31A-21-314. Prohibited provisions.
(1) As used in this section: "Reserving discretionary authority" means a policy provision that: has the effect of conferring discretion on an insurer, or other claim administrator, to: determine eligibility for benefits; or interpret the terms or provisions of the policy, contract, certificate, or agreement; and could lead to a deferential standard of review by a reviewing court. "Reserving discretionary authority" does not include a policy provision that: informs an insured that, as part of the insurer's routine operations, the insurer applies the terms of the contract for: making a decision, including making a determination regarding eligibility, or receipt of benefits or claims; or explaining the insurer's policies and procedures; and does not give rise to a deferential standard of review by a reviewing court.
(2) An insurance policy subject to this chapter may not contain a provision: 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; depriving Utah courts of jurisdiction over an action against the insurer, except as provided in permissible arbitration provisions; limiting the right of action against the insurer to less than three years from the date the cause of action accrues; or for life insurance or accident and health insurance, reserving discretionary authority.
(3) For purposes of Subsection, 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. (2)(c)