Enrolled Copy H.B. 231
1 MOTOR VEHICLE INSURANCE MODIFICATIONS
2024 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Nelson T. Abbott Senate Sponsor: Curtis S. Bramble
2
3 LONG TITLE
4 General Description:
5 This bill modifies provisions related to uninsured and underinsured motorist coverage.
6 Highlighted Provisions:
7 This bill:
8 ▸ clarifies that certain benefits related to the Utah Labor Commission do not need to be
9 exhausted before uninsured or underinsured motorist coverage can be paid.
10 Money Appropriated in this Bill:
11 None
12 Other Special Clauses:
13 None
14 Utah Code Sections Affected:
15 AMENDS:
16 31A-22-305, as last amended by Laws of Utah 2023, Chapters 69, 185 and 327
17 31A-22-305.3, as last amended by Laws of Utah 2023, Chapters 69, 327
18
19 Be it enacted by the Legislature of the state of Utah:
20 Section 1. Section 31A-22-305 is amended to read:
21 31A-22-305 . Uninsured motorist coverage.
22 (1) As used in this section, "covered persons" includes:
23 (a) the named insured;
24 (b) for a claim arising on or after May 13, 2014, the named insured's dependent minor
25 children;
26 (c) persons related to the named insured by blood, marriage, adoption, or guardianship,
27 who are residents of the named insured's household, including those who usually
28 make their home in the same household but temporarily live elsewhere;
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29 (d) any person occupying or using a motor vehicle:
30 (i) referred to in the policy; or
31 (ii) owned by a self-insured; and
32 (e) any person who is entitled to recover damages against the owner or operator of the
33 uninsured or underinsured motor vehicle because of bodily injury to or death of
34 persons under Subsection (1)(a), (b), (c), or (d).
35 (2) As used in this section, "uninsured motor vehicle" includes:
36 (a) (i) a motor vehicle, the operation, maintenance, or use of which is not covered
37 under a liability policy at the time of an injury-causing occurrence; or
38 (ii) (A) a motor vehicle covered with lower liability limits than required by
39 Section 31A-22-304; and
40 (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the
41 extent of the deficiency;
42 (b) an unidentified motor vehicle that left the scene of an accident proximately caused
43 by the motor vehicle operator;
44 (c) a motor vehicle covered by a liability policy, but coverage for an accident is disputed
45 by the liability insurer for more than 60 days or continues to be disputed for more
46 than 60 days; or
47 (d) (i) an insured motor vehicle if, before or after the accident, the liability insurer of
48 the motor vehicle is declared insolvent by a court of competent jurisdiction; and
49 (ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the extent
50 that the claim against the insolvent insurer is not paid by a guaranty association or
51 fund.
52 (3) Uninsured motorist coverage under Subsection 31A-22-302(1)(b) provides coverage for
53 covered persons who are legally entitled to recover damages from owners or operators
54 of uninsured motor vehicles because of bodily injury, sickness, disease, or death.
55 (4) (a) For new policies written on or after January 1, 2001, the limits of uninsured
56 motorist coverage shall be equal to the lesser of the limits of the named insured's
57 motor vehicle liability coverage or the maximum uninsured motorist coverage limits
58 available by the insurer under the named insured's motor vehicle policy, unless a
59 named insured rejects or purchases coverage in a lesser amount by signing an
60 acknowledgment form that:
61 (i) is filed with the department;
62 (ii) is provided by the insurer;
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63 (iii) waives the higher coverage;
64 (iv) need only state in this or similar language that uninsured motorist coverage
65 provides benefits or protection to you and other covered persons for bodily injury
66 resulting from an accident caused by the fault of another party where the other
67 party has no liability insurance; and
68 (v) discloses the additional premiums required to purchase uninsured motorist
69 coverage with limits equal to the lesser of the limits of the named insured's motor
70 vehicle liability coverage or the maximum uninsured motorist coverage limits
71 available by the insurer under the named insured's motor vehicle policy.
72 (b) Any selection or rejection under this Subsection (4) continues for that issuer of the
73 liability coverage until the insured requests, in writing, a change of uninsured
74 motorist coverage from that liability insurer.
75 (c) (i) Subsections (4)(a) and (b) apply retroactively to any claim arising on or after
76 January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
77 demand for arbitration or filed a complaint in a court of competent jurisdiction.
