Enrolled Copy H.B. 388
1 STATUTES OF LIMITATION AMENDMENTS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Anthony E. Loubet
5 Senate Sponsor: Todd D. Weiler
6
7LONG TITLE
8General Description:
9 This bill addresses limitations on actions.
10Highlighted Provisions:
11 This bill:
12 <addresses limitations of actions involving insurance, including for personal injury
13coverage;
14 <modifies the statute of limitations involving personal injury from a motor vehicle
15accident or property damage to a motor vehicle; and
16 <makes technical changes.
17Money Appropriated in this Bill:
18 None
19Other Special Clauses:
20 None
21Utah Code Sections Affected:
22AMENDS:
23 31A-21-313, as last amended by Laws of Utah 2020, Chapter 32
24 31A-22-305, as last amended by Laws of Utah 2022, Chapter 163
25 31A-22-307, as last amended by Laws of Utah 2020, Chapter 130
26 78B-2-305, as last amended by Laws of Utah 2010, Chapter 143
27 78B-2-307, as last amended by Laws of Utah 2017, Chapter 204
28
29Be it enacted by the Legislature of the state of Utah: H.B. 388 Enrolled Copy
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30 Section 1. Section 31A-21-313 is amended to read:
31 31A-21-313. Limitation of actions.
32 (1) (a) [An] A person shall commence an action on a written policy or contract of first
33party insurance [shall be commenced] within three years after the inception of the loss except
34as provided in:
35 (i) Subsection 31A-22-305(11); and
36 (ii) Subsection 31A-22-307(7).
37 (b) The inception of the loss on a fidelity bond is the date the insurer first denies all or
38part of a claim made under the fidelity bond.
39 (2) Except as provided in Subsection (1) or elsewhere in this title, an action on a
40written policy or contract for insurance is subject to the law applicable to limitation of actions
41in Title 78B, Chapter 2, Statutes of Limitations[, applies to actions on insurance policies].
42 (3) An insurance policy may not:
43 (a) limit the time for beginning an action on the policy to a time less than that
44authorized by statute;
45 (b) prescribe in what court an action may be brought on the policy; or
46 (c) provide that no action may be brought, subject to permissible arbitration provisions
47in contracts.
48 (4) (a) Unless by verified complaint it is alleged that prejudice to the complainant will
49arise from a delay in bringing suit against an insurer, which prejudice is other than the delay
50itself, [no] an action may not be brought against an insurer on an insurance policy to compel
51payment under the insurance policy until the earlier of:
52 (i) 60 days after proof of loss has been furnished as required under the policy;
53 (ii) waiver by the insurer of proof of loss; or
54 (iii) (A) the insurer's denial of full payment; or
55 (B) for an accident and health insurance policy, the insurer's denial of payment.
56 (b) Under an accident and health insurance policy, an insurer may not require the
57completion of an appeals process that exceeds the provisions in 29 C.F.R. Sec. 2560.503-1 to Enrolled Copy H.B. 388
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58bring suit under this Subsection (4).
59 (5) The period of limitation is tolled during the period in which the parties conduct an
60appraisal or arbitration procedure prescribed by the insurance policy, by law, or as agreed to by
61the parties.
62 Section 2. Section 31A-22-305 is amended to read:
63 31A-22-305. Uninsured motorist coverage.
64 (1) As used in this section, "covered persons" includes:
65 (a) the named insured;
66 (b) for a claim arising on or after May 13, 2014, the named insured's dependent minor
67children;
68 (c) persons related to the named insured by blood, marriage, adoption, or guardianship,
69who are residents of the named insured's household, including those who usually make their
70home in the same household but temporarily live elsewhere;
71 (d) any person occupying or using a motor vehicle:
72 (i) referred to in the policy; or
73 (ii) owned by a self-insured; and
74 (e) any person who is entitled to recover damages against the owner or operator of the
75uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
76Subsection (1)(a), (b), (c), or (d).
77 (2) As used in this section, "uninsured motor vehicle" includes:
78 (a) (i) a motor vehicle, the operation, maintenance, or use of which is not covered
79under a liability policy at the time of an injury-causing occurrence; or
80 (ii) (A) a motor vehicle covered with lower liability limits than required by Section
8131A-22-304; and
82 (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
83the deficiency;
84 (b) an unidentified motor vehicle that left the scene of an accident proximately caused
85by the motor vehicle operator; H.B. 388 Enrolled Copy
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86 (c) a motor vehicle covered by a liability policy, but coverage for an accident is
87disputed by the liability insurer for more than 60 days or continues to be disputed for more than
8860 days; or
89 (d) (i) an insured motor vehicle if, before or after the accident, the liability insurer of
90the motor vehicle is declared insolvent by a court of competent jurisdiction; and
91 (ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the extent
92that the claim against the insolvent insurer is not paid by a guaranty association or fund.
