The bill amends Section 27-7-2.1 of the General Laws in Chapter 27-7, titled "Liability Insurance," to mandate uninsured motorist coverage in all policies insuring against loss from liability for property damage, bodily injury, or death caused by motor vehicles in the state. The coverage must be provided in amounts at least equal to the insured's bodily injury liability limits, with the option for the insured to select a lower limit in writing, but not less than the minimum required by law. The bill removes the provision that allowed the named insured to reduce the limit to zero after signing an advisory notice. It also eliminates the option for the named insured to reject uninsured motorist coverage for property damage in writing if they have collision coverage.
The bill further specifies that the coverage applies to accidents involving uninsured motorists, hit-and-run incidents, and cases where the responsible party's insurer is insolvent. Insurers must notify policyholders of the availability of this coverage or optional limits upon renewal or any policy changes. The bill sets a $200 deductible for property damage claims and outlines the process for subrogation and recovery of deductibles. It clarifies that "uninsured motorist" includes "underinsured motorist" and removes the requirement for a claimant to pursue the tortfeasor before recovering from the insurer. 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, 2025, and applies to policies issued or renewed after that date.
Statutes affected: 7506: 27-7-2.1