HB 307 — Attorney Fees Amendments

307 Enrolled Copy (c) 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;

(a)(a)(i) - 6 - HB0307 compared with HB0307S01 (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)(ii)(A) (A) a motor vehicle covered with lower liability limits than required by Section 31A-22-304;

or (d)(d)(i) (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 jurisdiction;

(4)(4)(a) (a) 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 named insured's motor vehicle liability coverage or the maximum uninsured motorist coverage limits available by the insurer under the named insured's motor vehicle policy, unless a named insured rejects or purchases coverage in a lesser amount by signing an acknowledgment- form6 that:- Enrolled Copy H.B.

307 acknowledgment form that:

and (v) discloses the additional premiums required to purchase uninsured motorist coverage with limits equal to the lesser of the limits of the named insured's motor vehicle liability coverage or the - 7 - HB0307 compared with HB0307S01 maximum uninsured motorist coverage limits available by the insurer under the named insured's motor vehicle policy.

(c)(c)(i) (i) Subsections (4)(a) and (b) apply retroactively to any claim arising on or after January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for arbitration or filed a complaint in a court of competent jurisdiction.

(e)(e)(i) (i) As used in this Subsection (4)(e), "additional motor vehicle" means a change that increases the total number of vehicles insured by the policy, and does not include replacement, substitute, or temporary vehicles.

(iii) If an additional motor vehicle is added to a personal lines policy where uninsured motorist- coverage7 has- beenH.B. rejected, or where uninsured motorist limits are lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice to a named insured within 30 days that:

307 Enrolled Copy motorist coverage has been rejected, or where uninsured motorist limits are lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice to a named insured within 30 days that:

and (B) encourages the named insured to contact the insurance company or insurance producer for quotes as to the additional premiums required to purchase uninsured motorist coverage with limits equal to the lesser of the limits of the named insured's motor vehicle liability coverage or the maximum - 8 - HB0307 compared with HB0307S01 uninsured motorist coverage limits available by the insurer under the named insured's motor vehicle policy.

(f) A change in policy number resulting from any policy change not identified under Subsection (4)(d)(4)(d)(ii) (ii) does not constitute a new policy.

(g)(g)(i) (i) Subsection (4)(d) applies retroactively to any claim arising on or after January 1, 2001, for which, as of May 1, 2012, an insured has not made a written demand for arbitration or filed a complaint in a court of competent jurisdiction.

(k)(k)(i) (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)- the8 purpose- ofEnrolled uninsuredCopy motoristH.B. coverage in the same manner as described in Subsection (4) (a)(iv);

and307 (B)(A) a disclosure of the additionalpurpose premiums required to purchase uninsured motorist coverage with limits equal to the lesser of the limits of the named insured's motor vehicle liability coverage - 9 - HB0307 compared with HB0307S01 or the maximum uninsured motorist coverage limitsin available by the insurersame undermanner theas nameddescribed insured'sin motorSubsection vehicle(4)(a)(iv); policy.

and (B) a disclosure of the additional premiums required to purchase uninsured motorist coverage with limits equal to the lesser of the limits of the named insured's motor vehicle liability coverage or the maximum uninsured motorist coverage limits available by the insurer under the named insured's motor vehicle policy.

(5)(5)(a)(i) (a) (i) Except as provided in Subsection (5)(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).

(b)(b)(i) (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.

(i) in order to avoid double recovery, does not cover any benefit under Title 34A, Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3, Utah Occupational Disease Act, provided by the workers' compensation insurance carrier, uninsured employer, the Uninsured Employers' Fund created in Section 34A-2-704,- or9 the- Employers'H.B. Reinsurance Fund created in Section 34A-2-702, except that:

307 Enrolled Copy 34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702, except that:

and - 10 - HB0307 compared with HB0307S01 (B) the benefits described in this Subsection (5)(c)(i) do not need to be paid before an uninsured motorist claim may be pursued and resolved;

(7)(7)(a) (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- coverage10 available- toEnrolled anCopy injuredH.B. person for any one accident.

(b)307 -insurance 11coverage -available HB0307 compared with HB0307S01 (i) Subsection (7)(a) applies to allan personsinjured except a covered person asfor definedany underone Subsectionaccident. (8)(b).

(b)(i) Subsection (7)(a) applies to all persons except a covered person as defined under Subsection (8)(b).

(8)(8)(a) (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.

(c)(c)(i) (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:

and (B)- injured11 while- occupyingH.B. or using a motor vehicle that is not owned, leased, or furnished:

-307 12Enrolled -Copy HB0307(B) comparedinjured withwhile HB0307S01occupying (I)or tousing thea coveredmotor person;vehicle that is not owned, leased, or furnished:

(I) to the covered person;

(f)(f)(i) (i) As used in this section, "interpolicy stacking" means recovering benefits for a single incident of loss under more than one insurance policy.

