Senator Curtis S. Bramble proposes the following substitute bill:


1     
UNINSURED AND UNDERINSURED MOTORIST

2     
COVERAGE AMENDMENTS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Curtis S. Bramble

6     
House Sponsor: Michael K. McKell

7     

8     LONG TITLE
9     General Description:
10          This bill amends provisions related to uninsured and underinsured motorist coverage.
11     Highlighted Provisions:
12          This bill:
13          ▸     addresses the relationship between uninsured and underinsured motorist coverage
14     and workers' compensation benefits;
15          ▸     repeals provisions related to an underinsured motorist insurer's right to subrogation;
16          ▸     provides that an underinsured motorist insurer does not have a right of
17     reimbursement against another insurer if an insurer of a person liable for the
18     damages resulting from the injury-causing occurrence has tendered the policy limit;
19          ▸     addresses the effect on the applicable statute of limitations when a claimant submits
20     an uninsured or underinsured motorist claim to binding arbitration; and
21          ▸     makes technical and conforming changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None

26     Utah Code Sections Affected:
27     AMENDS:
28          31A-22-305, as last amended by Laws of Utah 2014, Chapters 290 and further amended
29     by Revisor Instructions, Laws of Utah 2014, Chapters 290, 300, and 300
30          31A-22-305.3, as last amended by Laws of Utah 2016, Chapter 361
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 31A-22-305 is amended to read:
34          31A-22-305. Uninsured motorist coverage.
35          (1) As used in this section, "covered persons" includes:
36          (a) the named insured;
37          (b) for a claim arising on or after May 13, 2014, the named insured's dependent minor
38     children;
39          (c) persons related to the named insured by blood, marriage, adoption, or guardianship,
40     who are residents of the named insured's household, including those who usually make their
41     home in the same household but temporarily live elsewhere;
42          (d) any person occupying or using a motor vehicle:
43          (i) referred to in the policy; or
44          (ii) owned by a self-insured; and
45          (e) any person who is entitled to recover damages against the owner or operator of the
46     uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
47     Subsection (1)(a), (b), (c), or (d).
48          (2) As used in this section, "uninsured motor vehicle" includes:
49          (a) (i) a motor vehicle, the operation, maintenance, or use of which is not covered
50     under a liability policy at the time of an injury-causing occurrence; or
51          (ii) (A) a motor vehicle covered with lower liability limits than required by Section
52     31A-22-304; and
53          (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
54     the deficiency;
55          (b) an unidentified motor vehicle that left the scene of an accident proximately caused
56     by the motor vehicle operator;

57          (c) a motor vehicle covered by a liability policy, but coverage for an accident is
58     disputed by the liability insurer for more than 60 days or continues to be disputed for more than
59     60 days; or
60          (d) (i) an insured motor vehicle if, before or after the accident, the liability insurer of
61     the motor vehicle is declared insolvent by a court of competent jurisdiction; and
62          (ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the extent
63     that the claim against the insolvent insurer is not paid by a guaranty association or fund.
64          (3) Uninsured motorist coverage under Subsection 31A-22-302(1)(b) provides
65     coverage for covered persons who are legally entitled to recover damages from owners or
66     operators of uninsured motor vehicles because of bodily injury, sickness, disease, or death.
67          (4) (a) For new policies written on or after January 1, 2001, the limits of uninsured
68     motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
69     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
70     under the named insured's motor vehicle policy, unless a named insured rejects or purchases
71     coverage in a lesser amount by signing an acknowledgment form that:
72          (i) is filed with the department;
73          (ii) is provided by the insurer;
74          (iii) waives the higher coverage;
75          (iv) need only state in this or similar language that uninsured motorist coverage
76     provides benefits or protection to you and other covered persons for bodily injury resulting
77     from an accident caused by the fault of another party where the other party has no liability
78     insurance; and
79          (v) discloses the additional premiums required to purchase uninsured motorist
80     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
81     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
82     under the named insured's motor vehicle policy.
83          (b) Any selection or rejection under this Subsection (4) continues for that issuer of the
84     liability coverage until the insured requests, in writing, a change of uninsured motorist
85     coverage from that liability insurer.
86          (c) (i) Subsections (4)(a) and (b) apply retroactively to any claim arising on or after
87     January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for

88     arbitration or filed a complaint in a court of competent jurisdiction.
89          (ii) The Legislature finds that the retroactive application of Subsections (4)(a) and (b)
90     clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
91          (d) For purposes of this Subsection (4), "new policy" means:
92          (i) any policy that is issued which does not include a renewal or reinstatement of an
93     existing policy; or
94          (ii) a change to an existing policy that results in:
95          (A) a named insured being added to or deleted from the policy; or
96          (B) a change in the limits of the named insured's motor vehicle liability coverage.
97          (e) (i) As used in this Subsection (4)(e), "additional motor vehicle" means a change
98     that increases the total number of vehicles insured by the policy, and does not include
99     replacement, substitute, or temporary vehicles.
100          (ii) The adding of an additional motor vehicle to an existing personal lines or
101     commercial lines policy does not constitute a new policy for purposes of Subsection (4)(d).
102          (iii) If an additional motor vehicle is added to a personal lines policy where uninsured
103     motorist coverage has been rejected, or where uninsured motorist limits are lower than the
104     named insured's motor vehicle liability limits, the insurer shall provide a notice to a named
105     insured within 30 days that:
106          (A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose of
107     uninsured motorist coverage; and
108          (B) encourages the named insured to contact the insurance company or insurance
109     producer for quotes as to the additional premiums required to purchase uninsured motorist
110     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
111     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
112     under the named insured's motor vehicle policy.
113          (f) A change in policy number resulting from any policy change not identified under
114     Subsection (4)(d)(ii) does not constitute a new policy.
115          (g) (i) Subsection (4)(d) applies retroactively to any claim arising on or after January 1,
116     2001, for which, as of May 1, 2012, an insured has not made a written demand for arbitration
117     or filed a complaint in a court of competent jurisdiction.
118          (ii) The Legislature finds that the retroactive application of Subsection (4):

