1     
UNINSURED AND UNDERINSURED MOTORIST INSURANCE

2     
AMENDMENTS

3     
2020 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Eric K. Hutchings

6     
Senate Sponsor: Curtis S. Bramble

7     

8     LONG TITLE
9     General Description:
10          This bill amends provisions related to uninsured and underinsured motorist insurance
11     coverage.
12     Highlighted Provisions:
13          This bill:
14          ▸     addresses when the limit of liability for uninsured or underinsured motorist
15     coverage for two or more motor vehicles may be added together, combined, or
16     stacked to determine the limit of insurance coverage available to an injured person
17     for any one accident;
18          ▸     allows a covered person injured as a pedestrian by an underinsured motor vehicle to
19     recover underinsured motorist benefits under any one other policy under which the
20     person is covered; and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:
28          31A-22-305, as last amended by Laws of Utah 2019, Chapter 131
29          31A-22-305.3, as last amended by Laws of Utah 2018, Chapter 434

30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 31A-22-305 is amended to read:
33          31A-22-305. Uninsured motorist coverage.
34          (1) As used in this section, "covered persons" includes:
35          (a) the named insured;
36          (b) for a claim arising on or after May 13, 2014, the named insured's dependent minor
37     children;
38          (c) persons related to the named insured by blood, marriage, adoption, or guardianship,
39     who are residents of the named insured's household, including those who usually make their
40     home in the same household but temporarily live elsewhere;
41          (d) any person occupying or using a motor vehicle:
42          (i) referred to in the policy; or
43          (ii) owned by a self-insured; and
44          (e) any person who is entitled to recover damages against the owner or operator of the
45     uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
46     Subsection (1)(a), (b), (c), or (d).
47          (2) As used in this section, "uninsured motor vehicle" includes:
48          (a) (i) a motor vehicle, the operation, maintenance, or use of which is not covered
49     under a liability policy at the time of an injury-causing occurrence; or
50          (ii) (A) a motor vehicle covered with lower liability limits than required by Section
51     31A-22-304; and
52          (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
53     the deficiency;
54          (b) an unidentified motor vehicle that left the scene of an accident proximately caused
55     by the motor vehicle operator;
56          (c) a motor vehicle covered by a liability policy, but coverage for an accident is
57     disputed by the liability insurer for more than 60 days or continues to be disputed for more than

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

86     January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
87     arbitration or filed a complaint in a court of competent jurisdiction.
88          (ii) The Legislature finds that the retroactive application of Subsections (4)(a) and (b)
89     clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
90          (d) For purposes of this Subsection (4), "new policy" means:
91          (i) any policy that is issued which does not include a renewal or reinstatement of an
92     existing policy; or
93          (ii) a change to an existing policy that results in:
94          (A) a named insured being added to or deleted from the policy; or
95          (B) a change in the limits of the named insured's motor vehicle liability coverage.
96          (e) (i) As used in this Subsection (4)(e), "additional motor vehicle" means a change
97     that increases the total number of vehicles insured by the policy, and does not include
98     replacement, substitute, or temporary vehicles.
99          (ii) The adding of an additional motor vehicle to an existing personal lines or
100     commercial lines policy does not constitute a new policy for purposes of Subsection (4)(d).
101          (iii) If an additional motor vehicle is added to a personal lines policy where uninsured
102     motorist coverage has been rejected, or where uninsured motorist limits are lower than the
103     named insured's motor vehicle liability limits, the insurer shall provide a notice to a named
104     insured within 30 days that:
105          (A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose of
106     uninsured motorist coverage; and
107          (B) encourages the named insured to contact the insurance company or insurance
108     producer for quotes as to the additional premiums required to purchase uninsured motorist
109     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
110     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
111     under the named insured's motor vehicle policy.
112          (f) A change in policy number resulting from any policy change not identified under
113     Subsection (4)(d)(ii) does not constitute a new policy.

114          (g) (i) Subsection (4)(d) applies retroactively to any claim arising on or after January 1,
115     2001, for which, as of May 1, 2012, an insured has not made a written demand for arbitration
116     or filed a complaint in a court of competent jurisdiction.
117          (ii) The Legislature finds that the retroactive application of Subsection (4):
118          (A) does not enlarge, eliminate, or destroy vested rights; and
119          (B) clarifies legislative intent.
120          (h) A self-insured, including a governmental entity, may elect to provide uninsured
121     motorist coverage in an amount that is less than its maximum self-insured retention under
122     Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy statement from
123     the chief financial officer or chief risk officer that declares the:
124          (i) self-insured entity's coverage level; and
125          (ii) process for filing an uninsured motorist claim.
126          (i) Uninsured motorist coverage may not be sold with limits that are less than the
127     minimum bodily injury limits for motor vehicle liability policies under Section 31A-22-304.
128          (j) The acknowledgment under Subsection (4)(a) continues for that issuer of the
129     uninsured motorist coverage until the named insured requests, in writing, different uninsured
130     motorist coverage from the insurer.
131          (k) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
132     policies existing on that date, the insurer shall disclose in the same medium as the premium
133     renewal notice, an explanation of:
134          (A) the purpose of uninsured motorist coverage in the same manner as described in
135     Subsection (4)(a)(iv); and
136          (B) a disclosure of the additional premiums required to purchase uninsured motorist
137     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
138     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
139     under the named insured's motor vehicle policy.
140          (ii) The disclosure required under Subsection (4)(k)(i) shall be sent to all named
141     insureds that carry uninsured motorist coverage limits in an amount less than the named