(9)(9)(a) (a) When a claim is brought by a named insured or a person described in Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the claimant may elect to resolve the claim:

(d) For purposes of the statute of limitations applicable to a claim described in Subsection (9)(a), if the claimant does not elect to resolve the claim through litigation, the claim is considered filed when the claimant submits the claim to binding- arbitration12 in- accordanceEnrolled withCopy thisH.B. Subsection (9).

-307 13binding -arbitration HB0307in comparedaccordance with HB0307S01this (e) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to binding arbitration under Subsection (9)(a)(i)(9). shall be resolved by a single arbitrator.

(e)(i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to binding arbitration under Subsection (9)(a)(i) shall be resolved by a single arbitrator.

(i)(i)(i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of Subsections (10)(a) through (c) are satisfied.

- 14 - HB0307 compared with HB0307S01 (k) A written decision by a single arbitrator or by a majority of the arbitration panel shall constitute a final decision.

(l)- (i)13 Except- asH.B. provided in Subsection (10), the amount of an arbitration award may not exceed the uninsured motorist policy limits of all applicable uninsured motorist policies, including applicable uninsured motorist umbrella policies.

307 Enrolled Copy (l)(i) Except as provided in Subsection (10), the amount of an arbitration award may not exceed the uninsured motorist policy limits of all applicable uninsured motorist policies, including applicable uninsured motorist umbrella policies.

(n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or class-class-representative representative basis.

(q)(q)(i) (i) Upon filing a complaint for a trial de novo under Subsection (9)(p), the claim shall proceed through litigation in accordance with the Utah Rules of Civil Procedure and Utah Rules of Evidence.

- 15 - HB0307 compared with HB0307S01 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, a party may request a jury trial with a complaint requesting a trial de novo under Subsection (9)(p)(ii)(A).

(r)(r)(i) (i) If the claimant, as the moving party in a trial de novo requested under Subsection (9)(p), does not obtain a verdict that is at least $5,000 and is at least 20% greater than the arbitration award, the claimant is responsible for all of the nonmoving- party's14 costs.- Enrolled Copy H.B.

307 nonmoving party's costs.

[(t) If a court determines, upon a motion of the nonmoving party, that the moving party's use of the trial de novo process was filed in bad faith in accordance with Section 78B-5-825, the court may award reasonable attorney fees to the nonmoving party.] (t) Upon a motion of the nonmoving party, the court may award reasonable attorney fees to the nonmoving party if the court determines that{:}that the moving party requested a trial de novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse the judicial process.

(u) {theNothing movingin partythis lackedsection anis honest belief that the request for a trial de novo was proper;} {(ii)} {the moving party intended to takelimit unconscionableany advantageclaim ofunder anotherany byother requestingportion aof trialan deapplicable novo;insurance policy.

or} {(iii)} {the moving party intended to, or acted with, the knowledge that the request for a trial de novo would hinder, delay, or defraud another.} - 16 - HB0307 compared with HB0307S01 {(u)} Nothing in this section is intended to limit any claim under any other portion of an applicable insurance policy.

(10)(10)(a) (a) Within 30 days after a covered person elects to submit a claim for uninsured motorist benefits to binding arbitration or files litigation, the covered person shall provide to the uninsured motorist carrier:

(A)- subject15 to- SubsectionH.B. (10)(l), the specific monetary amount of the demand, including a computation of the covered person's claimed past medical expenses, claimed past lost wages, and the other claimed past economic damages;

307 Enrolled Copy (A) subject to Subsection (10)(l), the specific monetary amount of the demand, including a computation of the covered person's claimed past medical expenses, claimed past lost wages, and the other claimed past economic damages;

(A)(A)(I) (I) the names and last known addresses of all health care providers who have rendered health care services to the covered person that are material to the claims for which uninsured motorist benefits are sought for a period of five years preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the time the election for arbitration or litigation has been exercised;

and (II) the names and last known addresses of the health care providers who have rendered health care services to the covered person, which the covered person claims are immaterial to the claims for which uninsured motorist benefits are sought, for a period of five years preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the time the election for arbitration or litigation has been exercised that have not been disclosed under Subsection (10)(a)(ii)(10)(a)(ii)(A)(I); (A)(I);

(B)(B)(I) (I) the names and last known addresses of all health insurers or other entities to whom the covered person has submitted claims for health care services or benefits material to the claims for which uninsured motorist benefits are sought, for a period of five years preceding the date of the event - 17 - HB0307 compared with HB0307S01 giving rise to the claim for uninsured motorist benefits up to the time the election for arbitration or litigation has been exercised;

(C) if lost wages, diminished earning capacity, or similar damages are claimed, all employers of the covered person for a period of five years preceding the date of- the16 event- givingEnrolled riseCopy toH.B. the claim for uninsured motorist benefits up to the time the election for arbitration or litigation has been exercised;

307 of the event giving rise to the claim for uninsured motorist benefits up to the time the election for arbitration or litigation has been exercised;

(b)(b)(i) (i) If the uninsured motorist carrier determines that the disclosure of undisclosed health care providers or health care insurers under Subsection (10)(a)(ii) is reasonably necessary, the uninsured motorist carrier may:

and - 18 - HB0307 compared with HB0307S01 (B) either the covered person or the uninsured motorist carrier may request the arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be provided if the covered person has elected arbitration.

