Enrolled Copy 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: Curtis S. Bramble
6
7LONG TITLE
8General Description:
9 This bill amends provisions related to underinsured motorist coverage.
10Highlighted Provisions:
11 This bill:
12 <amends provisions related to the commencement of an action related to an
13underinsured motorist claim; and
14 <makes technical changes.
15Money Appropriated in this Bill:
16 None
17Other Special Clauses:
18 None
19Utah Code Sections Affected:
20AMENDS:
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
24Be 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 H.B. 245 Enrolled Copy
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30children;
31 (c) persons related to the named insured by blood, marriage, adoption, or guardianship,
32who are residents of the named insured's household, including those who usually make their
33home 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
38uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
39Subsection (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
42under 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
4431A-22-304; and
45 (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
46the deficiency;
47 (b) an unidentified motor vehicle that left the scene of an accident proximately caused
48by the motor vehicle operator;
49 (c) a motor vehicle covered by a liability policy, but coverage for an accident is
50disputed by the liability insurer for more than 60 days or continues to be disputed for more than
5160 days; or
52 (d) (i) an insured motor vehicle if, before or after the accident, the liability insurer of
53the 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
55that 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
57coverage for covered persons who are legally entitled to recover damages from owners or Enrolled Copy H.B. 245
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58operators 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
60motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
61liability coverage or the maximum uninsured motorist coverage limits available by the insurer
62under the named insured's motor vehicle policy, unless a named insured rejects or purchases
63coverage 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
68provides benefits or protection to you and other covered persons for bodily injury resulting
69from an accident caused by the fault of another party where the other party has no liability
70insurance; and
71 (v) discloses the additional premiums required to purchase uninsured motorist
72coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
73liability coverage or the maximum uninsured motorist coverage limits available by the insurer
74under the named insured's motor vehicle policy.
75 (b) Any selection or rejection under this Subsection (4) continues for that issuer of the
76liability coverage until the insured requests, in writing, a change of uninsured motorist
77coverage from that liability insurer.
78 (c) (i) Subsections (4)(a) and (b) apply retroactively to any claim arising on or after
79January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
80arbitration 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)
82clarifies 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
85existing policy; or H.B. 245 Enrolled Copy
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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
90that increases the total number of vehicles insured by the policy, and does not include
91replacement, substitute, or temporary vehicles.
92 (ii) The adding of an additional motor vehicle to an existing personal lines or
93commercial 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
95motorist coverage has been rejected, or where uninsured motorist limits are lower than the
96named insured's motor vehicle liability limits, the insurer shall provide a notice to a named
97insured within 30 days that:
98 (A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose of
99uninsured motorist coverage; and
100 (B) encourages the named insured to contact the insurance company or insurance
101producer for quotes as to the additional premiums required to purchase uninsured motorist
102coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
103liability coverage or the maximum uninsured motorist coverage limits available by the insurer
104under the named insured's motor vehicle policy.
105 (f) A change in policy number resulting from any policy change not identified under
106Subsection (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,
1082001, for which, as of May 1, 2012, an insured has not made a written demand for arbitration
109or 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 Enrolled Copy H.B. 245
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114motorist coverage in an amount that is less than its maximum self-insured retention under
115Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy statement from
116the 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
120minimum 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
122uninsured motorist coverage until the named insured requests, in writing, different uninsured
123motorist coverage from the insurer.
124 (k) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
125policies existing on that date, the insurer shall disclose in the same medium as the premium
126renewal notice, an explanation of:
127 (A) the purpose of uninsured motorist coverage in the same manner as described in
128Subsection (4)(a)(iv); and
129 (B) a disclosure of the additional premiums required to purchase uninsured motorist
130coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
131liability coverage or the maximum uninsured motorist coverage limits available by the insurer
132under the named insured's motor vehicle policy.
133 (ii) The disclosure required under Subsection (4)(k)(i) shall be sent to all named
134insureds that carry uninsured motorist coverage limits in an amount less than the named
135insured's motor vehicle liability policy limits or the maximum uninsured motorist coverage
136limits 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
138a 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
140uninsured motorist coverage by an express writing to the insurer that provides liability
141coverage under Subsection 31A-22-302(1)(a). H.B. 245 Enrolled Copy
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142 (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
143explanation of the purpose of uninsured motorist coverage.
