SB 754 — Motor vehicle insurance; uninsured motor vehicle.
Last action — Approved by Governor-Chapter 308 (effective 7/1/23)
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House of Delegates
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 21, 2022. Enacted.
Signed by Governor Glenn Youngkin (Republican) on April 11, 2022.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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2 sponsors
1 primary, 1 co-sponsors signed on.
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Cleared a recorded vote
Passed 5 recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Summary
Motor vehicle insurance; underinsured motor vehicle. Requires any motor vehicle liability insurance policy issued, delivered, or renewed in the Commonwealth after July 1, 2023, to include a specific statement regarding the insurer requirements to provide underinsured motorist coverage that pays any damages due to an insured in addition to any bodily injury or property damage liability that is applicable to the insured's damages. The bill requires that the endorsement or provisions of a motor vehicle liability policy to provide uninsured motorist insurance coverage also provide underinsured motorist insurance coverage with limits that are equal to the uninsured motorist insurance coverage limits. Under the bill, underinsured motorist coverage shall be paid without any credit for the bodily injury and property damage coverage available for payment, unless any named insured elects to reduce any underinsured motorist coverage payments by notifying the insurer. If an injured person is entitled to underinsured motorist coverage under one or more policies wherein a named insured has elected to reduce the underinsured motorist limits by the available bodily injury liability insurance or property damage liability insurance coverage available for payment, any amount available for payment shall be credited against such policies in payment priority established in current law, and where there is more than one such policy entitled to such credit, the credit shall be apportioned pro-rata pursuant to the policies' respective available underinsured motorist coverages. The bill also provides that taxicab operators may fulfill their insurance filing requirement by showing evidence of a certificate of self-insurance. The bill requires, with regard to the self-insurance protection of a taxicab operator, the amount of bodily injury or property damage liability coverage available for payment from any source to be credited against and reduce the amount of protection otherwise available against an underinsured motorist.
Bill Text
What changed in the latest version
338 added · 324 removedPlain-language change summary
The amendment to SB 754 changes the wording of a required notice about optional insurance coverage in Virginia. It replaces "IMPORTANT NOTICE" with a more detailed explanation that clearly defines the availability of additional health care and disability benefits for those involved in an accident. This matters because it aims to ensure that policyholders are better informed about their options and the benefits they could obtain, potentially leading to better financial protection in case of an accident.
SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2022 SESSION CHAPTER E308 An Act to amend and reenact §§ 38.2-2202, 38.2-2206, and 46.2-2057 of the Code of Virginia, relating to motor vehicle insurance;
R O [S 754] Approved LApril L11, 2022 Be it enacted by the General Assembly of Virginia:
That §§ 38.2-2202, 38.2-2206, and 46.2-2057 of the Code of Virginia are amended and reenacteEreenacted as follows:
D§ A.38.2-2202.
Required notice of optional coverage available.
A.
IMPORTANT NOTICE IN ADDITION TO THE MINIMUM INSURANCE REQUIRED BY LAW, YOU MAY PURCHASE ADDITIONAL INSURANCE COVERAGE FOR THE NAMED INSURED AND FOR HIS RELATIVES WHO ARE MEMBERS OF HIS HOUSEHOLD WHILE IN OR UPON, ENTERING B OR ALIGHTING FROM A MOTOR VEHICLE, OR THROUGH BEING STRUCK BY A MOTOR 5VEHICLE WHILE NOT OCCUPYING A MOTOR VEHICLE, AND FOR OCCUPANTS OF THE INSURED MOTOR VEHICLE.
THE FOLLOWING HEALTH CARE AND DISABILITY BENEFITS E ARE AVAILABLE FOR EACH ACCIDENT:
R 1.
HOWEVER, IF YOU DO NOT PURCHASE THE $2,000 LIMIT OF COVERAGE, YOU AND2.AND THE COMPANY MAY AGREE TO ANY OTHER LIMIT;
AND 2.
IF YOU DESIRE TO PURCHASE EITHER OR BOTH OF THESE COVERAGES AT AN ADDITIONAL PREMIUM, YOU MAY DO SO BY CONTACTING THE AGENT OR COMPANY THATheTHAT insurerISSUED issuingYOUR thePOLICY. policy shall inform the insured by any reasonable means of communication of the approximate premium for the additional coverage.
The insurer issuing the policy shall inform the insured by any reasonable means of communication of the approximate premium for the additional coverage.
