Mr. President:
The Transportation and Public Utilities and Technology Committee reports a favorable
recommendation on S.B. 49, MOTOR VEHICLE LIABILITY COVERAGE AMENDMENTS,
by Senator D. Eastman, with the following amendments:
{
jurisdiction; and
the uninsured motorist coverage until the insured, in writing, requests different
uninsured motorist coverage from the insurer.
covered person is occupying.
accident.
benefits for a single incident of loss under more than one insurance policy.
Respectfully,
Sheldon L Killpack
Voting: 5-0-1
1. Page
1, Lines 13 through 14
:
13
. provides that motor vehicle liability coverage need not insure any liability that
arises
14
out of acts by the insured that are intended to cause
or
}
,
bodily
injury
, or death
;
{
and
}
2. Page
1, Line 22
:
22
31A-22-303, as last amended by Chapters 90 and 126, Laws of Utah 2004
3. Page
3, Line 87
:
87
(d) arising out of acts by the insured that are intended to cause
or
}
, bodily
injury
, or death
.
4. Page
6, Line 161
:
161
protection coverage under Sections
31A-22-306
through
31A-22-309
.
31A-22-305
.
Uninsured and underinsured motorist coverage.
(1) As used in this section, "covered persons" includes:
(a) the named insured;
(b) persons related to the named insured by blood, marriage, adoption, or
guardianship, who are residents of the named insured's household, including
those who usually make their home in the same household but temporarily live
elsewhere;
(c) any person occupying or using a motor vehicle:
(i) referred to in the policy; or
(ii) owned by a self-insured; and
(d) any person who is entitled to recover damages against the owner or operator
of the uninsured or underinsured motor vehicle because of bodily injury to or
death of persons under Subsection (1)(a), (b), or (c).
(2) As used in this section, "uninsured motor vehicle" includes:
(a) (i) a motor vehicle, the operation, maintenance, or use of which is not
covered under a liability policy at the time of an injury-causing occurrence; or
(ii) (A) a motor vehicle covered with lower liability limits than required by
Section
31A-22-304
; and
(B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the
extent of the deficiency;
(b) an unidentified motor vehicle that left the scene of an accident proximately
caused by the motor vehicle operator;
(c) a motor vehicle covered by a liability policy, but coverage for an accident is
disputed by the liability insurer for more than 60 days or continues to be
disputed for more than 60 days;
or
}
(d) (i) an insured motor vehicle if, before or after the accident, the liability
insurer of the motor vehicle is declared insolvent by a court of competent
(ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the
extent that the claim against the insolvent insurer is not paid by a guaranty
association or fund
.
}
; or
(3) (a) Uninsured motorist coverage under Subsection
31A-22-302
(1)(b)
provides coverage for covered persons who are legally entitled to recover
damages from owners or operators of uninsured motor vehicles because of
bodily injury, sickness, disease, or death.
(b) For new policies written on or after January 1, 2001, the limits of uninsured
motorist coverage shall be equal to the lesser of the limits of the insured's motor
vehicle liability coverage or the maximum uninsured motorist coverage limits
available by the insurer under the insured's motor vehicle policy, unless the
insured purchases coverage in a lesser amount by signing an acknowledgment
form provided by the insurer that:
(i) waives the higher coverage;
(ii) reasonably explains the purpose of uninsured motorist coverage; and
(iii) discloses the additional premiums required to purchase uninsured motorist
coverage with limits equal to the lesser of the limits of the insured's motor
vehicle liability coverage or the maximum uninsured motorist coverage limits
available by the insurer under the insured's motor vehicle policy.
(c) A self-insured, including a governmental entity, may elect to provide
uninsured motorist coverage in an amount that is less than its maximum
self-insured retention under Subsections (3)(b) and (4)(a) by issuing a
declaratory memorandum or policy statement from the chief financial officer or
chief risk officer that declares the:
(i) self-insured entity's coverage level; and
(ii) process for filing an uninsured motorist claim.
(d) Uninsured motorist coverage may not be sold with limits that are less than
the minimum bodily injury limits for motor vehicle liability policies under
Section
31A-22-304
.
(e) The acknowledgment under Subsection (3)(b) continues for that issuer of
(f) (i) In conjunction with the first two renewal notices sent after January 1,
2001, for policies existing on that date, the insurer shall disclose in the same
medium as the premium renewal notice, an explanation of:
(A) the purpose of uninsured motorist coverage; and
(B) the costs associated with increasing the coverage in amounts up to and
including the maximum amount available by the insurer under the insured's
motor vehicle policy.
