The bill amends Section 27-7-2.1 of the General Laws concerning uninsured motorist coverage in liability insurance policies. It introduces provisions that require coverage for property damage in addition to bodily injury or death for individuals insured under the policy who are legally entitled to recover damages from uninsured or underinsured motor vehicles. Specifically, the bill clarifies that an underinsured motorist is defined as one who carries liability insurance with coverage less than the limits that insured individuals are entitled to recover.

The bill also stipulates that a person entitled to recover damages does not need to pursue a claim against the uninsured or underinsured motorist before seeking compensation from their insurer. Additionally, it allows the named insured to reject uninsured motorist coverage for property damage if they have collision coverage for their vehicle.

Insurers are mandated to notify policyholders about the availability of coverage or optional limits during policy renewals or modifications. Furthermore, the bill establishes a $200 deductible for property damage claims and outlines the process for subrogation when an insurance company collects a casualty loss from a third party. This act would take effect upon passage.

Statutes affected:
7336: 27-7-2.1