2021 -- S 0723 | |
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LC002055 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2021 | |
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A N A C T | |
RELATING TO INSURANCE – LIABILITY INSURANCE | |
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Introduced By: Senators Archambault, Coyne, and Lombardo | |
Date Introduced: March 26, 2021 | |
Referred To: Senate Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 27-7-2.1 of the General Laws in Chapter 27-7 entitled "Liability |
2 | Insurance" is hereby amended to read as follows: |
3 | 27-7-2.1. Uninsured motorist coverage. |
4 | (a) No policy insuring against loss resulting from liability imposed by law for property |
5 | damage caused by collision, bodily injury, or death suffered by any person arising out of the |
6 | ownership, maintenance, or use of a motor vehicle shall be delivered or issued for delivery in this |
7 | state with respect to any motor vehicle registered or principally garaged in this state unless coverage |
8 | is provided in or supplemental to the policy, for bodily injury or death in limits set forth in each |
9 | policy, but in no instance less than the limits set forth in § 31-31-7 under provisions approved by |
10 | the insurance commissioner, for the protection of persons insured under the policy who are legally |
11 | entitled to recover damages from owners or operators of uninsured motor vehicles and hit-and-run |
12 | motor vehicles because of property damage, bodily injury, sickness, or disease, including death, |
13 | resulting from that injury, sickness or disease. The insurer shall provide uninsured motorist |
14 | coverage in an amount equal to the insured's bodily injury liability limits. The named insured shall |
15 | have the option of selecting a limit in writing less than the bodily injury liability coverage, but in |
16 | no event less than the limits set forth in § 31-31-7, unless the named insured is purchasing only the |
17 | minimum coverage required by compulsory insurance provisions of the general laws, in which case |
18 | the limit can be reduced to zero, but only after signing an advisory notice approved by the director |
19 | of business regulation concerning the hazard of uninsured and underinsured motorists. That |
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1 | coverage shall also apply in the case of a responsible party whose liability insurance carrier was |
2 | insolvent at the time of the accident or became insolvent subsequent to the accident. |
3 | (b) Notwithstanding the provisions of subsection (a), the named insured shall have the |
4 | option to reject, in writing, uninsured motorist coverage for loss resulting from damage to property. |
5 | If the named insured has collision coverage for property damage to his or her vehicle, then no |
6 | coverage for uninsured motorist property damage shall be required unless the insured at his or her |
7 | option chooses to purchase that coverage. |
8 | (c) For the purposes of this section: |
9 | (1) "Policy insuring against loss" means a policy which provides primary coverage for the |
10 | insured motor vehicle; and |
11 | (2) "Property damage" means injury to or destruction of the insured vehicle, including its |
12 | loss of use and any property, excluding business property, owned by the insured while contained |
13 | in the insured vehicle. |
14 | (d) After the selection of limits by the named insured or the exercise of the right to reject |
15 | that portion of the coverage which applies to property damage, the insurer or any affiliated insurer |
16 | shall be required to notify the policyholder, in any renewal, reinstatement, substitute, amended, |
17 | altered, modified, transfer, or replacement policy, as to the availability of that coverage or optional |
18 | limits. The insured may, subject to the limitations expressed in this chapter, make a written request |
19 | for higher limits, newly added coverage, or coverage more extensive than that provided on a prior |
20 | policy. |
21 | (e) Property damage caused by collision shall be subject to a two hundred dollar ($200) |
22 | deductible per claim unless otherwise agreed. Any claim submitted under the property damage |
23 | portion of this section must include the name, address, and other means of identification to establish |
24 | that the at-fault operator is without insurance. The rate for this coverage will be established as a |
25 | percentage of the existing base collision insurance rate as utilized by the majority of companies, to |
26 | be determined by the insurance commissioner. |
27 | (f) Whenever, through subrogation, an insurance company or its insurance producer |
28 | collects a casualty loss from a third party, that company or insurance producer shall, from the funds |
29 | collected, first pay to the insured the deductible portion of the casualty loss less the prorated share |
30 | of subrogation expense and only after this retain any funds in excess of the deductible portion of |
31 | the recovery. |
32 | (g) For the purposes of this section "uninsured motorist" shall include an underinsured |
33 | motorist. An "underinsured motorist" is the owner or operator of a motor vehicle who carries |
34 | automobile liability insurance with coverage in an amount less than the limits or damages that |
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1 | persons insured pursuant to this section are legally entitled to recover because of bodily injury, |
2 | sickness, or disease, including death, resulting from that injury, sickness or disease. |
3 | (h) A person entitled to recover damages pursuant to this section shall not be required to |
4 | make a claim against or bring an action against the uninsured or underinsured tortfeasor as a |
5 | prerequisite to recover damages from the insurer providing coverage pursuant to this section. In the |
6 | event that the person entitled to recover against an underinsured motorist recovers from the insurer |
7 | providing coverage pursuant to this section, that insurer shall be entitled to subrogation rights |
8 | against the underinsured motorist and his or her insurance carrier. Release of the tortfeasor with the |
9 | consent of the company providing the underinsured coverage shall not extinguish or bar the claim |
10 | of the insured against the underinsurance carrier regardless of whether the claim has been |
11 | liquidated. |
12 | (i) Whenever an insured has paid two (2) one or more separate premiums for motor vehicles |
13 | and has uninsured motorists' coverage for those motor vehicles in a single policy of insurance or |
14 | under several policies with the same insurance company, the insured shall be permitted to collect |
15 | up to the aggregate amount of coverage for all of the vehicles insured, regardless of any language |
16 | in the policy to the contrary. |
17 | SECTION 2. This act shall take effect upon passage. |
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LC002055 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO INSURANCE – LIABILITY INSURANCE | |
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1 | This act would provide that if an insured has one or more motor vehicles with uninsured |
2 | motorist’s coverage, the insured is permitted to collect up to the aggregate amount of coverage for |
3 | all vehicles covered by the insurance policies. |
4 | This act would take effect upon passage. |
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LC002055 | |
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