Bill Summary – FastDemocracy

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                                                                       Chairman Phil Mendelson

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                                              A BILL

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                               IN THE DISTRICT OF COLUMBIA

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 To amend the Compulsory/No-Fault Motor Vehicle Insurance Act of 1982 to increase the

       mandatory minimum motor vehicle insurance requirements for property damage liability

       and third-party liability coverage, to require insurers to provide enhanced underinsured

       motor vehicle coverage under a passenger vehicle liability insurance policy, and to

       increase the mandatory minimum motor vehicle insurance requirements for property

       damage liability third-party liability, underinsured motor vehicle, and enhanced

       underinsured motor vehicle coverage by $5,000 beginning on January 1, 2025 and on

       January 1 every 5 years after January 1, 2025.

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         BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COUMBIA, that this act

 may be cited as the Motor Vehicle Insurance Modernization Amendment Act of 2021.

         Sec. 2. Section 7 of the Compulsory/No-Fault Motor Vehicle Insurance Act of 1982,

 effective September 18, 1982 (D.C. Law 4-155; D.C. Official Code  31-2406), is amended as

 follows:

         (a) Subsection (b) is amended by striking the phrase $10,000 for all persons injured in

 any 1 accident and inserting the phrase $20,000 for all persons injured in any one accident in

 its place.

         (b) Subsection (c) is amended by striking the phrase be $25,000 per person injured in

 any 1 accident and $50,000 for all persons injured in any 1 accident and inserting the phrase be

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 $50,000 per person injured in any one accident and $100,000 for all persons injured in any one

 accident in its place.

         (c) Subsection (c-1) is amended as follows:

                 (1) Strike the phrase Underinsured motor vehicle coverage. - Underinsured

 motor and insert the phrase Standard underinsured motor vehicle coverage. - Standard

 underinsured motor in its place.

                 (2) Strike the phrase optional underinsured and insert the phrase optional

 standard underinsured in its place.

                 (3) Strike the phrase rejected this underinsured and insert the phrase rejected

 this standard underinsured in its place.

                 (4) Strike the phrase rejections of the underinsured and insert the phrase

 rejections of the standard underinsured in its place.

                 (5) Strike the phrase benefits provided by the underinsured and insert the phrase

 benefits provided by the standard underinsured in its place.

                 (6) Strike the phrase inclusion of underinsured and insert the phrase inclusion

 of standard underinsured in its place.

                 (7) Strike the phrase includes underinsured and insert the phrase includes

 standard underinsured in its place.

         (e) Subsection (f) is amended as follows:

                 (1) Paragraph (2) is amended by striking the phrase amounts of $25,000 per

 person injured in any 1 accident, or $50,000 for all persons injured in any 1 accident, and

 coverage for property damage in an amount of $5,000 for property damage in any 1 accident

 and inserting the phrase amounts of $50,000 per person injured in any one accident, or

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 $100,000 for all persons injured in any one accident, and coverage for property damage in an

 amount of $20,000 for property damage in any one accident in its place.

                 (2) Paragraph (4) is amended by striking the phrase in any 1 accident both times

 it appears and inserting the phrase in any one accident in its place.

         (d) A new subsection (c-2 is added to read as follows:

         (c-2) Enhanced underinsured motor vehicle coverage.

                 (1) An insurer shall offer enhanced underinsured motor vehicle coverage at the

 time of the purchase of a passenger vehicle liability insurance policy.

                 (2) The first named insured may elect to obtain enhanced underinsured motor

 vehicle coverage instead of the standard underinsured motor vehicle offered under subsection (c-

 1) of this section.

                 (3) Unless the first named insured affirmatively makes a change in writing, the

 election to obtain enhanced underinsured motor vehicle coverage applies to all subsequent

 renewals of coverage and to all other policies or endorsements that extend, change, supersede, or

 replace an existing passenger vehicle liability insurance policy issued to the first named insured.