119          (A) does not enlarge, eliminate, or destroy vested rights; and
120          (B) clarifies legislative intent.
121          (h) A self-insured, including a governmental entity, may elect to provide uninsured
122     motorist coverage in an amount that is less than its maximum self-insured retention under
123     Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy statement from
124     the chief financial officer or chief risk officer that declares the:
125          (i) self-insured entity's coverage level; and
126          (ii) process for filing an uninsured motorist claim.
127          (i) Uninsured motorist coverage may not be sold with limits that are less than the
128     minimum bodily injury limits for motor vehicle liability policies under Section 31A-22-304.
129          (j) The acknowledgment under Subsection (4)(a) continues for that issuer of the
130     uninsured motorist coverage until the named insured requests, in writing, different uninsured
131     motorist coverage from the insurer.
132          (k) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
133     policies existing on that date, the insurer shall disclose in the same medium as the premium
134     renewal notice, an explanation of:
135          (A) the purpose of uninsured motorist coverage in the same manner as described in
136     Subsection (4)(a)(iv); and
137          (B) a disclosure of the additional premiums required to purchase uninsured motorist
138     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
139     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
140     under the named insured's motor vehicle policy.
141          (ii) The disclosure required under Subsection (4)(k)(i) shall be sent to all named
142     insureds that carry uninsured motorist coverage limits in an amount less than the named
143     insured's motor vehicle liability policy limits or the maximum uninsured motorist coverage
144     limits available by the insurer under the named insured's motor vehicle policy.
145          (l) For purposes of this Subsection (4), a notice or disclosure sent to a named insured in
146     a household constitutes notice or disclosure to all insureds within the household.
147          (5) (a) (i) Except as provided in Subsection (5)(b), the named insured may reject
148     uninsured motorist coverage by an express writing to the insurer that provides liability
149     coverage under Subsection 31A-22-302(1)(a).

150          (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
151     explanation of the purpose of uninsured motorist coverage.
152          (iii) This rejection continues for that issuer of the liability coverage until the insured in
153     writing requests uninsured motorist coverage from that liability insurer.
154          (b) (i) All persons, including governmental entities, that are engaged in the business of,
155     or that accept payment for, transporting natural persons by motor vehicle, and all school
156     districts that provide transportation services for their students, shall provide coverage for all
157     motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,
158     uninsured motorist coverage of at least $25,000 per person and $500,000 per accident.
159          (ii) This coverage is secondary to any other insurance covering an injured covered
160     person.
161          (c) Uninsured motorist coverage:
162          [(i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
163     Compensation Act;]
164          (i) does not cover any benefit paid, agreed to be paid, or ordered to be paid under Title
165     34A, Chapter 2, Workers' Compensation Act, including any benefit subject to reimbursement
166     in accordance with Subsection 34A-2-106(5);
167          (ii) may not be subrogated by the workers' compensation insurance carrier;
168          (iii) may not be reduced by any benefits provided by workers' compensation insurance;
169          (iv) may be reduced by health insurance subrogation only after the covered person has
170     been made whole;
171          (v) may not be collected for bodily injury or death sustained by a person:
172          (A) while committing a violation of Section 41-1a-1314;
173          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
174     in violation of Section 41-1a-1314; or
175          (C) while committing a felony; and
176          (vi) notwithstanding Subsection (5)(c)(v), may be recovered:
177          (A) for a person under 18 years of age who is injured within the scope of Subsection
178     (5)(c)(v) but limited to medical and funeral expenses; or
179          (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
180     within the course and scope of the law enforcement officer's duties.

181          (d) As used in this Subsection (5), "motor vehicle" has the same meaning as under
182     Section 41-1a-102.
183          (6) When a covered person alleges that an uninsured motor vehicle under Subsection
184     (2)(b) proximately caused an accident without touching the covered person or the motor
185     vehicle occupied by the covered person, the covered person shall show the existence of the
186     uninsured motor vehicle by clear and convincing evidence consisting of more than the covered
187     person's testimony.
188          (7) (a) The limit of liability for uninsured motorist coverage for two or more motor
189     vehicles may not be added together, combined, or stacked to determine the limit of insurance
190     coverage available to an injured person for any one accident.
191          (b) (i) Subsection (7)(a) applies to all persons except a covered person as defined under
192     Subsection (8)(b)(ii).
193          (ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
194     limits of uninsured motorist coverage afforded for any one motor vehicle that the covered
195     person is the named insured or an insured family member.
196          (iii) This coverage shall be in addition to the coverage on the motor vehicle the covered
197     person is occupying.
198          (iv) Neither the primary nor the secondary coverage may be set off against the other.
199          (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
200     coverage, and the coverage elected by a person described under Subsections (1)(a), (b), and (c)
201     shall be secondary coverage.
202          (8) (a) Uninsured motorist coverage under this section applies to bodily injury,
203     sickness, disease, or death of covered persons while occupying or using a motor vehicle only if
204     the motor vehicle is described in the policy under which a claim is made, or if the motor
205     vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
206     Except as provided in Subsection (7) or this Subsection (8), a covered person injured in a
207     motor vehicle described in a policy that includes uninsured motorist benefits may not elect to
208     collect uninsured motorist coverage benefits from any other motor vehicle insurance policy
209     under which the person is a covered person.
210          (b) Each of the following persons may also recover uninsured motorist benefits under
211     any one other policy in which they are described as a "covered person" as defined in Subsection