(c)(c)(i) (i) An uninsured motorist carrier that receives an election for arbitration or a notice of filing litigation and the demand for payment of uninsured motorist benefits under Subsection (10)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand and receipt of the items specified in Subsections (10)(a)(i) through (iii), to:

(A) provide a written response to the written demand for payment provided for in Subsection (10)(10)(a)(i); (a)(i);

(B)- except17 as- providedH.B. in Subsection (10)(c)(i)(C), tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed to the covered person;

307 Enrolled Copy (B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed to the covered person;

or - 19 - HB0307 compared with HB0307S01 (ii) elect to:

and (ii) the parties may not disclose the amount of the limits of uninsured motorist benefits- provided18 by- theEnrolled policy.Copy H.B.

307 benefits provided by the policy.

(h)(h)(i) (i) The covered person shall provide an affidavit of costs within five days of an arbitration award.

(ii)(ii)(A) (A) Objection to the affidavit of costs shall specify with particularity the costs to which the uninsured motorist carrier objects.

- 20 - HB0307 compared with HB0307S01 (B) The objection shall be resolved by the arbitrator or arbitration panel.

(i)(i)(i) (i) A covered person shall disclose all material information, other than rebuttal evidence, within 30 days after a covered person elects to submit a claim for uninsured motorist coverage benefits to binding arbitration or files litigation as specified in Subsection (10)(a).

(l)(l)(i)(A) (i) (A) The written demand requirement in Subsection (10)(a)(i)(A) does not affect the covered person's requirement to provide a computation of any other economic- damages19 claimed,- andH.B. the one or more respondents shall have a reasonable time after the receipt of the computation of any other economic damages claimed to conduct fact and expert discovery as to any additional damages claimed.

(B)307 TheEnrolled changesCopy madeeconomic bydamages Lawsclaimed, ofand Utahthe 2014,one Chapteror 290,more Sectionrespondents 10,shall and[have ]a [reasonable ]Chaptertime 300,after Sectionthe 10,receipt toof thisthe Subsectioncomputation (10)(l)of andany Subsectionother (10)(a)(i)(A)economic applydamages toclaimed a claim submitted to bindingconduct arbitrationfact orand throughexpert litigationdiscovery onas orto afterany Mayadditional 13,damages 2014.claimed.

(ii)(B) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter[Chapter ]300, [ ]300, Section 10, to Subsectionsthis (10)(a)(ii)(A)(II)Subsection (10)(l) and (B)(II)Subsection (10)(a)(i)(A) apply to anya claim submitted to binding arbitration or through litigation on or after May 13, 2014.

(11)(ii) (a)The Achanges personmade shallby commenceLaws anof actionUtah on2014, aChapter written290, policySection or10, contractand forChapter uninsured300, motoristSection coverage10, withinto fourSubsections years(10)(a)(ii)(A)(II) afterand the(B)(II) inceptionapply ofto loss.any claim submitted to binding arbitration or through litigation on or after May 13, 2014.

(11)(a) A person shall commence an action on a written policy or contract for uninsured motorist coverage within four years after the inception of loss.

- 21 - HB0307 compared with HB0307S01 Section 3.

31A-22-305.3.31A-22-305.3 .

(b)(b)(i) (i) "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.

(2)(2)(a) (a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides coverage for a covered person who is legally entitled to recover damages from an owner or operator of an underinsured motor vehicle because of bodily injury, sickness,- disease,20 or- death.Enrolled Copy H.B.

307 sickness, disease, or death.

(3)(3)(a) (a) For purposes of this Subsection (3), "new policy" means:

or - 22 - HB0307 compared with HB0307S01 (B) a change in the limits of the named insured's motor vehicle liability coverage.

(d)(d)(i) (i) Subsections (3)(b) and (c) apply retroactively to any claim arising on or after January- 1,21 2001,- forH.B. which, as of May 14, 2013, an insured has not made a written demand for arbitration or filed a complaint in a court of competent jurisdiction.

307 Enrolled Copy January 1, 2001, for which, as of May 14, 2013, an insured has not made a written demand for arbitration or filed a complaint in a court of competent jurisdiction.