HOWEVER, ANY ONE NAMED INSURED HAS THE RIGHT TO REDUCE THE LIMITS OF THE UNINSURED/UNDERINSURED MOTORIST COVERAGE TO LESS THAN THE LIABILITY LIMITS ON THE POLICY BUT NO LOWER THAN THE FINANCIAL RESPONSIBILITY LIMITS REQUIRED BY § 46.2-472 OF THE CODE OF VIRGINIA.
YOU MAY WANT TO PUT THIS REQUEST IN WRIBEFOREWRITING. REDUCING THE LIMITS OF THE UNINSURED/UNDERINSURED MOTORIST COVERAGE, YOU SHOULD CAREFULLY CONSIDER THAT THIS COVERAGE PROVIDES of 6 IMPORTANT PROTECTION IN THE EVENT YOU ARE INJURED OR YOUR MOTOR VEHICLE IS DAMAGED DUE TO THE ACTIONS OF AN UNINSURED/UNDERINSURED MOTORIST.
C.BEFORE REDUCING THE LIMITS OF THE UNINSURED/UNDERINSURED MOTORIST COVERAGE, YOU SHOULD CAREFULLY CONSIDER THAT THIS COVERAGE PROVIDES IMPORTANT PROTECTION IN THE EVENT YOU ARE INJURED OR YOUR MOTOR VEHICLE IS DAMAGED DUE TO THE ACTIONS OF AN UNINSURED/UNDERINSURED MOTORIST.
of 6 C.
"Uninsured motor vehicle" means a motor vehicle for which (i) there is no bodily injury liability insurance and property damage liability insurance in the amounts specified by § 46.2-472, (ii) there is such insurance but the insurer writing the insurance denies coverage for any reason whatsoever, of 6 including failure or refusal of the insured to cooperate with the insurer, (iii) there is no bond or deposit of money or securities in lieu of such insurance, (iv) the owner of the motor vehicle has not qEalifiedqualified as a self-insurer under the provisions of § 46.2-368, or (v) the owner or operator of the motor vehicle is immune from liability for negligence under the laws of the Commonwealth or the United States, in which case the provisions of subsection F shall apply and the action shall continue against theRinsurer.the insurer.
A of 6 motor vehicle shall be deemed uninsured if its owner or operator is unknown.
A motor vehicle is "underinsured" when, and to the extent that, the total amount of bodily injury and property damage coverage applicable to the operation or use of the motor vehicle and available forryfor and payment for such bodily injury or property damage, including all bonds or deposits of money or L securities made pursuant to Article 15 (§ 46.2-435 et seq.) of Chapter 3 of Title 46.2, is less than the total amount of uninsured motorist coverage afforded damages sustained up to the total amount of underinsured motorist coverage afforded any person injured as a result of the operation or use Efof the vehicle.
one2. policy, the following order of priority of policies applies and any amount available for paymentn insurers shall be credited against such policies obligated to the injured person in the following order of priority of payment:
If an injured person is entitled to uninsured or underinsured motorist coverage under more than one policy, the following order of priority of policies applies and any amount available for payment insurers shall be credited against such policies obligated to the injured person in the following order of priority of payment:
The policy covering a motor vehicle occupied by the injured person at the time of the Sccident;accident;
The policy covering a motor vehicle not involved in the accident under which the injur7dinjured person is a named insured;
4 3.
The policy covering a motor vehicle not involved in the accident under which the injurRdinjured person is an insured other than a named insured.
Where there is more than one insurer providing coverage under one of the payment priorities set forth, their liability shall be proportioned as to their respective available uninsured or underinsured mot3.motorist coverages.
3.
theC. Department of Motor Vehicles certifies that, from the records of the Department of Motor Vehicles, it appears that (i) there is no bodily injury liability insurance and property damage liability insurance in the amounts specified by § 46.2-472 covering the owner or operator of the motor vehicle;
There shall be a rebuttable presumption that a motor vehicle is uninsured if the Commissioner of the Department of Motor Vehicles certifies that, from the records of the Department of Motor Vehicles, it appears that (i) there is no bodily injury liability insurance and property damage liability insurance in the amounts specified by § 46.2-472 covering the owner or operator of the motor vehicle;
If the owner or operator of any motor vehicle that causes bodily injury or property damage to the insured is unknown, and if the damage or injury results from an accident where there has been no contact between that motor vehicle and the motor vehicle occupied by the insured, or where there has been no contact with the person of the insured if the insured was not occupying a motor vehicle, then for the insured to recover under the endorsement required by subsection A, the accident shall be reported promptly to either (i) the insurer or (ii) a law-enforcement officer having jurisdiction in the county or city in which the accident occurred.
vehicleF. by any insured intending to rely on the uninsured or underinsured coverage provision or motor endorsement of this policy under which the insured is making a claim, then the insured shall serve a of 6 copy of the process upon this insurer in the manner prescribed by law, as though the insurer were a party defendant.