93 (3) Uninsured motorist coverage under Subsection 31A-22-302(1)(b) provides
94coverage for covered persons who are legally entitled to recover damages from owners or
95operators of uninsured motor vehicles because of bodily injury, sickness, disease, or death.
96 (4) (a) For new policies written on or after January 1, 2001, the limits of uninsured
97motorist coverage shall be equal to the lesser of the limits of the named insured's motor vehicle
98liability coverage or the maximum uninsured motorist coverage limits available by the insurer
99under the named insured's motor vehicle policy, unless a named insured rejects or purchases
100coverage in a lesser amount by signing an acknowledgment form that:
101 (i) is filed with the department;
102 (ii) is provided by the insurer;
103 (iii) waives the higher coverage;
104 (iv) need only state in this or similar language that uninsured motorist coverage
105provides benefits or protection to you and other covered persons for bodily injury resulting
106from an accident caused by the fault of another party where the other party has no liability
107insurance; and
108 (v) discloses 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 (b) Any selection or rejection under this Subsection (4) continues for that issuer of the
113liability coverage until the insured requests, in writing, a change of uninsured motorist Enrolled Copy H.B. 388
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114coverage from that liability insurer.
115 (c) (i) Subsections (4)(a) and (b) apply retroactively to any claim arising on or after
116January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for
117arbitration or filed a complaint in a court of competent jurisdiction.
118 (ii) The Legislature finds that the retroactive application of Subsections (4)(a) and (b)
119clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
120 (d) For purposes of this Subsection (4), "new policy" means:
121 (i) any policy that is issued which does not include a renewal or reinstatement of an
122existing policy; or
123 (ii) a change to an existing policy that results in:
124 (A) a named insured being added to or deleted from the policy; or
125 (B) a change in the limits of the named insured's motor vehicle liability coverage.
126 (e) (i) As used in this Subsection (4)(e), "additional motor vehicle" means a change
127that increases the total number of vehicles insured by the policy, and does not include
128replacement, substitute, or temporary vehicles.
129 (ii) The adding of an additional motor vehicle to an existing personal lines or
130commercial lines policy does not constitute a new policy for purposes of Subsection (4)(d).
131 (iii) If an additional motor vehicle is added to a personal lines policy where uninsured
132motorist coverage has been rejected, or where uninsured motorist limits are lower than the
133named insured's motor vehicle liability limits, the insurer shall provide a notice to a named
134insured within 30 days that:
135 (A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose of
136uninsured motorist coverage; and
137 (B) encourages the named insured to contact the insurance company or insurance
138producer for quotes as to the additional premiums required to purchase uninsured motorist
139coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
140liability coverage or the maximum uninsured motorist coverage limits available by the insurer
141under the named insured's motor vehicle policy. H.B. 388 Enrolled Copy
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142 (f) A change in policy number resulting from any policy change not identified under
143Subsection (4)(d)(ii) does not constitute a new policy.
144 (g) (i) Subsection (4)(d) applies retroactively to any claim arising on or after January 1,
1452001, for which, as of May 1, 2012, an insured has not made a written demand for arbitration
146or filed a complaint in a court of competent jurisdiction.
147 (ii) The Legislature finds that the retroactive application of Subsection (4):
148 (A) does not enlarge, eliminate, or destroy vested rights; and
149 (B) clarifies legislative intent.
150 (h) A self-insured, including a governmental entity, may elect to provide uninsured
151motorist coverage in an amount that is less than its maximum self-insured retention under
152Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy statement from
153the chief financial officer or chief risk officer that declares the:
154 (i) self-insured entity's coverage level; and
155 (ii) process for filing an uninsured motorist claim.
156 (i) Uninsured motorist coverage may not be sold with limits that are less than the
157minimum bodily injury limits for motor vehicle liability policies under Section 31A-22-304.
158 (j) The acknowledgment under Subsection (4)(a) continues for that issuer of the
159uninsured motorist coverage until the named insured requests, in writing, different uninsured
160motorist coverage from the insurer.
