The bill amends Section 27-7-2.1 of the General Laws in Chapter 27-7, titled "Liability Insurance," to mandate that all motor vehicle liability insurance policies issued in the state for vehicles registered or principally garaged in the state include uninsured motorist coverage. This coverage must be provided for bodily injury or death and must be at least the minimum limits set forth in § 31-47-2(13)(i)(A), unless the insured opts for a lower limit in writing, but not less than the statutory minimum. The bill removes the option for the named insured to reject uninsured motorist coverage for property damage if they have collision coverage, and it also removes the provision allowing the named insured to reduce uninsured motorist coverage to zero after signing an advisory notice.

The bill further defines terms such as "policy insuring against loss" and "property damage," and it outlines the requirements for insurers to notify policyholders about the availability of coverage or optional limits upon policy renewal or changes. It sets a $200 deductible for property damage claims caused by collision and specifies the process for subrogation when an insurance company collects from a third party. The bill includes underinsured motorists in the definition of uninsured motorists and allows insured individuals to recover damages without first making a claim or bringing an action against the uninsured or underinsured tortfeasor. Additionally, if an insured has paid multiple premiums for uninsured motorist coverage across several vehicles or policies with the same insurer, they are allowed to collect up to the aggregate amount of coverage. The act is set to take effect on January 1, 2024, and will apply to new or renewed insurance policies issued after that date.

Statutes affected:
5487  SUB A: 27-7-2.1
5487: 27-7-2.1