H.B. 245
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: K.P. Gasser 6
6 01-19-23 3:12 PM 6
H.B. 245
1 UNINSURED MOTORI ST AMENDMENTS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Nelson T. Abbott
5 Senate Sponsor: ____________
6
7LONG TITLE
8General Description:
9 This bill amends provisions related to uninsured and underinsured motorist coverage
10issues, including the disclosure of information and curing deficiencies in the sharing of
11information.
12Highlighted Provisions:
13 This bill:
14 <requires an uninsured or underinsured motorist carrier to identify and specify a
15deficiency in a covered person's demand for payment;
16 <provides an opportunity for an individual to cure a deficiency in information;
17 <allows an uninsured or underinsured motorist carrier to file an objection to a
18covered person's recovery of certain costs;
19 <provides criteria for an arbitrator to consider regarding an objection to a covered
20person's recovery of costs; and
21 <makes technical changes.
22Money Appropriated in this Bill:
23 None
24Other Special Clauses:
25 None
26Utah Code Sections Affected:
27AMENDS:
*HB0245* H.B. 245 01-19-23 3:12 PM
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28 31A-22-305, as last amended by Laws of Utah 2022, Chapter 163
29 31A-22-305.3, as last amended by Laws of Utah 2022, Chapters 163, 198
30
31Be 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
37children;
38 (c) persons related to the named insured by blood, marriage, adoption, or guardianship,
39who are residents of the named insured's household, including those who usually make their
40home 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
45uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
46Subsection (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
49under 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
5131A-22-304; and
52 (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
53the deficiency;
54 (b) an unidentified motor vehicle that left the scene of an accident proximately caused
55by the motor vehicle operator;
56 (c) a motor vehicle covered by a liability policy, but coverage for an accident is
57disputed by the liability insurer for more than 60 days or continues to be disputed for more than
5860 days; or 01-19-23 3:12 PM H.B. 245
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59 (d) (i) an insured motor vehicle if, before or after the accident, the liability insurer of
60the 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
62that 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
64coverage for covered persons who are legally entitled to recover damages from owners or
65operators 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
67motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
68liability coverage or the maximum uninsured motorist coverage limits available by the insurer
69under the named insured's motor vehicle policy, unless a named insured rejects or purchases
70coverage 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
75provides benefits or protection to you and other covered persons for bodily injury resulting
76from an accident caused by the fault of another party where the other party has no liability
77insurance; and
78 (v) discloses the additional premiums required to purchase uninsured motorist
79coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
80liability coverage or the maximum uninsured motorist coverage limits available by the insurer
81under the named insured's motor vehicle policy.
82 (b) Any selection or rejection under this Subsection (4) continues for that issuer of the
83liability coverage until the insured requests, in writing, a change of uninsured motorist
84coverage from that liability insurer.
85 (c) (i) Subsections (4)(a) and (b) apply retroactively to any claim arising on or after
86January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
87arbitration 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)
89clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights. H.B. 245 01-19-23 3:12 PM
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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
92existing 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
97that increases the total number of vehicles insured by the policy, and does not include
98replacement, substitute, or temporary vehicles.
99 (ii) The adding of an additional motor vehicle to an existing personal lines or
100commercial 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
102motorist coverage has been rejected, or where uninsured motorist limits are lower than the
103named insured's motor vehicle liability limits, the insurer shall provide a notice to a named
104insured within 30 days that:
105 (A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose of
106uninsured motorist coverage; and
107 (B) encourages the named insured to contact the insurance company or insurance
108producer for quotes as to the additional premiums required to purchase uninsured motorist
109coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
110liability coverage or the maximum uninsured motorist coverage limits available by the insurer
111under the named insured's motor vehicle policy.
112 (f) A change in policy number resulting from any policy change not identified under
113Subsection (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,
1152001, for which, as of May 1, 2012, an insured has not made a written demand for arbitration
116or 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 01-19-23 3:12 PM H.B. 245
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121motorist coverage in an amount that is less than its maximum self-insured retention under
122Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy statement from
123the 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
127minimum 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
129uninsured motorist coverage until the named insured requests, in writing, different uninsured
130motorist coverage from the insurer.
131 (k) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
132policies existing on that date, the insurer shall disclose in the same medium as the premium
133renewal notice, an explanation of:
134 (A) the purpose of uninsured motorist coverage in the same manner as described in
135Subsection (4)(a)(iv); and
136 (B) a disclosure of the additional premiums required to purchase uninsured motorist
137coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
138liability coverage or the maximum uninsured motorist coverage limits available by the insurer
139under the named insured's motor vehicle policy.
140 (ii) The disclosure required under Subsection (4)(k)(i) shall be sent to all named
141insureds that carry uninsured motorist coverage limits in an amount less than the named
142insured's motor vehicle liability policy limits or the maximum uninsured motorist coverage
143limits 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
145a 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
147uninsured motorist coverage by an express writing to the insurer that provides liability
148coverage under Subsection 31A-22-302(1)(a).
149 (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
150explanation of the purpose of uninsured motorist coverage.
151 (iii) This rejection continues for that issuer of the liability coverage until the insured in H.B. 245 01-19-23 3:12 PM
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152writing requests uninsured motorist coverage from that liability insurer.
153 (b) (i) All persons, including governmental entities, that are engaged in the business of,
154or that accept payment for, transporting natural persons by motor vehicle, and all school
155districts that provide transportation services for their students, shall provide coverage for all
156motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,
157uninsured 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
159person.
160 (c) Uninsured motorist coverage:
161 (i) does not cover any benefit paid or payable under Title 34A, Chapter 2, Workers'
162Compensation Act, except that the covered person is credited an amount described in
163Subsection 34A-2-106(5);
164 (ii) may not be subrogated by the workers' compensation insurance carrier, workers'
165compensation insurance, uninsured employer, the Uninsured Employers Fund created in
166Section 34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702;
167 (iii) may not be reduced by any benefits provided by workers' compensation insurance,
168uninsured employer, the Uninsured Employers Fund created in Section 34A-2-704, or the
169Employers' Reinsurance Fund created in Section 34A-2-702;
170 (iv) notwithstanding Subsection 31A-1-103(3), may be reduced by health insurance
171subrogation only after the covered person has been made whole;
172 (v) may not be collected for bodily injury or death sustained by a person:
173 (A) while committing a violation of Section 41-1a-1314;
174 (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
175in violation of Section 41-1a-1314; or
176 (C) while committing a felony; and
177 (vi) notwithstanding Subsection (5)(c)(v), may be recovered:
178 (A) for a person under 18 years old who is injured within the scope of Subsection
179(5)(c)(v) but limited to medical and funeral expenses; or
180 (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
181within the course and scope of the law enforcement officer's duties.