144 (iii) This rejection continues for that issuer of the liability coverage until the insured in
145writing requests uninsured motorist coverage from that liability insurer.
146 (b) (i) All persons, including governmental entities, that are engaged in the business of,
147or that accept payment for, transporting natural persons by motor vehicle, and all school
148districts that provide transportation services for their students, shall provide coverage for all
149motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,
150uninsured 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
152person.
153 (c) Uninsured motorist coverage:
154 (i) does not cover any benefit paid or payable under Title 34A, Chapter 2, Workers'
155Compensation Act, except that the covered person is credited an amount described in
156Subsection 34A-2-106(5);
157 (ii) may not be subrogated by the workers' compensation insurance carrier, workers'
158compensation insurance, uninsured employer, the Uninsured Employers Fund created in
159Section 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,
161uninsured employer, the Uninsured Employers Fund created in Section 34A-2-704, or the
162Employers' Reinsurance Fund created in Section 34A-2-702;
163 (iv) notwithstanding Subsection 31A-1-103(3)(f), may be reduced by health insurance
164subrogation 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
168in violation of Section 41-1a-1314; or
169 (C) while committing a felony; and Enrolled Copy H.B. 245
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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
174within 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
176Section 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
179vehicle occupied by the covered person, the covered person shall show the existence of the
180uninsured motor vehicle by clear and convincing evidence consisting of more than the covered
181person's testimony.
182 (7) (a) The limit of liability for uninsured motorist coverage for two or more motor
183vehicles may not be added together, combined, or stacked to determine the limit of insurance
184coverage 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
186Subsection (8)(b).
187 (ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
188limits of uninsured motorist coverage afforded for any one motor vehicle that the covered
189person 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
191person 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
194coverage, and the coverage elected by a person described under Subsections (1)(a)[, (b), and]
195through (c) shall be secondary coverage.
196 (8) (a) Uninsured motorist coverage under this section applies to bodily injury,
197sickness, disease, or death of covered persons while occupying or using a motor vehicle only if H.B. 245 Enrolled Copy
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198the motor vehicle is described in the policy under which a claim is made, or if the motor
199vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
200Except as provided in Subsection (7) or this Subsection (8), a covered person injured in a
201motor vehicle described in a policy that includes uninsured motorist benefits may not elect to
202collect uninsured motorist coverage benefits from any other motor vehicle insurance policy
203under which the person is a covered person.
204 (b) Each of the following persons may also recover uninsured motorist benefits under
205any 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
209or 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
214policies, 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
217furnished:
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
222the damages that the limit of liability of each parent's policy of uninsured motorist coverage
223bears 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
225amount of damages. Enrolled Copy H.B. 245
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226 (e) A covered person in Subsection (8)(b) is not barred against making subsequent
227elections if recovery is unavailable under previous elections.
228 (f) (i) As used in this section, "interpolicy stacking" means recovering benefits for a
229single incident of loss under more than one insurance policy.
230 (ii) Except to the extent permitted by Subsection (7) and this Subsection (8),
231interpolicy stacking is prohibited for uninsured motorist coverage.
232 (9) (a) When a claim is brought by a named insured or a person described in
233Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the
234claimant 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
238claimed, the election provided in Subsection (9)(a) is available to the claimant only, except that
239if the policy under which insured benefits are claimed provides that either an insured or the
240insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
241arbitrate 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),
243the claimant may not elect to resolve the claim through binding arbitration under this section
244without the written consent of the uninsured motorist carrier.
245 (d) For purposes of the statute of limitations applicable to a claim described in
246Subsection (9)(a), if the claimant does not elect to resolve the claim through litigation, the
247claim is considered filed when the claimant submits the claim to binding arbitration in
248accordance with this Subsection (9).
249 (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
250binding 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. H.B. 245 Enrolled Copy
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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
257arbitrator 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
260under 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
264under Subsection (9)(f)(ii).
265 (h) Except as otherwise provided in this section or unless otherwise agreed to in
266writing by the parties, an arbitration proceeding conducted under this section shall be governed
267by 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),
26927 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
270Subsections (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
272shall be determined based on the claimant's specific monetary amount in the written demand
273for 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
275arbitration 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
278shall constitute a final decision.
279 (l) (i) Except as provided in Subsection (10), the amount of an arbitration award may
280not exceed the uninsured motorist policy limits of all applicable uninsured motorist policies,
281including applicable uninsured motorist umbrella policies. Enrolled Copy H.B. 245
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282 (ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
283applicable uninsured motorist policies, the arbitration award shall be reduced to an amount
284equal to the combined uninsured motorist policy limits of all applicable uninsured motorist
285policies.
286 (m) The arbitrator or arbitration panel may not decide the issues of coverage or
287extra-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
292class-representative basis.
293 (o) If the arbitrator or arbitration panel finds that the action was not brought, pursued,
294or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
295and 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
297claims 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
302under Subsection (9)(p)(ii)(A).
303 (q) (i) Upon filing a complaint for a trial de novo under Subsection (9)(p), the claim
304shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules
305of Evidence in the district court.
306 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
307request 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 H.B. 245 Enrolled Copy
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310arbitration 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
312under Subsection (9)(p), does not obtain a verdict that is at least 20% less than the arbitration
313award, 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)
315shall 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
319Subsection (10)(h)(iii) applies.
320 (s) For purposes of determining whether a party's verdict is greater or less than the
321arbitration award under Subsection (9)(r), a court may not consider any recovery or other relief
322granted 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
325Procedure.
326 (t) If a district court determines, upon a motion of the nonmoving party, that the
327moving party's use of the trial de novo process was filed in bad faith in accordance with
328Section 78B-5-825, the district court may award reasonable attorney fees to the nonmoving
329party.
330 (u) Nothing in this section is intended to limit any claim under any other portion of an
331applicable insurance policy.
332 (v) If there are multiple uninsured motorist policies, as set forth in Subsection (8), the
333claimant may elect to arbitrate in one hearing the claims against all the uninsured motorist
334carriers.
335 (10) (a) Within 30 days after a covered person elects to submit a claim for uninsured
336motorist benefits to binding arbitration or files litigation, the covered person shall provide to
337the uninsured motorist carrier: Enrolled Copy H.B. 245
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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
340demand, including a computation of the covered person's claimed past medical expenses,
341claimed 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
345rendered health care services to the covered person that are material to the claims for which
346uninsured motorist benefits are sought for a period of five years preceding the date of the event
347giving rise to the claim for uninsured motorist benefits up to the time the election for
348arbitration or litigation has been exercised; and
349 (II) the names and last known addresses of the health care providers who have rendered
350health care services to the covered person, which the covered person claims are immaterial to
351the claims for which uninsured motorist benefits are sought, for a period of five years
352preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
353time the election for arbitration or litigation has been exercised that have not been disclosed
354under Subsection (10)(a)(ii)(A)(I);
355 (B) (I) the names and last known addresses of all health insurers or other entities to
356whom the covered person has submitted claims for health care services or benefits material to
357the claims for which uninsured motorist benefits are sought, for a period of five years
358preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
359time 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
361the covered person has submitted claims for health care services or benefits, which the covered
362person claims are immaterial to the claims for which uninsured motorist benefits are sought,
363for a period of five years preceding the date of the event giving rise to the claim for uninsured
364motorist 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 H.B. 245 Enrolled Copy
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366employers of the covered person for a period of five years preceding the date of the event
367giving rise to the claim for uninsured motorist benefits up to the time the election for
368arbitration 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
371covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
372Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
373or 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
375and 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
378health care providers or health care insurers under Subsection (10)(a)(ii) is reasonably
379necessary, the uninsured motorist carrier may:
380 (A) make a request for the disclosure of the identity of the health care providers or
381health care insurers; and
382 (B) make a request for authorizations to allow the uninsured motorist carrier to only
383obtain 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
386failure 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
388arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
389provided if the covered person has elected arbitration.
390 (iii) The time periods imposed by Subsection (10)(c)(i) are tolled pending resolution of
391the dispute concerning the disclosure and production of records of the health care providers or
392health care insurers.
