UT SB0227

Insurers are prohibited from considering, using, or relying on the existence, likelihood, or possibility of punitive damages when underwriting, rating, classifying risk, or determining premiums

Employers, principals, and managing agents cannot be held vicariously liable for punitive damages based solely on the employment or agency relationship with a tortfeasor

Punitive damages against employers/principals require clear and convincing evidence that they acted willfully, maliciously, or recklessly; authorized or ratified the conduct; or were reckless in hiring/retaining the employee

Rules apply to all punitive damages claims including those arising from DUI-related motor vehicle or motorboat operation

Effective date: May 6, 2026, applying only to claims arising on or after that date