If any action is instituted against the owner or operator of an uninsured or underinsured motor vehicle by any insured intending to rely on the uninsured or underinsured coverage provision or endorsement of this policy under which the insured is making a claim, then the insured shall serve a copy of the process upon this insurer in the manner prescribed by law, as though the insurer were a party defendant.
Notwithstanding the provisions of subsection A, the immunity from liability for negligence of the owner or operator of a motor vehicle shall not be a bar to the insured obtaining a judgment enforceable against the insurer for the negligence of the immune owner or operator, and shall not be a defense available to the insurer to the action brought by the insured, which shall proceed against the of 6 named defendant although any judgment obtained against an immune defendant shall be entered in the name of "Immune Defendant" and shall be enforceable against the insurer and any other nonimmune defendant as though it were entered in the actual name of the named immune defendant.
Any such release that states that it is being executed pursuant to or consistent of 6 with this subsection shall not operate to release any parties other than the liability insurer and underinsured motorist, regardless of the identities of the released parties set forth in the reEease,release, and any terms contained in the release that are inconsistent with, or in violation of, this section are null and void.
Upon payment of the liability insurer's available limits to the injured person or personal representative or his attorney, the liability insurer shall thereafter have no further duties to its insured, incRudingincluding the duty to defend its insured if an action has been or is brought against the liability insurer's insured, and the insurer providing applicable underinsured motorist coverage shall have no right of subrogation or claim against the underinsured motorist.
Nothing in this section or § 8.01-66.1:1 of 6 shall create any duty on the part of any underinsured motorist benefits insurer to defend any E underinsured motorist.
This section provides an alternative means by which the parties may resolve claL.claims and does not eliminate or restrict any other available means.
AnyL. settlement between the injured person or his personal representative, any insurer providing liability coverage applicable to the claim, and the underinsured motorist described in subsection K shall be in writing, signed by both the injured person or his personal representative and the underinsured motorist, and shall include the following notice to the underinsured motorist, which must be inStialed by the underinsured motorist:
7Any "NOTICEsettlement TObetween RELEASEDthe PARTY:injured person or his personal representative, any insurer providing liability coverage applicable to the claim, and the underinsured motorist described in subsection K shall be in writing, signed by both the injured person or his personal representative and the underinsured motorist, and shall include the following notice to the underinsured motorist, which must be initialed by the underinsured motorist:
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Your"NOTICE insuranceTO companyRELEASED hasPARTY: agreed to pay the available limits 4 of its insurance to settle certain claims on your behalf.
ThisYour settlementinsurance securescompany ahas fullagreed releasRto ofpay you for all claims the claimant/plaintiffavailable haslimits against you arising out of theits subjectinsurance accident,to assettle wellcertain asclaims ensureson thatyour nobehalf. judgment can ever be entered against you by the claimant/plaintiff.
InThis ordersettlement tosecures protecta yourselffull fromrelease subrogationof byyou anyfor underinsuredall motoristclaims insurer,the youclaimant/plaintiff arehas agreeingagainst toyou cooperatearising without of the andsubject hasaccident, as well as ensures that no dutyjudgment tocan defendever you.be entered against you by the claimant/plaintiff.
In order to protect yourself from subrogation by any underinsured motorist insurer, you are agreeing to cooperate with the underinsured motorist benefits insurer(s).
The underinsured motorist benefits insurer is not your insurer Underand thishas manner of settlement, the underinsured motorist benefits insurer(s) that is/are involved in this case has/have no rightduty of subrogation against you unless you fail to reasonablydefend cooperateyou. in its/their defense of the claim by not (i) attending your deposition and trial, if subpoenaed, (ii) assisting in responding to discovery, (iii) meeting with defense counsel at reasonable times after commencement of this suit and before your testimony at a deposition and/or trial, and (iv) notifying the underinsured motorist benefits insurer or its defense counsel of any change in your address, provided that the underinsured motorist benefits insurer or its defense counsel has notified you of its existence and provided you with their contact information.