393 (c) (i) An uninsured motorist carrier that receives an election for arbitration or a notice Enrolled Copy H.B. 245
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394of 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
396receipt 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
398Subsection (10)(a)(i);
399 (B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of the
400uninsured 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
402Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
403Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
404tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed
405to the covered person less:
406 (I) if the amount of the state or federal statutory lien is established, the amount of the
407lien; or
408 (II) if the amount of the state or federal statutory lien is not established, two times the
409amount of the medical expenses subject to the state or federal statutory lien until such time as
410the 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)
412is the total amount of the uninsured motorist policy limits, the tendered amount shall be
413accepted by the covered person.
414 (d) A covered person who receives a written response from an uninsured motorist
415carrier 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
417uninsured motorist claims; or
418 (ii) elect to:
419 (A) accept the amount tendered in Subsection (10)(c)(i) as partial payment of all
420uninsured motorist claims; and
421 (B) continue to litigate or arbitrate the remaining claim in accordance with the election H.B. 245 Enrolled Copy
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422made 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)
424as partial payment of all uninsured motorist claims, the final award obtained through
425arbitration, litigation, or later settlement shall be reduced by any payment made by the
426uninsured 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
429under 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
431provided by the policy.
432 (g) If the final award obtained through arbitration or litigation is greater than the
433average 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
435Subsection (10)(c)(i), the uninsured motorist carrier shall pay:
436 (i) the final award obtained through arbitration or litigation, except that if the award
437exceeds the policy limits of the subject uninsured motorist policy by more than $15,000, the
438amount 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
443evidence during arbitration or litigation.
444 (h) (i) The covered person shall provide an affidavit of costs within five days of an
445arbitration award.
446 (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
447which 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 Enrolled Copy H.B. 245
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450(10)(g)(ii) may not exceed $5,000.
451 (i) (i) A covered person shall disclose all material information, other than rebuttal
452evidence, within 30 days after a covered person elects to submit a claim for uninsured motorist
453coverage 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
455may 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
457against the uninsured motorist carrier from the same dispute.
458 (k) The provisions of this Subsection (10) only apply to motor vehicle accidents that
459occur on or after March 30, 2010.
460 (l) (i) (A) The written demand requirement in Subsection (10)(a)(i)(A) does not affect
461the covered person's requirement to provide a computation of any other economic damages
462claimed, and the one or more respondents shall have a reasonable time after the receipt of the
463computation of any other economic damages claimed to conduct fact and expert discovery as to
464any additional damages claimed.
465 (B) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
466300, Section 10, to this Subsection (10)(l) and Subsection (10)(a)(i)(A) apply to a claim
467submitted 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
469300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim submitted to
470binding 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
472for uninsured motorist coverage shall be commenced within four years after the inception of
473loss.
474 (b) Subsection (11)(a) shall apply to all claims that have not been time barred by
475Subsection 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. H.B. 245 Enrolled Copy
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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,
481maintenance, or use of which is covered under a liability policy at the time of an injury-causing
482occurrence, but which has insufficient liability coverage to compensate fully the injured party
483for 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
486also 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
493coverage for a covered person who is legally entitled to recover damages from an owner or
494operator 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
496to the covered person, the covered person's spouse, or covered person's resident relative may
497recover 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
500policy.
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
503existing 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 Enrolled Copy H.B. 245
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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
508motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
509liability coverage or the maximum underinsured motorist coverage limits available by the
510insurer under the named insured's motor vehicle policy, unless a named insured rejects or
511purchases 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
516provides benefits or protection to you and other covered persons for bodily injury resulting
517from an accident caused by the fault of another party where the other party has insufficient
518liability insurance"; and
519 (v) discloses the additional premiums required to purchase underinsured motorist
520coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
521liability coverage or the maximum underinsured motorist coverage limits available by the
522insurer under the named insured's motor vehicle policy.
523 (c) Any selection or rejection under Subsection (3)(b) continues for that issuer of the
524liability coverage until the insured requests, in writing, a change of underinsured motorist
525coverage from that liability insurer.
526 (d) (i) Subsections (3)(b) and (c) apply retroactively to any claim arising on or after
527January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
528arbitration 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)
530clarifies 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
532that increases the total number of vehicles insured by the policy, and does not include
533replacement, substitute, or temporary vehicles. H.B. 245 Enrolled Copy
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534 (ii) The adding of an additional motor vehicle to an existing personal lines or
535commercial 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
537underinsured motorist coverage has been rejected, or where underinsured motorist limits are
538lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice
539to a named insured within 30 days that:
540 (A) in the same manner described in Subsection (3)(b)(iv), explains the purpose of
541underinsured motorist coverage; and
542 (B) encourages the named insured to contact the insurance company or insurance
543producer for quotes as to the additional premiums required to purchase underinsured motorist
544coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
545liability coverage or the maximum underinsured motorist coverage limits available by the
546insurer under the named insured's motor vehicle policy.
