2023 -- S 1046
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LC002981
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO INSURANCE -- LIABILITY INSURANCE
Introduced By: Senator Mark P. McKenney
Date Introduced: May 19, 2023
Referred To: Senate Judiciary
It is enacted by the General Assembly as follows:
SECTION 1. Section 27-7-2.1 of the General Laws in Chapter 27-7 entitled "Liability 1
Insurance" is hereby amended to read as follows: 2
27-7-2.1. Uninsured motorist coverage. 3
(a) No policy insuring against loss resulting from liability imposed by law for property 4
damage caused by collision, bodily injury, or death suffered by any person arising out of the 5
ownership, maintenance, or use of a motor vehicle shall be delivered or issued for delivery in this 6
state with respect to any motor vehicle registered or principally garaged in this state unless coverage 7
is provided in or supplemental to the policy, for bodily injury or death in limits set forth in each 8
policy, but in no instance less than the limits set forth in § 31-47-2(13)(i)(A) under provisions 9
approved by the insurance commissioner, for the protection of persons insured under the policy 10
who are legally entitled to recover damages from owners or operators of uninsured motor vehicles 11
and hit-and-run motor vehicles because of property damage, bodily injury, sickness, or disease, 12
including death, resulting from that injury, sickness, or disease. The insurer shall provide uninsured 13
motorist coverage in an amount equal to the insured’s bodily injury liability limits. The named 14
insured shall have the option of selecting a limit in writing less than the bodily injury liability 15
coverage, but in no event less than the limits set forth in § 31-47-2(13)(i)(A), unless the named 16
insured is purchasing only the minimum coverage required by compulsory insurance provisions of 17
the general laws, in which case the limit can be reduced to zero, but only after signing an advisory 18
notice approved by the director of business regulation concerning the hazard of uninsured and 19
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underinsured motorists. That coverage shall also apply in the case of a responsible party whose 1
liability insurance carrier was insolvent at the time of the accident or became insolvent subsequent 2
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 that 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 that 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
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automobile liability insurance with coverage in an amount less than the limits or damages that 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) or more separate premiums for uninsured 13
motorists’ coverage in a single policy of insurance or under several policies with the same insurance 14
company, the insured shall be permitted to collect up to the aggregate amount of coverage for all 15
of the vehicles insured, regardless of any language in the policy to the contrary. 16
SECTION 2. This act shall take effect upon passage. 17
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- LIABILITY INSURANCE
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This act would provide for mandatory uninsured motorist coverage. 1
This act would take effect upon passage. 2
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LC002981
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