(e)(e)(i) (i) As used in this Subsection (3)(e), "additional motor vehicle" means a change that increases the total number of vehicles insured by the policy, and does not include replacement, substitute, or temporary vehicles.

- 23 - HB0307 compared with HB0307S01 (iii) If an additional motor vehicle is added to a personal lines policy where underinsured motorist coverage has been rejected, or where underinsured motorist limits are lower than the named insured's motor vehicle liability limits, the insurer shall provide a notice to a named insured within 30 days that:

(f) A change in policy number resulting from any policy change not identified under Subsection (3)(a)(3)(a)(ii) (ii) does not constitute a new policy.

(g)(g)(i) (i) Subsection (3)(a) applies retroactively to any claim arising on or after January 1, 2001 for which, as of May 1, 2012, an insured has not made a written demand for arbitration or filed a complaint in a court of competent jurisdiction.

(h) 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 (3)(b) and (l) by issuing a declaratory memorandum or policy statement- from22 the- chiefEnrolled financialCopy officerH.B. or chief risk officer that declares the:

307 statement from the chief financial officer or chief risk officer that declares the:

- 24 - HB0307 compared with HB0307S01 (j) An acknowledgment under Subsection (3)(b) continues for that issuer of the underinsured motorist coverage until the named insured, in writing, requests different underinsured motorist coverage from the insurer.

(k)(k)(i) (i) The named insured's underinsured motorist coverage, as described in Subsection (2), is secondary to the liability coverage of an owner or operator of an underinsured motor vehicle, as described in Subsection (1).

(l)(l)(i) (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:

(4) (a) - 2523 - HB0307H.B. compared with HB0307S01 (i) Except as provided in this Subsection (4), 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 another motor vehicle insurance policy.

307 Enrolled Copy (4)(a)(i) Except as provided in this Subsection (4), 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 another motor vehicle insurance policy.

(b)(b)(i) (i) A covered person injured as a pedestrian by an underinsured motor vehicle may recover underinsured motorist benefits under any one other policy in which they are described as a covered person.

(iii)(iii)(A) (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:

- 2624 - HB0307Enrolled comparedCopy withH.B. HB0307S01 (vii) A covered person as described under Subsection (4)(b)(i) or 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.

307 (vii) A covered person as described under Subsection (4)(b)(i) or 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.

(ix)(ix)(A) (A) As used in this section, "interpolicy stacking" means recovering benefits for a single incident of loss under more than one insurance policy.

or - 27 - HB0307 compared with HB0307S01 (C) while committing a felony;

and (vi)- notwithstanding25 Subsection- (4)(c)(v),H.B. may be recovered:

307 Enrolled Copy (vi) notwithstanding Subsection (4)(c)(v), may be recovered:

(5)(5)(a) (a) Notwithstanding Section 31A-21-313, an action on a written policy or contract for underinsured motorist coverage shall be commenced within four years after the inception of loss.

(8)(8)(a) (a) When a claim is brought by a named insured or a person described in Subsection 31A-22-305(1) and is asserted against the covered person's underinsured motorist carrier, the claimant may elect to resolve the claim:

- 28 - HB0307 compared with HB0307S01 (c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the claimant may not elect to resolve the claim through binding arbitration under this section without the written consent of the underinsured motorist coverage carrier.

(d) For purposes of the statute of limitations applicable to a claim described in Subsection- (8)(a),26 if- theEnrolled claimantCopy doesH.B. not elect to resolve the claim through litigation, the claim is considered filed when the claimant submits the claim to binding arbitration in accordance with this Subsection (8).

(e)307 (i)Subsection Unless(8)(a), otherwiseif agreedthe toclaimant indoes writingnot byelect theto parties,resolve athe claim thatthrough litigation, the claim is submittedconsidered tofiled bindingwhen arbitrationthe underclaimant Subsectionsubmits (8)(a)(i)the shallclaim beto resolvedbinding byarbitration ain singleaccordance arbitrator.with this Subsection (8).

(e)(i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to binding arbitration under Subsection (8)(a)(i) shall be resolved by a single arbitrator.

(i)(i)(i) (i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through (f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the requirements of Subsections (9)(a) through (c) are satisfied.

- 29 - HB0307 compared with HB0307S01 (ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil Procedure shall be determined based on the claimant's specific monetary amount in the written demand for payment of uninsured motorist coverage benefits as required in Subsection (9)(a)(i)(A).

(k)- A27 written- decisionH.B. by a single arbitrator or by a majority of the arbitration panel constitutes a final decision.