547 (f) A change in policy number resulting from any policy change not identified under
548Subsection (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,
5502001 for which, as of May 1, 2012, an insured has not made a written demand for arbitration or
551filed 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
556motorist coverage in an amount that is less than its maximum self-insured retention under
557Subsections (3)(b) and (l) by issuing a declaratory memorandum or policy statement from the
558chief 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: Enrolled Copy H.B. 245
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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
565underinsured motorist coverage until the named insured, in writing, requests different
566underinsured 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
569vehicle, as described in Subsection (1).
570 (ii) Underinsured motorist coverage may not be set off against the liability coverage of
571the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
572or stacked upon the liability coverage of the owner or operator of the underinsured motor
573vehicle 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
575policies existing on that date, the insurer shall disclose in the same medium as the premium
576renewal notice, an explanation of:
577 (A) the purpose of underinsured motorist coverage in the same manner as described in
578Subsection (3)(b)(iv); and
579 (B) a disclosure of the additional premiums required to purchase underinsured motorist
580coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
581liability coverage or the maximum underinsured motorist coverage limits available by the
582insurer under the named insured's motor vehicle policy.
583 (ii) The disclosure required under this Subsection (3)(l) shall be sent to all named
584insureds that carry underinsured motorist coverage limits in an amount less than the named
585insured's motor vehicle liability policy limits or the maximum underinsured motorist coverage
586limits 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
588in 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 H.B. 245 Enrolled Copy
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590motor vehicle described in a policy that includes underinsured motorist benefits may not elect
591to 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
593vehicles may not be added together, combined, or stacked to determine the limit of insurance
594coverage available to an injured person for any one accident.
595 (iii) Subsection (4)(a)(ii) applies to all persons except a covered person described
596under Subsections (4)(b)(i) and (ii).
597 (b) (i) A covered person injured as a pedestrian by an underinsured motor vehicle may
598recover underinsured motorist benefits under any one other policy in which they are described
599as a covered person.
600 (ii) Except as provided in Subsection (4)(b)(iii), a covered person injured while
601occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
602covered person, the covered person's spouse, or the covered person's resident parent or resident
603sibling, may also recover benefits under any one other policy under which the covered person is
604also a covered person.
605 (iii) (A) A covered person may recover benefits from no more than two additional
606policies, 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
609furnished to the covered person, the covered person's resident parent, or the covered person's
610resident sibling.
611 (B) Each parent's policy under this Subsection (4)(b)(iii) is liable only for the
612percentage of the damages that the limit of liability of each parent's policy of underinsured
613motorist coverage bears to the total of both parents' underinsured coverage applicable to the
614accident.
615 (iv) A covered person's recovery under any available policies may not exceed the full
616amount of damages.
617 (v) Underinsured coverage on a motor vehicle occupied at the time of an accident is Enrolled Copy H.B. 245
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618primary coverage, and the coverage elected by a person described under Subsections
61931A-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
622highest limits of underinsured motorist coverage under only one additional policy per
623household 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
625recovery is unavailable under previous elections.
626 (ix) (A) As used in this section, "interpolicy stacking" means recovering benefits for a
627single incident of loss under more than one insurance policy.
628 (B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
629prohibited 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'
632Compensation Act, except that the covered person is credited an amount described in
633Subsection 34A-2-106(5);
634 (ii) may not be subrogated by a workers' compensation insurance carrier, workers'
635compensation insurance, uninsured employer, the Uninsured Employers Fund created in
636Section 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,
638uninsured employer, the Uninsured Employers Fund created in Section 34A-2-704, or the
639Employers' Reinsurance Fund created in Section 34A-2-702;
640 (iv) notwithstanding Subsection 31A-1-103(3)(f), may be reduced by health insurance
641subrogation 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
645in violation of Section 41-1a-1314; or H.B. 245 Enrolled Copy
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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
649Subsection (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
651within 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
653for underinsured motorist coverage shall be commenced within four years after the inception of
654loss.