182 (d) As used in this Subsection (5), "motor vehicle" has the same meaning as under 01-19-23 3:12 PM H.B. 245
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183Section 41-1a-102.
184 (6) When a covered person alleges that an uninsured motor vehicle under Subsection
185(2)(b) proximately caused an accident without touching the covered person or the motor
186vehicle occupied by the covered person, the covered person shall show the existence of the
187uninsured motor vehicle by clear and convincing evidence consisting of more than the covered
188person's testimony.
189 (7) (a) The limit of liability for uninsured motorist coverage for two or more motor
190vehicles may not be added together, combined, or stacked to determine the limit of insurance
191coverage available to an injured person for any one accident.
192 (b) (i) Subsection (7)(a) applies to all persons except a covered person as defined under
193Subsection (8)(b).
194 (ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
195limits of uninsured motorist coverage afforded for any one motor vehicle that the covered
196person is the named insured or an insured family member.
197 (iii) This coverage shall be in addition to the coverage on the motor vehicle the covered
198person is occupying.
199 (iv) Neither the primary nor the secondary coverage may be set off against the other.
200 (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
201coverage, and the coverage elected by a person described under Subsections (1)(a)[, (b), and]
202through (c) shall be secondary coverage.
203 (8) (a) Uninsured motorist coverage under this section applies to bodily injury,
204sickness, disease, or death of covered persons while occupying or using a motor vehicle only if
205the motor vehicle is described in the policy under which a claim is made, or if the motor
206vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
207Except as provided in Subsection (7) or this Subsection (8), a covered person injured in a
208motor vehicle described in a policy that includes uninsured motorist benefits may not elect to
209collect uninsured motorist coverage benefits from any other motor vehicle insurance policy
210under which the person is a covered person.
211 (b) Each of the following persons may also recover uninsured motorist benefits under
212any one other policy in which they are described as a "covered person" as defined in Subsection
213(1): H.B. 245 01-19-23 3:12 PM
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214 (i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
215 (ii) except as provided in Subsection (8)(c), a covered person injured while occupying
216or using a motor vehicle that is not owned, leased, or furnished:
217 (A) to the covered person;
218 (B) to the covered person's spouse; or
219 (C) to the covered person's resident parent or resident sibling.
220 (c) (i) A covered person may recover benefits from no more than two additional
221policies, one additional policy from each parent's household if the covered person is:
222 (A) a dependent minor of parents who reside in separate households; and
223 (B) injured while occupying or using a motor vehicle that is not owned, leased, or
224furnished:
225 (I) to the covered person;
226 (II) to the covered person's resident parent; or
227 (III) to the covered person's resident sibling.
228 (ii) Each parent's policy under this Subsection (8)(c) is liable only for the percentage of
229the damages that the limit of liability of each parent's policy of uninsured motorist coverage
230bears to the total of both parents' uninsured coverage applicable to the accident.
231 (d) A covered person's recovery under any available policies may not exceed the full
232amount of damages.
233 (e) A covered person in Subsection (8)(b) is not barred against making subsequent
234elections if recovery is unavailable under previous elections.
235 (f) (i) As used in this section, "interpolicy stacking" means recovering benefits for a
236single incident of loss under more than one insurance policy.
237 (ii) Except to the extent permitted by Subsection (7) and this Subsection (8),
238interpolicy stacking is prohibited for uninsured motorist coverage.
239 (9) (a) When a claim is brought by a named insured or a person described in
240Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the
241claimant may elect to resolve the claim:
242 (i) by submitting the claim to binding arbitration; or
243 (ii) through litigation.
244 (b) Unless otherwise provided in the policy under which uninsured benefits are 01-19-23 3:12 PM H.B. 245
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245claimed, the election provided in Subsection (9)(a) is available to the claimant only, except that
246if the policy under which insured benefits are claimed provides that either an insured or the
247insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
248arbitrate shall stay the litigation of the claim under Subsection (9)(a)(ii).
249 (c) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii),
250the claimant may not elect to resolve the claim through binding arbitration under this section
251without the written consent of the uninsured motorist carrier.
252 (d) For purposes of the statute of limitations applicable to a claim described in
253Subsection (9)(a), if the claimant does not elect to resolve the claim through litigation, the
254claim is considered filed when the claimant submits the claim to binding arbitration in
255accordance with this Subsection (9).
256 (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
257binding arbitration under Subsection (9)(a)(i) shall be resolved by a single arbitrator.
258 (ii) All parties shall agree on the single arbitrator selected under Subsection (9)(e)(i).
259 (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
260(9)(e)(ii), the parties shall select a panel of three arbitrators.
261 (f) If the parties select a panel of three arbitrators under Subsection (9)(e)(iii):
262 (i) each side shall select one arbitrator; and
263 (ii) the arbitrators appointed under Subsection (9)(f)(i) shall select one additional
264arbitrator to be included in the panel.
265 (g) Unless otherwise agreed to in writing:
266 (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
267under Subsection (9)(e)(i); or
268 (ii) if an arbitration panel is selected under Subsection (9)(e)(iii):
269 (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
270 (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
271under Subsection (9)(f)(ii).
272 (h) Except as otherwise provided in this section or unless otherwise agreed to in
273writing by the parties, an arbitration proceeding conducted under this section shall be governed
274by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
275 (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f), H.B. 245 01-19-23 3:12 PM
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27627 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
277Subsections (10)(a) through (c) are satisfied.
278 (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
279shall be determined based on the claimant's specific monetary amount in the written demand
280for payment of uninsured motorist coverage benefits as required in Subsection (10)(a)(i)(A).
281 (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
282arbitration claims under this part.
283 (j) All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
284 (k) A written decision by a single arbitrator or by a majority of the arbitration panel
285shall constitute a final decision.
286 (l) (i) Except as provided in Subsection (10), the amount of an arbitration award may
287not exceed the uninsured motorist policy limits of all applicable uninsured motorist policies,
288including applicable uninsured motorist umbrella policies.
289 (ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
290applicable uninsured motorist policies, the arbitration award shall be reduced to an amount
291equal to the combined uninsured motorist policy limits of all applicable uninsured motorist
292policies.
293 (m) The arbitrator or arbitration panel may not decide the issues of coverage or
294extra-contractual damages, including:
295 (i) whether the claimant is a covered person;
296 (ii) whether the policy extends coverage to the loss; or
297 (iii) any allegations or claims asserting consequential damages or bad faith liability.
298 (n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
299class-representative basis.
300 (o) If the arbitrator or arbitration panel finds that the action was not brought, pursued,
301or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
302and costs against the party that failed to bring, pursue, or defend the claim in good faith.