(l)307 (i)Enrolled ExceptCopy as(k) providedA inwritten Subsectiondecision (9),by thea amountsingle ofarbitrator anor arbitrationby awarda maymajority notof exceed the underinsuredarbitration motoristpanel policyconstitutes limitsa offinal alldecision. applicable underinsured motorist policies, including applicable underinsured motorist umbrella policies.

(l)(i) Except as provided in Subsection (9), the amount of an arbitration award may not exceed the underinsured motorist policy limits of all applicable underinsured motorist policies, including applicable underinsured motorist umbrella policies.

(n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or class-class-representative representative basis.

and - 30 - HB0307 compared with HB0307S01 (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo under Subsection (8)(p)(ii)(A).

(q)(q)(i) (i) Upon filing a complaint for a trial de novo under Subsection (8)(p), a claim shall proceed through litigation in accordance with the Utah Rules of Civil Procedure and Utah Rules of Evidence.

(r)- (i)28 If- theEnrolled claimant,Copy asH.B. the moving party in a trial de novo requested under Subsection (8)(p), does not obtain a verdict that is at least $5,000 and is at least 20% greater than the arbitration award, the claimant is responsible for all of the nonmoving party's costs.

307 (r)(i) If the claimant, as the moving party in a trial de novo requested under Subsection (8)(p), does not obtain a verdict that is at least $5,000 and is at least 20% greater than the arbitration award, the claimant is responsible for all of the nonmoving party's costs.

[(t) If a court determines, upon a motion of the nonmoving party, that a moving party's use of the trial de novo process is filed in bad faith in accordance with Section 78B-5-825, the court may award reasonable attorney fees to the nonmoving party.] (t) Upon a motion of the nonmoving party, the court may award reasonable attorney fees to the nonmoving party if the court determines that{:}that the moving party requested a trial de novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse the judicial process.

(u) {theNothing movingin partythis lackedsection anis honest belief that the request for a trial de novo was proper;} - 31 - HB0307 compared with HB0307S01 {(ii)} {the moving party intended to takelimit unconscionablea advantageclaim ofunder another byportion requestingof aan trialapplicable deinsurance novo;policy.

or} {(iii)} {the moving party intended to, or acted with, the knowledge that the request for a trial de novo would hinder, delay, or defraud another.} {(u)} Nothing in this section is intended to limit a claim under another portion of an applicable insurance policy.

(9)(9)(a) (a) Within 30 days after a covered person elects to submit a claim for underinsured motorist benefits to binding arbitration or files litigation, the covered person shall provide- to29 the- underinsuredH.B. motorist carrier:

307 Enrolled Copy provide to the underinsured motorist carrier:

(A)(A)(I) (I) the names and last known addresses of all health care providers who have rendered health care services to the covered person that are material to the claims for which the underinsured motorist benefits are sought for a period of five years preceding the date of the event giving rise to the claim for underinsured motorist benefits up to the time the election for arbitration or litigation has been exercised;

and (II) the names and last known addresses of the health care providers who have rendered health care services to the covered person, which the covered person claims are immaterial to the claims for which underinsured motorist benefits are sought, for a period of five years preceding the date of the event giving rise to the claim for underinsured motorist benefits up to the time the election for arbitration or litigation has been exercised that have not been disclosed under Subsection (9)(a)(ii)(9)(a)(ii)(A)(I); (A)(I);

(B)(B)(I) - 32 - HB0307 compared with HB0307S01 (I) the names and last known addresses of all health insurers or other entities to whom the covered person has submitted claims for health care services or benefits material to the claims for which underinsured motorist benefits are sought, for a period of five years preceding the date of the event giving rise to the claim for underinsured motorist benefits up to the time the election for arbitration or litigation has been exercised;

and (II) the names and last known addresses of the health insurers or other entities to whom the covered person has submitted claims for health care services or benefits, which the covered person claims are immaterial to the claims for which underinsured motorist benefits are sought, for a period of five years preceding the date of the event giving rise to the claim for underinsured motorist benefits up to the time the election for arbitration or litigation have not- been30 disclosed;- Enrolled Copy H.B.

307 not been disclosed;

(b)(b)(i) (i) If the underinsured motorist carrier determines that the disclosure of undisclosed health care providers or health care insurers under Subsection (9)(a)(ii) is reasonably necessary, the underinsured motorist carrier may:

- 33 - HB0307 compared with HB0307S01 (A) the covered person shall disclose, in writing, the legal or factual basis for the failure to disclose the health care providers or health care insurers;

(c)(c)(i) (i) An underinsured motorist carrier that receives an election for arbitration or a notice of filing litigation and the demand for payment of underinsured motorist benefits under Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand and receipt of the items specified in Subsections (9)(a)(i)- through31 (iii),- to:H.B.

