31A-22-302.5 - Named driver exclusions. - Utah Statutes

31A-22-302.5. Named driver exclusions.
(1) A policy of personal lines insurance or combination of personal lines policiespurchased to satisfy the owner's or operator's security requirement under Section 41-12a-301 mayspecifically exclude from coverage:
(a) a person who is a resident of the named insured's household, including a person whousually makes the person's home in the same household but temporarily lives elsewhere; or
(b) a person who usually or customarily operates the motor vehicle.
(2) The named driver exclusion under Subsection (1) is effective only if:
(a) at the time of the proposed exclusion, each person excluded from coverage satisfiesthe owner's or operator's security requirement under Section 41-12a-301, independently of thenamed insured's proof of owner's or operator's security;
(b) any named insured and the person excluded from coverage each provide writtenconsent to the exclusion; and
(c) the insurer includes the name of each person excluded from coverage in the evidenceof insurance provided to an additional insured or loss payee.
(3) The provisions of Subsection (2)(a) do not apply to the named driver exclusion of theperson excluded from coverage if the person's driver license has been denied, suspended, orrevoked.
(4) The named driver exclusion shall remain effective until removed by the insurer.
(5) If the driver license of a person excluded from coverage under Subsection (1) hasbeen denied, suspended, revoked, or disqualified and the person excluded from coveragesubsequently operates a motor vehicle, the exclusion shall:
(a) exclude all liability coverage and all physical damage coverage without regard to thecomparative fault of the excluded driver;
(b) proportionately reduce any benefits otherwise payable to the person excluded fromcoverage and to any named insured under Subsection (2)(b) for benefits payable under uninsuredmotorist coverage, underinsured motorist coverage, personal injury protection coverage, and firstparty medical coverage to the extent the person excluded from coverage was comparatively atfault; and
(c) if the person excluded from coverage is 50% or more at fault in causing the accident,bar both the excluded driver and any named insured under Subsection (2)(b) from recovering anybenefits under any coverage listed under Subsection (5)(b).
(6) The named driver exclusion under Subsection (1) does not apply when the personexcluded from coverage is:
(a) a non-driving passenger in a motor vehicle; or
(b) a pedestrian.

Enacted by Chapter 172, 2010 General Session