The bill amends Section 27-7-2.1 of the General Laws concerning liability insurance, specifically focusing on uninsured and underinsured motorist coverage. It introduces provisions for underinsured motorist bodily injury coverage and underinsured motorist property damage coverage, thereby expanding the protections available to insured individuals. The bill mandates that insurers must offer underinsured motorist property damage coverage for private passenger automobiles, and insured individuals have the option to reject this coverage in writing if they do not have collision coverage.

Additionally, the bill clarifies definitions related to underinsured motorists and outlines the rights of insured individuals regarding claims against uninsured or underinsured tortfeasors. It specifies that underinsured motorist property damage coverage provides protection when the owner or operator of a motor vehicle carries automobile liability insurance with coverage limits less than the damages that insured individuals are legally entitled to recover for property damage.

The legislation removes previous language that defined uninsured motorists to include underinsured motorists, thereby establishing clearer distinctions between the two categories. This act is set to take effect on April 1, 2027.

Statutes affected:
2633: 27-7-2.1
2633  SUB A: 27-7-2.1