Section R590-215-3 - DefinitionsTerms used in this rule are defined in Sections 31A-1-301, 31A-22-629, and 29 CFR 2560.503-1(m). Additional terms are defined as follows:
(1) "Compulsory binding arbitration" means a contract provision requiring arbitration as an automatic and exclusive remedy for any dispute involving a contract of insurance to the exclusion of any otherwise available judicial remedy, provided that the claim or controversy exceeds the jurisdictional limit of the small claims court of the state where the action would be brought. (2) "Compulsory non-binding arbitration" means a contract provision requiring an insured to exhaust a procedure of extra-judicial arbitration as a condition before the pursuit of an otherwise available judicial remedy.(3) "Permissible arbitration provision" means an arbitration provision in an insurance policy that: (a) allows for an action to be brought against an insurer;(b) prohibits the insurance policy to be construed according to the laws of another jurisdiction, except as necessary to meet the requirements of compulsory insurance laws of the other jurisdiction;(c) permits Utah courts of jurisdiction over an action against the insurer; and(d) limits the right of action against the insurer to less than three years from the date the cause of action accrues.(4) "Voluntary binding arbitration" means a contract provision that, at the election of the insured, requires an insurer to submit to arbitration, provided that the claim or controversy exceeds the jurisdictional limit of the small claims court of the state where the action would be brought.Utah Admin. Code R590-215-3
Amended by Utah State Bulletin Number 2022-16, effective 7/27/2022