78 (ii) The Legislature finds that the retroactive application of Subsections (4)(a) and (b)
79 clarifies legislative intent and does not enlarge, eliminate, or destroy vested rights.
80 (d) For purposes of this Subsection (4), "new policy" means:
81 (i) any policy that is issued which does not include a renewal or reinstatement of an
82 existing policy; or
83 (ii) a change to an existing policy that results in:
84 (A) a named insured being added to or deleted from the policy; or
85 (B) a change in the limits of the named insured's motor vehicle liability coverage.
86 (e) (i) As used in this Subsection (4)(e), "additional motor vehicle" means a change
87 that increases the total number of vehicles insured by the policy, and does not
88 include replacement, substitute, or temporary vehicles.
89 (ii) The adding of an additional motor vehicle to an existing personal lines or
90 commercial lines policy does not constitute a new policy for purposes of
91 Subsection (4)(d).
92 (iii) If an additional motor vehicle is added to a personal lines policy where uninsured
93 motorist coverage has been rejected, or where uninsured motorist limits are lower
94 than the named insured's motor vehicle liability limits, the insurer shall provide a
95 notice to a named insured within 30 days that:
96 (A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose
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97 of uninsured motorist coverage; and
98 (B) encourages the named insured to contact the insurance company or insurance
99 producer for quotes as to the additional premiums required to purchase
100 uninsured motorist coverage with limits equal to the lesser of the limits of the
101 named insured's motor vehicle liability coverage or the maximum uninsured
102 motorist coverage limits available by the insurer under the named insured's
103 motor vehicle policy.
104 (f) A change in policy number resulting from any policy change not identified under
105 Subsection (4)(d)(ii) does not constitute a new policy.
106 (g) (i) Subsection (4)(d) applies retroactively to any claim arising on or after January
107 1, 2001, for which, as of May 1, 2012, an insured has not made a written demand
108 for arbitration or filed a complaint in a court of competent jurisdiction.
109 (ii) The Legislature finds that the retroactive application of Subsection (4):
110 (A) does not enlarge, eliminate, or destroy vested rights; and
111 (B) clarifies legislative intent.
112 (h) A self-insured, including a governmental entity, may elect to provide uninsured
113 motorist coverage in an amount that is less than its maximum self-insured retention
114 under Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy
115 statement from the chief financial officer or chief risk officer that declares the:
116 (i) self-insured entity's coverage level; and
117 (ii) process for filing an uninsured motorist claim.
118 (i) Uninsured motorist coverage may not be sold with limits that are less than the
119 minimum bodily injury limits for motor vehicle liability policies under Section
120 31A-22-304.
121 (j) The acknowledgment under Subsection (4)(a) continues for that issuer of the
122 uninsured motorist coverage until the named insured requests, in writing, different
123 uninsured motorist coverage from the insurer.
124 (k) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
125 policies existing on that date, the insurer shall disclose in the same medium as the
126 premium renewal notice, an explanation of:
127 (A) the purpose of uninsured motorist coverage in the same manner as described
128 in Subsection (4)(a)(iv); and
129 (B) a disclosure of the additional premiums required to purchase uninsured
130 motorist coverage with limits equal to the lesser of the limits of the named
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131 insured's motor vehicle liability coverage or the maximum uninsured motorist
132 coverage limits available by the insurer under the named insured's motor
133 vehicle policy.
134 (ii) The disclosure required under Subsection (4)(k)(i) shall be sent to all named
135 insureds that carry uninsured motorist coverage limits in an amount less than the
136 named insured's motor vehicle liability policy limits or the maximum uninsured
137 motorist coverage limits available by the insurer under the named insured's motor
138 vehicle policy.
139 (l) For purposes of this Subsection (4), a notice or disclosure sent to a named insured in
140 a household constitutes notice or disclosure to all insureds within the household.
141 (5) (a) (i) Except as provided in Subsection (5)(b), the named insured may reject
142 uninsured motorist coverage by an express writing to the insurer that provides
143 liability coverage under Subsection 31A-22-302(1)(a).
144 (ii) This rejection shall be on a form provided by the insurer that includes a
145 reasonable explanation of the purpose of uninsured motorist coverage.