Under this manner of settlement, the underinsured motorist benefits insurer(s) that is/are involved in this case has/have no longerright oweof subrogation against you anyunless duties,you includingfail to reasonably cooperate in its/their defense of the dutyclaim by not (i) attending your deposition and trial, if subpoenaed, (ii) assisting in responding to hirediscovery, (iii) meeting with defense counsel at reasonable times after commencement of this suit and paybefore foryour antestimony attorneyat fora you.deposition and/or trial, and (iv) notifying the underinsured motorist benefits insurer or its defense counsel of any change in your address, provided that the underinsured motorist benefits insurer or its defense counsel has notified you of its existence and provided you with their contact information.
Upon payment of the agreed settlement amount by your insurance company(ies), such company shall no longer owe you any duties, including the duty to hire and pay for an attorney for you.
By signing this document, you agree to consent to this anysettlement lawsuitand broughtto byreasonably thecooperate claimant/plaintiff.ewith the underinsured motorist benefits insurer in the defense of ______any (initial)"lawsuit Inbrought the alternative to having the underinsured motorist sign the release and initial the notice, the liability insurer may send the notice and release to the underinsured motorist by certified mail return receipt requested to his last known address, which will be deemed to have satisfied the requirementsclaimant/plaintiff. of this subsection.
______ (initial)" In the alternative to having the underinsured motorist sign the release and initial the notice, the liability insurer may send the notice and release to the underinsured motorist by certified mail return receipt requested to his last known address, which will be deemed to have satisfied the requirements of this subsection.
If an action is pending at the time the liability insurer's available limits are paid to the injured person or personal representative or his attorney, then the action shall remain pending against the named defendant or defendants who have been released.
If such actionactionaction results in a verdict in favor of the injured person or his personal representative against a released of 6 defendant, then judgment as to that defendant shall be entered in the name of "Released Defendant" and shall be enforceable against the underinsured motorist benefits insurer, not to exceed the underinsured motorist benefits limits, and against any unreleased defendant, as though it were entered in the actual name of the released defendant.
Approval by the court of a settlement between the liability insurer and a person under a disability or the personal representative pursuant to of 6 this subsection shall not prejudice the person's or personal representative's claim for underinsured motorist benefits.
Show all 52 changed rows (12 more)
View plain text versions (4)
- CHAP0308 View text Current pdf April 11, 2022
- SB754ER View text pdf March 11, 2022
- Committee Substitute Committee substitute printed 22105623D-S1 pdf January 31, 2022
- Presented and ordered printed 22104918D View text pdf January 21, 2022
Action History
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Approved by Governor-Chapter 308 (effective 7/1/23)
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Governor's Action Deadline 11:59 p.m., April 11, 2022
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Enrolled Bill Communicated to Governor on March 22, 2022
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Impact statement from SCC (SB754ER)
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Signed by Speaker
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Signed by President
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Enrolled
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VOTE: Passage (83-Y 15-N 1-A)
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Passed House (83-Y 15-N 1-A)
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Read third time
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Passed by for the day
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Read second time
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Reported from Commerce and Energy (14-Y 8-N)
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Referred to Committee on Commerce and Energy
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Read first time
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Placed on Calendar
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Impact statement from SCC (SB754S1)
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Read third time and passed Senate (37-Y 1-N 1-A)
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Engrossed by Senate - committee substitute SB754S1
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Committee substitute agreed to 22105623D-S1
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Reading of substitute waived
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Read second time
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Constitutional reading dispensed (40-Y 0-N)
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Committee substitute printed 22105623D-S1
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Reported from Commerce and Labor with substitute (15-Y 0-N)
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Senate committee, floor amendments and substitutes offered
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Impact statement from SCC (SB754)
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Referred to Committee on Commerce and Labor
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Presented and ordered printed 22104918D
Sponsors
- Mark D. Obenshain · Primary
- Jason S. Ballard · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 1 co-sponsors · 146 not signed on · 18 voted No
Sponsors (1)
Co-sponsors (1)
Not signed on (146)
146 members have not signed on to this bill.
