Text: SSB02178                          Text: SSB02180
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Senate Study Bill 2179

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 516A.1, Code 1995, is amended to read
  1  2 as follows:
  1  3    516A.1  COVERAGE INCLUDED IN EVERY LIABILITY POLICY &endash;
  1  4 REJECTION BY INSURED.
  1  5    No An automobile liability or motor vehicle liability
  1  6 insurance policy insuring against liability for bodily injury
  1  7 or death arising out of the ownership, maintenance, or use of
  1  8 a motor vehicle shall not be delivered or issued for delivery
  1  9 in this state with respect to any motor vehicle registered or
  1 10 principally garaged in this state, unless coverage is provided
  1 11 in such policy or supplemental thereto to such policy, for the
  1 12 protection of persons insured under such policy who are
  1 13 legally entitled to recover damages from the owner or operator
  1 14 of an uninsured motor vehicle or a hit-and-run motor vehicle
  1 15 or an underinsured motor vehicle because of bodily injury,
  1 16 sickness, or disease, including death resulting therefrom, or
  1 17 because of property damage, caused by accident and arising out
  1 18 of the ownership, maintenance, or use of such uninsured or
  1 19 underinsured motor vehicle, or arising out of physical contact
  1 20 of such hit-and-run motor vehicle with the person insured or
  1 21 with a motor vehicle which the person insured is occupying at
  1 22 the time of the accident.  Both the uninsured motor vehicle or
  1 23 hit-and-run motor vehicle coverage, and the underinsured motor
  1 24 vehicle coverage shall include limits for bodily injury or
  1 25 death, and for property damage, at least equal to those stated
  1 26 in section 321A.1, subsection 10.  The form and provisions of
  1 27 such coverage shall be examined and approved by the
  1 28 commissioner of insurance.
  1 29    However, the named insured may reject all of such coverage,
  1 30 or reject the uninsured motor vehicle (hit-and-run motor
  1 31 vehicle) coverage for bodily injury or death, or reject the
  1 32 uninsured motor vehicle (hit-and-run motor vehicle) coverage
  1 33 for property damage, or reject the underinsured motor vehicle
  1 34 coverage for bodily injury or death, or reject the
  1 35 underinsured motor vehicle coverage for property damage, by
  2  1 written rejections signed by the named insured.  If rejection
  2  2 is made on a form or document furnished by an insurance
  2  3 company or insurance agent, it shall be on a separate sheet of
  2  4 paper which contains only the rejection and information
  2  5 directly related to it.  Such coverage need not be provided in
  2  6 or supplemental to a renewal policy if the named insured has
  2  7 rejected the coverage in connection with a policy previously
  2  8 issued to the named insured by the same insurer.
  2  9    Sec. 2.  Section 516A.2, subsection 1, unnumbered paragraph
  2 10 1, Code 1995, is amended to read as follows:
  2 11    Except with respect to a policy containing both
  2 12 underinsured motor vehicle coverage and uninsured or hit-and-
  2 13 run motor vehicle coverage, nothing contained in this chapter
  2 14 shall be construed as requiring forms of coverage provided
  2 15 pursuant hereto to this chapter, whether alone or in
  2 16 combination with similar coverage afforded under other
  2 17 automobile liability or motor vehicle liability policies, to
  2 18 afford limits in excess of those that would be afforded had
  2 19 the insured thereunder under such liability policy been
  2 20 involved in an accident with a motorist who was insured under
  2 21 a policy of liability insurance with the minimum limits for
  2 22 bodily injury or death, or for property damage, prescribed in
  2 23 subsection 10 of section 321A.1.  Such forms of coverage may
  2 24 include terms, exclusions, limitations, conditions, and
  2 25 offsets which are designed to avoid duplication of insurance
  2 26 or other benefits.
  2 27    Sec. 3.  Section 516A.4, Code 1995, is amended to read as
  2 28 follows:
  2 29    516A.4  INSURER MAKING PAYMENT &endash; REIMBURSEMENT.
  2 30    In the event of payment to any person under the coverage
  2 31 required by this chapter and subject to the terms and
  2 32 conditions of such coverage, the insurer making such payment
  2 33 shall, to the extent thereof of the payment, shall be entitled
  2 34 to the proceeds of any settlement or judgment resulting from
  2 35 the exercise of any rights of recovery of such person against
  3  1 any person or organization legally responsible for the bodily
  3  2 injury or property damage for which such payment is made,
  3  3 including the proceeds recoverable from the assets of the
  3  4 insolvent insurer.  The person to whom said the payment is
  3  5 made under the insolvency protection required by this chapter,
  3  6 shall to the extent thereof of the payment, shall be deemed to
  3  7 have waived any right to proceed to enforce such a judgment
  3  8 against the assets of the judgment debtor who was insured by
  3  9 the insolvent insurer whose insolvency resulted in said the
  3 10 payment being made, other than assets recovered or recoverable
  3 11 by such the judgment debtor from such the insolvent insurer.  
  3 12                           EXPLANATION
  3 13    This bill provides that an automobile liability or motor
  3 14 vehicle liability insurance policy insuring against liability
  3 15 for bodily injury or death arising out of the ownership,
  3 16 maintenance, or use of a motor vehicle which is delivered or
  3 17 issued for delivery in this state with respect to any motor
  3 18 vehicle registered or principally garaged in this state must
  3 19 provide coverage for the protection of persons insured under
  3 20 the policy who are legally entitled to recover damages from
  3 21 the owner or operator of an uninsured motor vehicle or a hit-
  3 22 and-run motor vehicle or an underinsured motor vehicle because
  3 23 of property damage in the same manner as is provided for
  3 24 bodily injury or death.  The named insured must be able to
  3 25 reject such coverage by written rejection signed by the named
  3 26 insured.  
  3 27 LSB 3852SC 76
  3 28 mj/sc/14
     

Text: SSB02178                          Text: SSB02180
Text: SSB02100 - SSB02199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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