212     (1):
213          (i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
214          (ii) except as provided in Subsection (8)(c), a covered person injured while occupying
215     or using a motor vehicle that is not owned, leased, or furnished:
216          (A) to the covered person;
217          (B) to the covered person's spouse; or
218          (C) to the covered person's resident parent or resident sibling.
219          (c) (i) A covered person may recover benefits from no more than two additional
220     policies, one additional policy from each parent's household if the covered person is:
221          (A) a dependent minor of parents who reside in separate households; and
222          (B) injured while occupying or using a motor vehicle that is not owned, leased, or
223     furnished:
224          (I) to the covered person;
225          (II) to the covered person's resident parent; or
226          (III) to the covered person's resident sibling.
227          (ii) Each parent's policy under this Subsection (8)(c) is liable only for the percentage of
228     the damages that the limit of liability of each parent's policy of uninsured motorist coverage
229     bears to the total of both parents' uninsured coverage applicable to the accident.
230          (d) A covered person's recovery under any available policies may not exceed the full
231     amount of damages.
232          (e) A covered person in Subsection (8)(b) is not barred against making subsequent
233     elections if recovery is unavailable under previous elections.
234          (f) (i) As used in this section, "interpolicy stacking" means recovering benefits for a
235     single incident of loss under more than one insurance policy.
236          (ii) Except to the extent permitted by Subsection (7) and this Subsection (8),
237     interpolicy stacking is prohibited for uninsured motorist coverage.
238          (9) (a) When a claim is brought by a named insured or a person described in
239     Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the
240     claimant may elect to resolve the claim:
241          (i) by submitting the claim to binding arbitration; or
242          (ii) through litigation.

243          (b) Unless otherwise provided in the policy under which uninsured benefits are
244     claimed, the election provided in Subsection (9)(a) is available to the claimant only, except that
245     if the policy under which insured benefits are claimed provides that either an insured or the
246     insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
247     arbitrate shall stay the litigation of the claim under Subsection (9)(a)(ii).
248          (c) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii),
249     the claimant may not elect to resolve the claim through binding arbitration under this section
250     without the written consent of the uninsured motorist carrier.
251          (d) For purposes of the statute of limitations applicable to a claim described in
252     Subsection (9)(a), if the claimant does not elect to resolve the claim through litigation, the
253     claim is considered filed when the claimant submits the claim to binding arbitration in
254     accordance with this Subsection (9).
255          [(d)] (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is
256     submitted to binding arbitration under Subsection (9)(a)(i) shall be resolved by a single
257     arbitrator.
258          (ii) All parties shall agree on the single arbitrator selected under Subsection
259     (9)[(d)](e)(i).
260          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
261     (9)[(d)](e)(ii), the parties shall select a panel of three arbitrators.
262          [(e)] (f) If the parties select a panel of three arbitrators under Subsection (9)[(d)](e)(iii):
263          (i) each side shall select one arbitrator; and
264          (ii) the arbitrators appointed under Subsection (9)[(e)](f)(i) shall select one additional
265     arbitrator to be included in the panel.
266          [(f)] (g) Unless otherwise agreed to in writing:
267          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
268     under Subsection (9)[(d)](e)(i); or
269          (ii) if an arbitration panel is selected under Subsection (9)[(d)](e)(iii):
270          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
271          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
272     under Subsection (9)[(e)](f)(ii).
273          [(g)] (h) Except as otherwise provided in this section or unless otherwise agreed to in

274     writing by the parties, an arbitration proceeding conducted under this section shall be governed
275     by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
276          [(h)] (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4)
277     through (f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the
278     requirements of Subsections (10)(a) through (c) are satisfied.
279          (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
280     shall be determined based on the claimant's specific monetary amount in the written demand
281     for payment of uninsured motorist coverage benefits as required in Subsection (10)(a)(i)(A).
282          (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
283     arbitration claims under this part.
284          [(i)] (j) All issues of discovery shall be resolved by the arbitrator or the arbitration
285     panel.
286          [(j)] (k) A written decision by a single arbitrator or by a majority of the arbitration
287     panel shall constitute a final decision.
288          [(k)] (l) (i) Except as provided in Subsection (10), the amount of an arbitration award
289     may not exceed the uninsured motorist policy limits of all applicable uninsured motorist
290     policies, including applicable uninsured motorist umbrella policies.
291          (ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
292     applicable uninsured motorist policies, the arbitration award shall be reduced to an amount
293     equal to the combined uninsured motorist policy limits of all applicable uninsured motorist
294     policies.
295          [(l)] (m) The arbitrator or arbitration panel may not decide the issues of coverage or
296     extra-contractual damages, including:
297          (i) whether the claimant is a covered person;
298          (ii) whether the policy extends coverage to the loss; or
299          (iii) any allegations or claims asserting consequential damages or bad faith liability.
300          [(m)] (n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide
301     or class-representative basis.
302          [(n)] (o) If the arbitrator or arbitration panel finds that the action was not brought,
303     pursued, or defended in good faith, the arbitrator or arbitration panel may award reasonable
304     attorney fees and costs against the party that failed to bring, pursue, or defend the claim in good

305     faith.
306          [(o)] (p) An arbitration award issued under this section shall be the final resolution of
307     all claims not excluded by Subsection (9)[(l)](m) between the parties unless:
308          (i) the award was procured by corruption, fraud, or other undue means;
309          (ii) either party, within 20 days after service of the arbitration award:
310          (A) files a complaint requesting a trial de novo in the district court; and
311          (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
312     under Subsection (9)[(o)](p)(ii)(A).
313          [(p)] (q) (i) Upon filing a complaint for a trial de novo under Subsection (9)[(o)](p), the
314     claim shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah
315     Rules of Evidence in the district court.
316          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
317     request a jury trial with a complaint requesting a trial de novo under Subsection
318     (9)[(o)](p)(ii)(A).
319          [(q)] (r) (i) If the claimant, as the moving party in a trial de novo requested under
320     Subsection (9)[(o)](p), does not obtain a verdict that is at least $5,000 and is at least 20%
321     greater than the arbitration award, the claimant is responsible for all of the nonmoving party's
322     costs.
323          (ii) If the uninsured motorist carrier, as the moving party in a trial de novo requested
324     under Subsection (9)[(o)](p), does not obtain a verdict that is at least 20% less than the
325     arbitration award, the uninsured motorist carrier is responsible for all of the nonmoving party's
326     costs.
327          (iii) Except as provided in Subsection (9)[(q)](r)(iv), the costs under this Subsection
328     (9)[(q)](r) shall include:
329          (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
330          (B) the costs of expert witnesses and depositions.
331          (iv) An award of costs under this Subsection (9)[(q)](r) may not exceed $2,500 unless
332     Subsection (10)(h)(iii) applies.
333          [(r)] (s) For purposes of determining whether a party's verdict is greater or less than the
334     arbitration award under Subsection (9)[(q)](r), a court may not consider any recovery or other
335     relief granted on a claim for damages if the claim for damages:

336          (i) was not fully disclosed in writing prior to the arbitration proceeding; or
337          (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
338     Procedure.
339          [(s)] (t) If a district court determines, upon a motion of the nonmoving party, that the
340     moving party's use of the trial de novo process was filed in bad faith in accordance with
341     Section 78B-5-825, the district court may award reasonable attorney fees to the nonmoving
342     party.
343          [(t)] (u) Nothing in this section is intended to limit any claim under any other portion
344     of an applicable insurance policy.
345          [(u)] (v) If there are multiple uninsured motorist policies, as set forth in Subsection (8),
346     the claimant may elect to arbitrate in one hearing the claims against all the uninsured motorist
347     carriers.
348          (10) (a) Within 30 days after a covered person elects to submit a claim for uninsured
349     motorist benefits to binding arbitration or files litigation, the covered person shall provide to
350     the uninsured motorist carrier:
351          (i) a written demand for payment of uninsured motorist coverage benefits, setting forth:
352          (A) subject to Subsection (10)(l), the specific monetary amount of the demand,
353     including a computation of the covered person's claimed past medical expenses, claimed past
354     lost wages, and the other claimed past economic damages; and
355          (B) the factual and legal basis and any supporting documentation for the demand;
356          (ii) a written statement under oath disclosing:
357          (A) (I) the names and last known addresses of all health care providers who have
358     rendered health care services to the covered person that are material to the claims for which
359     uninsured motorist benefits are sought for a period of five years preceding the date of the event
360     giving rise to the claim for uninsured motorist benefits up to the time the election for
361     arbitration or litigation has been exercised; and
362          (II) the names and last known addresses of the health care providers who have rendered
363     health care services to the covered person, which the covered person claims are immaterial 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 that have not been disclosed

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

398          (A) the covered person shall disclose, in writing, the legal or factual basis for the
399     failure to disclose the health care providers or health care insurers; and
400          (B) either the covered person or the uninsured motorist carrier may request the
401     arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
402     provided if the covered person has elected arbitration.
403          (iii) The time periods imposed by Subsection (10)(c)(i) are tolled pending resolution of
404     the dispute concerning the disclosure and production of records of the health care providers or
405     health care insurers.
406          (c) (i) An uninsured motorist carrier that receives an election for arbitration or a notice
407     of filing litigation and the demand for payment of uninsured motorist benefits under Subsection
408     (10)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand and
409     receipt of the items specified in Subsections (10)(a)(i) through (iii), to:
410          (A) provide a written response to the written demand for payment provided for in
411     Subsection (10)(a)(i);
412          (B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of the
413     uninsured motorist carrier's determination of the amount owed to the covered person; and
414          (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
415     Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
416     Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
417     tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed
418     to the covered person less:
419          (I) if the amount of the state or federal statutory lien is established, the amount of the
420     lien; or
421          (II) if the amount of the state or federal statutory lien is not established, two times the
422     amount of the medical expenses subject to the state or federal statutory lien until such time as
423     the amount of the state or federal statutory lien is established.
424          (ii) If the amount tendered by the uninsured motorist carrier under Subsection (10)(c)(i)
425     is the total amount of the uninsured motorist policy limits, the tendered amount shall be
426     accepted by the covered person.
427          (d) A covered person who receives a written response from an uninsured motorist
428     carrier as provided for in Subsection (10)(c)(i), may:

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

460     which the uninsured motorist carrier objects.
461          (B) The objection shall be resolved by the arbitrator or arbitration panel.
462          (iii) The award of costs by the arbitrator or arbitration panel under Subsection
463     (10)(g)(ii) may not exceed $5,000.
464          (i) (i) A covered person shall disclose all material information, other than rebuttal
465     evidence, within 30 days after a covered person elects to submit a claim for uninsured motorist
466     coverage benefits to binding arbitration or files litigation as specified in Subsection (10)(a).
467          (ii) If the information under Subsection (10)(i)(i) is not disclosed, the covered person
468     may not recover costs or any amounts in excess of the policy under Subsection (10)(g).
469          (j) This Subsection (10) does not limit any other cause of action that arose or may arise
470     against the uninsured motorist carrier from the same dispute.
471          (k) The provisions of this Subsection (10) only apply to motor vehicle accidents that
472     occur on or after March 30, 2010.
473          (l) (i) The written demand requirement in Subsection (10)(a)(i)(A) does not affect the
474     covered person's requirement to provide a computation of any other economic damages
475     claimed, and the one or more respondents shall have a reasonable time after the receipt of the
476     computation of any other economic damages claimed to conduct fact and expert discovery as to
477     any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
478     Section 10, and Chapter 300, Section 10, to this Subsection (10)(l) and Subsection
479     (10)(a)(i)(A) apply to a claim submitted to binding arbitration or through litigation on or after
480     May 13, 2014.
481          (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
482     300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim submitted to
483     binding arbitration or through litigation on or after May 13, 2014.
484          Section 2. Section 31A-22-305.3 is amended to read:
485          31A-22-305.3. Underinsured motorist coverage.
486          (1) As used in this section:
487          (a) "Covered person" has the same meaning as defined in Section 31A-22-305.
488          (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
489     maintenance, or use of which is covered under a liability policy at the time of an injury-causing
490     occurrence, but which has insufficient liability coverage to compensate fully the injured party