303 (p) An arbitration award issued under this section shall be the final resolution of all
304claims not excluded by Subsection (9)(m) between the parties unless:
305 (i) the award was procured by corruption, fraud, or other undue means; and
306 (ii) either party, within 20 days after service of the arbitration award: 01-19-23 3:12 PM H.B. 245
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307 (A) files a complaint requesting a trial de novo in the district court; and
308 (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
309under Subsection (9)(p)(ii)(A).
310 (q) (i) Upon filing a complaint for a trial de novo under Subsection (9)(p), the claim
311shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules
312of Evidence in the district court.
313 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
314request a jury trial with a complaint requesting a trial de novo under Subsection (9)(p)(ii)(A).
315 (r) (i) If the claimant, as the moving party in a trial de novo requested under Subsection
316(9)(p), does not obtain a verdict that is at least $5,000 and is at least 20% greater than the
317arbitration award, the claimant is responsible for all of the nonmoving party's costs.
318 (ii) If the uninsured motorist carrier, as the moving party in a trial de novo requested
319under Subsection (9)(p), does not obtain a verdict that is at least 20% less than the arbitration
320award, the uninsured motorist carrier is responsible for all of the nonmoving party's costs.
321 (iii) Except as provided in Subsection (9)(r)(iv), the costs under this Subsection (9)(r)
322shall include:
323 (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
324 (B) the costs of expert witnesses and depositions.
325 (iv) An award of costs under this Subsection (9)(r) may not exceed $2,500 unless
326Subsection [(10)(h)(iii)] (10)(i)(iii) applies.
327 (s) For purposes of determining whether a party's verdict is greater or less than the
328arbitration award under Subsection (9)(r), a court may not consider any recovery or other relief
329granted on a claim for damages if the claim for damages:
330 (i) was not fully disclosed in writing prior to the arbitration proceeding; or
331 (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
332Procedure.
333 (t) If a district court determines, upon a motion of the nonmoving party, that the
334moving party's use of the trial de novo process was filed in bad faith in accordance with
335Section 78B-5-825, the district court may award reasonable attorney fees to the nonmoving
336party.
337 (u) Nothing in this section is intended to limit any claim under any other portion of an H.B. 245 01-19-23 3:12 PM
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338applicable insurance policy.
339 (v) If there are multiple uninsured motorist policies, as set forth in Subsection (8), the
340claimant may elect to arbitrate in one hearing the claims against all the uninsured motorist
341carriers.
342 (10) (a) Within 30 days after a covered person elects to submit a claim for uninsured
343motorist benefits to binding arbitration or files litigation, the covered person shall provide to
344the uninsured motorist carrier:
345 (i) a written demand for payment of uninsured motorist coverage benefits, setting forth:
346 (A) subject to Subsection (10)(m), the specific monetary amount of the demand,
347including a computation of the covered person's claimed past medical expenses, claimed past
348lost wages, and the other claimed past economic damages; and
349 (B) the factual and legal basis and any supporting documentation for the demand;
350 (ii) a written statement under oath disclosing:
351 (A) (I) the names and last known addresses of all health care providers who have
352rendered health care services to the covered person that are material to the claims for which
353uninsured motorist benefits are sought for a period of five years preceding the date of the event
354giving rise to the claim for uninsured motorist benefits up to the time the election for
355arbitration or litigation has been exercised; and
356 (II) the names and last known addresses of the health care providers who have rendered
357health care services to the covered person, which the covered person claims are immaterial to
358the claims for which uninsured motorist benefits are sought, for a period of five years
359preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
360time the election for arbitration or litigation has been exercised that have not been disclosed
361under Subsection (10)(a)(ii)(A)(I);
362 (B) (I) the names and last known addresses of all health insurers or other entities to
363whom the covered person has submitted claims for health care services or benefits material to
364the claims for which uninsured motorist benefits are sought, for a period of five years
365preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
366time the election for arbitration or litigation has been exercised; and
367 (II) the names and last known addresses of the health insurers or other entities to whom
368the covered person has submitted claims for health care services or benefits, which the covered 01-19-23 3:12 PM H.B. 245
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369person claims are immaterial to the claims for which uninsured motorist benefits are sought,
370for a period of five years preceding the date of the event giving rise to the claim for uninsured
371motorist benefits up to the time the election for arbitration or litigation have not been disclosed;
372 (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
373employers of the covered person for a period of five years preceding the date of the event
374giving rise to the claim for uninsured motorist benefits up to the time the election for
375arbitration or litigation has been exercised;
376 (D) other documents to reasonably support the claims being asserted; and
377 (E) all state and federal statutory lienholders including a statement as to whether the
378covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
379Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
380or if the claim is subject to any other state or federal statutory liens; and
381 (iii) signed authorizations to allow the uninsured motorist carrier to only obtain records
382and billings from the individuals or entities disclosed under Subsections (10)(a)(ii)(A)(I),
383(B)(I), and (C).
384 (b) (i) If the uninsured motorist carrier determines that the disclosure of undisclosed
385health care providers or health care insurers under Subsection (10)(a)(ii) is reasonably
386necessary, the uninsured motorist carrier may:
387 (A) make a request for the disclosure of the identity of the health care providers or
388health care insurers; and
389 (B) make a request for authorizations to allow the uninsured motorist carrier to only
390obtain records and billings from the individuals or entities not disclosed.
391 (ii) If the covered person does not provide the requested information within 10 days:
392 (A) the covered person shall disclose, in writing, the legal or factual basis for the
393failure to disclose the health care providers or health care insurers; and
394 (B) either the covered person or the uninsured motorist carrier may request the
395arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
396provided if the covered person has elected arbitration.
397 (iii) The time periods imposed by Subsection (10)(c)(i) are tolled pending resolution of
398the dispute concerning the disclosure and production of records of the health care providers or
399health care insurers. H.B. 245 01-19-23 3:12 PM
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400 (c) (i) An uninsured motorist carrier that receives an election for arbitration or a notice
401of filing litigation and the demand for payment of uninsured motorist benefits under Subsection
402(10)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand and
403receipt of the items specified in Subsections (10)(a)(i) through (iii), to:
404 (A) provide a written response to the written demand for payment provided for in
405Subsection (10)(a)(i);
406 (B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of the
407uninsured motorist carrier's determination of the amount owed to the covered person; and
408 (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
409Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
410Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
411tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed
412to the covered person less:
413 (I) if the amount of the state or federal statutory lien is established, the amount of the
414lien; or
415 (II) if the amount of the state or federal statutory lien is not established, two times the
416amount of the medical expenses subject to the state or federal statutory lien until such time as
417the amount of the state or federal statutory lien is established.