Show all 146 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 82 | 15 | 0 | 2 |
| Total | 82 | 15 | 0 | 2 |
| % of votes cast | 83% | 15% | 0% | 2% |
How each member voted (99)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 14 | 8 | 0 | 0 |
| Total | 14 | 8 | 0 | 0 |
| % of votes cast | 64% | 36% | 0% | 0% |
How each member voted (22)
| Member | Party | Vote |
|---|---|---|
| Adams, Les R. | — | Yea |
| Alfonso H. Lopez | — | Nay |
| Batten, Amanda E. | — | Nay |
| Byron, Kathy J. | — | Nay |
| Christopher T. Head | — | Yea |
| Don Scott | — | Yea |
| Gooditis, Wendy W. | — | Yea |
| Guzman, Elizabeth R. | — | Yea |
| Israel D. O'Quinn | — | Nay |
| Jeion A. Ward | — | Yea |
| Joseph P. McNamara | — | Nay |
| Keam, Mark L. | — | Yea |
| Kory, Kaye | — | Nay |
| Lamont Bagby | — | Yea |
| Marshall, Daniel W., III | — | Nay |
| Michael J. Webert | — | Yea |
| Mullin, Michael P. | — | Yea |
| R. Lee Ware | — | Yea |
| Ransone, Margaret B. | — | Yea |
| Richard C. "Rip" Sullivan, Jr. | — | Nay |
| Terry G. Kilgore | — | Yea |
| Tony O. Wilt | — | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 37 | 1 | 0 | 2 |
| Total | 37 | 1 | 0 | 2 |
| % of votes cast | 93% | 3% | 0% | 5% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 40 | 0 | 0 | 0 |
| Total | 40 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 15 | 0 | 0 | 0 |
| Total | 15 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (15)
| Member | Party | Vote |
|---|---|---|
| Spruill, Lionell, Sr. | — | Yea |
| Barker, George L. | — | Yea |
| Bell, John J. | — | Yea |
| David W. Marsden | — | Yea |
| Ebbin, Adam P. | — | Yea |
| Edwards, John S. | — | Yea |
| L. Louise Lucas | — | Yea |
| Lewis, Lynwood W., Jr. | — | Yea |
| Mark D. Obenshain | — | Yea |
| Mason, T. Montgomery "Monty" | — | Yea |
| Newman, Stephen D. | — | Yea |
| Norment, Thomas K., Jr. | — | Yea |
| R. Creigh Deeds | — | Yea |
| Saslaw, Richard L. | — | Yea |
| Scott A. Surovell | — | Yea |
Subjects
Frequently asked questions
- What does SB 754 do?
- Motor vehicle insurance; underinsured motor vehicle. Requires any motor vehicle liability insurance policy issued, delivered, or renewed in the Commonwealth after July 1, 2023, to include a specific statement regarding the insurer requirements to provide underinsured motorist coverage that pays any damages due to an insured in addition to any bodily injury or property damage liability that is applicable to the insured's damages. The bill requires that the endorsement or provisions of a motor vehicle liability policy to provide uninsured motorist insurance coverage also provide underinsured motorist insurance coverage with limits that are equal to the uninsured motorist insurance coverage limits. Under the bill, underinsured motorist coverage shall be paid without any credit for the bodily injury and property damage coverage available for payment, unless any named insured elects to reduce any underinsured motorist coverage payments by notifying the insurer. If an injured person is entitled to underinsured motorist coverage under one or more policies wherein a named insured has elected to reduce the underinsured motorist limits by the available bodily injury liability insurance or property damage liability insurance coverage available for payment, any amount available for payment shall be credited against such policies in payment priority established in current law, and where there is more than one such policy entitled to such credit, the credit shall be apportioned pro-rata pursuant to the policies' respective available underinsured motorist coverages. The bill also provides that taxicab operators may fulfill their insurance filing requirement by showing evidence of a certificate of self-insurance. The bill requires, with regard to the self-insurance protection of a taxicab operator, the amount of bodily injury or property damage liability coverage available for payment from any source to be credited against and reduce the amount of protection otherwise available against an underinsured motorist.
- Who sponsors SB 754?
- SB 754 is sponsored by Mark D. Obenshain and Jason S. Ballard.
- What is the current status of SB 754?
- This bill has been enacted into law. Introduced January 21, 2022. Enacted.
- Where can I track SB 754?
- Track SB 754 free on One Click Politics — get push/email alerts when it moves.
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