491     for all special and general damages.
492          (ii) The term "underinsured motor vehicle" does not include:
493          (A) a motor vehicle that is covered under the liability coverage of the same policy that
494     also contains the underinsured motorist coverage;
495          (B) an uninsured motor vehicle as defined in Subsection 31A-22-305(2); [or]
496          (C) a motor vehicle owned or leased by:
497          (I) a named insured;
498          (II) a named insured's spouse; or
499          (III) a dependent of a named insured.
500          (2) (a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides
501     coverage for a covered person who is legally entitled to recover damages from an owner or
502     operator of an underinsured motor vehicle because of bodily injury, sickness, disease, or death.
503          (b) A covered person occupying or using a motor vehicle owned, leased, or furnished
504     to the covered person, the covered person's spouse, or covered person's resident relative may
505     recover underinsured benefits only if the motor vehicle is:
506          (i) described in the policy under which a claim is made; or
507          (ii) a newly acquired or replacement motor vehicle covered under the terms of the
508     policy.
509          (3) (a) For purposes of this Subsection (3), "new policy" means:
510          (i) any policy that is issued that does not include a renewal or reinstatement of an
511     existing policy; or
512          (ii) a change to an existing policy that results in:
513          (A) a named insured being added to or deleted from the policy; or
514          (B) a change in the limits of the named insured's motor vehicle liability coverage.
515          (b) For new policies written on or after January 1, 2001, the limits of underinsured
516     motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
517     liability coverage or the maximum underinsured motorist coverage limits available by the
518     insurer under the named insured's motor vehicle policy, unless a named insured rejects or
519     purchases coverage in a lesser amount by signing an acknowledgment form that:
520          (i) is filed with the department;
521          (ii) is provided by the insurer;

522          (iii) waives the higher coverage;
523          (iv) need only state in this or similar language that "underinsured motorist coverage
524     provides benefits or protection to you and other covered persons for bodily injury resulting
525     from an accident caused by the fault of another party where the other party has insufficient
526     liability insurance"; and
527          (v) discloses the additional premiums required to purchase underinsured motorist
528     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
529     liability coverage or the maximum underinsured motorist coverage limits available by the
530     insurer under the named insured's motor vehicle policy.
531          (c) Any selection or rejection under Subsection (3)(b) continues for that issuer of the
532     liability coverage until the insured requests, in writing, a change of underinsured motorist
533     coverage from that liability insurer.
534          (d) (i) Subsections (3)(b) and (c) apply retroactively to any claim arising on or after
535     January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
536     arbitration or filed a complaint in a court of competent jurisdiction.
537          (ii) The Legislature finds that the retroactive application of Subsections (3)(b) and (c)
538     clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
539          (e) (i) As used in this Subsection (3)(e), "additional motor vehicle" means a change
540     that increases the total number of vehicles insured by the policy, and does not include
541     replacement, substitute, or temporary vehicles.
542          (ii) The adding of an additional motor vehicle to an existing personal lines or
543     commercial lines policy does not constitute a new policy for purposes of Subsection (3)(a).
544          (iii) If an additional motor vehicle is added to a personal lines policy where
545     underinsured motorist coverage has been rejected, or where underinsured motorist limits are
546     lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice
547     to a named insured within 30 days that:
548          (A) in the same manner described in Subsection (3)(b)(iv), explains the purpose of
549     underinsured motorist coverage; and
550          (B) encourages the named insured to contact the insurance company or insurance
551     producer for quotes as to the additional premiums required to purchase underinsured motorist
552     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle

553     liability coverage or the maximum underinsured motorist coverage limits available by the
554     insurer under the named insured's motor vehicle policy.
555          (f) A change in policy number resulting from any policy change not identified under
556     Subsection (3)(a)(ii) does not constitute a new policy.
557          (g) (i) Subsection (3)(a) applies retroactively to any claim arising on or after January 1,
558     2001 for which, as of May 1, 2012, an insured has not made a written demand for arbitration or
559     filed a complaint in a court of competent jurisdiction.
560          (ii) The Legislature finds that the retroactive application of Subsection (3)(a):
561          (A) does not enlarge, eliminate, or destroy vested rights; and
562          (B) clarifies legislative intent.
563          (h) A self-insured, including a governmental entity, may elect to provide underinsured
564     motorist coverage in an amount that is less than its maximum self-insured retention under
565     Subsections (3)(b) and (l) by issuing a declaratory memorandum or policy statement from the
566     chief financial officer or chief risk officer that declares the:
567          (i) self-insured entity's coverage level; and
568          (ii) process for filing an underinsured motorist claim.
569          (i) Underinsured motorist coverage may not be sold with limits that are less than:
570          (i) $10,000 for one person in any one accident; and
571          (ii) at least $20,000 for two or more persons in any one accident.
572          (j) An acknowledgment under Subsection (3)(b) continues for that issuer of the
573     underinsured motorist coverage until the named insured, in writing, requests different
574     underinsured motorist coverage from the insurer.
575          (k) (i) The named insured's underinsured motorist coverage, as described in Subsection
576     (2), is secondary to the liability coverage of an owner or operator of an underinsured motor
577     vehicle, as described in Subsection (1).
578          (ii) Underinsured motorist coverage may not be set off against the liability coverage of
579     the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
580     or stacked upon the liability coverage of the owner or operator of the underinsured motor
581     vehicle to determine the limit of coverage available to the injured person.
582          (l) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
583     policies existing on that date, the insurer shall disclose in the same medium as the premium