418 (ii) If the amount tendered by the uninsured motorist carrier under Subsection (10)(c)(i)
419is the total amount of the uninsured motorist policy limits, the tendered amount shall be
420accepted by the covered person.
421 (d) (i) If an uninsured motorist carrier is aware or should be aware that the covered
422person's written demand for payment of uninsured motorist coverage benefits described in
423Subsection (10)(a)(i) is deficient or missing a requirement described in Subsections (10)(a)(i)
424through (iii), the uninsured motorist carrier shall identify and specify with particularity each
425alleged deficiency in the written response required under Subsection (10)(c)(i).
426 (ii) If an uninsured motorist carrier alleges a deficiency described in Subsection
427(10)(d)(i) in the written response required under Subsection (10)(c)(i), the covered person shall
428have 30 days from notice of such particular deficiency to supply the needed information and
429cure the alleged deficiency.
430 [(d)] (e) A covered person who receives a written response from an uninsured motorist 01-19-23 3:12 PM H.B. 245
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431carrier as provided for in Subsection (10)(c)(i), may:
432 (i) elect to accept the amount tendered in Subsection (10)(c)(i) as payment in full of all
433uninsured motorist claims; or
434 (ii) elect to:
435 (A) accept the amount tendered in Subsection (10)(c)(i) as partial payment of all
436uninsured motorist claims; and
437 (B) continue to litigate or arbitrate the remaining claim in accordance with the election
438made under Subsections [(9)(a), (b), and] (9)(a) through (c).
439 [(e)] (f) If a covered person elects to accept the amount tendered under Subsection
440(10)(c)(i) as partial payment of all uninsured motorist claims, the final award obtained through
441arbitration, litigation, or later settlement shall be reduced by any payment made by the
442uninsured motorist carrier under Subsection (10)(c)(i).
443 [(f)] (g) In an arbitration proceeding on the remaining uninsured claims:
444 (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
445under Subsection (10)(c)(i) until after the arbitration award has been rendered; and
446 (ii) the parties may not disclose the amount of the limits of uninsured motorist benefits
447provided by the policy.
448 [(g)] (h) If the final award obtained through arbitration or litigation is greater than the
449average of the covered person's initial written demand for payment provided for in Subsection
450(10)(a)(i) and the uninsured motorist carrier's initial written response provided for in
451Subsection (10)(c)(i), the uninsured motorist carrier shall pay:
452 (i) the final award obtained through arbitration or litigation, except that if the award
453exceeds the policy limits of the subject uninsured motorist policy by more than [$15,000]
454$20,000, the amount shall be reduced to an amount equal to the policy limits plus [$15,000]
455$20,000; and
456 (ii) any of the following applicable costs:
457 (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
458 (B) the arbitrator or arbitration panel's fee; and
459 (C) the reasonable costs of expert witnesses and depositions used in the presentation of
460evidence during arbitration or litigation.
461 [(h)] (i) (i) The covered person shall provide an affidavit of costs within five days of an H.B. 245 01-19-23 3:12 PM
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462arbitration award.
463 (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
464which the uninsured motorist carrier objects.
465 (B) The objection shall be resolved by the arbitrator or arbitration panel.
466 (iii) The award of costs by the arbitrator or arbitration panel under Subsection
467[(10)(g)(ii)] (10)(h)(ii) may not exceed $5,000.
468 [(i)] (j) (i) A covered person shall:
469 (A) disclose all material information, other than rebuttal evidence, within 30 days after
470a covered person elects to submit a claim for uninsured motorist coverage benefits to binding
471arbitration or files litigation as specified in Subsection (10)(a)[.]; and
472 (B) have a continuing obligation thereafter to disclose new or additional material
473information, except for rebuttal evidence, within a reasonable time from the time the covered
474person knew or should have known of such information.
475 (ii) If the information under Subsection [(10)(i)(i)] (10)(j)(i) is not timely disclosed, the
476[covered person may not recover] uninsured motorist carrier may object to the person's
477recovery of costs or any amounts in excess of the policy under Subsection [(10)(g)] (10)(h).
478 (iii) An uninsured motorist carrier shall file an objection described in Subsection
479(10)(j)(ii) at least seven days prior to the hearing.
480 (iv) In considering the objection described in Subsection (10)(j)(ii) and determining
481whether the covered person is entitled to recovery of costs or an amount in excess of the policy
482under Subsection (10)(h), the arbitrator or arbitration panel shall consider whether:
483 (A) the covered person failed to provide initial material information or failed to timely
484supplement such information as required by Subsection (10)(a);
485 (B) the uninsured motorist carrier timely notified the covered person of any
486deficiencies as required by Subsection (10)(d); and
487 (C) the lack of the information or timely notice of such information was substantially
488material to the award given following the hearing.
489 [(j)] (k) This Subsection (10) does not limit any other cause of action that arose or may
490arise against the uninsured motorist carrier from the same dispute.
491 [(k)] (l) The provisions of this Subsection (10) only apply to motor vehicle accidents
492that occur on or after March 30, 2010. 01-19-23 3:12 PM H.B. 245
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493 [(l)] (m) (i) (A) The written demand requirement in Subsection (10)(a)(i)(A) does not
494affect the covered person's requirement to provide a computation of any other economic
495damages claimed, and the one or more respondents shall have a reasonable time after the
496receipt of the computation of any other economic damages claimed to conduct fact and expert
497discovery as to any additional damages claimed.
498 (B) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
499300, Section 10, to this Subsection [(10)(l)] (10)(m) and Subsection (10)(a)(i)(A) apply to a
500claim submitted to binding arbitration or through litigation on or after May 13, 2014.
501 (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
502300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim submitted to
503binding arbitration or through litigation on or after May 13, 2014.
504 (11) (a) Notwithstanding Section 31A-21-313, an action on a written policy or contract
505for uninsured motorist coverage shall be commenced within four years after the inception of
506loss.
507 (b) Subsection (11)(a) shall apply to all claims that have not been time barred by
508Subsection 31A-21-313(1)(a) as of May 14, 2019.
509 Section 2. Section 31A-22-305.3 is amended to read:
510 31A-22-305.3. Underinsured motorist coverage.
511 (1) As used in this section:
512 (a) "Covered person" has the same meaning as defined in Section 31A-22-305.
513 (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
514maintenance, or use of which is covered under a liability policy at the time of an injury-causing
515occurrence, but which has insufficient liability coverage to compensate fully the injured party
516for all special and general damages.
