Utah 2025 Regular Session

Utah House Bill HB0522 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	02-18 10:01 H.B. 522
2	2	1
3	3	Automotive Repair Business Amendments
4	4	2025 GENERAL SESSION
5	5	STATE OF UTAH
6	6	Chief Sponsor: Colin W. Jack
7	7	Senate Sponsor:
8	8	2
9	9
10	10	3
11	11	LONG TITLE
12	12	4
13	13	General Description:
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15	15	This bill amends provisions related to automotive repairs.
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17	17	Highlighted Provisions:
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19	19	This bill:
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21	21	▸ requires that a motor vehicle liability coverage policy include coverage of the difference
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23	23	in market value from before and after a motor vehicle accident;
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25	25	▸ grants the Insurance Department rulemaking authority to establish a formula to determine
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27	27	the coverage of the difference in market value from before and after a motor vehicle
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29	29	accident;
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31	31	▸ requires that an automotive repair facility or installer use crash parts that are substantially
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33	33	equivalent to Original Equipment Manufacturer aftermarket crash parts; and
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35	35	▸ makes technical and conforming changes.
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37	37	Money Appropriated in this Bill:
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39	39	None
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41	41	Other Special Clauses:
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43	43	None
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45	45	Utah Code Sections Affected:
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47	47	AMENDS:
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49	49	31A-22-303, as last amended by Laws of Utah 2023, Chapter 415
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51	51	31A-22-319, as renumbered and amended by Laws of Utah 1995, Chapter 8
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53	53
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55	55	Be it enacted by the Legislature of the state of Utah:
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57	57	Section 1. Section 31A-22-303 is amended to read:
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59	59	31A-22-303 . Motor vehicle liability coverage.
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61	61	(1)(a) In addition to complying with the requirements of Chapter 21, Insurance
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63	63	Contracts in General, and Part 2, Liability Insurance in General, a policy of motor
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65	65	vehicle liability coverage under Subsection 31A-22-302(1)(a) shall:
66	66	H.B. 522 H.B. 522 02-18 10:01
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68	68	(i) name the motor vehicle owner or operator in whose name the policy was
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70	70	purchased, state that named insured's address, the coverage afforded, the premium
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72	72	charged, the policy period, and the limits of liability;
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74	74	(ii)(A) if [it] the policy is an owner's policy, designate by appropriate reference all
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76	76	the motor vehicles on which coverage is granted, insure the person named in
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78	78	the policy, insure any other person using any named motor vehicle with the
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80	80	express or implied permission of the named insured, and, except as provided in
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82	82	Section 31A-22-302.5, insure any person included in Subsection (1)(a)(iii)
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84	84	against loss from the liability imposed by law for damages arising out of the
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86	86	ownership, maintenance, or use of these motor vehicles within the United
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88	88	States and Canada, subject to limits exclusive of interest and costs, for each
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90	90	motor vehicle, in amounts not less than the minimum limits specified under
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92	92	Section 31A-22-304; or
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94	94	(B) if [it] the policy is an operator's policy, insure the person named as insured
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96	96	against loss from the liability imposed upon [him] the person by law for
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98	98	damages arising out of the insured's use of any motor vehicle not owned by [
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100	100	him] the person, within the same territorial limits and with the same limits of
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102	102	liability as in an owner's policy under Subsection (1)(a)(ii)(A);
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104	104	(iii) except as provided in Section 31A-22-302.5, insure persons related to the named
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106	106	insured by blood, marriage, adoption, or guardianship who are residents of the
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108	108	named insured's household, including [those] a person who usually [make their]
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110	110	makes the person's home in the same household but temporarily [live] lives
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112	112	elsewhere, to the same extent as the named insured;
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114	114	[(iv) where a claim is brought by the named insured or a person described in
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116	116	Subsection (1)(a)(iii), the available coverage of the policy may not be reduced or
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118	118	stepped-down because:]
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120	120	[(A) a permissive user driving a covered motor vehicle is at fault in causing an
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122	122	accident; or]
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124	124	[(B) the named insured or any of the persons described in Subsection (1)(a)(iii)
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126	126	driving a covered motor vehicle is at fault in causing an accident; and]
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128	128	[(v)] (iv) cover damages or injury resulting from a covered driver of a motor vehicle
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130	130	who is stricken by an unforeseeable paralysis, seizure, or other unconscious
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132	132	condition and who is not reasonably aware that paralysis, seizure, or other
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134	134	unconscious condition is about to occur to the extent that a person of ordinary
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137	137	prudence would not attempt to continue driving[.] ; and
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139	139	(v) cover the difference in market value of an insured's motor vehicle calculated in a
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141	141	manner the commissioner establishes by rule in compliance with Subsection (10).