142     insured's motor vehicle liability policy limits or the maximum uninsured motorist coverage
143     limits available by the insurer under the named insured's motor vehicle policy.
144          (l) For purposes of this Subsection (4), a notice or disclosure sent to a named insured in
145     a household constitutes notice or disclosure to all insureds within the household.
146          (5) (a) (i) Except as provided in Subsection (5)(b), the named insured may reject
147     uninsured motorist coverage by an express writing to the insurer that provides liability
148     coverage under Subsection 31A-22-302(1)(a).
149          (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
150     explanation of the purpose of uninsured motorist coverage.
151          (iii) This rejection continues for that issuer of the liability coverage until the insured in
152     writing requests uninsured motorist coverage from that liability insurer.
153          (b) (i) All persons, including governmental entities, that are engaged in the business of,
154     or that accept payment for, transporting natural persons by motor vehicle, and all school
155     districts that provide transportation services for their students, shall provide coverage for all
156     motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,
157     uninsured motorist coverage of at least $25,000 per person and $500,000 per accident.
158          (ii) This coverage is secondary to any other insurance covering an injured covered
159     person.
160          (c) Uninsured motorist coverage:
161          (i) does not cover any benefit paid or payable under Title 34A, Chapter 2, Workers'
162     Compensation Act, except that the covered person is credited an amount described in
163     Subsection 34A-2-106(5);
164          (ii) may not be subrogated by the workers' compensation insurance carrier;
165          (iii) may not be reduced by any benefits provided by workers' compensation insurance;
166          (iv) may be reduced by health insurance subrogation only after the covered person has
167     been made whole;
168          (v) may not be collected for bodily injury or death sustained by a person:
169          (A) while committing a violation of Section 41-1a-1314;

170          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
171     in violation of Section 41-1a-1314; or
172          (C) while committing a felony; and
173          (vi) notwithstanding Subsection (5)(c)(v), may be recovered:
174          (A) for a person under 18 years of age who is injured within the scope of Subsection
175     (5)(c)(v) but limited to medical and funeral expenses; or
176          (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
177     within the course and scope of the law enforcement officer's duties.
178          (d) As used in this Subsection (5), "motor vehicle" has the same meaning as under
179     Section 41-1a-102.
180          (6) When a covered person alleges that an uninsured motor vehicle under Subsection
181     (2)(b) proximately caused an accident without touching the covered person or the motor
182     vehicle occupied by the covered person, the covered person shall show the existence of the
183     uninsured motor vehicle by clear and convincing evidence consisting of more than the covered
184     person's testimony.
185          (7) (a) The limit of liability for uninsured motorist coverage for two or more motor
186     vehicles may not be added together, combined, or stacked to determine the limit of insurance
187     coverage available to an injured person for any one accident.
188          (b) (i) Subsection (7)(a) applies to all persons except a covered person as defined under
189     Subsection (8)(b)[(ii)].
190          (ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
191     limits of uninsured motorist coverage afforded for any one motor vehicle that the covered
192     person is the named insured or an insured family member.
193          (iii) This coverage shall be in addition to the coverage on the motor vehicle the covered
194     person is occupying.
195          (iv) Neither the primary nor the secondary coverage may be set off against the other.
196          (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
197     coverage, and the coverage elected by a person described under Subsections (1)(a), (b), and (c)

198     shall be secondary coverage.
199          (8) (a) Uninsured motorist coverage under this section applies to bodily injury,
200     sickness, disease, or death of covered persons while occupying or using a motor vehicle only if
201     the motor vehicle is described in the policy under which a claim is made, or if the motor
202     vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
203     Except as provided in Subsection (7) or this Subsection (8), a covered person injured in a
204     motor vehicle described in a policy that includes uninsured motorist benefits may not elect to
205     collect uninsured motorist coverage benefits from any other motor vehicle insurance policy
206     under which the person is a covered person.
207          (b) Each of the following persons may also recover uninsured motorist benefits under
208     any one other policy in which they are described as a "covered person" as defined in Subsection
209     (1):
210          (i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
211          (ii) except as provided in Subsection (8)(c), a covered person injured while occupying
212     or using a motor vehicle that is not owned, leased, or furnished:
213          (A) to the covered person;
214          (B) to the covered person's spouse; or
215          (C) to the covered person's resident parent or resident sibling.
216          (c) (i) A covered person may recover benefits from no more than two additional
217     policies, one additional policy from each parent's household if the covered person is:
218          (A) a dependent minor of parents who reside in separate households; and
219          (B) injured while occupying or using a motor vehicle that is not owned, leased, or
220     furnished:
221          (I) to the covered person;
222          (II) to the covered person's resident parent; or
223          (III) to the covered person's resident sibling.
224          (ii) Each parent's policy under this Subsection (8)(c) is liable only for the percentage of
225     the damages that the limit of liability of each parent's policy of uninsured motorist coverage

