Utah Code § 31A-22-324 — Utah Code / Title 31A / Chapter 31A-22 / § 31A-22-324
§ 31A-22-324. Insurer obligations -- Recovery operations -- Arbitration.
Status: in_force

5/5/2027 (1) As used in this section: (a) "Commercial vehicle" means the same as that term is defined in Section 72-9-102. (b) "Motor carrier" means the same as that term is defined in Section 72-9-102. (c) "Motor vehicle" means the same as that term is defined in Section 41-1a-102. (d) "Non-consent police generated tow" means the towing of a vehicle, vessel, or outboard motor made at the request of a peace officer, a person acting on behalf of a law enforcement agency, or a highway authority under: (i) Section 41-1a-1101; (ii) Section 41-6a-210; (iii) Section 41-6a-527; (iv) Section 41-6a-1405; (v) Section 41-6a-1406; (vi) Section 41-6a-1408; (vii) Section 73-18-20.1; or (viii) another provision of law. (e) "Power unit" means a motor vehicle that is a commercial vehicle. (f) "Recovery operation" means the same as that term is defined in Section 72-1-102. (g) "Recovery operator" means a tow truck motor carrier that performs a recovery operation. (h) "Tow truck motor carrier" means the same as that term is defined in Section 72-9-102. (2) A motor carrier shall pay the costs associated with a recovery operation from the motor vehicle insurance policy issued for the power unit. (3) A commercial liability insurer that provides an endorsement described in Subsection (7)(a) that insures a vehicle or cargo recovered as part of a recovery operation shall pay the recovery operator directly for all reasonable and necessary services involved in the recovery operation. (4) (a) A commercial liability insurer that provides an endorsement described in Subsection (7)(a) that insures a vehicle recovered as part of a recovery operation shall, within 60 days after the day on which the insurer receives an invoice with documentation of the services performed for the recovery operation: (i) pay the recovery operator the full amount invoiced by the recovery operator; or (ii) pay the lesser of: (A) 75% of the total of the invoiced amount; or (B) $40,000. (b) An insurer may dispute the amount invoiced by a recovery operator as described in Subsection (4)(a) within 60 days after the day on which the insurer receives an invoice from the recovery operator. (5) Before commencing arbitration as described in Subsection (6), the insurer and the recovery operator shall attempt to resolve a dispute through mediation. (6) (a) A dispute regarding the reasonableness or necessity of an unpaid amount shall be resolved by binding arbitration. (b) Arbitration under this Subsection (6) shall: (i) be conducted in accordance with Title 78B, Chapter 11, Utah Uniform Arbitration Act; (ii) be limited to a determination of the reasonableness and necessity of the disputed amount; and (iii) be initiated by a written demand for arbitration served on the opposing party. (c) If arbitration is initiated, the insurer shall post a bond or other security, in a form acceptable to the arbitrator, in an amount that is equal to the difference of the total invoiced amount and the amount paid by the insurer under Subsection (4)(a). (d) Upon receipt of proof of the bond or other security described in Subsection (6)(c), the recovery operator shall immediately release the recovered vehicle and any associated cargo to the insurer or the insurer's authorized agent. (e) The arbitrator shall issue a written decision and award determining the amount, if any, payable from the bond or other security. (f) An arbitration award issued under this Subsection (6) is: (i) final and binding; and (ii) subject to judicial review as provided in Title 78B, Chapter 11, Utah Uniform Arbitration Act. (g) If the arbitrator determines that all or a portion of the disputed charges are not reasonable or not necessary, the insurer is not liable for the amount the arbitrator determines not reasonable or not necessary, and the arbitrator shall order the release of any remaining bond or other security to the insurer. (h) If the total amount posted by the insurer as described in Subsection (6)(c) exceeds the final amount that an arbitrator determines to be reasonable and necessary as described in Subsection (6)(e), the recovery operator shall return to the insurer the difference of the amount paid by the insurer and the final amount decided by the arbitrator. (i) Nothing in this Subsection (6) authorizes a recovery operator to withhold release of a recovered vehicle or cargo after compliance with Subsection (6)(c). (7) (a) In addition to any other coverage required by this title, a motor carrier operating in this state shall obtain a motor vehicle liability insurance policy for a power unit that includes a separate coverage endorsement providing coverage for costs associated with a recovery operation. (b) The endorsement requirement described in Subsection (7)(a) applies to commercial vehicles covered by: (i) a liability-only insurance policy; or (ii) a full coverage insurance policy, if the policy does not include at least $40,000 of coverage for a recovery operation. (c) The recovery coverage described in Subsection (7)(a) applies only to a recovery operation that is a non-consent police generated tow. (d) The minimum coverage limit for recovery coverage required under this Subsection (7) is $40,000 per recovery operation. (e) An insurer may offer, and a motor carrier may purchase, recovery coverage in excess of the minimum amount required under Subsection (7)(d). (8) If a recovery operator charges more than the maximum rates established by the Department of Transportation by rule as described in Section 72-9-603 for recovery services: (a) a requirement for an insurer to pay a bill described in this section is void; and (b) a bond requirement that applies to the recovery operator is void.