146 (iii) This rejection continues for that issuer of the liability coverage until the insured
147 in writing requests uninsured motorist coverage from that liability insurer.
148 (b) (i) All persons, including governmental entities, that are engaged in the business
149 of, or that accept payment for, transporting natural persons by motor vehicle, and
150 all school districts that provide transportation services for their students, shall
151 provide coverage for all motor vehicles used for that purpose, by purchase of a
152 policy of insurance or by self-insurance, uninsured motorist coverage of at least
153 $25,000 per person and $500,000 per accident.
154 (ii) This coverage is secondary to any other insurance covering an injured covered
155 person.
156 (c) Uninsured motorist coverage:
157 [(i) does not cover any benefit paid or payable under Title 34A, Chapter 2, Workers'
158 Compensation Act, except that the covered person is credited an amount described
159 in Subsection 34A-2-106(5);]
160 (i) in order to avoid double recovery, does not cover any benefit under Title 34A,
161 Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3, Utah
162 Occupational Disease Act, provided by the workers' compensation insurance
163 carrier, uninsured employer, the Uninsured Employers' Fund created in Section
164 34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702,
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165 except that:
166 (A) the covered person is credited an amount described in Subsection 34A-2-106
167 (5); and
168 (B) the benefits described in this Subsection (5)(c)(i) do not need to be paid before
169 an uninsured motorist claim may be pursued and resolved;
170 (ii) may not be subrogated by the workers' compensation insurance carrier, [workers'
171 compensation insurance,] uninsured employer, the Uninsured Employers' Fund
172 created in Section 34A-2-704, or the Employers' Reinsurance Fund created in
173 Section 34A-2-702;
174 (iii) may not be reduced by any benefits provided by the workers' compensation
175 insurance carrier, uninsured employer, the Uninsured Employers' Fund created in
176 Section 34A-2-704, or the Employers' Reinsurance Fund created in Section
177 34A-2-702;
178 (iv) notwithstanding Subsection 31A-1-103(3)(f), may be reduced by health
179 insurance subrogation only after the covered person has been made whole;
180 (v) may not be collected for bodily injury or death sustained by a person:
181 (A) while committing a violation of Section 41-1a-1314;
182 (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being
183 operated in violation of Section 41-1a-1314; or
184 (C) while committing a felony; and
185 (vi) notwithstanding Subsection (5)(c)(v), may be recovered:
186 (A) for a person under 18 years old who is injured within the scope of Subsection
187 (5)(c)(v) but limited to medical and funeral expenses; or
188 (B) by a law enforcement officer as defined in Section 53-13-103, who is injured
189 within the course and scope of the law enforcement officer's duties.
190 (d) As used in this Subsection (5), "motor vehicle" [has the same meaning as under]
191 means the same as that term is defined in Section 41-1a-102.
192 (6) When a covered person alleges that an uninsured motor vehicle under Subsection (2)(b)
193 proximately caused an accident without touching the covered person or the motor
194 vehicle occupied by the covered person, the covered person shall show the existence of
195 the uninsured motor vehicle by clear and convincing evidence consisting of more than
196 the covered person's testimony.
197 (7) (a) The limit of liability for uninsured motorist coverage for two or more motor
198 vehicles may not be added together, combined, or stacked to determine the limit of
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199 insurance coverage available to an injured person for any one accident.
200 (b) (i) Subsection (7)(a) applies to all persons except a covered person as defined
201 under Subsection (8)(b).
202 (ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
203 limits of uninsured motorist coverage afforded for any one motor vehicle that the
204 covered person is the named insured or an insured family member.
205 (iii) This coverage shall be in addition to the coverage on the motor vehicle the
206 covered person is occupying.
207 (iv) Neither the primary nor the secondary coverage may be set off against the other.
208 (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
209 coverage, and the coverage elected by a person described under Subsections (1)(a)
210 through (c) shall be secondary coverage.
211 (8) (a) Uninsured motorist coverage under this section applies to bodily injury, sickness,
212 disease, or death of covered persons while occupying or using a motor vehicle only if
213 the motor vehicle is described in the policy under which a claim is made, or if the
214 motor vehicle is a newly acquired or replacement motor vehicle covered under the
215 terms of the policy. Except as provided in Subsection (7) or this Subsection (8), a
216 covered person injured in a motor vehicle described in a policy that includes
217