This document includes Senate Committee Amendments incorporated into the bill on Mon, Feb 13, 2023 at 9:32 AM by lpoole.
Representative Nelson T. Abbott proposes the following substitute bill:


1     
UNINSURED MOTORIST AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Nelson T. Abbott

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to underinsured motorist coverage.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends provisions related to the commencement of an action related to an
13     underinsured motorist claim; and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          31A-22-305, as last amended by Laws of Utah 2022, Chapter 163
22          31A-22-305.3, as last amended by Laws of Utah 2022, Chapters 163, 198
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 31A-22-305 is amended to read:

26          31A-22-305. Uninsured motorist coverage.
27          (1) As used in this section, "covered persons" includes:
28          (a) the named insured;
29          (b) for a claim arising on or after May 13, 2014, the named insured's dependent minor
30     children;
31          (c) persons related to the named insured by blood, marriage, adoption, or guardianship,
32     who are residents of the named insured's household, including those who usually make their
33     home in the same household but temporarily live elsewhere;
34          (d) any person occupying or using a motor vehicle:
35          (i) referred to in the policy; or
36          (ii) owned by a self-insured; and
37          (e) any person who is entitled to recover damages against the owner or operator of the
38     uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
39     Subsection (1)(a), (b), (c), or (d).
40          (2) As used in this section, "uninsured motor vehicle" includes:
41          (a) (i) a motor vehicle, the operation, maintenance, or use of which is not covered
42     under a liability policy at the time of an injury-causing occurrence; or
43          (ii) (A) a motor vehicle covered with lower liability limits than required by Section
44     31A-22-304; and
45          (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
46     the deficiency;
47          (b) an unidentified motor vehicle that left the scene of an accident proximately caused
48     by the motor vehicle operator;
49          (c) a motor vehicle covered by a liability policy, but coverage for an accident is
50     disputed by the liability insurer for more than 60 days or continues to be disputed for more than
51     60 days; or
52          (d) (i) an insured motor vehicle if, before or after the accident, the liability insurer of
53     the motor vehicle is declared insolvent by a court of competent jurisdiction; and
54          (ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the extent
55     that the claim against the insolvent insurer is not paid by a guaranty association or fund.
56          (3) Uninsured motorist coverage under Subsection 31A-22-302(1)(b) provides

57     coverage for covered persons who are legally entitled to recover damages from owners or
58     operators of uninsured motor vehicles because of bodily injury, sickness, disease, or death.
59          (4) (a) For new policies written on or after January 1, 2001, the limits of uninsured
60     motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
61     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
62     under the named insured's motor vehicle policy, unless a named insured rejects or purchases
63     coverage in a lesser amount by signing an acknowledgment form that:
64          (i) is filed with the department;
65          (ii) is provided by the insurer;
66          (iii) waives the higher coverage;
67          (iv) need only state in this or similar language that uninsured motorist coverage
68     provides benefits or protection to you and other covered persons for bodily injury resulting
69     from an accident caused by the fault of another party where the other party has no liability
70     insurance; and
71          (v) discloses the additional premiums required to purchase uninsured motorist
72     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
73     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
74     under the named insured's motor vehicle policy.
75          (b) Any selection or rejection under this Subsection (4) continues for that issuer of the
76     liability coverage until the insured requests, in writing, a change of uninsured motorist
77     coverage from that liability insurer.
78          (c) (i) Subsections (4)(a) and (b) apply retroactively to any claim arising on or after
79     January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
80     arbitration or filed a complaint in a court of competent jurisdiction.
81          (ii) The Legislature finds that the retroactive application of Subsections (4)(a) and (b)
82     clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
83          (d) For purposes of this Subsection (4), "new policy" means:
84          (i) any policy that is issued which does not include a renewal or reinstatement of an
85     existing policy; or
86          (ii) a change to an existing policy that results in:
87          (A) a named insured being added to or deleted from the policy; or

88          (B) a change in the limits of the named insured's motor vehicle liability coverage.
89          (e) (i) As used in this Subsection (4)(e), "additional motor vehicle" means a change
90     that increases the total number of vehicles insured by the policy, and does not include
91     replacement, substitute, or temporary vehicles.
92          (ii) The adding of an additional motor vehicle to an existing personal lines or
93     commercial lines policy does not constitute a new policy for purposes of Subsection (4)(d).
94          (iii) If an additional motor vehicle is added to a personal lines policy where uninsured
95     motorist coverage has been rejected, or where uninsured motorist limits are lower than the
96     named insured's motor vehicle liability limits, the insurer shall provide a notice to a named
97     insured within 30 days that:
98          (A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose of
99     uninsured motorist coverage; and
100          (B) encourages the named insured to contact the insurance company or insurance
101     producer for quotes as to the additional premiums required to purchase uninsured motorist
102     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
103     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
104     under the named insured's motor vehicle policy.
105          (f) A change in policy number resulting from any policy change not identified under
106     Subsection (4)(d)(ii) does not constitute a new policy.
107          (g) (i) Subsection (4)(d) applies retroactively to any claim arising on or after January 1,
108     2001, for which, as of May 1, 2012, an insured has not made a written demand for arbitration
109     or filed a complaint in a court of competent jurisdiction.
110          (ii) The Legislature finds that the retroactive application of Subsection (4):
111          (A) does not enlarge, eliminate, or destroy vested rights; and
112          (B) clarifies legislative intent.
113          (h) A self-insured, including a governmental entity, may elect to provide uninsured
114     motorist coverage in an amount that is less than its maximum self-insured retention under
115     Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy statement from
116     the chief financial officer or chief risk officer that declares the:
117          (i) self-insured entity's coverage level; and
118          (ii) process for filing an uninsured motorist claim.

119          (i) Uninsured motorist coverage may not be sold with limits that are less than the
120     minimum bodily injury limits for motor vehicle liability policies under Section 31A-22-304.
121          (j) The acknowledgment under Subsection (4)(a) continues for that issuer of the
122     uninsured motorist coverage until the named insured requests, in writing, different uninsured
123     motorist coverage from the insurer.
124          (k) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
125     policies existing on that date, the insurer shall disclose in the same medium as the premium
126     renewal notice, an explanation of:
127          (A) the purpose of uninsured motorist coverage in the same manner as described in
128     Subsection (4)(a)(iv); and
129          (B) a disclosure of the additional premiums required to purchase uninsured motorist
130     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
131     liability coverage or the maximum uninsured motorist coverage limits available by the insurer
132     under the named insured's motor vehicle policy.
133          (ii) The disclosure required under Subsection (4)(k)(i) shall be sent to all named
134     insureds that carry uninsured motorist coverage limits in an amount less than the named
135     insured's motor vehicle liability policy limits or the maximum uninsured motorist coverage
136     limits available by the insurer under the named insured's motor vehicle policy.
137          (l) For purposes of this Subsection (4), a notice or disclosure sent to a named insured in
138     a household constitutes notice or disclosure to all insureds within the household.
139          (5) (a) (i) Except as provided in Subsection (5)(b), the named insured may reject
140     uninsured motorist coverage by an express writing to the insurer that provides liability
141     coverage under Subsection 31A-22-302(1)(a).
142          (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
143     explanation of the purpose of uninsured motorist coverage.
144          (iii) This rejection continues for that issuer of the liability coverage until the insured in
145     writing requests uninsured motorist coverage from that liability insurer.
146          (b) (i) All persons, including governmental entities, that are engaged in the business of,
147     or that accept payment for, transporting natural persons by motor vehicle, and all school
148     districts that provide transportation services for their students, shall provide coverage for all
149     motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,

150     uninsured motorist coverage of at least $25,000 per person and $500,000 per accident.
151          (ii) This coverage is secondary to any other insurance covering an injured covered
152     person.
153          (c) Uninsured motorist coverage:
154          (i) does not cover any benefit paid or payable under Title 34A, Chapter 2, Workers'
155     Compensation Act, except that the covered person is credited an amount described in
156     Subsection 34A-2-106(5);
157          (ii) may not be subrogated by the workers' compensation insurance carrier, workers'
158     compensation insurance, uninsured employer, the Uninsured Employers Fund created in
159     Section 34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702;
160          (iii) may not be reduced by any benefits provided by workers' compensation insurance,
161     uninsured employer, the Uninsured Employers Fund created in Section 34A-2-704, or the
162     Employers' Reinsurance Fund created in Section 34A-2-702;
163          (iv) notwithstanding Subsection 31A-1-103(3) Ŝ→ (f) ←Ŝ , may be reduced by health
163a     insurance
164     subrogation only after the covered person has been made whole;
165          (v) may not be collected for bodily injury or death sustained by a person:
166          (A) while committing a violation of Section 41-1a-1314;
167          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
168     in violation of Section 41-1a-1314; or
169          (C) while committing a felony; and
170          (vi) notwithstanding Subsection (5)(c)(v), may be recovered:
171          (A) for a person under 18 years old who is injured within the scope of Subsection
172     (5)(c)(v) but limited to medical and funeral expenses; or
173          (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
174     within the course and scope of the law enforcement officer's duties.
175          (d) As used in this Subsection (5), "motor vehicle" has the same meaning as under
176     Section 41-1a-102.
177          (6) When a covered person alleges that an uninsured motor vehicle under Subsection
178     (2)(b) proximately caused an accident without touching the covered person or the motor
179     vehicle occupied by the covered person, the covered person shall show the existence of the
180     uninsured motor vehicle by clear and convincing evidence consisting of more than the covered

181     person's testimony.
182          (7) (a) The limit of liability for uninsured motorist coverage for two or more motor
183     vehicles may not be added together, combined, or stacked to determine the limit of insurance
184     coverage available to an injured person for any one accident.
185          (b) (i) Subsection (7)(a) applies to all persons except a covered person as defined under
186     Subsection (8)(b).
187          (ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
188     limits of uninsured motorist coverage afforded for any one motor vehicle that the covered
189     person is the named insured or an insured family member.
190          (iii) This coverage shall be in addition to the coverage on the motor vehicle the covered
191     person is occupying.
192          (iv) Neither the primary nor the secondary coverage may be set off against the other.
193          (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
194     coverage, and the coverage elected by a person described under Subsections (1)(a)[, (b), and]
195     through (c) shall be secondary coverage.
196          (8) (a) Uninsured motorist coverage under this section applies to bodily injury,
197     sickness, disease, or death of covered persons while occupying or using a motor vehicle only if
198     the motor vehicle is described in the policy under which a claim is made, or if the motor
199     vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
200     Except as provided in Subsection (7) or this Subsection (8), a covered person injured in a
201     motor vehicle described in a policy that includes uninsured motorist benefits may not elect to
202     collect uninsured motorist coverage benefits from any other motor vehicle insurance policy
203     under which the person is a covered person.
204          (b) Each of the following persons may also recover uninsured motorist benefits under
205     any one other policy in which they are described as a "covered person" as defined in Subsection
206     (1):
207          (i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
208          (ii) except as provided in Subsection (8)(c), a covered person injured while occupying
209     or using a motor vehicle that is not owned, leased, or furnished:
210          (A) to the covered person;
211          (B) to the covered person's spouse; or