(ii) The disclosure required under this Subsection (3)(f) shall be sent to all
insureds that carry uninsured motorist coverage limits in an amount less than the
insured's motor vehicle liability policy limits or the maximum uninsured
motorist coverage limits available by the insurer under the insured's motor
vehicle policy.
(4) (a) (i) Except as provided in Subsection (4)(b), the named insured may
reject uninsured motorist coverage by an express writing to the insurer that
provides liability coverage under Subsection
31A-22-302
(1)(a).
(ii) This rejection shall be on a form provided by the insurer that includes a
reasonable explanation of the purpose of uninsured motorist coverage.
(iii) This rejection continues for that issuer of the liability coverage until the
insured in writing requests uninsured motorist coverage from that liability
insurer.
(b) (i) All persons, including governmental entities, that are engaged in the
business of, or that accept payment for, transporting natural persons by motor
vehicle, and all school districts that provide transportation services for their
students, shall provide coverage for all motor vehicles used for that purpose, by
purchase of a policy of insurance or by self-insurance, uninsured motorist
coverage of at least $25,000 per person and $500,000 per accident.
(ii) This coverage is secondary to any other insurance covering an injured
covered person.
(c) Uninsured motorist coverage:
(i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
Compensation Act;
(ii) may not be subrogated by the workers' compensation insurance carrier;
(iii) may not be reduced by any benefits provided by workers' compensation
insurance;
(iv) may be reduced by health insurance subrogation only after the covered
person has been made whole;
(v) may not be collected for bodily injury or death sustained by a person:
(A) while committing a violation of Section
41-1a-1314
;
(B) who, as a passenger in a vehicle, has knowledge that the vehicle is being
operated in violation of Section
41-1a-1314
; or
(C) while committing a felony; and
(vi) notwithstanding Subsection (4)(c)(v), may be recovered:
(A) for a person under 18 years of age who is injured within the scope of
Subsection (4)(c)(v) but limited to medical and funeral expenses; or
(B) by a law enforcement officer as defined in Section
53-13-103
, who is
injured within the course and scope of the law enforcement officer's duties.
(d) As used in this Subsection (4), "motor vehicle" has the same meaning as
under Section
41-1a-102
.
(5) When a covered person alleges that an uninsured motor vehicle under
Subsection (2)(b) proximately caused an accident without touching the covered
person or the motor vehicle occupied by the covered person, the covered person
must show the existence of the uninsured motor vehicle by clear and convincing
evidence consisting of more than the covered person's testimony.
(6) (a) The limit of liability for uninsured motorist coverage for two or more
motor vehicles may not be added together, combined, or stacked to determine
the limit of insurance coverage available to an injured person for any one
accident.
(b) (i) Subsection (6)(a) applies to all persons except a covered person as
defined under Subsection (7)(b)(ii).
(ii) A covered person as defined under Subsection (7)(b)(ii) is entitled to the
highest limits of uninsured motorist coverage afforded for any one motor
vehicle that the covered person is the named insured or an insured family
member.
(iii) This coverage shall be in addition to the coverage on the motor vehicle the
(iv) Neither the primary nor the secondary coverage may be set off against the
other.
(c) Coverage on a motor vehicle occupied at the time of an accident shall be
primary coverage, and the coverage elected by a person described under
Subsections (1)(a) and (b) shall be secondary coverage.
(7) (a) Uninsured motorist coverage under this section applies to bodily injury,
sickness, disease, or death of covered persons while occupying or using a motor
vehicle only if the motor vehicle is described in the policy under which a claim
is made, or if the motor vehicle is a newly acquired or replacement motor
vehicle covered under the terms of the policy. Except as provided in Subsection
(6) or this Subsection (7), a covered person injured in a motor vehicle described
in a policy that includes uninsured motorist benefits may not elect to collect
uninsured motorist coverage benefits from any other motor vehicle insurance
policy under which the person is a covered person.
(b) Each of the following persons may also recover uninsured motorist benefits
under any one other policy in which they are described as a "covered person" as
defined in Subsection (1):
(i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
(ii) except as provided in Subsection (7)(c), a covered person injured while
occupying or using a motor vehicle that is not owned, leased, or furnished:
(A) to the covered person;
(B) to the covered person's spouse; or
(C) to the covered person's resident parent or resident sibling.
(c) (i) A covered person may recover benefits from no more than two additional
policies, one additional policy from each parent's household if the covered
person is:
(A) a dependent minor of parents who reside in separate households; and
(B) injured while occupying or using a motor vehicle that is not owned, leased,
or furnished:
(I) to the covered person;
(II) to the covered person's resident parent; or
(III) to the covered person's resident sibling.