161 (k) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
162policies existing on that date, the insurer shall disclose in the same medium as the premium
163renewal notice, an explanation of:
164 (A) the purpose of uninsured motorist coverage in the same manner as described in
165Subsection (4)(a)(iv); and
166 (B) a disclosure of the additional premiums required to purchase uninsured motorist
167coverage with limits equal to the lesser of the limits of the named insured's motor vehicle
168liability coverage or the maximum uninsured motorist coverage limits available by the insurer
169under the named insured's motor vehicle policy. Enrolled Copy H.B. 388
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170 (ii) The disclosure required under Subsection (4)(k)(i) shall be sent to all named
171insureds that carry uninsured motorist coverage limits in an amount less than the named
172insured's motor vehicle liability policy limits or the maximum uninsured motorist coverage
173limits available by the insurer under the named insured's motor vehicle policy.
174 (l) For purposes of this Subsection (4), a notice or disclosure sent to a named insured in
175a household constitutes notice or disclosure to all insureds within the household.
176 (5) (a) (i) Except as provided in Subsection (5)(b), the named insured may reject
177uninsured motorist coverage by an express writing to the insurer that provides liability
178coverage under Subsection 31A-22-302(1)(a).
179 (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
180explanation of the purpose of uninsured motorist coverage.
181 (iii) This rejection continues for that issuer of the liability coverage until the insured in
182writing requests uninsured motorist coverage from that liability insurer.
183 (b) (i) All persons, including governmental entities, that are engaged in the business of,
184or that accept payment for, transporting natural persons by motor vehicle, and all school
185districts that provide transportation services for their students, shall provide coverage for all
186motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,
187uninsured motorist coverage of at least $25,000 per person and $500,000 per accident.
188 (ii) This coverage is secondary to any other insurance covering an injured covered
189person.
190 (c) Uninsured motorist coverage:
191 (i) does not cover any benefit paid or payable under Title 34A, Chapter 2, Workers'
192Compensation Act, except that the covered person is credited an amount described in
193Subsection 34A-2-106(5);
194 (ii) may not be subrogated by the workers' compensation insurance carrier, workers'
195compensation insurance, uninsured employer, the Uninsured Employers Fund created in
196Section 34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702;
197 (iii) may not be reduced by any benefits provided by workers' compensation insurance, H.B. 388 Enrolled Copy
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198uninsured employer, the Uninsured Employers Fund created in Section 34A-2-704, or the
199Employers' Reinsurance Fund created in Section 34A-2-702;
200 (iv) may be reduced by health insurance subrogation only after the covered person has
201been made whole;
202 (v) may not be collected for bodily injury or death sustained by a person:
203 (A) while committing a violation of Section 41-1a-1314;
204 (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
205in violation of Section 41-1a-1314; or
206 (C) while committing a felony; and
207 (vi) notwithstanding Subsection (5)(c)(v), may be recovered:
208 (A) for a person under 18 years old who is injured within the scope of Subsection
209(5)(c)(v) but limited to medical and funeral expenses; or
210 (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
211within the course and scope of the law enforcement officer's duties.
212 (d) As used in this Subsection (5), "motor vehicle" has the same meaning as under
213Section 41-1a-102.
214 (6) When a covered person alleges that an uninsured motor vehicle under Subsection
215(2)(b) proximately caused an accident without touching the covered person or the motor
216vehicle occupied by the covered person, the covered person shall show the existence of the
217uninsured motor vehicle by clear and convincing evidence consisting of more than the covered
218person's testimony.
219 (7) (a) The limit of liability for uninsured motorist coverage for two or more motor
220vehicles may not be added together, combined, or stacked to determine the limit of insurance
221coverage available to an injured person for any one accident.
222 (b) (i) Subsection (7)(a) applies to all persons except a covered person as defined under
223Subsection (8)(b).
224 (ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
225limits of uninsured motorist coverage afforded for any one motor vehicle that the covered Enrolled Copy H.B. 388
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226person is the named insured or an insured family member.
227 (iii) This coverage shall be in addition to the coverage on the motor vehicle the covered
228person is occupying.
229 (iv) Neither the primary nor the secondary coverage may be set off against the other.
230 (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
231coverage, and the coverage elected by a person described under Subsections (1)(a), (b), and (c)
232shall be secondary coverage.
233 (8) (a) Uninsured motorist coverage under this section applies to bodily injury,
234sickness, disease, or death of covered persons while occupying or using a motor vehicle only if
235the motor vehicle is described in the policy under which a claim is made, or if the motor
236vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
237Except as provided in Subsection (7) or this Subsection (8), a covered person injured in a
238motor vehicle described in a policy that includes uninsured motorist benefits may not elect to
239collect uninsured motorist coverage benefits from any other motor vehicle insurance policy
240under which the person is a covered person.
241 (b) Each of the following persons may also recover uninsured motorist benefits under
242any one other policy in which they are described as a "covered person" as defined in Subsection
243(1):
244 (i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
245 (ii) except as provided in Subsection (8)(c), a covered person injured while occupying
246or using a motor vehicle that is not owned, leased, or furnished:
247 (A) to the covered person;
248 (B) to the covered person's spouse; or
249 (C) to the covered person's resident parent or resident sibling.