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

243     the claimant may not elect to resolve the claim through binding arbitration under this section
244     without the written consent of the uninsured motorist carrier.
245          (d) For purposes of the statute of limitations applicable to a claim described in
246     Subsection (9)(a), if the claimant does not elect to resolve the claim through litigation, the
247     claim is considered filed when the claimant submits the claim to binding arbitration in
248     accordance with this Subsection (9).
249          (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
250     binding arbitration under Subsection (9)(a)(i) shall be resolved by a single arbitrator.
251          (ii) All parties shall agree on the single arbitrator selected under Subsection (9)(e)(i).
252          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
253     (9)(e)(ii), the parties shall select a panel of three arbitrators.
254          (f) If the parties select a panel of three arbitrators under Subsection (9)(e)(iii):
255          (i) each side shall select one arbitrator; and
256          (ii) the arbitrators appointed under Subsection (9)(f)(i) shall select one additional
257     arbitrator to be included in the panel.
258          (g) Unless otherwise agreed to in writing:
259          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
260     under Subsection (9)(e)(i); or
261          (ii) if an arbitration panel is selected under Subsection (9)(e)(iii):
262          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
263          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
264     under Subsection (9)(f)(ii).
265          (h) Except as otherwise provided in this section or unless otherwise agreed to in
266     writing by the parties, an arbitration proceeding conducted under this section shall be governed
267     by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
268          (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
269     27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
270     Subsections (10)(a) through (c) are satisfied.
271          (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
272     shall be determined based on the claimant's specific monetary amount in the written demand
273     for payment of uninsured motorist coverage benefits as required in Subsection (10)(a)(i)(A).

274          (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
275     arbitration claims under this part.
276          (j) All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
277          (k) A written decision by a single arbitrator or by a majority of the arbitration panel
278     shall constitute a final decision.
279          (l) (i) Except as provided in Subsection (10), the amount of an arbitration award may
280     not exceed the uninsured motorist policy limits of all applicable uninsured motorist policies,
281     including applicable uninsured motorist umbrella policies.
282          (ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
283     applicable uninsured motorist policies, the arbitration award shall be reduced to an amount
284     equal to the combined uninsured motorist policy limits of all applicable uninsured motorist
285     policies.
286          (m) The arbitrator or arbitration panel may not decide the issues of coverage or
287     extra-contractual damages, including:
288          (i) whether the claimant is a covered person;
289          (ii) whether the policy extends coverage to the loss; or
290          (iii) any allegations or claims asserting consequential damages or bad faith liability.
291          (n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
292     class-representative basis.
293          (o) If the arbitrator or arbitration panel finds that the action was not brought, pursued,
294     or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
295     and costs against the party that failed to bring, pursue, or defend the claim in good faith.
296          (p) An arbitration award issued under this section shall be the final resolution of all
297     claims not excluded by Subsection (9)(m) between the parties unless:
298          (i) the award was procured by corruption, fraud, or other undue means;
299          (ii) either party, within 20 days after service of the arbitration award:
300          (A) files a complaint requesting a trial de novo in the district court; and
301          (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
302     under Subsection (9)(p)(ii)(A).
303          (q) (i) Upon filing a complaint for a trial de novo under Subsection (9)(p), the claim
304     shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules

305     of Evidence in the district court.
306          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
307     request a jury trial with a complaint requesting a trial de novo under Subsection (9)(p)(ii)(A).
308          (r) (i) If the claimant, as the moving party in a trial de novo requested under Subsection
309     (9)(p), does not obtain a verdict that is at least $5,000 and is at least 20% greater than the
310     arbitration award, the claimant is responsible for all of the nonmoving party's costs.
311          (ii) If the uninsured motorist carrier, as the moving party in a trial de novo requested
312     under Subsection (9)(p), does not obtain a verdict that is at least 20% less than the arbitration
313     award, the uninsured motorist carrier is responsible for all of the nonmoving party's costs.
314          (iii) Except as provided in Subsection (9)(r)(iv), the costs under this Subsection (9)(r)
315     shall include:
316          (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
317          (B) the costs of expert witnesses and depositions.
318          (iv) An award of costs under this Subsection (9)(r) may not exceed $2,500 unless
319     Subsection (10)(h)(iii) applies.
320          (s) For purposes of determining whether a party's verdict is greater or less than the
321     arbitration award under Subsection (9)(r), a court may not consider any recovery or other relief
322     granted on a claim for damages if the claim for damages:
323          (i) was not fully disclosed in writing prior to the arbitration proceeding; or
324          (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
325     Procedure.
326          (t) If a district court determines, upon a motion of the nonmoving party, that the
327     moving party's use of the trial de novo process was filed in bad faith in accordance with
328     Section 78B-5-825, the district court may award reasonable attorney fees to the nonmoving
329     party.
330          (u) Nothing in this section is intended to limit any claim under any other portion of an
331     applicable insurance policy.
332          (v) If there are multiple uninsured motorist policies, as set forth in Subsection (8), the
333     claimant may elect to arbitrate in one hearing the claims against all the uninsured motorist
334     carriers.
335          (10) (a) Within 30 days after a covered person elects to submit a claim for uninsured