517 (ii) The term "underinsured motor vehicle" does not include:
518 (A) a motor vehicle that is covered under the liability coverage of the same policy that
519also contains the underinsured motorist coverage;
520 (B) an uninsured motor vehicle as defined in Subsection 31A-22-305(2); or
521 (C) a motor vehicle owned or leased by:
522 (I) a named insured;
523 (II) a named insured's spouse; or H.B. 245 01-19-23 3:12 PM
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524 (III) a dependent of a named insured.
525 (2) (a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides
526coverage for a covered person who is legally entitled to recover damages from an owner or
527operator of an underinsured motor vehicle because of bodily injury, sickness, disease, or death.
528 (b) A covered person occupying or using a motor vehicle owned, leased, or furnished
529to the covered person, the covered person's spouse, or covered person's resident relative may
530recover underinsured benefits only if the motor vehicle is:
531 (i) described in the policy under which a claim is made; or
532 (ii) a newly acquired or replacement motor vehicle covered under the terms of the
533policy.
534 (3) (a) For purposes of this Subsection (3), "new policy" means:
535 (i) any policy that is issued that does not include a renewal or reinstatement of an
536existing policy; or
537 (ii) a change to an existing policy that results in:
538 (A) a named insured being added to or deleted from the policy; or
539 (B) a change in the limits of the named insured's motor vehicle liability coverage.
540 (b) For new policies written on or after January 1, 2001, the limits of underinsured
541motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
542liability coverage or the maximum underinsured motorist coverage limits available by the
543insurer under the named insured's motor vehicle policy, unless a named insured rejects or
544purchases coverage in a lesser amount by signing an acknowledgment form that:
545 (i) is filed with the department;
546 (ii) is provided by the insurer;
547 (iii) waives the higher coverage;
548 (iv) need only state in this or similar language that "underinsured motorist coverage
549provides benefits or protection to you and other covered persons for bodily injury resulting
550from an accident caused by the fault of another party where the other party has insufficient
551liability insurance"; and
552 (v) discloses the additional premiums required to purchase underinsured motorist
553coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
554liability coverage or the maximum underinsured motorist coverage limits available by the 01-19-23 3:12 PM H.B. 245
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555insurer under the named insured's motor vehicle policy.
556 (c) Any selection or rejection under Subsection (3)(b) continues for that issuer of the
557liability coverage until the insured requests, in writing, a change of underinsured motorist
558coverage from that liability insurer.
559 (d) (i) Subsections (3)(b) and (c) apply retroactively to any claim arising on or after
560January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
561arbitration or filed a complaint in a court of competent jurisdiction.
562 (ii) The Legislature finds that the retroactive application of Subsections (3)(b) and (c)
563clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
564 (e) (i) As used in this Subsection (3)(e), "additional motor vehicle" means a change
565that increases the total number of vehicles insured by the policy, and does not include
566replacement, substitute, or temporary vehicles.
567 (ii) The adding of an additional motor vehicle to an existing personal lines or
568commercial lines policy does not constitute a new policy for purposes of Subsection (3)(a).
569 (iii) If an additional motor vehicle is added to a personal lines policy where
570underinsured motorist coverage has been rejected, or where underinsured motorist limits are
571lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice
572to a named insured within 30 days that:
573 (A) in the same manner described in Subsection (3)(b)(iv), explains the purpose of
574underinsured motorist coverage; and
575 (B) encourages the named insured to contact the insurance company or insurance
576producer for quotes as to the additional premiums required to purchase underinsured motorist
577coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
578liability coverage or the maximum underinsured motorist coverage limits available by the
579insurer under the named insured's motor vehicle policy.
580 (f) A change in policy number resulting from any policy change not identified under
581Subsection (3)(a)(ii) does not constitute a new policy.
582 (g) (i) Subsection (3)(a) applies retroactively to any claim arising on or after January 1,
5832001 for which, as of May 1, 2012, an insured has not made a written demand for arbitration or
584filed a complaint in a court of competent jurisdiction.
585 (ii) The Legislature finds that the retroactive application of Subsection (3)(a): H.B. 245 01-19-23 3:12 PM
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586 (A) does not enlarge, eliminate, or destroy vested rights; and
587 (B) clarifies legislative intent.
588 (h) A self-insured, including a governmental entity, may elect to provide underinsured
589motorist coverage in an amount that is less than its maximum self-insured retention under
590Subsections (3)(b) and (l) by issuing a declaratory memorandum or policy statement from the
591chief financial officer or chief risk officer that declares the:
592 (i) self-insured entity's coverage level; and
593 (ii) process for filing an underinsured motorist claim.
594 (i) Underinsured motorist coverage may not be sold with limits that are less than:
595 (i) $10,000 for one person in any one accident; and
596 (ii) at least $20,000 for two or more persons in any one accident.
597 (j) An acknowledgment under Subsection (3)(b) continues for that issuer of the
598underinsured motorist coverage until the named insured, in writing, requests different
599underinsured motorist coverage from the insurer.
600 (k) (i) The named insured's underinsured motorist coverage, as described in Subsection
601(2), is secondary to the liability coverage of an owner or operator of an underinsured motor
602vehicle, as described in Subsection (1).
603 (ii) Underinsured motorist coverage may not be set off against the liability coverage of
604the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
605or stacked upon the liability coverage of the owner or operator of the underinsured motor
606vehicle to determine the limit of coverage available to the injured person.
607 (l) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
608policies existing on that date, the insurer shall disclose in the same medium as the premium
609renewal notice, an explanation of:
610 (A) the purpose of underinsured motorist coverage in the same manner as described in
611Subsection (3)(b)(iv); and
612 (B) a disclosure of the additional premiums required to purchase underinsured motorist
613coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
614liability coverage or the maximum underinsured motorist coverage limits available by the
615insurer under the named insured's motor vehicle policy.
616 (ii) The disclosure required under this Subsection (3)(l) shall be sent to all named 01-19-23 3:12 PM H.B. 245
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617insureds that carry underinsured motorist coverage limits in an amount less than the named
618insured's motor vehicle liability policy limits or the maximum underinsured motorist coverage
619limits available by the insurer under the named insured's motor vehicle policy.
620 (m) For purposes of this Subsection (3), a notice or disclosure sent to a named insured
621in a household constitutes notice or disclosure to all insureds within the household.
622 (4) (a) (i) Except as provided in this Subsection (4), a covered person injured in a
623motor vehicle described in a policy that includes underinsured motorist benefits may not elect
624to collect underinsured motorist coverage benefits from another motor vehicle insurance policy.
625 (ii) The limit of liability for underinsured motorist coverage for two or more motor
626vehicles may not be added together, combined, or stacked to determine the limit of insurance
627coverage available to an injured person for any one accident.