226     bears to the total of both parents' uninsured coverage applicable to the accident.
227          (d) A covered person's recovery under any available policies may not exceed the full
228     amount of damages.
229          (e) A covered person in Subsection (8)(b) is not barred against making subsequent
230     elections if recovery is unavailable under previous elections.
231          (f) (i) As used in this section, "interpolicy stacking" means recovering benefits for a
232     single incident of loss under more than one insurance policy.
233          (ii) Except to the extent permitted by Subsection (7) and this Subsection (8),
234     interpolicy stacking is prohibited for uninsured motorist coverage.
235          (9) (a) When a claim is brought by a named insured or a person described in
236     Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the
237     claimant may elect to resolve the claim:
238          (i) by submitting the claim to binding arbitration; or
239          (ii) through litigation.
240          (b) Unless otherwise provided in the policy under which uninsured benefits are
241     claimed, the election provided in Subsection (9)(a) is available to the claimant only, except that
242     if the policy under which insured benefits are claimed provides that either an insured or the
243     insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
244     arbitrate shall stay the litigation of the claim under Subsection (9)(a)(ii).
245          (c) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii),
246     the claimant may not elect to resolve the claim through binding arbitration under this section
247     without the written consent of the uninsured motorist carrier.
248          (d) For purposes of the statute of limitations applicable to a claim described in
249     Subsection (9)(a), if the claimant does not elect to resolve the claim through litigation, the
250     claim is considered filed when the claimant submits the claim to binding arbitration in
251     accordance with this Subsection (9).
252          (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
253     binding arbitration under Subsection (9)(a)(i) shall be resolved by a single arbitrator.

254          (ii) All parties shall agree on the single arbitrator selected under Subsection (9)(e)(i).
255          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
256     (9)(e)(ii), the parties shall select a panel of three arbitrators.
257          (f) If the parties select a panel of three arbitrators under Subsection (9)(e)(iii):
258          (i) each side shall select one arbitrator; and
259          (ii) the arbitrators appointed under Subsection (9)(f)(i) shall select one additional
260     arbitrator to be included in the panel.
261          (g) Unless otherwise agreed to in writing:
262          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
263     under Subsection (9)(e)(i); or
264          (ii) if an arbitration panel is selected under Subsection (9)(e)(iii):
265          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
266          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
267     under Subsection (9)(f)(ii).
268          (h) Except as otherwise provided in this section or unless otherwise agreed to in
269     writing by the parties, an arbitration proceeding conducted under this section shall be governed
270     by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
271          (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
272     27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
273     Subsections (10)(a) through (c) are satisfied.
274          (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
275     shall be determined based on the claimant's specific monetary amount in the written demand
276     for payment of uninsured motorist coverage benefits as required in Subsection (10)(a)(i)(A).
277          (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
278     arbitration claims under this part.
279          (j) All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
280          (k) A written decision by a single arbitrator or by a majority of the arbitration panel
281     shall constitute a final decision.

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

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

338          (10) (a) Within 30 days after a covered person elects to submit a claim for uninsured
339     motorist benefits to binding arbitration or files litigation, the covered person shall provide to
340     the uninsured motorist carrier:
341          (i) a written demand for payment of uninsured motorist coverage benefits, setting forth:
342          (A) subject to Subsection (10)(l), the specific monetary amount of the demand,
343     including a computation of the covered person's claimed past medical expenses, claimed past
344     lost wages, and the other claimed past economic damages; and
345          (B) the factual and legal basis and any supporting documentation for the demand;
346          (ii) a written statement under oath disclosing:
347          (A) (I) the names and last known addresses of all health care providers who have
348     rendered health care services to the covered person that are material to the claims for which
349     uninsured motorist benefits are sought for a period of five years preceding the date of the event
350     giving rise to the claim for uninsured motorist benefits up to the time the election for
351     arbitration or litigation has been exercised; and
352          (II) the names and last known addresses of the health care providers who have rendered
353     health care services to the covered person, which the covered person claims are immaterial to
354     the claims for which uninsured motorist benefits are sought, for a period of five years
355     preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
356     time the election for arbitration or litigation has been exercised that have not been disclosed
357     under Subsection (10)(a)(ii)(A)(I);
358          (B) (I) the names and last known addresses of all health insurers or other entities to
359     whom the covered person has submitted claims for health care services or benefits material to
360     the claims for which uninsured motorist benefits are sought, for a period of five years
361     preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
362     time the election for arbitration or litigation has been exercised; and
363          (II) the names and last known addresses of the health insurers or other entities to whom
364     the covered person has submitted claims for health care services or benefits, which the covered
365     person claims are immaterial to the claims for which uninsured motorist benefits are sought,