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

367     giving rise to the claim for uninsured motorist benefits up to the time the election for
368     arbitration or litigation has been exercised;
369          (D) other documents to reasonably support the claims being asserted; and
370          (E) all state and federal statutory lienholders including a statement as to whether the
371     covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
372     Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
373     or if the claim is subject to any other state or federal statutory liens; and
374          (iii) signed authorizations to allow the uninsured motorist carrier to only obtain records
375     and billings from the individuals or entities disclosed under Subsections (10)(a)(ii)(A)(I),
376     (B)(I), and (C).
377          (b) (i) If the uninsured motorist carrier determines that the disclosure of undisclosed
378     health care providers or health care insurers under Subsection (10)(a)(ii) is reasonably
379     necessary, the uninsured motorist carrier may:
380          (A) make a request for the disclosure of the identity of the health care providers or
381     health care insurers; and
382          (B) make a request for authorizations to allow the uninsured motorist carrier to only
383     obtain records and billings from the individuals or entities not disclosed.
384          (ii) If the covered person does not provide the requested information within 10 days:
385          (A) the covered person shall disclose, in writing, the legal or factual basis for the
386     failure to disclose the health care providers or health care insurers; and
387          (B) either the covered person or the uninsured motorist carrier may request the
388     arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
389     provided if the covered person has elected arbitration.
390          (iii) The time periods imposed by Subsection (10)(c)(i) are tolled pending resolution of
391     the dispute concerning the disclosure and production of records of the health care providers or
392     health care insurers.
393          (c) (i) An uninsured motorist carrier that receives an election for arbitration or a notice
394     of filing litigation and the demand for payment of uninsured motorist benefits under Subsection
395     (10)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand and
396     receipt of the items specified in Subsections (10)(a)(i) through (iii), to:
397          (A) provide a written response to the written demand for payment provided for in

398     Subsection (10)(a)(i);
399          (B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of the
400     uninsured motorist carrier's determination of the amount owed to the covered person; and
401          (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
402     Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
403     Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
404     tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed
405     to the covered person less:
406          (I) if the amount of the state or federal statutory lien is established, the amount of the
407     lien; or
408          (II) if the amount of the state or federal statutory lien is not established, two times the
409     amount of the medical expenses subject to the state or federal statutory lien until such time as
410     the amount of the state or federal statutory lien is established.
411          (ii) If the amount tendered by the uninsured motorist carrier under Subsection (10)(c)(i)
412     is the total amount of the uninsured motorist policy limits, the tendered amount shall be
413     accepted by the covered person.
414          (d) A covered person who receives a written response from an uninsured motorist
415     carrier as provided for in Subsection (10)(c)(i), may:
416          (i) elect to accept the amount tendered in Subsection (10)(c)(i) as payment in full of all
417     uninsured motorist claims; or
418          (ii) elect to:
419          (A) accept the amount tendered in Subsection (10)(c)(i) as partial payment of all
420     uninsured motorist claims; and
421          (B) continue to litigate or arbitrate the remaining claim in accordance with the election
422     made under Subsections [(9)(a), (b), and] (9)(a) through (c).
423          (e) If a covered person elects to accept the amount tendered under Subsection (10)(c)(i)
424     as partial payment of all uninsured motorist claims, the final award obtained through
425     arbitration, litigation, or later settlement shall be reduced by any payment made by the
426     uninsured motorist carrier under Subsection (10)(c)(i).
427          (f) In an arbitration proceeding on the remaining uninsured claims:
428          (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid

429     under Subsection (10)(c)(i) until after the arbitration award has been rendered; and
430          (ii) the parties may not disclose the amount of the limits of uninsured motorist benefits
431     provided by the policy.
432          (g) If the final award obtained through arbitration or litigation is greater than the
433     average of the covered person's initial written demand for payment provided for in Subsection
434     (10)(a)(i) and the uninsured motorist carrier's initial written response provided for in
435     Subsection (10)(c)(i), the uninsured motorist carrier shall pay:
436          (i) the final award obtained through arbitration or litigation, except that if the award
437     exceeds the policy limits of the subject uninsured motorist policy by more than $15,000, the
438     amount shall be reduced to an amount equal to the policy limits plus $15,000; and
439          (ii) any of the following applicable costs:
440          (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
441          (B) the arbitrator or arbitration panel's fee; and
442          (C) the reasonable costs of expert witnesses and depositions used in the presentation of
443     evidence during arbitration or litigation.
444          (h) (i) The covered person shall provide an affidavit of costs within five days of an
445     arbitration award.
446          (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
447     which the uninsured motorist carrier objects.
448          (B) The objection shall be resolved by the arbitrator or arbitration panel.
449          (iii) The award of costs by the arbitrator or arbitration panel under Subsection
450     (10)(g)(ii) may not exceed $5,000.
451          (i) (i) A covered person shall disclose all material information, other than rebuttal
452     evidence, within 30 days after a covered person elects to submit a claim for uninsured motorist
453     coverage benefits to binding arbitration or files litigation as specified in Subsection (10)(a).
454          (ii) If the information under Subsection (10)(i)(i) is not disclosed, the covered person
455     may not recover costs or any amounts in excess of the policy under Subsection (10)(g).
456          (j) This Subsection (10) does not limit any other cause of action that arose or may arise
457     against the uninsured motorist carrier from the same dispute.
458          (k) The provisions of this Subsection (10) only apply to motor vehicle accidents that
459     occur on or after March 30, 2010.