655 (b) The inception of the loss under Subsection 31A-21-313(1) for underinsured
656motorist claims occurs upon the date of the settlement check representing the last liability
657policy payment.
658 (6) An underinsured motorist insurer does not have a right of reimbursement against a
659person liable for the damages resulting from an injury-causing occurrence if the person's
660liability 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
662the 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
666Subsection 31A-22-305(1) and is asserted against the covered person's underinsured motorist
667carrier, 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
671claimed, the election provided in Subsection (8)(a) is available to the claimant only, except that
672if the policy under which insured benefits are claimed provides that either an insured or the
673insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to Enrolled Copy H.B. 245
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674arbitrate 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
676claimant may not elect to resolve the claim through binding arbitration under this section
677without the written consent of the underinsured motorist coverage carrier.
678 (d) For purposes of the statute of limitations applicable to a claim described in
679Subsection (8)(a), if the claimant does not elect to resolve the claim through litigation, the
680claim is considered filed when the claimant submits the claim to binding arbitration in
681accordance with this Subsection (8).
682 (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
683binding 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
690arbitrator 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
693under 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
697under Subsection (8)(f)(ii).
698 (h) Except as otherwise provided in this section or unless otherwise agreed to in
699writing by the parties, an arbitration proceeding conducted under this section is governed by
700Title 78B, Chapter 11, Utah Uniform Arbitration Act.
701 (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f), H.B. 245 Enrolled Copy
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70227 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
703Subsections (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
705shall be determined based on the claimant's specific monetary amount in the written demand
706for 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
708arbitration 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
711constitutes a final decision.
712 (l) (i) Except as provided in Subsection (9), the amount of an arbitration award may not
713exceed the underinsured motorist policy limits of all applicable underinsured motorist policies,
714including applicable underinsured motorist umbrella policies.
715 (ii) If the initial arbitration award exceeds the underinsured motorist policy limits of all
716applicable underinsured motorist policies, the arbitration award shall be reduced to an amount
717equal to the combined underinsured motorist policy limits of all applicable underinsured
718motorist policies.
719 (m) The arbitrator or arbitration panel may not decide an issue of coverage or
720extra-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
725class-representative basis.
726 (o) If the arbitrator or arbitration panel finds that the arbitration is not brought, pursued,
727or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
728and 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 Enrolled Copy H.B. 245
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730claims 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
735under Subsection (8)(p)(ii)(A).
736 (q) (i) Upon filing a complaint for a trial de novo under Subsection (8)(p), a claim shall
737proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules of
738Evidence in the district court.
739 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
740request 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
743arbitration 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
745under Subsection (8)(p), does not obtain a verdict that is at least 20% less than the arbitration
746award, 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)
748shall 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
752Subsection (9)(h)(iii) applies.
753 (s) For purposes of determining whether a party's verdict is greater or less than the
754arbitration award under Subsection (8)(r), a court may not consider any recovery or other relief
755granted 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 H.B. 245 Enrolled Copy
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758Procedure.
759 (t) If a district court determines, upon a motion of the nonmoving party, that a moving
760party's use of the trial de novo process is filed in bad faith in accordance with Section
76178B-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
763applicable insurance policy.
764 (v) If there are multiple underinsured motorist policies, as set forth in Subsection (4),
765the claimant may elect to arbitrate in one hearing the claims against all the underinsured
766motorist carriers.