(ii) Each parent's policy under this Subsection (7)(c) is liable only for the
percentage of the damages that the limit of liability of each parent's policy of
uninsured motorist coverage bears to the total of both parents' uninsured
coverage applicable to the accident.
(d) A covered person's recovery under any available policies may not exceed
the full amount of damages.
(e) A covered person in Subsection (7)(b) is not barred against making
subsequent elections if recovery is unavailable under previous elections.
(f) (i) As used in this section, "interpolicy stacking" means recovering benefits
for a single incident of loss under more than one insurance policy.
(ii) Except to the extent permitted by Subsection (6) and this Subsection (7),
interpolicy stacking is prohibited for uninsured motorist coverage.
(8) (a) As used in this section, "underinsured motor vehicle" includes a motor
vehicle, the operation, maintenance, or use of which is covered under a liability
policy at the time of an injury-causing occurrence, but which has insufficient
liability coverage to compensate fully the injured party for all special and
general damages.
(b) The term "underinsured motor vehicle" does not include:
(i) a motor vehicle that is covered under the liability coverage of the same
policy that also contains the underinsured motorist coverage;
(ii) an uninsured motor vehicle as defined in Subsection (2); or
(iii) a motor vehicle owned or leased by:
(A) the named insured;
(B) the named insured's spouse; or
(C) any dependent of the named insured.
(9) (a) (i) Underinsured motorist coverage under Subsection
31A-22-302
(1)(c)
provides coverage for covered persons who are legally entitled to recover
damages from owners or operators of underinsured motor vehicles because of
bodily injury, sickness, disease, or death.
(ii) A covered person occupying or using a motor vehicle owned, leased, or
furnished to the covered person, the covered person's spouse, or covered
person's resident relative may recover underinsured benefits only if the motor
vehicle is:
(A) described in the policy under which a claim is made; or
(B) a newly acquired or replacement motor vehicle covered under the terms of
the policy.
(b) For new policies written on or after January 1, 2001, the limits of
underinsured motorist coverage shall be equal to the lesser of the limits of the
insured's motor vehicle liability coverage or the maximum underinsured
motorist coverage limits available by the insurer under the insured's motor
vehicle policy, unless the insured purchases coverage in a lesser amount by
signing an acknowledgment form provided by the insurer that:
(i) waives the higher coverage;
(ii) reasonably explains the purpose of underinsured motorist coverage; and
(iii) discloses the additional premiums required to purchase underinsured
motorist coverage with limits equal to the lesser of the limits of the insured's
motor vehicle liability coverage or the maximum underinsured motorist
coverage limits available by the insurer under the insured's motor vehicle
policy.
(c) A self-insured, including a governmental entity, may elect to provide
underinsured motorist coverage in an amount that is less than its maximum
self-insured retention under Subsections (9)(b) and (9)(g) by issuing a
declaratory memorandum or policy statement from the chief financial officer or
chief risk officer that declares the:
(i) self-insured entity's coverage level; and
(ii) process for filing an underinsured motorist claim.
(d) Underinsured motorist coverage may not be sold with limits that are less
than:
(i) $10,000 for one person in any one accident; and
(ii) at least $20,000 for two or more persons in any one accident.
(e) The acknowledgment under Subsection (9)(b) continues for that issuer of
the underinsured motorist coverage until the insured, in writing, requests
different underinsured motorist coverage from the insurer.
(f) (i) The named insured's underinsured motorist coverage, as described in
Subsection (9)(a), is secondary to the liability coverage of an owner or operator
of an underinsured motor vehicle, as described in Subsection (8).
(ii) Underinsured motorist coverage may not be set off against the liability
coverage of the owner or operator of an underinsured motor vehicle, but shall be
added to, combined with, or stacked upon the liability coverage of the owner or
operator of the underinsured motor vehicle to determine the limit of coverage
available to the injured person.
(g) (i) A named insured may reject underinsured motorist coverage by an
express writing to the insurer that provides liability coverage under Subsection
31A-22-302
(1)(a).
(ii) This written rejection shall be on a form provided by the insurer that
includes a reasonable explanation of the purpose of underinsured motorist
coverage and when it would be applicable.
(iii) This rejection continues for that issuer of the liability coverage until the
insured in writing requests underinsured motorist coverage from that liability
insurer.
(h) (i) In conjunction with the first two renewal notices sent after January 1,
2001, for policies existing on that date, the insurer shall disclose in the same
medium as the premium renewal notice, an explanation of:
(A) the purpose of underinsured motorist coverage; and
(B) the costs associated with increasing the coverage in amounts up to and
including the maximum amount available by the insurer under the insured's
motor vehicle policy.