460          (l) (i) (A) The written demand requirement in Subsection (10)(a)(i)(A) does not affect
461     the covered person's requirement to provide a computation of any other economic damages
462     claimed, and the one or more respondents shall have a reasonable time after the receipt of the
463     computation of any other economic damages claimed to conduct fact and expert discovery as to
464     any additional damages claimed.
465          (B) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
466     300, Section 10, to this Subsection (10)(l) and Subsection (10)(a)(i)(A) apply to a claim
467     submitted to binding arbitration or through litigation on or after May 13, 2014.
468          (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
469     300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim submitted to
470     binding arbitration or through litigation on or after May 13, 2014.
471          (11) (a) Notwithstanding Section 31A-21-313, an action on a written policy or contract
472     for uninsured motorist coverage shall be commenced within four years after the inception of
473     loss.
474          (b) Subsection (11)(a) shall apply to all claims that have not been time barred by
475     Subsection 31A-21-313(1)(a) as of May 14, 2019.
476          Section 2. Section 31A-22-305.3 is amended to read:
477          31A-22-305.3. Underinsured motorist coverage.
478          (1) As used in this section:
479          (a) "Covered person" has the same meaning as defined in Section 31A-22-305.
480          (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
481     maintenance, or use of which is covered under a liability policy at the time of an injury-causing
482     occurrence, but which has insufficient liability coverage to compensate fully the injured party
483     for all special and general damages.
484          (ii) The term "underinsured motor vehicle" does not include:
485          (A) a motor vehicle that is covered under the liability coverage of the same policy that
486     also contains the underinsured motorist coverage;
487          (B) an uninsured motor vehicle as defined in Subsection 31A-22-305(2); or
488          (C) a motor vehicle owned or leased by:
489          (I) a named insured;
490          (II) a named insured's spouse; or

491          (III) a dependent of a named insured.
492          (2) (a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides
493     coverage for a covered person who is legally entitled to recover damages from an owner or
494     operator of an underinsured motor vehicle because of bodily injury, sickness, disease, or death.
495          (b) A covered person occupying or using a motor vehicle owned, leased, or furnished
496     to the covered person, the covered person's spouse, or covered person's resident relative may
497     recover underinsured benefits only if the motor vehicle is:
498          (i) described in the policy under which a claim is made; or
499          (ii) a newly acquired or replacement motor vehicle covered under the terms of the
500     policy.
501          (3) (a) For purposes of this Subsection (3), "new policy" means:
502          (i) any policy that is issued that does not include a renewal or reinstatement of an
503     existing policy; or
504          (ii) a change to an existing policy that results in:
505          (A) a named insured being added to or deleted from the policy; or
506          (B) a change in the limits of the named insured's motor vehicle liability coverage.
507          (b) For new policies written on or after January 1, 2001, the limits of underinsured
508     motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
509     liability coverage or the maximum underinsured motorist coverage limits available by the
510     insurer under the named insured's motor vehicle policy, unless a named insured rejects or
511     purchases coverage in a lesser amount by signing an acknowledgment form that:
512          (i) is filed with the department;
513          (ii) is provided by the insurer;
514          (iii) waives the higher coverage;
515          (iv) need only state in this or similar language that "underinsured motorist coverage
516     provides benefits or protection to you and other covered persons for bodily injury resulting
517     from an accident caused by the fault of another party where the other party has insufficient
518     liability insurance"; and
519          (v) discloses the additional premiums required to purchase underinsured motorist
520     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
521     liability coverage or the maximum underinsured motorist coverage limits available by the

522     insurer under the named insured's motor vehicle policy.
523          (c) Any selection or rejection under Subsection (3)(b) continues for that issuer of the
524     liability coverage until the insured requests, in writing, a change of underinsured motorist
525     coverage from that liability insurer.
526          (d) (i) Subsections (3)(b) and (c) apply retroactively to any claim arising on or after
527     January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
528     arbitration or filed a complaint in a court of competent jurisdiction.
529          (ii) The Legislature finds that the retroactive application of Subsections (3)(b) and (c)
530     clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
531          (e) (i) As used in this Subsection (3)(e), "additional motor vehicle" means a change
532     that increases the total number of vehicles insured by the policy, and does not include
533     replacement, substitute, or temporary vehicles.
534          (ii) The adding of an additional motor vehicle to an existing personal lines or
535     commercial lines policy does not constitute a new policy for purposes of Subsection (3)(a).
536          (iii) If an additional motor vehicle is added to a personal lines policy where
537     underinsured motorist coverage has been rejected, or where underinsured motorist limits are
538     lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice
539     to a named insured within 30 days that:
540          (A) in the same manner described in Subsection (3)(b)(iv), explains the purpose of
541     underinsured motorist coverage; and
542          (B) encourages the named insured to contact the insurance company or insurance
543     producer for quotes as to the additional premiums required to purchase underinsured motorist
544     coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
545     liability coverage or the maximum underinsured motorist coverage limits available by the
546     insurer under the named insured's motor vehicle policy.
547          (f) A change in policy number resulting from any policy change not identified under
548     Subsection (3)(a)(ii) does not constitute a new policy.
549          (g) (i) Subsection (3)(a) applies retroactively to any claim arising on or after January 1,
550     2001 for which, as of May 1, 2012, an insured has not made a written demand for arbitration or
551     filed a complaint in a court of competent jurisdiction.
552          (ii) The Legislature finds that the retroactive application of Subsection (3)(a):