250 (c) (i) A covered person may recover benefits from no more than two additional
251policies, one additional policy from each parent's household if the covered person is:
252 (A) a dependent minor of parents who reside in separate households; and
253 (B) injured while occupying or using a motor vehicle that is not owned, leased, or H.B. 388 Enrolled Copy
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254furnished:
255 (I) to the covered person;
256 (II) to the covered person's resident parent; or
257 (III) to the covered person's resident sibling.
258 (ii) Each parent's policy under this Subsection (8)(c) is liable only for the percentage of
259the damages that the limit of liability of each parent's policy of uninsured motorist coverage
260bears to the total of both parents' uninsured coverage applicable to the accident.
261 (d) A covered person's recovery under any available policies may not exceed the full
262amount of damages.
263 (e) A covered person in Subsection (8)(b) is not barred against making subsequent
264elections if recovery is unavailable under previous elections.
265 (f) (i) As used in this section, "interpolicy stacking" means recovering benefits for a
266single incident of loss under more than one insurance policy.
267 (ii) Except to the extent permitted by Subsection (7) and this Subsection (8),
268interpolicy stacking is prohibited for uninsured motorist coverage.
269 (9) (a) When a claim is brought by a named insured or a person described in
270Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the
271claimant may elect to resolve the claim:
272 (i) by submitting the claim to binding arbitration; or
273 (ii) through litigation.
274 (b) Unless otherwise provided in the policy under which uninsured benefits are
275claimed, the election provided in Subsection (9)(a) is available to the claimant only, except that
276if the policy under which insured benefits are claimed provides that either an insured or the
277insurer may elect arbitration, the insured or the insurer may elect arbitration and that election to
278arbitrate shall stay the litigation of the claim under Subsection (9)(a)(ii).
279 (c) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii),
280the claimant may not elect to resolve the claim through binding arbitration under this section
281without the written consent of the uninsured motorist carrier. Enrolled Copy H.B. 388
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282 (d) For purposes of the statute of limitations applicable to a claim described in
283Subsection (9)(a), if the claimant does not elect to resolve the claim through litigation, the
284claim is considered filed when the claimant submits the claim to binding arbitration in
285accordance with this Subsection (9).
286 (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
287binding arbitration under Subsection (9)(a)(i) shall be resolved by a single arbitrator.
288 (ii) All parties shall agree on the single arbitrator selected under Subsection (9)(e)(i).
289 (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
290(9)(e)(ii), the parties shall select a panel of three arbitrators.
291 (f) If the parties select a panel of three arbitrators under Subsection (9)(e)(iii):
292 (i) each side shall select one arbitrator; and
293 (ii) the arbitrators appointed under Subsection (9)(f)(i) shall select one additional
294arbitrator to be included in the panel.
295 (g) Unless otherwise agreed to in writing:
296 (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
297under Subsection (9)(e)(i); or
298 (ii) if an arbitration panel is selected under Subsection (9)(e)(iii):
299 (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
300 (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
301under Subsection (9)(f)(ii).
302 (h) Except as otherwise provided in this section or unless otherwise agreed to in
303writing by the parties, an arbitration proceeding conducted under this section shall be governed
304by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
305 (i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f),
30627 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of
307Subsections (10)(a) through (c) are satisfied.
308 (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure
309shall be determined based on the claimant's specific monetary amount in the written demand H.B. 388 Enrolled Copy
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310for payment of uninsured motorist coverage benefits as required in Subsection (10)(a)(i)(A).
311 (iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
312arbitration claims under this part.
313 (j) All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
314 (k) A written decision by a single arbitrator or by a majority of the arbitration panel
315shall constitute a final decision.
316 (l) (i) Except as provided in Subsection (10), the amount of an arbitration award may
317not exceed the uninsured motorist policy limits of all applicable uninsured motorist policies,
318including applicable uninsured motorist umbrella policies.
319 (ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
320applicable uninsured motorist policies, the arbitration award shall be reduced to an amount
321equal to the combined uninsured motorist policy limits of all applicable uninsured motorist
322policies.
323 (m) The arbitrator or arbitration panel may not decide the issues of coverage or
324extra-contractual damages, including:
325 (i) whether the claimant is a covered person;
326 (ii) whether the policy extends coverage to the loss; or
327 (iii) any allegations or claims asserting consequential damages or bad faith liability.
328 (n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
329class-representative basis.
