The bill amends Section 27-7-2.1 of the General Laws concerning uninsured motorist coverage in liability insurance policies. It adds property damage to the existing provisions for uninsured motorist coverage, which previously only included bodily injury or death. The bill clarifies that individuals insured under the policy who are legally entitled to recover damages from uninsured or underinsured motor vehicles can now also recover for property damage.

The bill defines an underinsured motorist as one who carries liability insurance with coverage limits less than what the insured individuals are entitled to recover. It allows the named insured to reject uninsured motorist coverage for property damage if they have collision coverage. Additionally, it establishes a $200 deductible for property damage claims.

Insurers are required to notify policyholders about the availability of uninsured motorist coverage and optional limits during policy renewals or modifications. The bill ensures that individuals who have paid multiple premiums for uninsured motorist coverage can collect up to the aggregate amount of coverage for all insured vehicles. The act is set to take effect upon passage.

Statutes affected:
7520: 27-7-2.1