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

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

615          (iv) A covered person's recovery under any available policies may not exceed the full
616     amount of damages.
617          (v) Underinsured coverage on a motor vehicle occupied at the time of an accident is
618     primary coverage, and the coverage elected by a person described under Subsections
619     31A-22-305(1)(a), (b), and (c) is secondary coverage.
620          (vi) The primary and the secondary coverage may not be set off against the other.
621          (vii) A covered person as described under Subsection (4)(b)(i) or is entitled to the
622     highest limits of underinsured motorist coverage under only one additional policy per
623     household applicable to that covered person as a named insured, spouse, or relative.
624          (viii) A covered injured person is not barred against making subsequent elections if
625     recovery is unavailable under previous elections.
626          (ix) (A) As used in this section, "interpolicy stacking" means recovering benefits for a
627     single incident of loss under more than one insurance policy.
628          (B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
629     prohibited for underinsured motorist coverage.
630          (c) Underinsured motorist coverage:
631          (i) does not cover any benefit paid or payable under Title 34A, Chapter 2, Workers'
632     Compensation Act, except that the covered person is credited an amount described in
633     Subsection 34A-2-106(5);
634          (ii) may not be subrogated by a workers' compensation insurance carrier, workers'
635     compensation insurance, uninsured employer, the Uninsured Employers Fund created in
636     Section 34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702;
637          (iii) may not be reduced by benefits provided by workers' compensation insurance,
638     uninsured employer, the Uninsured Employers Fund created in Section 34A-2-704, or the
639     Employers' Reinsurance Fund created in Section 34A-2-702;
640          (iv) notwithstanding Subsection 31A-1-103(3) Ŝ→ (f) ←Ŝ , may be reduced by health
640a     insurance
641     subrogation only after the covered person is made whole;
642          (v) may not be collected for bodily injury or death sustained by a person:
643          (A) while committing a violation of Section 41-1a-1314;
644          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
645     in violation of Section 41-1a-1314; or

646          (C) while committing a felony; and
647          (vi) notwithstanding Subsection (4)(c)(v), may be recovered:
648          (A) for a person younger than 18 years old who is injured within the scope of
649     Subsection (4)(c)(v), but is limited to medical and funeral expenses; or
650          (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
651     within the course and scope of the law enforcement officer's duties.
652          (5) (a) Notwithstanding Section 31A-21-313, an action on a written policy or contract
653     for underinsured motorist coverage shall be commenced within four years after the inception of
654     loss.
655          (b) The inception of the loss under Subsection 31A-21-313(1) for underinsured
656     motorist claims occurs upon the date of the settlement check representing the last liability
657     policy payment.
658          (6) An underinsured motorist insurer does not have a right of reimbursement against a
659     person liable for the damages resulting from an injury-causing occurrence if the person's
660     liability insurer has tendered the policy limit and the limits have been accepted by the claimant.
661          (7) Except as otherwise provided in this section, a covered person may seek, subject to
662     the terms and conditions of the policy, additional coverage under any policy:
663          (a) that provides coverage for damages resulting from motor vehicle accidents; and
664          (b) that is not required to conform to Section 31A-22-302.
665          (8) (a) When a claim is brought by a named insured or a person described in
666     Subsection 31A-22-305(1) and is asserted against the covered person's underinsured motorist
667     carrier, the claimant may elect to resolve the claim:
668          (i) by submitting the claim to binding arbitration; or
669          (ii) through litigation.
670          (b) Unless otherwise provided in the policy under which underinsured benefits are
671     claimed, the election provided in Subsection (8)(a) is available to the claimant only, except that
672     if the policy under which insured benefits are claimed provides that either an insured or the
673     insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
674     arbitrate shall stay the litigation of the claim under Subsection (8)(a)(ii).
675          (c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the
676     claimant may not elect to resolve the claim through binding arbitration under this section