330 (o) If the arbitrator or arbitration panel finds that the action was not brought, pursued,
331or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
332and costs against the party that failed to bring, pursue, or defend the claim in good faith.
333 (p) An arbitration award issued under this section shall be the final resolution of all
334claims not excluded by Subsection (9)(m) between the parties unless:
335 (i) the award was procured by corruption, fraud, or other undue means;
336 (ii) either party, within 20 days after service of the arbitration award:
337 (A) files a complaint requesting a trial de novo in the district court; and Enrolled Copy H.B. 388
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338 (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
339under Subsection (9)(p)(ii)(A).
340 (q) (i) Upon filing a complaint for a trial de novo under Subsection (9)(p), the claim
341shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules
342of Evidence in the district court.
343 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
344request a jury trial with a complaint requesting a trial de novo under Subsection (9)(p)(ii)(A).
345 (r) (i) If the claimant, as the moving party in a trial de novo requested under Subsection
346(9)(p), does not obtain a verdict that is at least $5,000 and is at least 20% greater than the
347arbitration award, the claimant is responsible for all of the nonmoving party's costs.
348 (ii) If the uninsured motorist carrier, as the moving party in a trial de novo requested
349under Subsection (9)(p), does not obtain a verdict that is at least 20% less than the arbitration
350award, the uninsured motorist carrier is responsible for all of the nonmoving party's costs.
351 (iii) Except as provided in Subsection (9)(r)(iv), the costs under this Subsection (9)(r)
352shall include:
353 (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
354 (B) the costs of expert witnesses and depositions.
355 (iv) An award of costs under this Subsection (9)(r) may not exceed $2,500 unless
356Subsection (10)(h)(iii) applies.
357 (s) For purposes of determining whether a party's verdict is greater or less than the
358arbitration award under Subsection (9)(r), a court may not consider any recovery or other relief
359granted on a claim for damages if the claim for damages:
360 (i) was not fully disclosed in writing prior to the arbitration proceeding; or
361 (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
362Procedure.
363 (t) If a district court determines, upon a motion of the nonmoving party, that the
364moving party's use of the trial de novo process was filed in bad faith in accordance with
365Section 78B-5-825, the district court may award reasonable attorney fees to the nonmoving H.B. 388 Enrolled Copy
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366party.
367 (u) Nothing in this section is intended to limit any claim under any other portion of an
368applicable insurance policy.
369 (v) If there are multiple uninsured motorist policies, as set forth in Subsection (8), the
370claimant may elect to arbitrate in one hearing the claims against all the uninsured motorist
371carriers.
372 (10) (a) Within 30 days after a covered person elects to submit a claim for uninsured
373motorist benefits to binding arbitration or files litigation, the covered person shall provide to
374the uninsured motorist carrier:
375 (i) a written demand for payment of uninsured motorist coverage benefits, setting forth:
376 (A) subject to Subsection (10)(m), the specific monetary amount of the demand,
377including a computation of the covered person's claimed past medical expenses, claimed past
378lost wages, and the other claimed past economic damages; and
379 (B) the factual and legal basis and any supporting documentation for the demand;
380 (ii) a written statement under oath disclosing:
381 (A) (I) the names and last known addresses of all health care providers who have
382rendered health care services to the covered person that are material to the claims for which
383uninsured motorist benefits are sought for a period of five years preceding the date of the event
384giving rise to the claim for uninsured motorist benefits up to the time the election for
385arbitration or litigation has been exercised; and
386 (II) the names and last known addresses of the health care providers who have rendered
387health care services to the covered person, which the covered person claims are immaterial to
388the claims for which uninsured motorist benefits are sought, for a period of five years
389preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
390time the election for arbitration or litigation has been exercised that have not been disclosed
391under Subsection (10)(a)(ii)(A)(I);
392 (B) (I) the names and last known addresses of all health insurers or other entities to
393whom the covered person has submitted claims for health care services or benefits material to Enrolled Copy H.B. 388
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394the claims for which uninsured motorist benefits are sought, for a period of five years
395preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
396time the election for arbitration or litigation has been exercised; and
397 (II) the names and last known addresses of the health insurers or other entities to whom
398the covered person has submitted claims for health care services or benefits, which the covered
399person claims are immaterial to the claims for which uninsured motorist benefits are sought,
400for a period of five years preceding the date of the event giving rise to the claim for uninsured
401motorist benefits up to the time the election for arbitration or litigation have not been disclosed;
402 (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
403employers of the covered person for a period of five years preceding the date of the event
404giving rise to the claim for uninsured motorist benefits up to the time the election for
405arbitration or litigation has been exercised;
406 (D) other documents to reasonably support the claims being asserted; and
407 (E) all state and federal statutory lienholders including a statement as to whether the
408covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
409Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
410or if the claim is subject to any other state or federal statutory liens; and
411 (iii) signed authorizations to allow the uninsured motorist carrier to only obtain records
412and billings from the individuals or entities disclosed under Subsections (10)(a)(ii)(A)(I),
413(B)(I), and (C).