584     renewal notice, an explanation of:
585          (A) the purpose of underinsured motorist coverage in the same manner as described in
586     Subsection (3)(b)(iv); and
587          (B) a disclosure of the additional premiums required to purchase underinsured motorist
588     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
589     liability coverage or the maximum underinsured motorist coverage limits available by the
590     insurer under the named insured's motor vehicle policy.
591          (ii) The disclosure required under this Subsection (3)(l) shall be sent to all named
592     insureds that carry underinsured motorist coverage limits in an amount less than the named
593     insured's motor vehicle liability policy limits or the maximum underinsured motorist coverage
594     limits available by the insurer under the named insured's motor vehicle policy.
595          (m) For purposes of this Subsection (3), a notice or disclosure sent to a named insured
596     in a household constitutes notice or disclosure to all insureds within the household.
597          (4) (a) (i) Except as provided in this Subsection (4), a covered person injured in a
598     motor vehicle described in a policy that includes underinsured motorist benefits may not elect
599     to collect underinsured motorist coverage benefits from another motor vehicle insurance policy.
600          (ii) The limit of liability for underinsured motorist coverage for two or more motor
601     vehicles may not be added together, combined, or stacked to determine the limit of insurance
602     coverage available to an injured person for any one accident.
603          (iii) Subsection (4)(a)(ii) applies to all persons except a covered person described
604     under Subsections (4)(b)(i) and (ii).
605          (b) (i) Except as provided in Subsection (4)(b)(ii), a covered person injured while
606     occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
607     covered person, the covered person's spouse, or the covered person's resident parent or resident
608     sibling, may also recover benefits under any one other policy under which the covered person is
609     also a covered person.
610          (ii) (A) A covered person may recover benefits from no more than two additional
611     policies, one additional policy from each parent's household if the covered person is:
612          (I) a dependent minor of parents who reside in separate households; and
613          (II) injured while occupying or using a motor vehicle that is not owned, leased, or
614     furnished to the covered person, the covered person's resident parent, or the covered person's

615     resident sibling.
616          (B) Each parent's policy under this Subsection (4)(b)(ii) is liable only for the
617     percentage of the damages that the limit of liability of each parent's policy of underinsured
618     motorist coverage bears to the total of both parents' underinsured coverage applicable to the
619     accident.
620          (iii) A covered person's recovery under any available policies may not exceed the full
621     amount of damages.
622          (iv) Underinsured coverage on a motor vehicle occupied at the time of an accident is
623     primary coverage, and the coverage elected by a person described under Subsections
624     31A-22-305(1)(a), (b), and (c) is secondary coverage.
625          (v) The primary and the secondary coverage may not be set off against the other.
626          (vi) A covered person as described under Subsection (4)(b)(i) is entitled to the highest
627     limits of underinsured motorist coverage under only one additional policy per household
628     applicable to that covered person as a named insured, spouse, or relative.
629          (vii) A covered injured person is not barred against making subsequent elections if
630     recovery is unavailable under previous elections.
631          (viii) (A) As used in this section, "interpolicy stacking" means recovering benefits for a
632     single incident of loss under more than one insurance policy.
633          (B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
634     prohibited for underinsured motorist coverage.
635          (c) Underinsured motorist coverage:
636          [(i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
637     Compensation Act;]
638          (i) does not cover any benefit paid, agreed to be paid, or ordered to be paid under Title
639     34A, Chapter 2, Workers' Compensation Act, including any benefit subject to reimbursement
640     in accordance with Subsection 34A-2-106(5);
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
663     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
675     the 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          (6) An underinsured motorist insurer does not have a right of reimbursement against a
696     person liable for the damages resulting from an injury-causing occurrence if the person's
697     liability insurer has tendered the policy limit.
698          (7) Except as otherwise provided in this section, a covered person may seek, subject to
699     the terms and conditions of the policy, additional coverage under any policy:
700          (a) that provides coverage for damages resulting from motor vehicle accidents; and
701          (b) that is not required to conform to Section 31A-22-302.
702          (8) (a) When a claim is brought by a named insured or a person described in
703     Subsection 31A-22-305(1) and is asserted against the covered person's underinsured motorist
704     carrier, the claimant may elect to resolve the claim:
705          (i) by submitting the claim to binding arbitration; or
706          (ii) through litigation.
707          (b) Unless otherwise provided in the policy under which underinsured benefits are

708     claimed, the election provided in Subsection (8)(a) is available to the claimant only, except that
709     if the policy under which insured benefits are claimed provides that either an insured or the
710     insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
711     arbitrate shall stay the litigation of the claim under Subsection (8)(a)(ii).
712          (c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the
713     claimant may not elect to resolve the claim through binding arbitration under this section
714     without the written consent of the underinsured motorist coverage carrier.
715          (d) For purposes of the statute of limitations applicable to a claim described in
716     Subsection (8)(a), if the claimant does not elect to resolve the claim through litigation, the
717     claim is considered filed when the claimant submits the claim to binding arbitration in
718     accordance with this Subsection (8).
719          [(d)] (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is
720     submitted to binding arbitration under Subsection (8)(a)(i) shall be resolved by a single
721     arbitrator.
722          (ii) All parties shall agree on the single arbitrator selected under Subsection
723     (8)[(d)](e)(i).
724          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
725     (8)[(d)](e)(ii), the parties shall select a panel of three arbitrators.
726          [(e)] (f) If the parties select a panel of three arbitrators under Subsection (8)[(d)](e)(iii):
727          (i) each side shall select one arbitrator; and
728          (ii) the arbitrators appointed under Subsection (8)[(e)](f)(i) shall select one additional
729     arbitrator to be included in the panel.
730          [(f)] (g) Unless otherwise agreed to in writing:
731          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
732     under Subsection (8)[(d)](e)(i); or
733          (ii) if an arbitration panel is selected under Subsection (8)[(d)](e)(iii):
734          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
735          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
736     under Subsection (8)[(e)](f)(ii).
737          [(g)] (h) Except as otherwise provided in this section or unless otherwise agreed to in
738     writing by the parties, an arbitration proceeding conducted under this section is governed by

