The bill amends Section 27-7-2.1 of the General Laws regarding uninsured motorist coverage in liability insurance policies. It mandates that no policy for motor vehicles registered or principally garaged in the state can be issued without including coverage for bodily injury or death resulting from accidents involving uninsured or hit-and-run vehicles. The coverage must be at least equal to the insured's bodily injury liability limits, and the option for the named insured to select a lower limit is removed, meaning the limit cannot be reduced to zero.

The bill clarifies that coverage applies in cases where the responsible party's insurance is insolvent at the time of the accident. It also removes the option for named insureds to reject uninsured motorist coverage for property damage if they have collision coverage. A $200 deductible for property damage claims is established, and the process for subrogation rights for insurers is outlined. The definition of uninsured motorist is expanded to include underinsured motorists, and it allows insured individuals to collect the aggregate amount of coverage if they have paid multiple premiums for uninsured motorist coverage across different policies.

The act is set to take effect on January 1, 2027, applying to new or renewed insurance policies issued after that date.

Statutes affected:
7863: 27-7-2.1