Utah law gives policyholders powerful protection against deceptive, coercive, or bad-faith behavior by insurance companies. Under the Utah Administrative Code—specifically R590-190-9 and R590-190-12—insurers must follow strict standards when adjusting, evaluating, and settling claims.

Here is part 10 of 10 major practices that insurers in Utah are legally prohibited from using, along with expanded explanations to help you recognize violations.

Auto-Specific Unfair Claims Practices

Dealing with car accidents is incredibly stressful. Fortunately, Utah law provides strong protections for auto insurance claimants. The state strictly regulates how insurers handle your claim. Companies must treat you fairly throughout the entire process. If they fail, they commit an auto-specific unfair claims settlement practice.

The Right to a Standalone Release Form

Insurance companies often try to settle claims quickly. Sometimes, they print release language on the back of settlement checks. Cashing the check means you forfeit your right to future claims. Utah law protects you from this specific tactic. Insurers cannot refuse to use a separate release document. If you request a standalone form, they must provide one. You never have to sign a check with hidden release terms.

Fair Payment for Auto Repairs

Getting your car fixed shouldn’t leave you in debt. Insurers are legally required to cover the actual cost of repairs. They cannot simply settle for less than the shop’s estimate. The only exceptions are if you explicitly agree to a lower amount. The other exception is if your policy contains a specific limitation. Otherwise, underpaying a valid auto repair claim is strictly prohibited. You deserve a vehicle restored to its pre-accident condition.

Mandatory Disclosure of All Coverages

Insurance policies are complex and difficult to read. You might not know every benefit you are entitled to receive. In Utah, your insurance adjuster cannot hide these benefits from you. They must proactively disclose all applicable coverages available for your claim.

First, they must inform you about rental car coverage. This also includes compensation for your general loss of use. Second, they must tell you about household services benefits. This pays for help if your injuries prevent you from doing chores.

Third, they must clearly explain your medical payments coverage. Utah is a no-fault state requiring Personal Injury Protection. Fourth, they must disclose underinsured and uninsured motorist coverage. This protects you if the at-fault driver lacks sufficient insurance. Finally, they must explain the exact math behind total loss calculations.

Holding Insurers Accountable

Failing to disclose available coverages is a serious issue. Adjusters save money by keeping claimants in the dark. This behavior is both unethical and illegal under Utah administrative rules.

You have the right to demand full transparency. Do not hesitate to ask direct questions about your policy limits. If an insurer violates these rules, you can file a complaint. The Utah Insurance Department investigates these unfair settlement practices.

Need Legal Help With an Insurance Dispute?

Contact Attorney David Head

If your insurance company is delaying, denying, or undervaluing your claim, Attorney David Head can help you stand up to unfair practices and fight for the benefits you deserve.

Whether your dispute involves auto, homeowners, health, life, disability, or commercial insurance, David has extensive experience navigating complex insurance litigation and negotiating with carriers who are acting in bad faith.

📞 Phone: 801-691-7511

David Head has spent years holding insurers accountable, challenging unlawful denials, and protecting Utah consumers and businesses from bad faith claim practices.