Utah Legislative Update
The Utah legislature was convened from January to March 2008. During the 2008 legislative session, Strong & Hanni attorneys, Stephen J. Trayner and Andrew D. Wright, served as legislative lobbyists for one of the firm’s largest clients, State Farm Insurance, and the Utah Defense Lawyers Association on a number of critical pieces of legislation before the 2008 Legislature.
Following the annual 45 day session, the governor signed more than 400 bills and resolutions into law. More than 100 of these legislative enactments potentially impact consumers, corporations, and insurance companies on tort related topics.
Unless otherwise stated, the effective date for all bills is May 5, 2008. A brief description of a few of these bills is included:
SB 149 Motor Vehicle Liability Policy Minimum Limits
The Plaintiffs’ Bar introduced this bill with the intent of raising Utah’s motor vehicle minimum limits from 25/50/15 to 30/60/20. Strong & Hanni and the insurance industry opposed the bill. We were instrumental in convincing the Editorial Board of Utah’s largest newspaper, The Salt Lake Tribune, to write an editorial opposing the bill. On the last day of the legislature, a compromise was struck raising the limits to 25/6515. This result was more of a win for the industry than it was for the Plaintiff Bar. By only raising the per-accident limit and not the per-person limit, premium increases should be minimal and an insurer’s exposure for one or two people injured in the same vehicle will remain the same. This bill’s effective date is January 1, 2009. As policies come up for renewal in 2009, the liability limits must be equal to or greater than the new mandated limits. This bill takes effect on January 1, 2009.
SB 152 Presumptive Personal Representative
This bill provides automobile insurers with a simplified procedure for resolving the settlement of wrongful death claims where the applicable statutorily mandated insurance limit is being paid to a decedent’s heirs. This bill allows heirs to avoid expensive and lengthy probate procedures for an otherwise asset-free estate. The bill provides that a presumptive personal representative may present and resolve claims for wrongful death, liability, uninsured and underinsured motorist claims without the necessity of a formal court appointment of a personal representative.
SB 155 Punitive Damages Amendments
This bill requires that a court enter a judgment for punitive damages on behalf of the injured party and the state; changes the initial amount to be paid to the injured party from $20,000 to $50,000 and sets priorities for the collection of judgments and attorney fees.
SB 290 Private Investigators’ Access to Driver Licensure Information
This bill removes the provision allowing private investigators holding a registrant license access to personal driver license information, but does not modify the provision allowing private investigators holding an agency license to obtain personal driver license information as allowed by statute.
HB 93 Insurance Fraud Amendments
This bill expands required reporting of fraudulent insurance acts and modifies the requirements of that report. This bill also mandates the reporting of fraudulent insurance activities. The bill provides immunity for organizations such as the National Crime Information Bureau.
HB 144 Motor Vehicle Insurance Amendments: PIP Reimbursement Duties
This bill: provides that there is no statutory right of reimbursement for no-fault/PIP liens between insurers once the at-fault party’s carrier has paid its policy limits. The bill further provides a mechanism for the insurer of the at-fault party which has reimbursed the injured party’s carrier for no-fault/PIP benefits and subsequently determines that some or all of the reimbursed monies are needed to settle a third party liability claim to obtain the return of such funds. Once written notice has been provided to the no-fault/PIP carrier that the reimbursed benefits are needed to fund a settlement of a bodily injury claim, the no-fault (PIP) insurer must return monies within 15 business days.
HB 467 Motor Vehicle Insurance Arbitration Amendments
This bill amends the current state law permitting plaintiffs in motor vehicle accident cases to opt into mandatory arbitration. Under the former law, a party appealing an arbitration award under Utah Code Ann. §31A-22-321, was required to pay certain costs capped at $2,500 unless the appealing party improved the verdict in their favor by 20% in a de novo trial before a district judge. The threshold for an award of costs was raised to a 35% higher/lower verdict on appeal and the cost cap was raised to $4,000.
SB 220 Cause of Action for Defective Construction
This bill restricts causes of action for defective construction to a breach of contract action, unless there is certain other property damage, personal injury, or an intentional or willful breach of a legal duty.
Summary provided by Stephen J. Trayner
