section 11, to this Subsection (9)(l) and Subsection (9)(a)(i)(A)
931 apply to a claim submitted to binding arbitration or through litigation on or after May 13, 2014.
932 (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter
933 300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted to
934 binding arbitration or through litigation on or after May 13, 2014.