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143	143	(b) Where a named insured or a person described in Subsection (1)(a)(iii) brings a claim,
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145	145	the available coverage of the policy may not be reduced or stepped-down because:
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147	147	(i) a permissive user driving a covered motor vehicle is at fault in causing an
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149	149	accident; or
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151	151	(ii) the named insured or any of the persons described in Subsection (1)(a)(iii) driving
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153	153	a covered motor vehicle is at fault in causing an accident.
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155	155	[(b)] (c) The driver's liability under Subsection [(1)(a)(v)] (1)(a)(iv) is limited to the
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157	157	insurance coverage.
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159	159	[(c)] (d)(i) "Guardianship" under Subsection (1)(a)(iii) includes the relationship
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161	161	between a foster parent and a minor who is in the legal custody of the Division of
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163	163	Child and Family Services if:
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165	165	(A) the minor resides in a foster home, as defined in Section 62A-2-101, with a
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167	167	foster parent who is the named insured; and
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169	169	(B) the foster parent has signed to be jointly and severally liable for compensatory
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171	171	damages caused by the minor's operation of a motor vehicle in accordance with
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173	173	Section 53-3-211.
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175	175	(ii) "Guardianship" as defined under this Subsection [(1)(c)] (1)(d) ceases to exist
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177	177	when a minor described in Subsection [(1)(c)(i)(A)] (1)(d)(i)(A) is no longer a
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179	179	resident of the named insured's household.
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181	181	(2)(a) A policy containing motor vehicle liability coverage under Subsection
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183	183	31A-22-302(1)(a) may:
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185	185	(i) provide for the prorating of the insurance under that policy with other valid and
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187	187	collectible insurance;
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189	189	(ii) grant any lawful coverage in addition to the required motor vehicle liability
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191	191	coverage;
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193	193	(iii) if an insurer issues the policy [is issued ]to a person other than a motor vehicle
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195	195	business, limit the coverage afforded to a motor vehicle business or its officers,
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197	197	agents, or employees to the minimum limits under Section 31A-22-304, and to
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199	199	those instances when there is no other valid and collectible insurance with at least
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201	201	those limits, whether the other insurance is primary, excess, or contingent; and
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203	203	(iv) if [issued] an insurer issues the policy to a motor vehicle business, restrict
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206	206	coverage afforded to anyone other than the motor vehicle business or its officers,
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208	208	agents, or employees to the minimum limits under Section 31A-22-304, and to
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210	210	those instances when there is no other valid and collectible insurance with at least
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212	212	those limits, whether the other insurance is primary, excess, or contingent.
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214	214	(b)(i) The liability insurance coverage of a permissive user of a motor vehicle owned
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216	216	by a motor vehicle business shall be primary coverage.
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218	218	(ii) The liability insurance coverage of a motor vehicle business shall be secondary to
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220	220	the liability insurance coverage of a permissive user as specified under Subsection
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222	222	(2)(b)(i).
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224	224	(3) Motor vehicle liability coverage need not insure any liability:
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226	226	(a) under any workers' compensation law under Title 34A, Utah Labor Code;
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228	228	(b) resulting from bodily injury to or death of an employee of the named insured, other
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230	230	than a domestic employee, while engaged in the employment of the insured, or while
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232	232	engaged in the operation, maintenance, or repair of a designated vehicle; or
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234	234	(c) resulting from damage to property owned by, rented to, bailed to, or transported by
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236	236	the insured.
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238	238	(4) An insurance carrier providing motor vehicle liability coverage has the right to settle
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240	240	any claim covered by the policy, and if the insurance carrier makes the settlement [is
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242	242	made ]in good faith, the amount of the settlement is deductible from the limits of
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244	244	liability specified under Section 31A-22-304.