(A)307 provideEnrolled aCopy written(9)(a)(i) responsethrough to(iii), theto: written demand for payment provided for in Subsection (9)(a) (i);

(A) provide a written response to the written demand for payment provided for in Subsection (9)(a)(i);

- 34 - HB0307 compared with HB0307S01 (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all underinsured motorist claims;

(f)- In32 an- arbitrationEnrolled proceedingCopy onH.B. the remaining underinsured claims:

307 (f) In an arbitration proceeding on the remaining underinsured claims:

(h)(h)(i) (i) The covered person shall provide an affidavit of costs within five days of an arbitration award.

(ii)(ii)(A) - 35 - HB0307 compared with HB0307S01 (A) Objection to the affidavit of costs shall specify with particularity the costs to which the underinsured motorist carrier objects.

(i)(i)(i) (i) A covered person shall disclose all material information, other than rebuttal evidence, within 30 days after a covered person elects to submit a claim for underinsured motorist coverage benefits to binding arbitration or files litigation as specified in Subsection (9)(a).

(k)- The33 provisions- ofH.B. this Subsection (9) only apply to motor vehicle accidents that occur on or after March 30, 2010.

(l)307 (i)Enrolled TheCopy written(k) demandThe requirementprovisions inof this Subsection (9)(a)(i)(A)(9) doesonly notapply affect the covered person's requirement to providemotor avehicle computationaccidents ofthat anyoccur otheron economic damages claimed, and the one or more respondents shall have a reasonable time after theMarch receipt30, of2010. the computation of any other economic damages claimed to conduct fact and expert discovery as to any additional damages claimed.

(l)(i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the covered person's requirement to provide a computation of any other economic damages claimed, and the one or more respondents shall have a reasonable time after the receipt of the computation of any other economic damages claimed to conduct fact and expert discovery as to any additional damages claimed.

31A-22-321.31A-22-321 .

- 36 - HB0307 compared with HB0307S01 (a) the claimant or the claimant's representative has:

(2)(2)(a) (a) If a party submits a bodily injury claim to arbitration under Subsection (1), the party submitting the claim or the party's representative is limited to an arbitration award that does not exceed $75,000 or the defendant's per person limits of third party bodily insurance, whichever is less, in addition to any available personal injury protection benefits and any claim for property damage.

(c) A claim for property damage may not be made in an arbitration proceeding under Subsection- (1)34 unless- agreedEnrolled uponCopy byH.B. the parties in writing.

307 Subsection (1) unless agreed upon by the parties in writing.

(e)(e)(i) (i) This section does not prevent a party from pursuing an underinsured motorist claim as set out in Section 31A-22-305.3.

(4)(4)(a) - 37 - HB0307 compared with HB0307S01 (a) A person who has elected arbitration under this section may rescind the person's election if the rescission is made within:

(5)(5)(a) (a) Unless otherwise agreed to by the parties or by order of the court, an arbitration process elected under this section is subject to Rule 26, Utah Rules of Civil Procedure.

(b)- Unless35 otherwise- agreedH.B. to by the parties or ordered by the court, discovery shall be completed within 150 days after the date arbitration is elected under this section or the date the answer is filed, whichever is longer.

(6)307 (a)Enrolled Copy (b) Unless otherwise agreed to inby writingthe parties or ordered by the parties,court, adiscovery claimshall thatbe iscompleted submittedwithin to150 days after the date arbitration is elected under this section shallor bethe resolveddate bythe aanswer singleis arbitrator.filed, whichever is longer.

(6)(a) Unless otherwise agreed to in writing by the parties, a claim that is submitted to arbitration under this section shall be resolved by a single arbitrator.

- 38 - HB0307 compared with HB0307S01 (a) each party shall pay an equal share of the fees and costs of the arbitrator selected under Subsection (6)(a);

(9)(9)(a) (a) Subject to the provisions of this section, the Utah Rules of Civil Procedure and Utah Rules of Evidence apply to the arbitration proceeding.

(10)- A36 written- decisionEnrolled byCopy aH.B. single arbitrator or by a majority of the arbitration panel shall constitute a final decision.

307 (10) A written decision by a single arbitrator or by a majority of the arbitration panel shall constitute a final decision.

(12)(12)(a) (a) Upon filing a notice requesting a trial de novo under Subsection (11):

- 39 - HB0307 compared with HB0307S01 (i) unless otherwise stipulated to by the parties or ordered by the court, an additional 120 days shall be allowed for further discovery;

(13)(13)(a) (a) If the plaintiff, as the moving party in a trial de novo requested under Subsection (11), does not obtain a verdict that is at least $5,000 and is at least 30% greater than the damages awarded in arbitration, excluding the items listed in Subsection (19), the plaintiff is responsible for all of the nonmoving party's costs.

