Citations Affected: IC 27-7.
Synopsis: Commercial vehicle insurance. Specifies that the law
requiring an insurer to make available uninsured motorist and
underinsured motorist coverage does not apply to the issuance of
certain liability insurance policies.
Effective: July 1, 2004.
January 6, 2004, read first time and referred to Committee on Insurance and Financial
Institutions.
January 29, 2004, amended, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
SECTION 1. IC 27-7-5-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 1.5. (a) As used in this section, "commercial vehicle
policy" means an insurance policy that provides coverage for at
least one (1) of the following:
(1) A motor vehicle that is rated or insured as a business or
commercial vehicle.
(2) A motor vehicle that is licensed by the state as a
commercial vehicle.
(3) A commercial motor vehicle business, including an:
(A) individual who; or
(B) entity that;
is in the business or occupation of selling, repairing, servicing,
storing, or parking motor vehicles, including a business that
is a commercial garage operation, an automobile sales entity,
a motor vehicle repair entity, a motor vehicle service station,
or a public parking operation.
(4) A motor vehicle that is used as a public or private livery,
or a rental conveyance.
(5) A motor vehicle that is owned or used by a named insured
that is not a natural person.
(b) This chapter does not require an insurer to make available
uninsured motorist or underinsured motorist coverage described
in section 2 of this chapter in connection with the issuance of:
(1) a commercial liability policy, including a commercial
vehicle policy;
(2) a commercial umbrella or excess liability policy;
(3) a commercial liability policy that provides hired or
nonowned motor vehicle liability coverage; or
(4) a commercial liability policy that provides limited or
incidental coverage for liability arising out of the ownership,
maintenance, operation, or use of a motor vehicle, including
a motor vehicle that is:
(A) not subject to motor vehicle registration; and
(B) not intended or designed to be used on a public
roadway.
SECTION 2. IC 27-7-5-2, AS AMENDED BY P.L.233-1999,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 2. (a) The insurer shall make available, in each
automobile liability or motor vehicle liability policy of insurance which
is delivered or issued for delivery in this state with respect to any motor
vehicle registered or principally garaged in this state, insuring against
loss resulting from liability imposed by law for bodily injury or death
suffered by any person and for injury to or destruction of property to
others arising from the ownership, maintenance, or use of a motor
vehicle, or in a supplement to such a policy, the following types of
coverage:
(1) in limits for bodily injury or death and for injury to or
destruction of property not less than those set forth in IC 9-25-4-5
under policy provisions approved by the commissioner of
insurance, for the protection of persons insured under the policy
who are legally entitled to recover damages from owners or
operators of uninsured or underinsured motor vehicles because of
bodily injury, sickness or disease, including death, and for the
protection of persons insured under the policy who are legally
entitled to recover damages from owners or operators of
uninsured motor vehicles for injury to or destruction of property
resulting therefrom; or
(2) in limits for bodily injury or death not less than those set forth
in IC 9-25-4-5 under policy provisions approved by the
commissioner of insurance, for the protection of persons insured
under the policy provisions who are legally entitled to recover
damages from owners or operators of uninsured or underinsured
motor vehicles because of bodily injury, sickness or disease,
including death resulting therefrom.
The uninsured and underinsured motorist coverages must be provided
by insurers for either a single premium or for separate premiums, in
limits at least equal to the limits of liability specified in the bodily
injury liability provisions of an insured's policy, unless such coverages
have been rejected in writing by the insured. However, underinsured
motorist coverage must be made available in limits of not less than fifty
thousand dollars ($50,000). At the insurer's option, the bodily injury
liability provisions of the insured's policy may be required to be equal
to the insured's underinsured motorist coverage. Insurers may not sell
or provide underinsured motorist coverage in an amount less than fifty
thousand dollars ($50,000). Insurers must make underinsured motorist
coverage available to all existing policyholders on the date of the first
renewal of existing policies that occurs on or after January 1, 1995, and
on any policies newly issued or delivered on or after January 1, 1995.
Uninsured motorist coverage or underinsured motorist coverage may
be offered by an insurer in an amount exceeding the limits of liability
specified in the bodily injury and property damage liability provisions
of the insured's policy.
(b) Any named insured of an automobile or motor vehicle liability
policy has the right, on behalf of all other named insureds and all other
insureds, in writing, to:
(1) reject both the uninsured motorist coverage and the
underinsured motorist coverage provided for in this section; or
(2) reject either the uninsured motorist coverage alone or the
underinsured motorist coverage alone, if the insurer provides the
coverage not rejected separately from the coverage rejected.
No insured may have uninsured motorist property damage liability
insurance coverage under this section unless the insured also has
uninsured motorist bodily injury liability insurance coverage under this
section. Following rejection of either or both uninsured motorist
coverage or underinsured motorist coverage, unless later requested in
writing, the insurer need not offer uninsured motorist coverage or
underinsured motorist coverage in or supplemental to a renewal or
replacement policy issued to the same insured by the same insurer or
a subsidiary or an affiliate of the originally issuing insurer. Renewals
of policies issued or delivered in this state which have undergone
interim policy endorsement or amendment do not constitute newly issued or delivered policies for which the insurer is required to provide the coverages described in this section.