414 (b) (i) If the uninsured motorist carrier determines that the disclosure of undisclosed
415health care providers or health care insurers under Subsection (10)(a)(ii) is reasonably
416necessary, the uninsured motorist carrier may:
417 (A) make a request for the disclosure of the identity of the health care providers or
418health care insurers; and
419 (B) make a request for authorizations to allow the uninsured motorist carrier to only
420obtain records and billings from the individuals or entities not disclosed.
421 (ii) If the covered person does not provide the requested information within 10 days: H.B. 388 Enrolled Copy
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422 (A) the covered person shall disclose, in writing, the legal or factual basis for the
423failure to disclose the health care providers or health care insurers; and
424 (B) either the covered person or the uninsured motorist carrier may request the
425arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
426provided if the covered person has elected arbitration.
427 (iii) The time periods imposed by Subsection (10)(c)(i) are tolled pending resolution of
428the dispute concerning the disclosure and production of records of the health care providers or
429health care insurers.
430 (c) (i) An uninsured motorist carrier that receives an election for arbitration or a notice
431of filing litigation and the demand for payment of uninsured motorist benefits under Subsection
432(10)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand and
433receipt of the items specified in Subsections (10)(a)(i) through (iii), to:
434 (A) provide a written response to the written demand for payment provided for in
435Subsection (10)(a)(i);
436 (B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of the
437uninsured motorist carrier's determination of the amount owed to the covered person; and
438 (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
439Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
440Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
441tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed
442to the covered person less:
443 (I) if the amount of the state or federal statutory lien is established, the amount of the
444lien; or
445 (II) if the amount of the state or federal statutory lien is not established, two times the
446amount of the medical expenses subject to the state or federal statutory lien until such time as
447the amount of the state or federal statutory lien is established.
448 (ii) If the amount tendered by the uninsured motorist carrier under Subsection (10)(c)(i)
449is the total amount of the uninsured motorist policy limits, the tendered amount shall be Enrolled Copy H.B. 388
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450accepted by the covered person.
451 (d) A covered person who receives a written response from an uninsured motorist
452carrier as provided for in Subsection (10)(c)(i), may:
453 (i) elect to accept the amount tendered in Subsection (10)(c)(i) as payment in full of all
454uninsured motorist claims; or
455 (ii) elect to:
456 (A) accept the amount tendered in Subsection (10)(c)(i) as partial payment of all
457uninsured motorist claims; and
458 (B) continue to litigate or arbitrate the remaining claim in accordance with the election
459made under Subsections (9)(a), (b), and (c).
460 (e) If a covered person elects to accept the amount tendered under Subsection (10)(c)(i)
461as partial payment of all uninsured motorist claims, the final award obtained through
462arbitration, litigation, or later settlement shall be reduced by any payment made by the
463uninsured motorist carrier under Subsection (10)(c)(i).
464 (f) In an arbitration proceeding on the remaining uninsured claims:
465 (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
466under Subsection (10)(c)(i) until after the arbitration award has been rendered; and
467 (ii) the parties may not disclose the amount of the limits of uninsured motorist benefits
468provided by the policy.
469 (g) If the final award obtained through arbitration or litigation is greater than the
470average of the covered person's initial written demand for payment provided for in Subsection
471(10)(a)(i) and the uninsured motorist carrier's initial written response provided for in
472Subsection (10)(c)(i), the uninsured motorist carrier shall pay:
473 (i) the final award obtained through arbitration or litigation, except that if the award
474exceeds the policy limits of the subject uninsured motorist policy by more than $15,000, the
475amount shall be reduced to an amount equal to the policy limits plus $15,000; and
476 (ii) any of the following applicable costs:
477 (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure; H.B. 388 Enrolled Copy
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478 (B) the arbitrator or arbitration panel's fee; and
479 (C) the reasonable costs of expert witnesses and depositions used in the presentation of
480evidence during arbitration or litigation.
481 (h) (i) The covered person shall provide an affidavit of costs within five days of an
482arbitration award.
483 (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
484which the uninsured motorist carrier objects.
485 (B) The objection shall be resolved by the arbitrator or arbitration panel.
486 (iii) The award of costs by the arbitrator or arbitration panel under Subsection
487(10)(g)(ii) may not exceed $5,000.