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

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

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

450     which the uninsured motorist carrier objects.
451          (B) The objection shall be resolved by the arbitrator or arbitration panel.
452          (iii) The award of costs by the arbitrator or arbitration panel under Subsection
453     (10)(g)(ii) may not exceed $5,000.
454          (i) (i) A covered person shall disclose all material information, other than rebuttal
455     evidence, within 30 days after a covered person elects to submit a claim for uninsured motorist
456     coverage benefits to binding arbitration or files litigation as specified in Subsection (10)(a).
457          (ii) If the information under Subsection (10)(i)(i) is not disclosed, the covered person
458     may not recover costs or any amounts in excess of the policy under Subsection (10)(g).
459          (j) This Subsection (10) does not limit any other cause of action that arose or may arise
460     against the uninsured motorist carrier from the same dispute.
461          (k) The provisions of this Subsection (10) only apply to motor vehicle accidents that
462     occur on or after March 30, 2010.
463          (l) (i) The written demand requirement in Subsection (10)(a)(i)(A) does not affect the
464     covered person's requirement to provide a computation of any other economic damages
465     claimed, and the one or more respondents shall have a reasonable time after the receipt of the
466     computation of any other economic damages claimed to conduct fact and expert discovery as to
467     any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
468     Section 10, and Chapter 300, Section 10, to this Subsection (10)(l) and Subsection
469     (10)(a)(i)(A) apply to a claim submitted to binding arbitration or through litigation on or after
470     May 13, 2014.
471          (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
472     300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim submitted to
473     binding arbitration or through litigation on or after May 13, 2014.
474          (11) (a) Notwithstanding Section 31A-21-313, an action on a written policy or contract
475     for uninsured motorist coverage shall be commenced within four years after the inception of
476     loss.
477          (b) Subsection (11)(a) shall apply to all claims that have not been time barred by

478     Subsection 31A-21-313(1)(a) as of May 14, 2019.
479          Section 2. Section 31A-22-305.3 is amended to read:
480          31A-22-305.3. Underinsured motorist coverage.
481          (1) As used in this section:
482          (a) "Covered person" has the same meaning as defined in Section 31A-22-305.
483          (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
484     maintenance, or use of which is covered under a liability policy at the time of an injury-causing
485     occurrence, but which has insufficient liability coverage to compensate fully the injured party
486     for all special and general damages.
487          (ii) The term "underinsured motor vehicle" does not include:
488          (A) a motor vehicle that is covered under the liability coverage of the same policy that
489     also contains the underinsured motorist coverage;
490          (B) an uninsured motor vehicle as defined in Subsection 31A-22-305(2);
491          (C) a motor vehicle owned or leased by:
492          (I) a named insured;
493          (II) a named insured's spouse; or
494          (III) a dependent of a named insured.
495          (2) (a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides
496     coverage for a covered person who is legally entitled to recover damages from an owner or
497     operator of an underinsured motor vehicle because of bodily injury, sickness, disease, or death.
498          (b) A covered person occupying or using a motor vehicle owned, leased, or furnished
499     to the covered person, the covered person's spouse, or covered person's resident relative may
500     recover underinsured benefits only if the motor vehicle is:
501          (i) described in the policy under which a claim is made; or
502          (ii) a newly acquired or replacement motor vehicle covered under the terms of the
503     policy.
504          (3) (a) For purposes of this Subsection (3), "new policy" means:
505          (i) any policy that is issued that does not include a renewal or reinstatement of an

506     existing policy; or
507          (ii) a change to an existing policy that results in:
508          (A) a named insured being added to or deleted from the policy; or
509          (B) a change in the limits of the named insured's motor vehicle liability coverage.
510          (b) For new policies written on or after January 1, 2001, the limits of underinsured
511     motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
512     liability coverage or the maximum underinsured motorist coverage limits available by the
513     insurer under the named insured's motor vehicle policy, unless a named insured rejects or
514     purchases coverage in a lesser amount by 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) Any selection or rejection under Subsection (3)(b) continues for that issuer of the
527     liability coverage until the insured requests, in writing, a change of underinsured motorist
528     coverage from that liability insurer.
529          (d) (i) Subsections (3)(b) and (c) apply retroactively to any claim arising on or after
530     January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
531     arbitration or filed a complaint in a court of competent jurisdiction.
532          (ii) The Legislature finds that the retroactive application of Subsections (3)(b) and (c)
533     clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.

534          (e) (i) As used in this Subsection (3)(e), "additional motor vehicle" means a change
535     that increases the total number of vehicles insured by the policy, and does not include
536     replacement, substitute, or temporary vehicles.
537          (ii) The adding of an additional motor vehicle to an existing personal lines or
538     commercial lines policy does not constitute a new policy for purposes of Subsection (3)(a).
539          (iii) If an additional motor vehicle is added to a personal lines policy where
540     underinsured motorist coverage has been rejected, or where underinsured motorist limits are
541     lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice
542     to a named insured within 30 days that:
543          (A) in the same manner described in Subsection (3)(b)(iv), explains the purpose of
544     underinsured motorist coverage; and
545          (B) encourages the named insured to contact the insurance company or insurance
546     producer for quotes as to the additional premiums required to purchase underinsured motorist
547     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
548     liability coverage or the maximum underinsured motorist coverage limits available by the
549     insurer under the named insured's motor vehicle policy.
550          (f) A change in policy number resulting from any policy change not identified under
551     Subsection (3)(a)(ii) does not constitute a new policy.
552          (g) (i) Subsection (3)(a) applies retroactively to any claim arising on or after January 1,
553     2001 for which, as of May 1, 2012, an insured has not made a written demand for arbitration or
554     filed a complaint in a court of competent jurisdiction.
555          (ii) The Legislature finds that the retroactive application of Subsection (3)(a):
556          (A) does not enlarge, eliminate, or destroy vested rights; and
557          (B) clarifies legislative intent.
558          (h) A self-insured, including a governmental entity, may elect to provide underinsured
559     motorist coverage in an amount that is less than its maximum self-insured retention under
560     Subsections (3)(b) and (l) by issuing a declaratory memorandum or policy statement from the
561     chief financial officer or chief risk officer that declares the:

562          (i) self-insured entity's coverage level; and
563          (ii) process for filing an underinsured motorist claim.
564          (i) Underinsured motorist coverage may not be sold with limits that are less than:
565          (i) $10,000 for one person in any one accident; and
566          (ii) at least $20,000 for two or more persons in any one accident.
567          (j) An acknowledgment under Subsection (3)(b) continues for that issuer of the
568     underinsured motorist coverage until the named insured, in writing, requests different
569     underinsured motorist coverage from the insurer.
570          (k) (i) The named insured's underinsured motorist coverage, as described in Subsection
571     (2), is secondary to the liability coverage of an owner or operator of an underinsured motor
572     vehicle, as described in Subsection (1).
573          (ii) Underinsured motorist coverage may not be set off against the liability coverage of
574     the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
575     or stacked upon the liability coverage of the owner or operator of the underinsured motor
576     vehicle to determine the limit of coverage available to the injured person.
577          (l) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
578     policies existing on that date, the insurer shall disclose in the same medium as the premium
579     renewal notice, an explanation of:
580          (A) the purpose of underinsured motorist coverage in the same manner as described in
581     Subsection (3)(b)(iv); and
582          (B) a disclosure of the additional premiums required to purchase underinsured motorist
583     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
584     liability coverage or the maximum underinsured motorist coverage limits available by the
585     insurer under the named insured's motor vehicle policy.
586          (ii) The disclosure required under this Subsection (3)(l) shall be sent to all named
587     insureds that carry underinsured motorist coverage limits in an amount less than the named
588     insured's motor vehicle liability policy limits or the maximum underinsured motorist coverage
589     limits available by the insurer under the named insured's motor vehicle policy.

590          (m) For purposes of this Subsection (3), a notice or disclosure sent to a named insured
591     in a household constitutes notice or disclosure to all insureds within the household.
592          (4) (a) (i) Except as provided in this Subsection (4), a covered person injured in a
593     motor vehicle described in a policy that includes underinsured motorist benefits may not elect
594     to collect underinsured motorist coverage benefits from another motor vehicle insurance policy.
595          (ii) The limit of liability for underinsured motorist coverage for two or more motor
596     vehicles may not be added together, combined, or stacked to determine the limit of insurance
597     coverage available to an injured person for any one accident.
598          (iii) Subsection (4)(a)(ii) applies to all persons except a covered person described
599     under Subsections (4)(b)(i) and (ii).
600          (b) (i) A covered person injured as a pedestrian by an underinsured motor vehicle may
601     recover underinsured motorist benefits under any one other policy in which they are described
602     as a covered person.
603          (ii) Except as provided in Subsection (4)(b)[(ii)](iii), a covered person injured while
604     occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
605     covered person, the covered person's spouse, or the covered person's resident parent or resident
606     sibling, may also recover benefits under any one other policy under which the covered person is
607     also a covered person.
608          [(ii)] (iii) (A) A covered person may recover benefits from no more than two additional
609     policies, one additional policy from each parent's household if the covered person is:
610          (I) a dependent minor of parents who reside in separate households; and
611          (II) injured while occupying or using a motor vehicle that is not owned, leased, or
612     furnished to the covered person, the covered person's resident parent, or the covered person's
613     resident sibling.
614          (B) Each parent's policy under this Subsection (4)(b)[(ii)](iii) is liable only for the
615     percentage of the damages that the limit of liability of each parent's policy of underinsured
616     motorist coverage bears to the total of both parents' underinsured coverage applicable to the
617     accident.

618          [(iii)] (iv) A covered person's recovery under any available policies may not exceed the
619     full amount of damages.
620          [(iv)] (v) Underinsured coverage on a motor vehicle occupied at the time of an accident
621     is primary coverage, and the coverage elected by a person described under Subsections
622     31A-22-305(1)(a), (b), and (c) is secondary coverage.
623          [(v)] (vi) The primary and the secondary coverage may not be set off against the other.
624          [(vi)] (vii) A covered person as described under Subsection (4)(b)(i) or is entitled to the
625     highest limits of underinsured motorist coverage under only one additional policy per
626     household applicable to that covered person as a named insured, spouse, or relative.
627          [(vii)] (viii) A covered injured person is not barred against making subsequent
628     elections if recovery is unavailable under previous elections.
629          [(viii)] (ix) (A) As used in this section, "interpolicy stacking" means recovering
630     benefits for a single incident of loss under more than one insurance policy.
631          (B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
632     prohibited for underinsured motorist coverage.
633          (c) Underinsured motorist coverage:
634          (i) does not cover any benefit paid or payable under Title 34A, Chapter 2, Workers'
635     Compensation Act, except that the covered person is credited an amount described in
636     Subsection 34A-2-106(5);
637          (ii) may not be subrogated by a workers' compensation insurance carrier;
638          (iii) may not be reduced by benefits provided by workers' compensation insurance;
639          (iv) may be reduced by health insurance subrogation only after the covered person is
640     made whole;
641          (v) may not be collected for bodily injury or death sustained by a person:
642          (A) while committing a violation of Section 41-1a-1314;
643          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
644     in violation of Section 41-1a-1314; or
645          (C) while committing a felony; and

