Utah Code Title 31A. Insurance Code § 31A-26-301. Timely payment of claims

(1)(a) Unless otherwise provided by law, an insurer shall timely pay every valid insurance claim made by an insured.

(b) By rule the commissioner may prescribe:

(i) the kinds of notice and proof of loss that will establish validity;

(ii) the manner in which an insurer may make a bona fide denial of a claim;

(iii) the periods of time within which payment is required to be made to be timely;  and

(iv) the reasonable interest rates to be charged upon late claim payments.

(2)(a) Notwithstanding Subsection (1) and subject to Subsection (2)(b), the payment of a claim is not overdue during any period in which:

(i) the insurer is unable to pay the claim because there is no recipient legally able to give a valid release for the payment;  or

(ii) the insurer is unable to determine who is entitled to receive the payment.

(b) Subsection (2)(a) applies only if the insurer:

(i) promptly notifies the claimant of the inability to pay the claim;  and

(ii) offers in good faith to pay the claim promptly when the inability to pay the claim is removed.

(3) This section applies only to a claim for first party benefits made by a person who is:

(a) named or defined as an insured under the terms of an insurance policy;

(b) described as a covered person under the terms of a policy of health care insurance as defined in Section 31A-1-301 ;  or

(c) named, defined, or described:

(i) as:

(A) an insured;

(B) a beneficiary;

(C) a policyholder;  or

(D) otherwise covered person;  and

(ii) under the terms of:

(A) a life insurance policy;  or

(B) an annuity.

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