{"data":{"id":"us-ut/utah-code-31a-21-314","jurisdiction":"us-ut","citation":"Utah Code § 31A-21-314","heading":"Prohibited provisions.","body":"(1) As used in this section:\n(a) \"Reserving discretionary authority\" means a policy provision that:\n(i) has the effect of conferring discretion on an insurer, or other claim administrator, to:\n(A) determine eligibility for benefits; or\n(B) interpret the terms or provisions of the policy, contract, certificate, or agreement; and\n(ii) could lead to a deferential standard of review by a reviewing court.\n(b) \"Reserving discretionary authority\" does not include a policy provision that:\n(i) informs an insured that, as part of the insurer's routine operations, the insurer applies the terms of the contract for:\n(A) making a decision, including making a determination regarding eligibility, or receipt of benefits or claims; or\n(B) explaining the insurer's policies and procedures; and\n(ii) does not give rise to a deferential standard of review by a reviewing court.\n(2) An insurance policy subject to this chapter may not contain a provision:\n(a) requiring 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 other jurisdictions;\n(b) depriving Utah courts of jurisdiction over an action against the insurer, except as provided in permissible arbitration provisions;\n(c) limiting the right of action against the insurer to less than three years from the date the cause of action accrues; or\n(d) for life insurance or accident and health insurance, reserving discretionary authority.\n(3) For purposes of Subsection (2)(c), the cause of action accrues on a fidelity bond on the date the insurer first denies all or part of a claim made under the fidelity bond.","path":["Title 31A Insurance Code","Chapter 31A-21 Insurance Contracts in General","Part 31A-21-3 Specific Clauses in Contracts"],"source_url":"https://le.utah.gov/xcode/Title31A/Chapter21/31A-21-S314.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"764f313f8c9fd1739f6ad4d94386049ae538d73caf39807f48f469ef152599c2","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-31a-21-313","next":"us-ut/utah-code-31a-21-315"},"notice":"GroundRules: Original legal text. Not legal advice."}