1. (1) As used in this section:

   1. (a) "Reserving discretionary authority" means a policy provision that:

      1. (i) has the effect of conferring discretion on an insurer, or other claim administrator, to:

         1. (A) determine eligibility for benefits; or
         2. (B) interpret the terms or provisions of the policy, contract, certificate, or agreement; and
      2. (ii) could lead to a deferential standard of review by a reviewing court.

   2. (b) "Reserving discretionary authority" does not include a policy provision that:

      1. (i) informs an insured that, as part of the insurer's routine operations, the insurer applies the terms of the contract for:

         1. (A) making a decision, including making a determination regarding eligibility, or receipt of benefits or claims; or
         2. (B) explaining the insurer's policies and procedures; and
      2. (ii) does not give rise to a deferential standard of review by a reviewing court.

2. (2) An insurance policy subject to this chapter may not contain a provision:

   1. (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;
   2. (b) depriving Utah courts of jurisdiction over an action against the insurer, except as provided in permissible arbitration provisions;
   3. (c) limiting the right of action against the insurer to less than three years from the date the cause of action accrues; or
   4. (d) for life insurance or accident and health insurance, reserving discretionary authority.
3. (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.

Amended by Chapter 351, 2018 General Session