(ii) The disclosure required by this Subsection (9)(h) shall be sent to all
insureds that carry underinsured motorist coverage limits in an amount less than
the insured's motor vehicle liability policy limits or the maximum underinsured
motorist coverage limits available by the insurer under the insured's motor
vehicle policy.
(10) (a) (i) Except as provided in this Subsection (10), a covered person injured
in a motor vehicle described in a policy that includes underinsured motorist
benefits may not elect to collect underinsured motorist coverage benefits from
any other motor vehicle insurance policy.
(ii) The limit of liability for underinsured motorist coverage for two or more
motor vehicles may not be added together, combined, or stacked to determine
the limit of insurance coverage available to an injured person for any one
(iii) Subsection (10)(a)(ii) applies to all persons except a covered person
described under Subsections (10)(b)(i) and (ii).
(b) (i) Except as provided in Subsection (10)(b)(ii), a covered person injured
while occupying, using, or maintaining a motor vehicle that is not owned,
leased, or furnished to the covered person, the covered person's spouse, or the
covered person's resident parent or resident sibling, may also recover benefits
under any one other policy under which they are a covered person.
(ii) (A) A covered person may recover benefits from no more than two
additional policies, one additional policy from each parent's household if the
covered person is:
(I) a dependent minor of parents who reside in separate households; and
(II) injured while occupying or using a motor vehicle that is not owned, leased,
or furnished to the covered person, the covered person's resident parent, or the
covered person's resident sibling.
(B) Each parent's policy under this Subsection (10)(b)(ii) is liable only for the
percentage of the damages that the limit of liability of each parent's policy of
underinsured motorist coverage bears to the total of both parents' underinsured
coverage applicable to the accident.
(iii) A covered person's recovery under any available policies may not exceed
the full amount of damages.
(iv) Underinsured coverage on a motor vehicle occupied at the time of an
accident shall be primary coverage, and the coverage elected by a person
described under Subsections (1)(a) and (b) shall be secondary coverage.
(v) The primary and the secondary coverage may not be set off against the
other.
(vi) A covered person as described under Subsection (10)(b)(i) is entitled to the
highest limits of underinsured motorist coverage under only one additional
policy per household applicable to that covered person as a named insured,
spouse, or relative.
(vii) A covered injured person is not barred against making subsequent
elections if recovery is unavailable under previous elections.
(viii) (A) As used in this section, "interpolicy stacking" means recovering
(B) Except to the extent permitted by this Subsection (10), interpolicy stacking
is prohibited for underinsured motorist coverage.
(c) Underinsured motorist coverage:
(i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
Compensation Act;
(ii) may not be subrogated by the workers' compensation insurance carrier;
(iii) may not be reduced by any benefits provided by workers' compensation
insurance;
(iv) may be reduced by health insurance subrogation only after the covered
person has been made whole;
(v) may not be collected for bodily injury or death sustained by a person:
(A) while committing a violation of Section
41-1a-1314
;
(B) who, as a passenger in a vehicle, has knowledge that the vehicle is being
operated in violation of Section
41-1a-1314
; or
(C) while committing a felony; and
(vi) notwithstanding Subsection (10)(c)(v), may be recovered:
(A) for a person under 18 years of age who is injured within the scope of
Subsection (10)(c)(v) but limited to medical and funeral expenses; or
(B) by a law enforcement officer as defined in Section
53-13-103
, who is
injured within the course and scope of the law enforcement officer's duties.
(11) The inception of the loss under Subsection
31A-21-313
(1) for
underinsured motorist claims occurs upon the date of the last liability policy
payment.
(12) (a) Within five business days after notification in a manner specified by
the department that all liability insurers have tendered their liability policy
limits, the underinsured carrier shall either:
(i) waive any subrogation claim the underinsured carrier may have against the
person liable for the injuries caused in the accident; or
(ii) pay the insured an amount equal to the policy limits tendered by the
liability carrier.
(b) If neither option is exercised under Subsection (12)(a), the subrogation
claim is considered to be waived by the underinsured carrier.
(13) Except as otherwise provided in this section, a covered person may seek,
subject to the terms and conditions of the policy, additional coverage under any
policy:
(a) that provides coverage for damages resulting from motor vehicle accidents;
and
(b) that is not required to conform to Section
31A-22-302
.
Committee Chair
3 SB0049.SC1.wpd rnorth/RCN SCH/BNC 1/26/05 9:18 am
Bill Number
*SB0049*
SB0049