739     Title 78B, Chapter 11, Utah Uniform Arbitration Act.
740          [(h)] (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4)
741     through (f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the
742     requirements of Subsections (9)(a) through (c) are satisfied.
743          (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
744     shall be determined based on the claimant's specific monetary amount in the written demand
745     for payment of uninsured motorist coverage benefits as required in Subsection (9)(a)(i)(A).
746          (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
747     arbitration claims under this part.
748          [(i)] (j) An issue of discovery shall be resolved by the arbitrator or the arbitration panel.
749          [(j)] (k) A written decision by a single arbitrator or by a majority of the arbitration
750     panel constitutes a final decision.
751          [(k)] (l) (i) Except as provided in Subsection (9), the amount of an arbitration award
752     may not exceed the underinsured motorist policy limits of all applicable underinsured motorist
753     policies, including applicable underinsured motorist umbrella policies.
754          (ii) If the initial arbitration award exceeds the underinsured motorist policy limits of all
755     applicable underinsured motorist policies, the arbitration award shall be reduced to an amount
756     equal to the combined underinsured motorist policy limits of all applicable underinsured
757     motorist policies.
758          [(l)] (m) The arbitrator or arbitration panel may not decide an issue of coverage or
759     extra-contractual damages, including:
760          (i) whether the claimant is a covered person;
761          (ii) whether the policy extends coverage to the loss; or
762          (iii) an allegation or claim asserting consequential damages or bad faith liability.
763          [(m)] (n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide
764     or class-representative basis.
765          [(n)] (o) If the arbitrator or arbitration panel finds that the arbitration is not brought,
766     pursued, or defended in good faith, the arbitrator or arbitration panel may award reasonable
767     attorney fees and costs against the party that failed to bring, pursue, or defend the arbitration in
768     good faith.
769          [(o)] (p) An arbitration award issued under this section shall be the final resolution of

770     all claims not excluded by Subsection (8)[(l)](m) between the parties unless:
771          (i) the award is procured by corruption, fraud, or other undue means;
772          (ii) either party, within 20 days after service of the arbitration award:
773          (A) files a complaint requesting a trial de novo in the district court; and
774          (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
775     under Subsection (8)[(o)](p)(ii)(A).
776          [(p)] (q) (i) Upon filing a complaint for a trial de novo under Subsection (8)[(o)](p), a
777     claim shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah
778     Rules of Evidence in the district court.
779          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
780     request a jury trial with a complaint requesting a trial de novo under Subsection
781     (8)[(o)](p)(ii)(A).
782          [(q)] (r) (i) If the claimant, as the moving party in a trial de novo requested under
783     Subsection (8)[(o)](p), does not obtain a verdict that is at least $5,000 and is at least 20%
784     greater than the arbitration award, the claimant is responsible for all of the nonmoving party's
785     costs.
786          (ii) If the underinsured motorist carrier, as the moving party in a trial de novo requested
787     under Subsection (8)[(o)](p), does not obtain a verdict that is at least 20% less than the
788     arbitration award, the underinsured motorist carrier is responsible for all of the nonmoving
789     party's costs.
790          (iii) Except as provided in Subsection (8)[(q)](r)(iv), the costs under this Subsection
791     (8)[(q)](r) shall include:
792          (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
793          (B) the costs of expert witnesses and depositions.
794          (iv) An award of costs under this Subsection (8)[(q)](r) may not exceed $2,500 unless
795     Subsection (9)(h)(iii) applies.
796          [(r)] (s) For purposes of determining whether a party's verdict is greater or less than the
797     arbitration award under Subsection (8)[(q)](r), a court may not consider any recovery or other
798     relief granted on a claim for damages if the claim for damages:
799          (i) was not fully disclosed in writing prior to the arbitration proceeding; or
800          (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil

801     Procedure.
802          [(s)] (t) If a district court determines, upon a motion of the nonmoving party, that a
803     moving party's use of the trial de novo process is filed in bad faith in accordance with Section
804     78B-5-825, the district court may award reasonable attorney fees to the nonmoving party.
805          [(t)] (u) Nothing in this section is intended to limit a claim under another portion of an
806     applicable insurance policy.
807          [(u)] (v) If there are multiple underinsured motorist policies, as set forth in Subsection
808     (4), the claimant may elect to arbitrate in one hearing the claims against all the underinsured
809     motorist carriers.
810          (9) (a) Within 30 days after a covered person elects to submit a claim for underinsured
811     motorist benefits to binding arbitration or files litigation, the covered person shall provide to
812     the underinsured motorist carrier:
813          (i) a written demand for payment of underinsured motorist coverage benefits, setting
814     forth:
815          (A) subject to Subsection (9)(l), the specific monetary amount of the demand,
816     including a computation of the covered person's claimed past medical expenses, claimed past
817     lost wages, and all other claimed past economic damages; and
818          (B) the factual and legal basis and any supporting documentation for the demand;
819          (ii) a written statement under oath disclosing:
820          (A) (I) the names and last known addresses of all health care providers who have
821     rendered health care services to the covered person that are material to the claims for which the
822     underinsured motorist benefits are sought for a period of five years preceding the date of the
823     event giving rise to the claim for underinsured motorist benefits up to the time the election for
824     arbitration or litigation has been exercised; and
825          (II) the names and last known addresses of the health care providers who have rendered
826     health care services to the covered person, which the covered person claims are immaterial to
827     the claims for which underinsured motorist benefits are sought, for a period of five years
828     preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
829     the time the election for arbitration or litigation has been exercised that have not been disclosed
830     under Subsection (9)(a)(ii)(A)(I);
831          (B) (I) the names and last known addresses of all health insurers or other entities to

