Provide for umbrella and excess insurance coverage to be stacked with uninsured and underinsured motorist coverage
Impact
The introduction of LB423 would significantly modify existing insurance laws in the state by allowing for enhanced stacking of coverage, which is currently limited. This would enable consumers to have more robust options when it comes to their insurance policies, particularly in protecting themselves against the financial repercussions of accidents involving underinsured or uninsured motorists. Proponents argue that such provisions are essential for the safety and financial security of consumers, especially as instances of underinsured drivers continue to rise.
Summary
LB423 aims to provide for umbrella and excess insurance coverage to be stacked with uninsured and underinsured motorist coverage. This bill seeks to enhance the financial protection available to policyholders in the event of an accident involving uninsured or underinsured motorists by allowing them to combine their existing policies with an umbrella or excess insurance policy. This stacking mechanism would provide an additional layer of security, particularly for those who find themselves involved in accidents where the at-fault party lacks adequate insurance coverage.
Contention
There may be points of contention regarding LB423 concerning the potential impact on insurance premiums and coverage availability. Critics of the bill could argue that allowing the stacking of these policies might lead to higher premiums for consumers as insurance providers adjust risk assessments accordingly. Supporters counter that the benefit of having adequate coverage outweighs any potential increases in costs. Additionally, there will be concerns about the regulations insurance companies must follow if this bill passes, and how it would affect their underwriting processes and overall financial responsibility towards policyholders.