646          (vi) notwithstanding Subsection (4)(c)(v), may be recovered:
647          (A) for a person under 18 years of age who is injured within the scope of Subsection
648     (4)(c)(v), but is limited to medical and funeral expenses; or
649          (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
650     within the course and scope of the law enforcement officer's duties.
651          (5) The inception of the loss under Subsection 31A-21-313(1) for underinsured
652     motorist claims occurs upon the date of the last liability policy payment.
653          (6) An underinsured motorist insurer does not have a right of reimbursement against a
654     person liable for the damages resulting from an injury-causing occurrence if the person's
655     liability insurer has tendered the policy limit and the limits have been accepted by the claimant.
656          (7) Except as otherwise provided in this section, a covered person may seek, subject to
657     the terms and conditions of the policy, additional coverage under any policy:
658          (a) that provides coverage for damages resulting from motor vehicle accidents; and
659          (b) that is not required to conform to Section 31A-22-302.
660          (8) (a) When a claim is brought by a named insured or a person described in
661     Subsection 31A-22-305(1) and is asserted against the covered person's underinsured motorist
662     carrier, the claimant may elect to resolve the claim:
663          (i) by submitting the claim to binding arbitration; or
664          (ii) through litigation.
665          (b) Unless otherwise provided in the policy under which underinsured benefits are
666     claimed, the election provided in Subsection (8)(a) is available to the claimant only, except that
667     if the policy under which insured benefits are claimed provides that either an insured or the
668     insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
669     arbitrate shall stay the litigation of the claim under Subsection (8)(a)(ii).
670          (c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the
671     claimant may not elect to resolve the claim through binding arbitration under this section
672     without the written consent of the underinsured motorist coverage carrier.
673          (d) For purposes of the statute of limitations applicable to a claim described in

674     Subsection (8)(a), if the claimant does not elect to resolve the claim through litigation, the
675     claim is considered filed when the claimant submits the claim to binding arbitration in
676     accordance with this Subsection (8).
677          (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
678     binding arbitration under Subsection (8)(a)(i) shall be resolved by a single arbitrator.
679          (ii) All parties shall agree on the single arbitrator selected under Subsection (8)(e)(i).
680          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
681     (8)(e)(ii), the parties shall select a panel of three arbitrators.
682          (f) If the parties select a panel of three arbitrators under Subsection (8)(e)(iii):
683          (i) each side shall select one arbitrator; and
684          (ii) the arbitrators appointed under Subsection (8)(f)(i) shall select one additional
685     arbitrator to be included in the panel.
686          (g) Unless otherwise agreed to in writing:
687          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
688     under Subsection (8)(e)(i); or
689          (ii) if an arbitration panel is selected under Subsection (8)(e)(iii):
690          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
691          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
692     under Subsection (8)(f)(ii).
693          (h) Except as otherwise provided in this section or unless otherwise agreed to in
694     writing by the parties, an arbitration proceeding conducted under this section is governed by
695     Title 78B, Chapter 11, Utah Uniform Arbitration Act.
696          (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
697     27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
698     Subsections (9)(a) through (c) are satisfied.
699          (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
700     shall be determined based on the claimant's specific monetary amount in the written demand
701     for payment of uninsured motorist coverage benefits as required in Subsection (9)(a)(i)(A).

702          (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
703     arbitration claims under this part.
704          (j) An issue of discovery shall be resolved by the arbitrator or the arbitration panel.
705          (k) A written decision by a single arbitrator or by a majority of the arbitration panel
706     constitutes a final decision.
707          (l) (i) Except as provided in Subsection (9), the amount of an arbitration award may not
708     exceed the underinsured motorist policy limits of all applicable underinsured motorist policies,
709     including applicable underinsured motorist umbrella policies.
710          (ii) If the initial arbitration award exceeds the underinsured motorist policy limits of all
711     applicable underinsured motorist policies, the arbitration award shall be reduced to an amount
712     equal to the combined underinsured motorist policy limits of all applicable underinsured
713     motorist policies.
714          (m) The arbitrator or arbitration panel may not decide an issue of coverage or
715     extra-contractual damages, including:
716          (i) whether the claimant is a covered person;
717          (ii) whether the policy extends coverage to the loss; or
718          (iii) an allegation or claim asserting consequential damages or bad faith liability.
719          (n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
720     class-representative basis.
721          (o) If the arbitrator or arbitration panel finds that the arbitration is not brought, pursued,
722     or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
723     and costs against the party that failed to bring, pursue, or defend the arbitration in good faith.
724          (p) An arbitration award issued under this section shall be the final resolution of all
725     claims not excluded by Subsection (8)(m) between the parties unless:
726          (i) the award is procured by corruption, fraud, or other undue means;
727          (ii) either party, within 20 days after service of the arbitration award:
728          (A) files a complaint requesting a trial de novo in the district court; and
729          (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo

730     under Subsection (8)(p)(ii)(A).
731          (q) (i) Upon filing a complaint for a trial de novo under Subsection (8)(p), a claim shall
732     proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules of
733     Evidence in the district court.
734          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
735     request a jury trial with a complaint requesting a trial de novo under Subsection (8)(p)(ii)(A).
736          (r) (i) If the claimant, as the moving party in a trial de novo requested under Subsection
737     (8)(p), does not obtain a verdict that is at least $5,000 and is at least 20% greater than the
738     arbitration award, the claimant is responsible for all of the nonmoving party's costs.
739          (ii) If the underinsured motorist carrier, as the moving party in a trial de novo requested
740     under Subsection (8)(p), does not obtain a verdict that is at least 20% less than the arbitration
741     award, the underinsured motorist carrier is responsible for all of the nonmoving party's costs.
742          (iii) Except as provided in Subsection (8)(r)(iv), the costs under this Subsection (8)(r)
743     shall include:
744          (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
745          (B) the costs of expert witnesses and depositions.
746          (iv) An award of costs under this Subsection (8)(r) may not exceed $2,500 unless
747     Subsection (9)(h)(iii) applies.
748          (s) For purposes of determining whether a party's verdict is greater or less than the
749     arbitration award under Subsection (8)(r), a court may not consider any recovery or other relief
750     granted on a claim for damages if the claim for damages:
751          (i) was not fully disclosed in writing prior to the arbitration proceeding; or
752          (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
753     Procedure.
754          (t) If a district court determines, upon a motion of the nonmoving party, that a moving
755     party's use of the trial de novo process is filed in bad faith in accordance with Section
756     78B-5-825, the district court may award reasonable attorney fees to the nonmoving party.
757          (u) Nothing in this section is intended to limit a claim under another portion of an

758     applicable insurance policy.
759          (v) If there are multiple underinsured motorist policies, as set forth in Subsection (4),
760     the claimant may elect to arbitrate in one hearing the claims against all the underinsured
761     motorist carriers.
762          (9) (a) Within 30 days after a covered person elects to submit a claim for underinsured
763     motorist benefits to binding arbitration or files litigation, the covered person shall provide to
764     the underinsured motorist carrier:
765          (i) a written demand for payment of underinsured motorist coverage benefits, setting
766     forth:
767          (A) subject to Subsection (9)(l), the specific monetary amount of the demand,
768     including a computation of the covered person's claimed past medical expenses, claimed past
769     lost wages, and all other claimed past economic damages; and
770          (B) the factual and legal basis and any supporting documentation for the demand;
771          (ii) a written statement under oath disclosing:
772          (A) (I) the names and last known addresses of all health care providers who have
773     rendered health care services to the covered person that are material to the claims for which the
774     underinsured motorist benefits are sought for a period of five years preceding the date of the
775     event giving rise to the claim for underinsured motorist benefits up to the time the election for
776     arbitration or litigation has been exercised; and
777          (II) the names and last known addresses of the health care providers who have rendered
778     health care services to the covered person, which the covered person claims are immaterial to
779     the claims for which underinsured motorist benefits are sought, for a period of five years
780     preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
781     the time the election for arbitration or litigation has been exercised that have not been disclosed
782     under Subsection (9)(a)(ii)(A)(I);
783          (B) (I) the names and last known addresses of all health insurers or other entities to
784     whom the covered person has submitted claims for health care services or benefits material to
785     the claims for which underinsured motorist benefits are sought, for a period of five years

786     preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
787     the time the election for arbitration or litigation has been exercised; and
788          (II) the names and last known addresses of the health insurers or other entities to whom
789     the covered person has submitted claims for health care services or benefits, which the covered
790     person claims are immaterial to the claims for which underinsured motorist benefits are sought,
791     for a period of five years preceding the date of the event giving rise to the claim for
792     underinsured motorist benefits up to the time the election for arbitration or litigation have not
793     been disclosed;
794          (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
795     employers of the covered person for a period of five years preceding the date of the event
796     giving rise to the claim for underinsured motorist benefits up to the time the election for
797     arbitration or litigation has been exercised;
798          (D) other documents to reasonably support the claims being asserted; and
799          (E) all state and federal statutory lienholders including a statement as to whether the
800     covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
801     Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
802     or if the claim is subject to any other state or federal statutory liens; and
803          (iii) signed authorizations to allow the underinsured motorist carrier to only obtain
804     records and billings from the individuals or entities disclosed under Subsections
805     (9)(a)(ii)(A)(I), (B)(I), and (C).
806          (b) (i) If the underinsured motorist carrier determines that the disclosure of undisclosed
807     health care providers or health care insurers under Subsection (9)(a)(ii) is reasonably necessary,
808     the underinsured motorist carrier may:
809          (A) make a request for the disclosure of the identity of the health care providers or
810     health care insurers; and
811          (B) make a request for authorizations to allow the underinsured motorist carrier to only
812     obtain records and billings from the individuals or entities not disclosed.
813          (ii) If the covered person does not provide the requested information within 10 days:

814          (A) the covered person shall disclose, in writing, the legal or factual basis for the
815     failure to disclose the health care providers or health care insurers; and
816          (B) either the covered person or the underinsured motorist carrier may request the
817     arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
818     provided if the covered person has elected arbitration.
819          (iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
820     the dispute concerning the disclosure and production of records of the health care providers or
821     health care insurers.
822          (c) (i) An underinsured motorist carrier that receives an election for arbitration or a
823     notice of filing litigation and the demand for payment of underinsured motorist benefits under
824     Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the
825     demand and receipt of the items specified in Subsections (9)(a)(i) through (iii), to:
826          (A) provide a written response to the written demand for payment provided for in
827     Subsection (9)(a)(i);
828          (B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
829     underinsured motorist carrier's determination of the amount owed to the covered person; and
830          (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
831     Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
832     Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
833     tender the amount, if any, of the underinsured motorist carrier's determination of the amount
834     owed to the covered person less:
835          (I) if the amount of the state or federal statutory lien is established, the amount of the
836     lien; or
837          (II) if the amount of the state or federal statutory lien is not established, two times the
838     amount of the medical expenses subject to the state or federal statutory lien until such time as
839     the amount of the state or federal statutory lien is established.
840          (ii) If the amount tendered by the underinsured motorist carrier under Subsection
841     (9)(c)(i) is the total amount of the underinsured motorist policy limits, the tendered amount

842     shall be accepted by the covered person.
843          (d) A covered person who receives a written response from an underinsured motorist
844     carrier as provided for in Subsection (9)(c)(i), may:
845          (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all
846     underinsured motorist claims; or
847          (ii) elect to:
848          (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
849     underinsured motorist claims; and
850          (B) continue to litigate or arbitrate the remaining claim in accordance with the election
851     made under Subsections (8)(a), (b), and (c).
852          (e) If a covered person elects to accept the amount tendered under Subsection (9)(c)(i)
853     as partial payment of all underinsured motorist claims, the final award obtained through
854     arbitration, litigation, or later settlement shall be reduced by any payment made by the
855     underinsured motorist carrier under Subsection (9)(c)(i).
856          (f) In an arbitration proceeding on the remaining underinsured claims:
857          (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
858     under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
859          (ii) the parties may not disclose the amount of the limits of underinsured motorist
860     benefits provided by the policy.
861          (g) If the final award obtained through arbitration or litigation is greater than the
862     average of the covered person's initial written demand for payment provided for in Subsection
863     (9)(a)(i) and the underinsured motorist carrier's initial written response provided for in
864     Subsection (9)(c)(i), the underinsured motorist carrier shall pay:
865          (i) the final award obtained through arbitration or litigation, except that if the award
866     exceeds the policy limits of the subject underinsured motorist policy by more than $15,000, the
867     amount shall be reduced to an amount equal to the policy limits plus $15,000; and
868          (ii) any of the following applicable costs:
869          (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;

870          (B) the arbitrator or arbitration panel's fee; and
871          (C) the reasonable costs of expert witnesses and depositions used in the presentation of
872     evidence during arbitration or litigation.
873          (h) (i) The covered person shall provide an affidavit of costs within five days of an
874     arbitration award.
875          (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
876     which the underinsured motorist carrier objects.
877          (B) The objection shall be resolved by the arbitrator or arbitration panel.
878          (iii) The award of costs by the arbitrator or arbitration panel under Subsection (9)(g)(ii)
879     may not exceed $5,000.
880          (i) (i) A covered person shall disclose all material information, other than rebuttal
881     evidence, within 30 days after a covered person elects to submit a claim for underinsured
882     motorist coverage benefits to binding arbitration or files litigation as specified in Subsection
883     (9)(a).
884          (ii) If the information under Subsection (9)(i)(i) is not disclosed, the covered person
885     may not recover costs or any amounts in excess of the policy under Subsection (9)(g).
886          (j) This Subsection (9) does not limit any other cause of action that arose or may arise
887     against the underinsured motorist carrier from the same dispute.
888          (k) The provisions of this Subsection (9) only apply to motor vehicle accidents that
889     occur on or after March 30, 2010.
890          (l) (i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the
891     covered person's requirement to provide a computation of any other economic damages
892     claimed, and the one or more respondents shall have a reasonable time after the receipt of the
893     computation of any other economic damages claimed to conduct fact and expert discovery as to
894     any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
895     Section 11, and Chapter 300, Section 11, to this Subsection (9)(l) and Subsection (9)(a)(i)(A)
896     apply to a claim submitted to binding arbitration or through litigation on or after May 13, 2014.
897          (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter

898     300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted to
899     binding arbitration or through litigation on or after May 13, 2014.