677     without the written consent of the underinsured motorist coverage carrier.
678          (d) For purposes of the statute of limitations applicable to a claim described in
679     Subsection (8)(a), if the claimant does not elect to resolve the claim through litigation, the
680     claim is considered filed when the claimant submits the claim to binding arbitration in
681     accordance with this Subsection (8).
682          (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
683     binding arbitration under Subsection (8)(a)(i) shall be resolved by a single arbitrator.
684          (ii) All parties shall agree on the single arbitrator selected under Subsection (8)(e)(i).
685          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
686     (8)(e)(ii), the parties shall select a panel of three arbitrators.
687          (f) If the parties select a panel of three arbitrators under Subsection (8)(e)(iii):
688          (i) each side shall select one arbitrator; and
689          (ii) the arbitrators appointed under Subsection (8)(f)(i) shall select one additional
690     arbitrator to be included in the panel.
691          (g) Unless otherwise agreed to in writing:
692          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
693     under Subsection (8)(e)(i); or
694          (ii) if an arbitration panel is selected under Subsection (8)(e)(iii):
695          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
696          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
697     under Subsection (8)(f)(ii).
698          (h) Except as otherwise provided in this section or unless otherwise agreed to in
699     writing by the parties, an arbitration proceeding conducted under this section is governed by
700     Title 78B, Chapter 11, Utah Uniform Arbitration Act.
701          (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
702     27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
703     Subsections (9)(a) through (c) are satisfied.
704          (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
705     shall be determined based on the claimant's specific monetary amount in the written demand
706     for payment of uninsured motorist coverage benefits as required in Subsection (9)(a)(i)(A).
707          (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to

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

739          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
740     request a jury trial with a complaint requesting a trial de novo under Subsection (8)(p)(ii)(A).
741          (r) (i) If the claimant, as the moving party in a trial de novo requested under Subsection
742     (8)(p), does not obtain a verdict that is at least $5,000 and is at least 20% greater than the
743     arbitration award, the claimant is responsible for all of the nonmoving party's costs.
744          (ii) If the underinsured motorist carrier, as the moving party in a trial de novo requested
745     under Subsection (8)(p), does not obtain a verdict that is at least 20% less than the arbitration
746     award, the underinsured motorist carrier is responsible for all of the nonmoving party's costs.
747          (iii) Except as provided in Subsection (8)(r)(iv), the costs under this Subsection (8)(r)
748     shall include:
749          (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
750          (B) the costs of expert witnesses and depositions.
751          (iv) An award of costs under this Subsection (8)(r) may not exceed $2,500 unless
752     Subsection (9)(h)(iii) applies.
753          (s) For purposes of determining whether a party's verdict is greater or less than the
754     arbitration award under Subsection (8)(r), a court may not consider any recovery or other relief
755     granted on a claim for damages if the claim for damages:
756          (i) was not fully disclosed in writing prior to the arbitration proceeding; or
757          (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
758     Procedure.
759          (t) If a district court determines, upon a motion of the nonmoving party, that a moving
760     party's use of the trial de novo process is filed in bad faith in accordance with Section
761     78B-5-825, the district court may award reasonable attorney fees to the nonmoving party.
762          (u) Nothing in this section is intended to limit a claim under another portion of an
763     applicable insurance policy.
764          (v) If there are multiple underinsured motorist policies, as set forth in Subsection (4),
765     the claimant may elect to arbitrate in one hearing the claims against all the underinsured
766     motorist carriers.
767          (9) (a) Within 30 days after a covered person elects to submit a claim for underinsured
768     motorist benefits to binding arbitration or files litigation, the covered person shall provide to
769     the underinsured motorist carrier:

770          (i) a written demand for payment of underinsured motorist coverage benefits, setting
771     forth:
772          (A) subject to Subsection (9)(l), the specific monetary amount of the demand,
773     including a computation of the covered person's claimed past medical expenses, claimed past
774     lost wages, and all other claimed past economic damages; and
775          (B) the factual and legal basis and any supporting documentation for the demand;
776          (ii) a written statement under oath disclosing:
777          (A) (I) the names and last known addresses of all health care providers who have
778     rendered health care services to the covered person that are material to the claims for which the
779     underinsured motorist benefits are sought for a period of five years preceding the date of the
780     event giving rise to the claim for underinsured motorist benefits up to the time the election for
781     arbitration or litigation has been exercised; and
782          (II) the names and last known addresses of the health care providers who have rendered
783     health care services to the covered person, which the covered person claims are immaterial to
784     the claims for which underinsured motorist benefits are sought, for a period of five years
785     preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
786     the time the election for arbitration or litigation has been exercised that have not been disclosed
787     under Subsection (9)(a)(ii)(A)(I);
788          (B) (I) the names and last known addresses of all health insurers or other entities to
789     whom the covered person has submitted claims for health care services or benefits material to
790     the claims for which underinsured motorist benefits are sought, for a period of five years
791     preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
792     the time the election for arbitration or litigation has been exercised; and
793          (II) the names and last known addresses of the health insurers or other entities to whom
794     the covered person has submitted claims for health care services or benefits, which the covered
795     person claims are immaterial to the claims for which underinsured motorist benefits are sought,
796     for a period of five years preceding the date of the event giving rise to the claim for
797     underinsured motorist benefits up to the time the election for arbitration or litigation have not
798     been disclosed;
799          (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
800     employers of the covered person for a period of five years preceding the date of the event