(14)(14)(a) (a) If a defendant, as the moving party in a trial de novo requested under Subsection (11), does not obtain a verdict that is at least 30% less than the damages awarded in arbitration, excluding the items described in Subsection (19), the defendant is responsible for all of the nonmoving party's costs.

(i)- costs37 described- inH.B. Rule 54(d), Utah Rules of Civil Procedure;

307 Enrolled Copy (i) costs described in Rule 54(d), Utah Rules of Civil Procedure;

- 40 - HB0307 compared with HB0307S01 (15) For purposes of determining whether a party's verdict is greater or less than the arbitration award under Subsections (13) and (14), a court may not consider any recovery or other relief granted on a claim for damages if the claim for damages:

[(16) If a court determines, upon a motion of the nonmoving party, that the moving party's use of the trial de novo process was filed in bad faith as defined in Section 78B-5-825, the court may award reasonable attorney fees to the nonmoving party.] (16) Upon a motion of the nonmoving party, the court may award reasonable attorney fees to the nonmoving party if the court determines that{:}that the moving party requested a trial de novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse the judicial process.

(17) {theNothing movingin partythis lackedsection anis honestintended beliefto thataffect theor requestprevent forany afirst trialparty declaim novofrom waslater proper;}being {(b)}brought {theunder movingany first party intendedinsurance topolicy takeunder unconscionablewhich advantagethe ofinjured anotherperson byis requesting a trialcovered deperson. novo;

or}(18)(a) {(c)}If {thea movingdefendant partyrequests intended to, or acted with, the knowledge that the request for a trial de novo wouldunder hinder,Subsection delay,(11), orthe defraudtotal another.}damages {(17)}award Nothingat intrial thismay sectionnot isexceed intended$15,000 toabove affect or prevent any firstavailable partyper claimperson fromlimits laterof being brought under any first party insurance policycoverage, undernot whichincluding the injuredcosts persondescribed isin aSubsection covered(14)(b). person.

(18) (a) If a defendant requests a trial de novo under Subsection (11), the total damages award at trial may not exceed $15,000 above any available per person limits of insurance coverage, not including the costs described in Subsection (14)(b).

- 41 - HB0307 compared with HB0307S01 (20) If a party requests a trial de novo under Subsection (11), the party shall file a copy of the notice requesting a trial de novo with the commissioner notifying the commissioner of the party's request for a trial de novo under Subsection (11).

Section- 5.38 - Enrolled Copy H.B.

307 Section 5.

38-1a-308.38-1a-308 .

(3)(3)(a) (a) As used in this Subsection (3), "third party" means an owner, original contractor, or subcontractor.

(5)(5)(a) - 42 - HB0307 compared with HB0307S01 (a) Unless otherwise agreed to by the parties, a claim that is submitted to arbitration under this section shall be resolved by a single arbitrator.

(c)- If39 the- partiesH.B. are unable to agree on a single arbitrator as required under Subsection (5)(b), the parties shall select a panel of three arbitrators.

307 Enrolled Copy (c) If the parties are unable to agree on a single arbitrator as required under Subsection (5)(b), the parties shall select a panel of three arbitrators.

(8)(8)(a) (a) Subject to the provisions of this section, the Utah Rules of Civil Procedure and the Utah Rules of Evidence shall apply to an arbitration proceeding under this section.

(d) Unless otherwise agreed to by the parties or ordered by the court, discovery in an arbitration proceeding under this section shall be limited to the discovery available in a tier 1 case under Rule 26 of the Utah Rules of Civil Procedure.

- 43 - HB0307 compared with HB0307S01 (9) A written decision by a single arbitrator or by a majority of the arbitration panel shall constitute a final decision.

(i)- any40 party,- withinEnrolled 20Copy daysH.B. after the day on which the arbitration award is served, files a notice requesting a trial de novo in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration;

307 (i) any party, within 20 days after the day on which the arbitration award is served, files a notice requesting a trial de novo in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration;

(11)(11)(a) (a) Upon filing a notice requesting a trial de novo under Subsection (10)(b)(i):

[(14) If a court determines, upon a motion of the nonmoving party, that the moving party's use of the trial de novo process was filed in bad faith, as defined in Section 78B-5-825, the court may award reasonable attorney fees to the nonmoving party.] - 44 - HB0307 compared with HB0307S01 (14) Upon a motion of the nonmoving party, the court may award reasonable attorney fees to the nonmoving party if the court determines that{:}that the moving party requested a trial de novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse the judicial process.

(15) {theAll movingarbitration partyawards lackedissued anunder honestthis beliefsection thatshall thebear requestpostjudgment forinterest a[ trialpursuant deto] novoin wasaccordance proper;}with {(b)}Section {the15-1-4. moving party intended to take unconscionable advantage of another by requesting a trial de novo;

or} {(c)} {the moving party intended to, or acted with, the knowledge that the request for a trial de novo would hinder, delay, or defraud another.} {(15)} All arbitration awards issued under this section shall bear postjudgment interest [pursuant to] in accordance with Section 15-1-4.