628 (iii) Subsection (4)(a)(ii) applies to all persons except a covered person described
629under Subsections (4)(b)(i) and (ii).
630 (b) (i) A covered person injured as a pedestrian by an underinsured motor vehicle may
631recover underinsured motorist benefits under any one other policy in which they are described
632as a covered person.
633 (ii) Except as provided in Subsection (4)(b)(iii), a covered person injured while
634occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
635covered person, the covered person's spouse, or the covered person's resident parent or resident
636sibling, may also recover benefits under any one other policy under which the covered person is
637also a covered person.
638 (iii) (A) A covered person may recover benefits from no more than two additional
639policies, one additional policy from each parent's household if the covered person is:
640 (I) a dependent minor of parents who reside in separate households; and
641 (II) injured while occupying or using a motor vehicle that is not owned, leased, or
642furnished to the covered person, the covered person's resident parent, or the covered person's
643resident sibling.
644 (B) Each parent's policy under this Subsection (4)(b)(iii) is liable only for the
645percentage of the damages that the limit of liability of each parent's policy of underinsured
646motorist coverage bears to the total of both parents' underinsured coverage applicable to the
647accident. H.B. 245 01-19-23 3:12 PM
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648 (iv) A covered person's recovery under any available policies may not exceed the full
649amount of damages.
650 (v) Underinsured coverage on a motor vehicle occupied at the time of an accident is
651primary coverage, and the coverage elected by a person described under Subsections
65231A-22-305(1)(a), (b), and (c) is secondary coverage.
653 (vi) The primary and the secondary coverage may not be set off against the other.
654 (vii) A covered person as described under Subsection (4)(b)(i) or is entitled to the
655highest limits of underinsured motorist coverage under only one additional policy per
656household applicable to that covered person as a named insured, spouse, or relative.
657 (viii) A covered injured person is not barred against making subsequent elections if
658recovery is unavailable under previous elections.
659 (ix) (A) As used in this section, "interpolicy stacking" means recovering benefits for a
660single incident of loss under more than one insurance policy.
661 (B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
662prohibited for underinsured motorist coverage.
663 (c) Underinsured motorist coverage:
664 (i) does not cover any benefit paid or payable under Title 34A, Chapter 2, Workers'
665Compensation Act, except that the covered person is credited an amount described in
666Subsection 34A-2-106(5);
667 (ii) may not be subrogated by a workers' compensation insurance carrier, workers'
668compensation insurance, uninsured employer, the Uninsured Employers Fund created in
669Section 34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702;
670 (iii) may not be reduced by benefits provided by workers' compensation insurance,
671uninsured employer, the Uninsured Employers Fund created in Section 34A-2-704, or the
672Employers' Reinsurance Fund created in Section 34A-2-702;
673 (iv) notwithstanding Subsection 31A-1-103(3), may be reduced by health insurance
674subrogation only after the covered person is made whole;
675 (v) may not be collected for bodily injury or death sustained by a person:
676 (A) while committing a violation of Section 41-1a-1314;
677 (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
678in violation of Section 41-1a-1314; or 01-19-23 3:12 PM H.B. 245
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679 (C) while committing a felony; and
680 (vi) notwithstanding Subsection (4)(c)(v), may be recovered:
681 (A) for a person younger than 18 years old who is injured within the scope of
682Subsection (4)(c)(v), but is limited to medical and funeral expenses; or
683 (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
684within the course and scope of the law enforcement officer's duties.
685 (5) (a) Notwithstanding Section 31A-21-313, an action on a written policy or contract
686for underinsured motorist coverage shall be commenced within four years after the inception of
687loss.
688 (b) The inception of the loss under Subsection 31A-21-313(1) for underinsured
689motorist claims occurs upon the [date of the last liability policy payment.] later of:
690 (i) the date upon which the last liability policy release or settlement document is fully
691executed; or
692 (ii) the date of the settlement check representing the last liability policy payment.
693 (6) An underinsured motorist insurer does not have a right of reimbursement against a
694person liable for the damages resulting from an injury-causing occurrence if the person's
695liability insurer has tendered the policy limit and the limits have been accepted by the claimant.
696 (7) Except as otherwise provided in this section, a covered person may seek, subject to
697the terms and conditions of the policy, additional coverage under any policy:
698 (a) that provides coverage for damages resulting from motor vehicle accidents; and
699 (b) that is not required to conform to Section 31A-22-302.
700 (8) (a) When a claim is brought by a named insured or a person described in
701Subsection 31A-22-305(1) and is asserted against the covered person's underinsured motorist
702carrier, the claimant may elect to resolve the claim:
703 (i) by submitting the claim to binding arbitration; or
704 (ii) through litigation.
705 (b) Unless otherwise provided in the policy under which underinsured benefits are
706claimed, the election provided in Subsection (8)(a) is available to the claimant only, except that
707if the policy under which insured benefits are claimed provides that either an insured or the
708insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
709arbitrate shall stay the litigation of the claim under Subsection (8)(a)(ii). H.B. 245 01-19-23 3:12 PM
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710 (c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the
711claimant may not elect to resolve the claim through binding arbitration under this section
712without the written consent of the underinsured motorist coverage carrier.
713 (d) For purposes of the statute of limitations applicable to a claim described in
714Subsection (8)(a), if the claimant does not elect to resolve the claim through litigation, the
715claim is considered filed when the claimant submits the claim to binding arbitration in
716accordance with this Subsection (8).
717 (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
718binding arbitration under Subsection (8)(a)(i) shall be resolved by a single arbitrator.
719 (ii) All parties shall agree on the single arbitrator selected under Subsection (8)(e)(i).
720 (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
721(8)(e)(ii), the parties shall select a panel of three arbitrators.
722 (f) If the parties select a panel of three arbitrators under Subsection (8)(e)(iii):
723 (i) each side shall select one arbitrator; and
724 (ii) the arbitrators appointed under Subsection (8)(f)(i) shall select one additional
725arbitrator to be included in the panel.
726 (g) Unless otherwise agreed to in writing:
727 (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
728under Subsection (8)(e)(i); or
729 (ii) if an arbitration panel is selected under Subsection (8)(e)(iii):
730 (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
731 (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
732under Subsection (8)(f)(ii).
733 (h) Except as otherwise provided in this section or unless otherwise agreed to in
734writing by the parties, an arbitration proceeding conducted under this section is governed by
735Title 78B, Chapter 11, Utah Uniform Arbitration Act.
736 (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
73727 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
738Subsections (9)(a) through (c) are satisfied.
739 (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
740shall be determined based on the claimant's specific monetary amount in the written demand 01-19-23 3:12 PM H.B. 245
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741for payment of uninsured motorist coverage benefits as required in Subsection (9)(a)(i)(A).
742 (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
743arbitration claims under this part.
744 (j) An issue of discovery shall be resolved by the arbitrator or the arbitration panel.
745 (k) A written decision by a single arbitrator or by a majority of the arbitration panel
746constitutes a final decision.
747 (l) (i) Except as provided in Subsection (9), the amount of an arbitration award may not
748exceed the underinsured motorist policy limits of all applicable underinsured motorist policies,
749including applicable underinsured motorist umbrella policies.
750 (ii) If the initial arbitration award exceeds the underinsured motorist policy limits of all
751applicable underinsured motorist policies, the arbitration award shall be reduced to an amount
752equal to the combined underinsured motorist policy limits of all applicable underinsured
753motorist policies.
754 (m) The arbitrator or arbitration panel may not decide an issue of coverage or
755extra-contractual damages, including:
756 (i) whether the claimant is a covered person;
757 (ii) whether the policy extends coverage to the loss; or
758 (iii) an allegation or claim asserting consequential damages or bad faith liability.
759 (n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
760class-representative basis.
761 (o) If the arbitrator or arbitration panel finds that the arbitration is not brought, pursued,
762or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
763and costs against the party that failed to bring, pursue, or defend the arbitration in good faith.
764 (p) An arbitration award issued under this section shall be the final resolution of all
765claims not excluded by Subsection (8)(m) between the parties unless:
766 (i) the award is procured by corruption, fraud, or other undue means; or
767 (ii) either party, within 20 days after service of the arbitration award:
768 (A) files a complaint requesting a trial de novo in the district court; and
769 (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
770under Subsection (8)(p)(ii)(A).
771 (q) (i) Upon filing a complaint for a trial de novo under Subsection (8)(p), a claim shall H.B. 245 01-19-23 3:12 PM
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772proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules of
773Evidence in the district court.
774 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
775request a jury trial with a complaint requesting a trial de novo under Subsection (8)(p)(ii)(A).
776 (r) (i) If the claimant, as the moving party in a trial de novo requested under Subsection
777(8)(p), does not obtain a verdict that is at least $5,000 and is at least 20% greater than the
778arbitration award, the claimant is responsible for all of the nonmoving party's costs.
779 (ii) If the underinsured motorist carrier, as the moving party in a trial de novo requested
780under Subsection (8)(p), does not obtain a verdict that is at least 20% less than the arbitration
781award, the underinsured motorist carrier is responsible for all of the nonmoving party's costs.
782 (iii) Except as provided in Subsection (8)(r)(iv), the costs under this Subsection (8)(r)
783shall include:
784 (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
785 (B) the costs of expert witnesses and depositions.
786 (iv) An award of costs under this Subsection (8)(r) may not exceed $2,500 unless
787Subsection [(9)(h)(iii)] (9)(i)(iii) applies.
788 (s) For purposes of determining whether a party's verdict is greater or less than the
789arbitration award under Subsection (8)(r), a court may not consider any recovery or other relief
790granted on a claim for damages if the claim for damages:
791 (i) was not fully disclosed in writing prior to the arbitration proceeding; or
792 (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
793Procedure.
794 (t) If a district court determines, upon a motion of the nonmoving party, that a moving
795party's use of the trial de novo process is filed in bad faith in accordance with Section
79678B-5-825, the district court may award reasonable attorney fees to the nonmoving party.
797 (u) Nothing in this section is intended to limit a claim under another portion of an
798applicable insurance policy.
799 (v) If there are multiple underinsured motorist policies, as set forth in Subsection (4),
800the claimant may elect to arbitrate in one hearing the claims against all the underinsured
801motorist carriers.
802 (9) (a) Within 30 days after a covered person elects to submit a claim for underinsured 01-19-23 3:12 PM H.B. 245
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803motorist benefits to binding arbitration or files litigation, the covered person shall provide to
804the underinsured motorist carrier:
805 (i) a written demand for payment of underinsured motorist coverage benefits, setting
806forth:
807 (A) subject to Subsection [(9)(l)] (9)(m), the specific monetary amount of the demand,
808including a computation of the covered person's claimed past medical expenses, claimed past
809lost wages, and all other claimed past economic damages; and
810 (B) the factual and legal basis and any supporting documentation for the demand;
811 (ii) a written statement under oath disclosing:
812 (A) (I) the names and last known addresses of all health care providers who have
813rendered health care services to the covered person that are material to the claims for which the
814underinsured motorist benefits are sought for a period of five years preceding the date of the
815event giving rise to the claim for underinsured motorist benefits up to the time the election for
816arbitration or litigation has been exercised; and
817 (II) the names and last known addresses of the health care providers who have rendered
818health care services to the covered person, which the covered person claims are immaterial to
819the claims for which underinsured motorist benefits are sought, for a period of five years
820preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
821the time the election for arbitration or litigation has been exercised that have not been disclosed
822under Subsection (9)(a)(ii)(A)(I);
823 (B) (I) the names and last known addresses of all health insurers or other entities to
824whom the covered person has submitted claims for health care services or benefits material to
825the claims for which underinsured motorist benefits are sought, for a period of five years
826preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
827the time the election for arbitration or litigation has been exercised; and
828 (II) the names and last known addresses of the health insurers or other entities to whom
829the covered person has submitted claims for health care services or benefits, which the covered
830person claims are immaterial to the claims for which underinsured motorist benefits are sought,
831for a period of five years preceding the date of the event giving rise to the claim for
832underinsured motorist benefits up to the time the election for arbitration or litigation have not
833been disclosed; H.B. 245 01-19-23 3:12 PM
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834 (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
835employers of the covered person for a period of five years preceding the date of the event
836giving rise to the claim for underinsured motorist benefits up to the time the election for
837arbitration or litigation has been exercised;
838 (D) other documents to reasonably support the claims being asserted; and
839 (E) all state and federal statutory lienholders including a statement as to whether the
840covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
841Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
842or if the claim is subject to any other state or federal statutory liens; and
843 (iii) signed authorizations to allow the underinsured motorist carrier to only obtain
844records and billings from the individuals or entities disclosed under Subsections
845(9)(a)(ii)(A)(I), (B)(I), and (C).
846 (b) (i) If the underinsured motorist carrier determines that the disclosure of undisclosed
847health care providers or health care insurers under Subsection (9)(a)(ii) is reasonably necessary,
848the underinsured motorist carrier may:
849 (A) make a request for the disclosure of the identity of the health care providers or
850health care insurers; and
851 (B) make a request for authorizations to allow the underinsured motorist carrier to only
852obtain records and billings from the individuals or entities not disclosed.
