SB0074S03Enrolled comparedCopy withS.B. SB0074 {Omitted text} shows text that was in SB0074 but was omitted in SB0074S03 inserted text shows text that was not in SB0074 but was inserted into SB0074S03 DISCLAIMER:

This74 documentMotor isVehicle providedCivil toAction assistAmendments youGENERAL inSESSION yourSTATE comparisonOF ofUTAH theChief twoSponsor: bills.

Sometimes this automated comparison will NOT be completely accurate.

Therefore, you need to read the actual bills.

This automatically generated document could contain inaccuracies caused by:

limitations of the compare program;

bad input data;

or other causes.

{Seat Belt } Motor Vehicle Civil Action Amendments GENERAL SESSION STATE OF UTAH Chief Sponsor:

3Anthony LONGE. TITLE General Description:

ThisLoubet bill3 amendsLONG {seatTITLE beltGeneral lawsDescription: to allow } the {misuse of or failure } Insurance Code to {use a seat belt to be considered for contributory or comparative negligence } establish requirements relating to policy-limit demands and disclosures in {civil litigation} third-party liability claims related to motor vehicle liability.

This bill amends the Insurance Code to establish requirements relating to policy-limit demands and disclosures in third-party liability claims related to motor vehicle liability.

▸ {amends the Traffic Code to allow the misuse of or failure to use a seat belt to be considered as contributory or comparative negligence in civil litigation.} ▸ establishes requirements for the content of policy-limit demand letters from a claimant to a liability insurance carrier;

S B ▸ requires a liability insurance carrier to provide written disclosure to the insured regarding defense and indemnification;

7 SB0074 compared with SB0074S03 ▸ addresses the effect of a disclosure and the consequences of noncompliance;

31A-22-32331A-22-323, , Utah Code Annotated 1953 AMENDS:Be it enacted by the Legislature of the state of Utah:

{41-6a-1806 , as renumbered and amended by Laws of Utah 2005, Chapter 2} Be it enacted by the Legislature of the state of Utah:

Section 131A-22-323 is enacted to read:

31A-22-323.31A-22-323 .

Policy-limit demands, correspondence, and disclosure requirements --S.B. Third- party liability claims.

(1)74 (a)Enrolled InCopy a-- third-partyThird-party liability claimclaims. arising under this part in which a claimant or claimant's legal counsel sends a demand letter to a liability insurance carrier demanding the insured's liability policy limits in exchange for a release of claims, such a demand letter shall:

(1)(a) In a third-party liability claim arising under this part in which a claimant or claimant's legal counsel sends a demand letter to a liability insurance carrier demanding the insured's liability policy limits in exchange for a release of claims, such a demand letter shall:

and (ii) provide the liability insurance carrier with no less than 30 days to accept or reject the policy-policy-limit limit demand.

(2)(2)(a) (a) If the liability insurance carrier that receives a claimant's demand letter described in Subsection (1) declines to tender the insured's liability policy limits following the receipt of the demand letter, and - 2 - SB0074 compared with SB0074S03 the claimant intends to file a cause of action against the insured, and the claimant or claimant's legal counsel elects to correspond directly with an unrepresented insured, the correspondence with the insured shall:

(b)- Unless2 necessary- toEnrolled preserveCopy theS.B. claimant's legal rights, a claimant or the claimant's legal counsel may not file a cause of action against the insured until 45 days after that date on which the insured has received the correspondence described in Subsection (2)(a).

74 (b) Unless necessary to preserve the claimant's legal rights, a claimant or the claimant's legal counsel may not file a cause of action against the insured until 45 days after that date on which the insured has received the correspondence described in Subsection (2)(a).

and - 3 - SB0074 compared with SB0074S03 (ii) if the correspondence references or suggests the possibility of placing a judgment lien against personal property of the insured following any judgment, shall include a plain-language explanation of the process for obtaining a judgment lien.

(3)(3)(a) (a) Within 30 days after the date on which the liability insurance carrier receives a copy of the correspondence described in Subsection (2), the liability insurance carrier shall provide the insured with a written disclosure stating whether the liability insurance carrier agrees:

(4)(4)(a) (a) A disclosure made under Subsection (3):

(i)- does3 not- expand,S.B. reduce, or modify coverage under the insurance policy;

74 Enrolled Copy (i) does not expand, reduce, or modify coverage under the insurance policy;

(b)(b)(i) (i) Compliance with the procedural provisions of this section does not preclude a finding that the liability insurance carrier breached the liability insurance carrier's duty of good faith if the liability insurance carrier's substantive decisions regarding settlement, defense, or indemnification were unreasonable under the circumstances.

- 4 - SB0074 compared with SB0074S03 (5) Nothing in this section alters, limits, or waives:

(6)(6)(a) (a) A claimant's failure to comply with Subsection (1) or (2) does not bar the claimant from filing suit against the insured or pursuing any remedies available at law, but may be considered by a court in evaluating whether a settlement demand was reasonable for purposes of determining whether a liability insurance carrier breached the liability insurance carrier's duty of good faith.

(e)- Nothing4 in- thisEnrolled sectionCopy createsS.B. a private cause of action.

{Section74 1.(e) Nothing in this section creates a private cause of action.

Section 41-6a-1806 is amended to read:

} 41-6a-1806.

Compliance -- Civil litigation.

The misuse or failure to use a child restraint device or misuse or failure to wear a safety belt: