Opinion ID: 2461615
Heading Depth: 1
Heading Rank: 1

Heading: introduction

Text: ¶ 1 We have accepted certification of the following question from the United States District Court for the District of Utah: Whether provision of lower limits for underinsured motorist coverage than for liability coverage properly complies with former Utah Code Ann. § 31A-22-305(9)(b) & (g) (currently codified under Utah Code Ann. § 31A-22-305.3). We hold that such coverage may comply with the Utah Code so long as the insurer satisfies the consumer notification requirements contained in section 31A-22-305(9)(b) and (g) (the UIM Statute). [1] Because notification requirements differ depending on when the insured's policy was issued, a court must first determine whether a new policy existed on or after January 1, 2001. We hold that a new policy exists on or after this date when the insurer and the insured enter into a new contractual relationship, or if changes are made to the terms of an existing insurance contract that materially alter the levels of risk contained in the contract.