853 (ii) If the covered person does not provide the requested information within 10 days:
854 (A) the covered person shall disclose, in writing, the legal or factual basis for the
855failure to disclose the health care providers or health care insurers; and
856 (B) either the covered person or the underinsured motorist carrier may request the
857arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
858provided if the covered person has elected arbitration.
859 (iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
860the dispute concerning the disclosure and production of records of the health care providers or
861health care insurers.
862 (c) (i) An underinsured motorist carrier that receives an election for arbitration or a
863notice of filing litigation and the demand for payment of underinsured motorist benefits under
864Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the 01-19-23 3:12 PM H.B. 245
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865demand and receipt of the items specified in Subsections (9)(a)(i) through (iii), to:
866 (A) provide a written response to the written demand for payment provided for in
867Subsection (9)(a)(i);
868 (B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
869underinsured motorist carrier's determination of the amount owed to the covered person; and
870 (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
871Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
872Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
873tender the amount, if any, of the underinsured motorist carrier's determination of the amount
874owed to the covered person less:
875 (I) if the amount of the state or federal statutory lien is established, the amount of the
876lien; or
877 (II) if the amount of the state or federal statutory lien is not established, two times the
878amount of the medical expenses subject to the state or federal statutory lien until such time as
879the amount of the state or federal statutory lien is established.
880 (ii) If the amount tendered by the underinsured motorist carrier under Subsection
881(9)(c)(i) is the total amount of the underinsured motorist policy limits, the tendered amount
882shall be accepted by the covered person.
883 (d) (i) If an underinsured motorist carrier is aware or should be aware that the covered
884person's written demand for payment of underinsured motorist coverage benefits described in
885Subsection (9)(a)(i) is deficient or missing a requirement described in Subsections (9)(a)(i)
886through (iii), the underinsured motorist carrier shall identify and specify with particularity each
887alleged deficiency in the written response required under Subsection (9)(c)(i).
888 (ii) If an underinsured motorist carrier alleges a deficiency described in Subsection
889(9)(d)(i) in the written response required under Subsection (9)(c)(i), the covered person shall
890have 30 days from notice of such particular deficiency to supply the needed information and
891cure the alleged deficiency.
892 [(d)] (e) A covered person who receives a written response from an underinsured
893motorist carrier as provided for in Subsection (9)(c)(i), may:
894 (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all
895underinsured motorist claims; or H.B. 245 01-19-23 3:12 PM
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896 (ii) elect to:
897 (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
898underinsured motorist claims; and
899 (B) continue to litigate or arbitrate the remaining claim in accordance with the election
900made under Subsections [(8)(a), (b), and] (8)(a) through (c).
901 [(e)] (f) If a covered person elects to accept the amount tendered under Subsection
902(9)(c)(i) as partial payment of all underinsured motorist claims, the final award obtained
903through arbitration, litigation, or later settlement shall be reduced by any payment made by the
904underinsured motorist carrier under Subsection (9)(c)(i).
905 [(f)] (g) In an arbitration proceeding on the remaining underinsured claims:
906 (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
907under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
908 (ii) the parties may not disclose the amount of the limits of underinsured motorist
909benefits provided by the policy.
910 [(g)] (h) If the final award obtained through arbitration or litigation is greater than the
911average of the covered person's initial written demand for payment provided for in Subsection
912(9)(a)(i) and the underinsured motorist carrier's initial written response provided for in
913Subsection (9)(c)(i), the underinsured motorist carrier shall pay:
914 (i) the final award obtained through arbitration or litigation, except that if the award
915exceeds the policy limits of the subject underinsured motorist policy by more than $15,000, the
916amount shall be reduced to an amount equal to the policy limits plus $15,000; and
917 (ii) any of the following applicable costs:
918 (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
919 (B) the arbitrator or arbitration panel's fee; and
920 (C) the reasonable costs of expert witnesses and depositions used in the presentation of
921evidence during arbitration or litigation.
922 [(h)] (i) (i) The covered person shall provide an affidavit of costs within five days of an
923arbitration award.
924 (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
925which the underinsured motorist carrier objects.
926 (B) The objection shall be resolved by the arbitrator or arbitration panel. 01-19-23 3:12 PM H.B. 245
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927 (iii) The award of costs by the arbitrator or arbitration panel under Subsection
928[(9)(g)(ii)] (9)(h)(i) may not exceed $5,000.
929 [(i)] (j) (i) A covered person shall:
930 (A) disclose all material information, other than rebuttal evidence, within 30 days after
931a covered person elects to submit a claim for underinsured motorist coverage benefits to
932binding arbitration or files litigation as specified in Subsection (9)(a)[.]; and
933 (B) have a continuing obligation thereafter to disclose new or additional material
934information, except for rebuttal evidence, within a reasonable time from the time the covered
935person knew or should have known of such information.
936 (ii) If the information under Subsection [(9)(i)(i)] (9)(j)(i) is not timely disclosed, the
937[covered person may not recover] underinsured motorist carrier may object to the covered
938person's recovery of costs or any amounts in excess of the policy under Subsection [(9)(g).]
939(9)(h).
940 (iii) An underinsured motorist carrier shall file an objection described in Subsection
941(9)(j)(ii) at least seven days prior to the hearing.
942 (iv) In considering the objection described in Subsection (9)(j)(ii) and determining
943whether the covered person is entitled to recovery of costs or an amount in excess of the policy
944under Subsection (9)(h), the arbitrator or arbitration panel shall consider whether:
945 (A) the covered person failed to provide initial material information or failed to timely
946supplement such information as required by Subsection (9)(a);
947 (B) the underinsured motorist carrier timely notified the covered person of any
948deficiencies as required by Subsection (9)(d); and
949 (C) the lack of the information or timely notice of such information was substantially
950material to the award given following the hearing.
951 [(j)] (k) This Subsection (9) does not limit any other cause of action that arose or may
952arise against the underinsured motorist carrier from the same dispute.
953 [(k)] (l) The provisions of this Subsection (9) only apply to motor vehicle accidents
954that occur on or after March 30, 2010.
955 [(l)] (m) (i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect
956the covered person's requirement to provide a computation of any other economic damages
957claimed, and the one or more respondents shall have a reasonable time after the receipt of the H.B. 245 01-19-23 3:12 PM
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958computation of any other economic damages claimed to conduct fact and expert discovery as to
959any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
960Section 11, and Chapter 300, Section 11, to this Subsection [(9)(l)] (9)(m) and Subsection
961(9)(a)(i)(A) apply to a claim submitted to binding arbitration or through litigation on or after
962May 13, 2014.
963 (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter
964300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted to
965binding arbitration or through litigation on or after May 13, 2014.