801     giving rise to the claim for underinsured motorist benefits up to the time the election for
802     arbitration or litigation has been exercised;
803          (D) other documents to reasonably support the claims being asserted; and
804          (E) all state and federal statutory lienholders including a statement as to whether the
805     covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
806     Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
807     or if the claim is subject to any other state or federal statutory liens; and
808          (iii) signed authorizations to allow the underinsured motorist carrier to only obtain
809     records and billings from the individuals or entities disclosed under Subsections
810     (9)(a)(ii)(A)(I), (B)(I), and (C).
811          (b) (i) If the underinsured motorist carrier determines that the disclosure of undisclosed
812     health care providers or health care insurers under Subsection (9)(a)(ii) is reasonably necessary,
813     the underinsured motorist carrier may:
814          (A) make a request for the disclosure of the identity of the health care providers or
815     health care insurers; and
816          (B) make a request for authorizations to allow the underinsured motorist carrier to only
817     obtain records and billings from the individuals or entities not disclosed.
818          (ii) If the covered person does not provide the requested information within 10 days:
819          (A) the covered person shall disclose, in writing, the legal or factual basis for the
820     failure to disclose the health care providers or health care insurers; and
821          (B) either the covered person or the underinsured motorist carrier may request the
822     arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
823     provided if the covered person has elected arbitration.
824          (iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
825     the dispute concerning the disclosure and production of records of the health care providers or
826     health care insurers.
827          (c) (i) An underinsured motorist carrier that receives an election for arbitration or a
828     notice of filing litigation and the demand for payment of underinsured motorist benefits under
829     Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the
830     demand and receipt of the items specified in Subsections (9)(a)(i) through (iii), to:
831          (A) provide a written response to the written demand for payment provided for in

832     Subsection (9)(a)(i);
833          (B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
834     underinsured motorist carrier's determination of the amount owed to the covered person; and
835          (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
836     Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
837     Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
838     tender the amount, if any, of the underinsured motorist carrier's determination of the amount
839     owed to the covered person less:
840          (I) if the amount of the state or federal statutory lien is established, the amount of the
841     lien; or
842          (II) if the amount of the state or federal statutory lien is not established, two times the
843     amount of the medical expenses subject to the state or federal statutory lien until such time as
844     the amount of the state or federal statutory lien is established.
845          (ii) If the amount tendered by the underinsured motorist carrier under Subsection
846     (9)(c)(i) is the total amount of the underinsured motorist policy limits, the tendered amount
847     shall be accepted by the covered person.
848          (d) A covered person who receives a written response from an underinsured motorist
849     carrier as provided for in Subsection (9)(c)(i), may:
850          (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all
851     underinsured motorist claims; or
852          (ii) elect to:
853          (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
854     underinsured motorist claims; and
855          (B) continue to litigate or arbitrate the remaining claim in accordance with the election
856     made under Subsections [(8)(a), (b), and] (8)(a) through (c).
857          (e) If a covered person elects to accept the amount tendered under Subsection (9)(c)(i)
858     as partial payment of all underinsured motorist claims, the final award obtained through
859     arbitration, litigation, or later settlement shall be reduced by any payment made by the
860     underinsured motorist carrier under Subsection (9)(c)(i).
861          (f) In an arbitration proceeding on the remaining underinsured claims:
862          (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid

863     under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
864          (ii) the parties may not disclose the amount of the limits of underinsured motorist
865     benefits provided by the policy.
866          (g) If the final award obtained through arbitration or litigation is greater than the
867     average of the covered person's initial written demand for payment provided for in Subsection
868     (9)(a)(i) and the underinsured motorist carrier's initial written response provided for in
869     Subsection (9)(c)(i), the underinsured motorist carrier shall pay:
870          (i) the final award obtained through arbitration or litigation, except that if the award
871     exceeds the policy limits of the subject underinsured motorist policy by more than $15,000, the
872     amount shall be reduced to an amount equal to the policy limits plus $15,000; and
873          (ii) any of the following applicable costs:
874          (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
875          (B) the arbitrator or arbitration panel's fee; and
876          (C) the reasonable costs of expert witnesses and depositions used in the presentation of
877     evidence during arbitration or litigation.
878          (h) (i) The covered person shall provide an affidavit of costs within five days of an
879     arbitration award.
880          (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
881     which the underinsured motorist carrier objects.
882          (B) The objection shall be resolved by the arbitrator or arbitration panel.
883          (iii) The award of costs by the arbitrator or arbitration panel under Subsection (9)(g)(ii)
884     may not exceed $5,000.
885          (i) (i) A covered person shall disclose all material information, other than rebuttal
886     evidence, within 30 days after a covered person elects to submit a claim for underinsured
887     motorist coverage benefits to binding arbitration or files litigation as specified in Subsection
888     (9)(a).
889          (ii) If the information under Subsection (9)(i)(i) is not disclosed, the covered person
890     may not recover costs or any amounts in excess of the policy under Subsection (9)(g).
891          (j) This Subsection (9) does not limit any other cause of action that arose or may arise
892     against the underinsured motorist carrier from the same dispute.
893          (k) The provisions of this Subsection (9) only apply to motor vehicle accidents that

894     occur on or after March 30, 2010.
895          (l) (i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the
896     covered person's requirement to provide a computation of any other economic damages
897     claimed, and the one or more respondents shall have a reasonable time after the receipt of the
898     computation of any other economic damages claimed to conduct fact and expert discovery as to
899     any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
900     Section 11, and Chapter 300, Section 11, to this Subsection (9)(l) and Subsection (9)(a)(i)(A)
901     apply to a claim submitted to binding arbitration or through litigation on or after May 13, 2014.
902          (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter
903     300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted to
904     binding arbitration or through litigation on or after May 13, 2014.