488 (i) (i) A covered person shall disclose all material information, other than rebuttal
489evidence, within 30 days after a covered person elects to submit a claim for uninsured motorist
490coverage benefits to binding arbitration or files litigation as specified in Subsection (10)(a).
491 (ii) If the information under Subsection (10)(i)(i) is not disclosed, the covered person
492may not recover costs or any amounts in excess of the policy under Subsection (10)(g).
493 (j) This Subsection (10) does not limit any other cause of action that arose or may arise
494against the uninsured motorist carrier from the same dispute.
495 (k) The provisions of this Subsection (10) only apply to motor vehicle accidents that
496occur on or after March 30, 2010.
497 (l) (i) The written demand requirement in Subsection (10)(a)(i)(A) does not affect the
498covered person's requirement to provide a computation of any other economic damages
499claimed, and the one or more respondents shall have a reasonable time after the receipt of the
500computation of any other economic damages claimed to conduct fact and expert discovery as to
501any additional damages claimed. The changes made by Laws of Utah 2014, Chapter 290,
502Section 10, and Chapter 300, Section 10, to this Subsection (10)(l) and Subsection
503(10)(a)(i)(A) apply to a claim submitted to binding arbitration or through litigation on or after
504May 13, 2014.
505 (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter Enrolled Copy H.B. 388
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506300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim submitted to
507binding arbitration or through litigation on or after May 13, 2014.
508 (11) (a) [Notwithstanding Section 31A-21-313, an] A person shall commence an action
509on a written policy or contract for uninsured motorist coverage [shall be commenced] within
510four years after the inception of loss.
511 (b) Subsection (11)(a) shall apply to all claims that have not been time barred by
512Subsection 31A-21-313(1)(a) as of May 14, 2019.
513 Section 3. Section 31A-22-307 is amended to read:
514 31A-22-307. Personal injury protection coverages and benefits.
515 (1) Personal injury protection coverages and benefits include:
516 (a) up to the minimum amount required coverage of not less than $3,000 per person,
517the reasonable value of all expenses for necessary:
518 (i) medical services;
519 (ii) surgical services;
520 (iii) X-ray services;
521 (iv) dental services;
522 (v) rehabilitation services, including prosthetic devices;
523 (vi) ambulance services;
524 (vii) hospital services; and
525 (viii) nursing services;
526 (b) (i) the lesser of $250 per week or 85% of any loss of gross income and loss of
527earning capacity per person from inability to work, for a maximum of 52 consecutive weeks
528after the loss, except that this benefit need not be paid for the first three days of disability,
529unless the disability continues for longer than two consecutive weeks after the date of injury;
530and
531 (ii) a special damage allowance not exceeding $20 per day for a maximum of 365 days,
532for services actually rendered or expenses reasonably incurred for services that, but for the
533injury, the injured person would have performed for the injured person's household, except that H.B. 388 Enrolled Copy
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534this benefit need not be paid for the first three days after the date of injury unless the person's
535inability to perform these services continues for more than two consecutive weeks;
536 (c) funeral, burial, or cremation benefits not to exceed a total of $1,500 per person; and
537 (d) compensation on account of death of a person, payable to the person's heirs, in the
538total of $3,000.
539 (2) (a) (i) To determine the reasonable value of the medical expenses provided for in
540Subsection (1) and under Subsection 31A-22-309(1)(a)(vi), the commissioner shall conduct a
541relative value study of services and accommodations for the diagnosis, care, recovery, or
542rehabilitation of an injured person in the most populous county in the state to assign a unit
543value and determine the 75th percentile charge for each type of service and accommodation.
544 (ii) The relative value study shall be updated every other year.
545 (iii) In conducting the relative value study, the department may consult or contract with
546appropriate public and private medical and health agencies or other technical experts.
547 (iv) The costs and expenses incurred in conducting, maintaining, and administering the
548relative value study shall be funded by the tax created under Section 59-9-105.
549 (v) Upon completion of the relative value study, the department shall prepare and
550publish a relative value study which sets forth the unit value and the 75th percentile charge
551assigned to each type of service and accommodation.
552 (b) (i) The reasonable value of any service or accommodation is determined by
553applying the unit value and the 75th percentile charge assigned to the service or
554accommodation under the relative value study.
555 (ii) If a service or accommodation is not assigned a unit value or the 75th percentile
556charge under the relative value study, the value of the service or accommodation shall equal the
557reasonable cost of the same or similar service or accommodation in the most populous county
558of this state.