                 (4) In addition to any other coverage required of this subtitle, each passenger

 vehicle liability insurance policy issued, sold, or delivered in the District of Columbia after the

 effective date of this act, to an insured that elects to obtain enhanced underinsured motor vehicle

 coverage instead of the standard underinsured motor vehicle coverage offered under subsection

 (c-1) of this section shall contain coverage for damages, subject to the policy limits, that:

                        (A) The insured is entitled to recover from the owner or operator of an

 underinsured motor vehicle because of bodily injuries sustained in a motor vehicle accident

 arising out of the ownership, maintenance, or use of the underinsured motor vehicle; and

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                        (B) A survivor of the insured is entitled to recover from the owner or

  operator of an underinsured motor vehicle because the insured died as the result of a motor

 vehicle accident arising out of the ownership, maintenance, or use of the underinsured motor

 vehicle.

                (4) Each insurer shall offer options enhanced underinsured motor vehicle coverage

 in amounts up to the amounts of the standard uninsured motor vehicle coverage as requested by

 the insured.

                 (5) An insurer may exclude the following from the enhanced underinsured motor

  vehicle coverage benefits:

                        (A) The named insured or a family member of the named insured who

  resides in the named insureds household for an injury that occurs when the named insured or

  family member is occupying or is struck as a pedestrian by an underinsured motor vehicle that is

  owned by the named insured or an immediate family member of the named insured who resides

  in the named insureds household; and

                        (B) The named insured, a family member of the named insured who

  resides in the named insureds household, and any other individual who has other applicable

  motor vehicle insurance for an injury that occurs when the named insured, family member, or

 other individual is occupying or is stuck as a pedestrian by the insured motor vehicle while the

 motor vehicle is operated or used by an individual who is excluded from coverage under District

 law.

                (6) The limit of liability for an insurer that provides enhanced underinsured

 motor vehicle coverage is the amount of that coverage without any reduction for the amount paid

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 to the insured, that exhausts any applicable liability insurance policies, bonds, and securities on

 behalf of any person that may be held liable for the bodily injuries or death of the insured.

                  (7) A policy providing excess coverage may include enhanced underinsured

 motor vehicle coverage, in an amount equal to but not greater than the excess coverage in the

 policy. A policy that, as its primary purpose, provides coverage in excess of other valid and

 collectible insurance or qualified self-insurance may include the enhanced underinsured motor

 vehicle coverage.

                  (8) A provision in a passenger motor vehicle liability insurance policy issued on

 or after the effective date of this act, about coverage for damages sustained by the insured as a

 result of the operation of an underinsured motor vehicle that requires a dispute between the

 insured and the insurer to be submitted to binding arbitration is prohibited and has no legal

 effect.

                  (9) A final judgement in any action for personal injury protection coverage under

 a passenger motor vehicle liability insurance policy does not preclude a subsequent action for

 enhanced underinsured motor vehicle coverage arising out of the same motor vehicle accident or

 occurrence..

           (e) Subsection (f) is amended as follows:

 (1) Paragraph (2) is amended by striking the phrase amounts of $25,000 per person injured in

 any 1 accident, or $50,000 for all persons injured in any 1 accident, and coverage for property

 damage in an amount of $5,000 for property damage in any 1 accident and inserting the phrase

 amounts of $50,000 per person injured in any one accident, or $100,000 for all persons injured

 in any one accident, and coverage for property damage in an amount of $20,000 for property

 damage in any one accident in its place.

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        (f) A new subsection (i) is added to read as follows:

        (i) The amounts provided in subsections (c), (c-1), (c-2), and (f) of this section shall

 increase by $5,000 beginning on January 1, 2025 and on January 1 every 5 years after January 1,

 2025. The increased amount shall apply to causes of action arising between January 1 on the

 year of the increase and December 31 of that year prior to the next increase..

        Sec. 3. Fiscal impact statement.

        The Council adopts the fiscal impact statement in the committee report as the fiscal

 impact statement required by section 4a of the General Legislative Procedures Act of 1975,

 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code  1-301.47a).

        Sec. 4. Effective date.

        This act shall take effect following approval by the Mayor (or in the event of veto by the

 Mayor, action by the Council to override the veto), a 30-day period of Congressional review as

 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December

 24, 1973 (87 Stat. 813; D.C. Official Code  1-206.02(c)(1)), and publication in the District of

 Columbia Register.

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