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 are legally entitled to recover damages for property damage caused by uninsured or underinsured motor vehicles.

An underinsured motorist is defined as one who carries liability insurance with coverage limits that are less than what the insured individuals are entitled to recover. The bill also allows the named insured to reject uninsured motorist coverage for property damage if they have collision coverage for their vehicle.

Furthermore, if an insured has paid multiple premiums for uninsured motorist coverage across different policies with the same insurance company, they can collect up to the total amount of coverage for all insured vehicles. The insurer is required to notify policyholders about the availability of coverage or optional limits during policy renewals or modifications. The act is set to take effect upon passage.

Statutes affected:
2633: 27-7-2.1