559 (c) This Subsection (2) does not preclude the department from adopting a schedule
560already established or a schedule prepared by persons outside the department, if it meets the
561requirements of this Subsection (2). Enrolled Copy H.B. 388
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562 (d) Every insurer shall report to the commissioner any pattern of overcharging,
563excessive treatment, or other improper actions by a health provider within 30 days after the day
564on which the insurer has knowledge of the pattern.
565 (e) (i) In disputed cases, a court on its own motion or on the motion of either party,
566may designate an impartial medical panel of not more than three licensed physicians to
567examine the claimant and testify on the issue of the reasonable value of the claimant's medical
568services or expenses.
569 (ii) An impartial medical panel designated under Subsection (2)(e)(i) shall consist of a
570majority of health care professionals within the same license classification and specialty as the
571provider of the claimant's medical services or expenses.
572 (3) Medical expenses as provided for in Subsection (1)(a) and in Subsection
57331A-22-309(1)(a)(vi) include expenses for any nonmedical remedial care and treatment
574rendered in accordance with a recognized religious method of healing.
575 (4) The insured may waive for the named insured and the named insured's spouse only
576the loss of gross income benefits of Subsection (1)(b)(i) if the insured states in writing that:
577 (a) within 31 days of applying for coverage, neither the insured nor the insured's spouse
578received any earned income from regular employment; and
579 (b) for at least 180 days from the date of the writing and during the period of insurance,
580neither the insured nor the insured's spouse will receive earned income from regular
581employment.
582 (5) This section does not:
583 (a) prohibit the issuance of a policy of insurance providing coverages greater than the
584minimum coverage required under this chapter; or
585 (b) require the segregation of those minimum coverages from other coverages in the
586same policy.
587 (6) Deductibles are not permitted with respect to the insurance coverages required
588under this section.
589 (7) (a) A person shall bring an action on a written policy or contract for personal injury H.B. 388 Enrolled Copy
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590protection coverage within four years after the inception of loss.
591 (b) This Subsection (7) applies to a claim that is not time barred by Subsection
59231A-21-313(1)(a) as of May 3, 2023.
593 Section 4. Section 78B-2-305 is amended to read:
594 78B-2-305. Within three years.
595 An action may be brought within three years:
596 (1) for waste, trespass upon, or injury to real property; except that when waste or
597trespass is committed by means of underground works upon any mining claim, the cause of
598action does not accrue until the discovery by the aggrieved party of the facts constituting the
599waste or trespass;
600 (2) for taking, detaining, or injuring personal property, including actions for specific
601recovery[;], except that:
602 (a) in cases where the subject of the action is a domestic animal usually included in the
603term "livestock," which at the time of its loss has a recorded mark or brand, if the animal
604strayed or was stolen from the true owner without the owner's fault, the cause does not accrue
605until the owner has actual knowledge of facts that would put a reasonable person upon inquiry
606as to the possession of the animal by the defendant; and
607 (b) as provided in Subsection 73B-2-307(3), for a claim involving damage to personal
608property from an accident involving a motor vehicle as defined in Section 41-6a-102, including
609an accident involving a motor vehicle and bicycle, the action may be brought within four years;
610 (3) for relief on the ground of fraud or mistake; except that the cause of action does not
611accrue until the discovery by the aggrieved party of the facts constituting the fraud or mistake;
612 (4) for a liability created by the statutes of this state, other than for a penalty or
613forfeiture under the laws of this state, except where in special cases a different limitation is
614prescribed by the statutes of this state; or
615 (5) to enforce liability imposed by Section 78B-3-603, or for damages under Section
61678B-6-1701, except that the cause of action does not accrue until the aggrieved party knows or
617reasonably should know of the harm suffered. Enrolled Copy H.B. 388
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618 Section 5. Section 78B-2-307 is amended to read:
619 78B-2-307. Within four years.
620 An action may be brought within four years:
621 (1) after the last charge is made or the last payment is received:
622 (a) upon a contract, obligation, or liability not founded upon an instrument in writing;
623 (b) on an open store account for any goods, wares, or merchandise; or
624 (c) on an open account for work, labor or services rendered, or materials furnished;
625 (2) for a claim for relief or a cause of action under the following sections of Title 25,
626Chapter 6, Uniform Voidable Transactions Act:
627 (a) Subsection 25-6-202(1)(a), except in specific situations where the time for action is
628limited to one year under Section 25-6-305;
629 (b) Subsection 25-6-202(1)(b); or
630 (c) Subsection 25-6-203(1); [and]
631 (3) for a claim involving personal property damage to the aggrieved party's motor
632vehicle, as defined in Section 41-6a-102, or personal property from an accident involving a
633motor vehicle; and
634 [(3)] (4) for relief not otherwise provided for by law.