This bill amends the Code of West Virginia to establish minimum mandatory underinsured motor vehicle insurance coverage that aligns with the existing minimum policy limits for uninsured motor vehicle insurance. Specifically, it introduces a new provision stating that, beginning January 1, 2026, "proof of financial responsibility" will also include proof of underinsurance coverage necessary to pay damages from the owner or operator of an underinsured vehicle. The required coverage amounts are set at $25,000 for bodily injury or death of one person, $50,000 for bodily injury or death of two or more persons, and $25,000 for property damage in any one accident. Additionally, it ensures that policies in effect on December 31, 2025, will continue to meet the financial responsibility requirements until they expire or are renewed.

Furthermore, the bill modifies existing insurance policy requirements to include provisions for underinsured motorist coverage, ensuring that all policies issued in West Virginia must provide coverage for damages from both uninsured and underinsured vehicles. The bill also clarifies the definitions of "uninsured motor vehicle" and "underinsured motor vehicle," and outlines the rights and responsibilities of insured individuals when filing claims. It mandates that insurers review and report on the rate structure for uninsured and underinsured motorist coverage annually, ensuring that the insurance market remains responsive to these new requirements.

Statutes affected:
Introduced Version: 17D-4-2, 33-6-31