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246	246	(5) A policy containing motor vehicle liability coverage imposes on the insurer the duty to
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248	248	defend, in good faith, any person insured under the policy against any claim or suit
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250	250	seeking damages which would be payable under the policy.
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252	252	(6)(a) If a policy containing motor vehicle liability coverage provides an insurer with the
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254	254	defense of lack of cooperation on the part of the insured, that defense is not effective
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256	256	against a third person making a claim against the insurer, unless there was collusion
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258	258	between the third person and the insured.
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260	260	(b) If the defense of lack of cooperation is not effective against the claimant, after
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262	262	payment, the insurer is subrogated to the injured person's claim against the insured to
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264	264	the extent of the payment and is entitled to reimbursement by the insured after the
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266	266	injured third person has been made whole with respect to the claim against the
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268	268	insured.
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270	270	(7)(a) A policy of motor vehicle coverage may limit coverage to the policy minimum
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272	272	limits under Section 31A-22-304 if the policy or a specifically reduced premium was
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275	275	extended to the insured upon express written declaration executed by the insured that
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277	277	the insured motor vehicle would not be operated by a person described in Subsection
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279	279	(7)(c) operating in a manner described in Subsection (7)(b)(i).
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281	281	(b)(i) A policy of motor vehicle liability coverage may limit coverage as described in
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283	283	Subsection (7)(a) if the insured motor vehicle is operated by an individual
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285	285	described in Subsection (7)(c) if the individual described in Subsection (7)(c) is
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287	287	guilty of:
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289	289	(A) driving under the influence as described in Section 41-6a-502;
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291	291	(B) impaired driving as described in Section 41-6a-502.5; or
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293	293	(C) operating a vehicle with a measurable controlled substance in the individual's
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295	295	body as described in Section 41-6a-517.
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297	297	(ii) An individual's refusal to submit to a chemical test as described in Sections
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299	299	41-6a-520 and 41-6a-520.1 is admissible evidence, but not conclusive, that the
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301	301	individual is guilty of an offense described in Subsection (7)(b)(i).
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303	303	(c) A reduction in coverage as described in Subsection (7)(a) applies to the following
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305	305	individuals:
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307	307	(i) the insured;
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309	309	(ii) the spouse of the insured; or
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311	311	(iii) if the individual has a separate policy as a secondary source of coverage, and:
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313	313	(A) the individual is over [the age of 21] 21 years old and resides in the household
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315	315	of the insured; or
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317	317	(B) the individual is a permissible user of the motor vehicle.
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319	319	(d) A reduction in coverage as described in Subsection (7)(a) does not apply to an
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321	321	individual under [the age of 21] 21 years old who is a relative of the insured and a
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323	323	resident of the insured's household.
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325	325	(8)(a) When a claim is brought exclusively by a named insured or a person described in
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327	327	Subsection (1)(a)(iii) and asserted exclusively against a named insured or an
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329	329	individual described in Subsection (1)(a)(iii), the claimant may elect to resolve the
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331	331	claim:
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333	333	(i) by submitting the claim to binding arbitration; or
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335	335	(ii) through litigation.
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337	337	(b) Once the claimant has elected to commence litigation under Subsection (8)(a)(ii), the
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339	339	claimant may not elect to resolve the claim through binding arbitration under this
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341	341	section without the written consent of both parties and the defendant's liability insurer.
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344	344	(c)(i) Unless otherwise agreed on in writing by the parties, a panel of three arbitrators
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346	346	shall resolve a claim [that is submitted] the parties submit to binding arbitration
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348	348	under Subsection (8)(a)(i)[ shall be resolved by a panel of three arbitrators].
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350	350	(ii)(A) Unless otherwise agreed on in writing by the parties, each party shall select
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352	352	an arbitrator.
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354	354	(B) The arbitrators selected by the parties shall select a third arbitrator.
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356	356	(d)(i) Unless otherwise agreed on in writing by the parties, each party [will] shall pay
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358	358	the fees and costs of the arbitrator that party selects.
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360	360	(ii) Both parties shall share equally the fees and costs of the third arbitrator.
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362	362	(e) Except as otherwise provided in this section, an arbitration procedure conducted
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364	364	under this section shall be governed by Title 78B, Chapter 11, Utah Uniform
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366	366	Arbitration Act, unless otherwise agreed on in writing by the parties.