767 (9) (a) Within 30 days after a covered person elects to submit a claim for underinsured
768motorist benefits to binding arbitration or files litigation, the covered person shall provide to
769the underinsured motorist carrier:
770 (i) a written demand for payment of underinsured motorist coverage benefits, setting
771forth:
772 (A) subject to Subsection (9)(l), the specific monetary amount of the demand,
773including a computation of the covered person's claimed past medical expenses, claimed past
774lost 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
778rendered health care services to the covered person that are material to the claims for which the
779underinsured motorist benefits are sought for a period of five years preceding the date of the
780event giving rise to the claim for underinsured motorist benefits up to the time the election for
781arbitration or litigation has been exercised; and
782 (II) the names and last known addresses of the health care providers who have rendered
783health care services to the covered person, which the covered person claims are immaterial to
784the claims for which underinsured motorist benefits are sought, for a period of five years
785preceding the date of the event giving rise to the claim for underinsured motorist benefits up to Enrolled Copy H.B. 245
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786the time the election for arbitration or litigation has been exercised that have not been disclosed
787under Subsection (9)(a)(ii)(A)(I);
788 (B) (I) the names and last known addresses of all health insurers or other entities to
789whom the covered person has submitted claims for health care services or benefits material to
790the claims for which underinsured motorist benefits are sought, for a period of five years
791preceding the date of the event giving rise to the claim for underinsured motorist benefits up to
792the 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
794the covered person has submitted claims for health care services or benefits, which the covered
795person claims are immaterial to the claims for which underinsured motorist benefits are sought,
796for a period of five years preceding the date of the event giving rise to the claim for
797underinsured motorist benefits up to the time the election for arbitration or litigation have not
798been disclosed;
799 (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
800employers of the covered person for a period of five years preceding the date of the event
801giving rise to the claim for underinsured motorist benefits up to the time the election for
802arbitration 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
805covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
806Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
807or 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
809records 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
812health care providers or health care insurers under Subsection (9)(a)(ii) is reasonably necessary,
813the underinsured motorist carrier may: H.B. 245 Enrolled Copy
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814 (A) make a request for the disclosure of the identity of the health care providers or
815health care insurers; and
816 (B) make a request for authorizations to allow the underinsured motorist carrier to only
817obtain 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
820failure 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
822arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
823provided if the covered person has elected arbitration.
824 (iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
825the dispute concerning the disclosure and production of records of the health care providers or
826health care insurers.
827 (c) (i) An underinsured motorist carrier that receives an election for arbitration or a
828notice of filing litigation and the demand for payment of underinsured motorist benefits under
829Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the
830demand 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
832Subsection (9)(a)(i);
833 (B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
834underinsured 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
836Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
837Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
838tender the amount, if any, of the underinsured motorist carrier's determination of the amount
839owed to the covered person less:
840 (I) if the amount of the state or federal statutory lien is established, the amount of the
841lien; or Enrolled Copy H.B. 245
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842 (II) if the amount of the state or federal statutory lien is not established, two times the
843amount of the medical expenses subject to the state or federal statutory lien until such time as
844the 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
847shall be accepted by the covered person.
848 (d) A covered person who receives a written response from an underinsured motorist
849carrier 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
851underinsured motorist claims; or
852 (ii) elect to:
853 (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
854underinsured motorist claims; and
855 (B) continue to litigate or arbitrate the remaining claim in accordance with the election
856made 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)
858as partial payment of all underinsured motorist claims, the final award obtained through
859arbitration, litigation, or later settlement shall be reduced by any payment made by the
860underinsured 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
863under 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
865benefits provided by the policy.
866 (g) If the final award obtained through arbitration or litigation is greater than the
867average 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
869Subsection (9)(c)(i), the underinsured motorist carrier shall pay: H.B. 245 Enrolled Copy
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870 (i) the final award obtained through arbitration or litigation, except that if the award
871exceeds the policy limits of the subject underinsured motorist policy by more than $15,000, the
872amount 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
877evidence during arbitration or litigation.
878 (h) (i) The covered person shall provide an affidavit of costs within five days of an
879arbitration award.
880 (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
881which 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)
884may not exceed $5,000.
885 (i) (i) A covered person shall disclose all material information, other than rebuttal
886evidence, within 30 days after a covered person elects to submit a claim for underinsured
887motorist 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
890may 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
892against the underinsured motorist carrier from the same dispute.
893 (k) The provisions of this Subsection (9) only apply to motor vehicle accidents that
894occur on or after March 30, 2010.
895 (l) (i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the
896covered person's requirement to provide a computation of any other economic damages
897claimed, and the one or more respondents shall have a reasonable time after the receipt of the Enrolled Copy H.B. 245
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898computation of any other economic damages claimed to conduct fact and expert discovery as to
899any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
900Section 11, and Chapter 300, Section 11, to this Subsection (9)(l) and Subsection (9)(a)(i)(A)
901apply 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
903300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted to
904binding arbitration or through litigation on or after May 13, 2014.