832     whom the covered person has submitted claims for health care services or benefits material to
833     the claims for which underinsured motorist benefits are sought, for a period of five years
834     preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
835     the time the election for arbitration or litigation has been exercised; and
836          (II) the names and last known addresses of the health insurers or other entities to whom
837     the covered person has submitted claims for health care services or benefits, which the covered
838     person claims are immaterial to the claims for which underinsured motorist benefits are sought,
839     for a period of five years preceding the date of the event giving rise to the claim for
840     underinsured motorist benefits up to the time the election for arbitration or litigation have not
841     been disclosed;
842          (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
843     employers of the covered person for a period of five years preceding the date of the event
844     giving rise to the claim for underinsured motorist benefits up to the time the election for
845     arbitration or litigation has been exercised;
846          (D) other documents to reasonably support the claims being asserted; and
847          (E) all state and federal statutory lienholders including a statement as to whether the
848     covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
849     Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
850     or if the claim is subject to any other state or federal statutory liens; and
851          (iii) signed authorizations to allow the underinsured motorist carrier to only obtain
852     records and billings from the individuals or entities disclosed under Subsections
853     (9)(a)(ii)(A)(I), (B)(I), and (C).
854          (b) (i) If the underinsured motorist carrier determines that the disclosure of undisclosed
855     health care providers or health care insurers under Subsection (9)(a)(ii) is reasonably necessary,
856     the underinsured motorist carrier may:
857          (A) make a request for the disclosure of the identity of the health care providers or
858     health care insurers; and
859          (B) make a request for authorizations to allow the underinsured motorist carrier to only
860     obtain records and billings from the individuals or entities not disclosed.
861          (ii) If the covered person does not provide the requested information within 10 days:
862          (A) the covered person shall disclose, in writing, the legal or factual basis for the

863     failure to disclose the health care providers or health care insurers; and
864          (B) either the covered person or the underinsured motorist carrier may request the
865     arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
866     provided if the covered person has elected arbitration.
867          (iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
868     the dispute concerning the disclosure and production of records of the health care providers or
869     health care insurers.
870          (c) (i) An underinsured motorist carrier that receives an election for arbitration or a
871     notice of filing litigation and the demand for payment of underinsured motorist benefits under
872     Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the
873     demand and receipt of the items specified in Subsections (9)(a)(i) through (iii), to:
874          (A) provide a written response to the written demand for payment provided for in
875     Subsection (9)(a)(i);
876          (B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
877     underinsured motorist carrier's determination of the amount owed to the covered person; and
878          (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
879     Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
880     Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
881     tender the amount, if any, of the underinsured motorist carrier's determination of the amount
882     owed to the covered person less:
883          (I) if the amount of the state or federal statutory lien is established, the amount of the
884     lien; or
885          (II) if the amount of the state or federal statutory lien is not established, two times the
886     amount of the medical expenses subject to the state or federal statutory lien until such time as
887     the amount of the state or federal statutory lien is established.
888          (ii) If the amount tendered by the underinsured motorist carrier under Subsection
889     (9)(c)(i) is the total amount of the underinsured motorist policy limits, the tendered amount
890     shall be accepted by the covered person.
891          (d) A covered person who receives a written response from an underinsured motorist
892     carrier as provided for in Subsection (9)(c)(i), may:
893          (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all

894     underinsured motorist claims; or
895          (ii) elect to:
896          (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
897     underinsured motorist claims; and
898          (B) continue to litigate or arbitrate the remaining claim in accordance with the election
899     made under Subsections (8)(a), (b), and (c).
900          (e) If a covered person elects to accept the amount tendered under Subsection (9)(c)(i)
901     as partial payment of all underinsured motorist claims, the final award obtained through
902     arbitration, litigation, or later settlement shall be reduced by any payment made by the
903     underinsured motorist carrier under Subsection (9)(c)(i).
904          (f) In an arbitration proceeding on the remaining underinsured claims:
905          (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
906     under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
907          (ii) the parties may not disclose the amount of the limits of underinsured motorist
908     benefits provided by the policy.
909          (g) If the final award obtained through arbitration or litigation is greater than the
910     average of the covered person's initial written demand for payment provided for in Subsection
911     (9)(a)(i) and the underinsured motorist carrier's initial written response provided for in
912     Subsection (9)(c)(i), the underinsured motorist carrier shall pay:
913          (i) the final award obtained through arbitration or litigation, except that if the award
914     exceeds the policy limits of the subject underinsured motorist policy by more than $15,000, the
915     amount shall be reduced to an amount equal to the policy limits plus $15,000; and
916          (ii) any of the following applicable costs:
917          (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
918          (B) the arbitrator or arbitration panel's fee; and
919          (C) the reasonable costs of expert witnesses and depositions used in the presentation of
920     evidence during arbitration or litigation.
921          (h) (i) The covered person shall provide an affidavit of costs within five days of an
922     arbitration award.
923          (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
924     which the underinsured motorist carrier objects.

925          (B) The objection shall be resolved by the arbitrator or arbitration panel.
926          (iii) The award of costs by the arbitrator or arbitration panel under Subsection (9)(g)(ii)
927     may not exceed $5,000.
928          (i) (i) A covered person shall disclose all material information, other than rebuttal
929     evidence, within 30 days after a covered person elects to submit a claim for underinsured
930     motorist coverage benefits to binding arbitration or files litigation as specified in Subsection
931     (9)(a).
932          (ii) If the information under Subsection (9)(i)(i) is not disclosed, the covered person
933     may not recover costs or any amounts in excess of the policy under Subsection (9)(g).
934          (j) This Subsection (9) does not limit any other cause of action that arose or may arise
935     against the underinsured motorist carrier from the same dispute.
936          (k) The provisions of this Subsection (9) only apply to motor vehicle accidents that
937     occur on or after March 30, 2010.
938          (l) (i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the
939     covered person's requirement to provide a computation of any other economic damages
940     claimed, and the one or more respondents shall have a reasonable time after the receipt of the
941     computation of any other economic damages claimed to conduct fact and expert discovery as to
942     any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
943     Section 11, and Chapter 300, Section 11, to this Subsection (9)(l) and Subsection (9)(a)(i)(A)
944     apply to a claim submitted to binding arbitration or through litigation on or after May 13, 2014.
945          (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter
946     300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted to
947     binding arbitration or through litigation on or after May 13, 2014.