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368	368	(f)(i) [Discovery shall be conducted] The parties shall conduct discovery in
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370	370	accordance with Rules 26b through 36, Utah Rules of Civil Procedure.
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372	372	(ii) [All ] The arbitration panel shall resolve all issues of discovery[ shall be resolved
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374	374	by the arbitration panel].
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376	376	(g) A written decision of two of the three arbitrators shall constitute a final decision of
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378	378	the arbitration panel.
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380	380	(h) [Prior to ] Before the rendering of the arbitration award:
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382	382	(i) the existence of a liability insurance policy may be disclosed to the arbitration
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384	384	panel; and
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386	386	(ii) the amount of all applicable liability insurance policy limits may not be disclosed
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388	388	to the arbitration panel.
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390	390	(i)(i) The amount of the arbitration award may not exceed the liability limits of all the
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392	392	defendant's applicable liability insurance policies, including applicable liability
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394	394	umbrella policies.[ ]
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396	396	(ii) If the initial arbitration award exceeds the liability limits of all applicable liability
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398	398	insurance policies, the arbitration award shall be reduced to an amount equal to
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400	400	the liability limits of all applicable liability insurance policies.
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402	402	(j) The arbitration award is the final resolution of all claims between the parties unless
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404	404	the award was procured by corruption, fraud, or other undue means.
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406	406	(k) If the arbitration panel finds that [the action was not brought, pursued, or defended ] a
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408	408	party did not bring, pursue, or defend the action in good faith, the arbitration panel
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410	410	may award reasonable fees and costs against the party that failed to bring, pursue, or
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413	413	defend the claim in good faith.
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415	415	(l) Nothing in this section is intended to limit any claim under any other portion of an
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417	417	applicable insurance policy.
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419	419	(9) An at-fault driver or an insurer issuing a policy of insurance under this part that is
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421	421	covering an at-fault driver may not reduce compensation to an injured party based on the
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423	423	injured party not being covered by a policy of insurance that provides personal injury
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425	425	protection coverage under Sections 31A-22-306 through 31A-22-309.
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427	427	(10) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah
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429	429	Administrative Rulemaking Act, a formula that an insurer shall use to calculate the
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431	431	difference in market value for a motor vehicle from before and after an accident
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433	433	involving the motor vehicle.
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435	435	Section 2. Section 31A-22-319 is amended to read:
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437	437	31A-22-319 . Prohibition on insurer requiring certain parts -- Disclosure.
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439	439	(1) Unless [the insured is given notice] the insurer gives the insured notice in writing, an
440	440	215
441	441	insurer may not [specify] permit the use of non-OEM aftermarket crash parts in the
442	442	216
443	443	repair of an insured's motor vehicle.
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445	445	(2) [ ]The notice [ ]required by Subsection (1) shall identify non-OEM parts as not made
446	446	218
447	447	for or by the vehicle manufacturer.
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449	449	[(2)] (3) Unless [the consumer is given] the insurer gives the insured notice in writing [prior
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451	451	to] before installation, a repair facility or installer may not use non-OEM aftermarket
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453	453	parts to repair a vehicle.
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455	455	[(3)] (4) In all instances where [non-OEM aftermarket crash parts are intended for use by an
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457	457	insurer] an insurer intends to use non-OEM aftermarket crash parts:
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459	459	(a) the written estimate shall clearly identify each non-OEM aftermarket crash part;[ and]
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461	461	(b) a disclosure document containing the following statements in 10 point or larger type
462	462	226
463	463	shall appear on or be attached to the insured's copy of the estimate: "This estimate
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465	465	has been prepared based on the use of crash parts supplied by a source other than the
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467	467	manufacturer of your motor vehicle. Warranties applicable to these replacement
468	468	229
469	469	parts are provided by the manufacturer or distributor of these parts rather than the
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471	471	manufacturer of your vehicle."; and
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473	473	(c) the repair facility or installer shall use non-OEM aftermarket crash parts that are
474	474	232
475	475	substantially equivalent in quality and function to OEM aftermarket crash parts.
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477	477	Section 3. Effective Date.
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479	479	This bill takes effect on May 7, 2025.
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