78B-5-825.78B-5-825 .

[(1) In civil actions, the court shall award reasonable attorney fees to a prevailing party if the court determines that the action or defense to the action was without merit and not brought or asserted in good faith, except under Subsection (2).] (1) Except as provided in Subsection (3), the court shall award reasonable attorney fees to a prevailing- party41 in- aH.B. civil action if the court determines that:

(a)307 theEnrolled nonprevailingCopy party'sprevailing civilparty action,in ora defense to the civil action,action {wasif }the iscourt frivolousdetermines orthat: {of little weight or importance having } has no reasonable basis in law or fact;

and(a) {(b)the } {(i) {the nonprevailing partyparty's lackedcivil anaction, honest belief that the action or defense wasto proper;}the }civil {(ii)action, {theis nonprevailingfrivolous partyor intendedhas tono takereasonable unconscionablebasis advantagein oflaw another by bringing the action or defense;fact;

or}and }(b) (iii){(b)} the nonprevailing party {intended to} brought the civil action, or {acted with, } defense to the {knowledge that the } civil actionaction, {or defense would hinder} , to harass, cause unreasonable delay, {or defraud another} needlessly increase the cost of litigation, or abuse the judicial process.

- 45 - HB0307 compared with HB0307S01 (i) the opposing party's motion {was } is frivolous or {of little weight or importance having } has no reasonable basis in law or fact;

and {(ii) } (ii) the opposing party brought the motion to harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse the judicial process.

[(2)] (3) {theThe opposingcourt, partyin lackedthe ancourt's honestdiscretion, beliefmay thataward theno actionfees or defenselimited wasfees proper;}against {(B)}a {theparty opposingunder partySubsection intended(1)[, tobut takeonly unconscionableif advantagethe ofcourt] anotheror by(2) bringingif the motion;court:

or} {(C)} {the opposing party intended to, or acted with, the knowledge that the motion would hinder, delay, or defraud another.} {[(2)] (3)} The court, in the court's discretion, may award no fees or limited fees against a party under Subsection (1)[, but only if the court] or (2) if the court:

78B-10a-108.78B-10a-108 .

(1)(1)(a) (a) Upon filing a notice requesting a trial de novo in accordance with Subsection 78B-10a-107(2):

(2) - 4642 - HB0307Enrolled comparedCopy withH.B. HB0307S01 (a) If the plaintiff, as the moving party in a trial de novo requested under Subsection 78B-10a-107(2), does not obtain a verdict that is at least $5,000 and 30% greater than the arbitration award, the plaintiff is responsible for all of the nonmoving party's costs.

307 (2)(a) If the plaintiff, as the moving party in a trial de novo requested under Subsection 78B-10a-107(2), does not obtain a verdict that is at least $5,000 and 30% greater than the arbitration award, the plaintiff is responsible for all of the nonmoving party's costs.

(3)(3)(a) (a) If a defendant, as the moving party in a trial de novo requested in accordance with Subsection 78B-10a-107(2), does not obtain a verdict that is at least 30% less than the arbitration award, the defendant is responsible for all of the nonmoving party's costs.

[(5) If a district court determines, upon a motion of the nonmoving party, that the moving party's use of the trial de novo process was filed in bad faith as defined in Section 78B-5-825, the district court may award reasonable attorney fees to the nonmoving party.] (5) Upon a motion of the nonmoving party, the district court may award reasonable attorney fees to the nonmoving party if the district court determines that{:}that the moving party requested a trial de novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse the judicial process.

(6)(6)(a) (a)If {thea movingdefendant partyrequests lackeda antrial honestde beliefnovo thatunder Subsection 78B-10a-107(2), the requesttotal forverdict aat trial demay novonot wasexceed proper;}$15,000 {(b)}above {theany movingavailable partylimits intendedof toinsurance takecoverage unconscionableand advantagethe oftotal anotherverdict bymay requestingnot aexceed trial$65,000. de novo;

or} - 4743 - HB0307H.B. compared with HB0307S01 {(c)} {the moving party intended to, or acted with, the knowledge that the request for a trial de novo would hinder, delay, or defraud another.} {(6)} {(a)} If a defendant requests a trial de novo under Subsection 78B-10a-107(2), the total verdict at trial may not exceed $15,000 above any available limits of insurance coverage and the total verdict may not exceed $65,000.

307 Enrolled Copy (b) If a plaintiff requests a trial de novo under Subsection 78B-10a-107(2), the verdict at trial may not exceed $50,000.

Effective date.

2-5-26 3:05 PM - 4844 -