Introduced by Representatives Keenan of St. Albans City and Young of Orwell
Subject: Motor vehicles; financial responsibility; underinsured motorists
Statement of purpose: This bill proposes to clarify that: (1) a motor vehicle is underinsured to the extent that its personal injury liability insurance is unavailable to any injured party due to claims made by other parties injured in an accident; and (2) a person is not required to have a court judgment in order to receive policy information from the insurers of other persons involved in an accident.
AN ACT RELATING TO MOTOR VEHICLE INSURANCE AND UNDERINSURED MOTOR VEHICLES
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 23 V.S.A. § 941 is amended to read:
§ 941. INSURANCE AGAINST UNINSURED MOTORISTS
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(f) For the purpose of this subchapter, a motor vehicle is
underinsured to the extent that
its personal injury limits of liability at
the time of an accident are less than the limits of uninsured motorists
coverage applicable to any injured party legally entitled to recover damages
under said uninsured motorist coverage:
(1) the liability insurance limits applicable at the time of the accident are lower than the limits of the underinsured motorist coverage applicable to the insured; or
(2) the available liability insurance has been reduced by payments to others injured in the accident to an amount less than the limits of the underinsured motorist coverage applicable to the insured.
30 days of receipt of a written request by a person
legally entitled claiming
the right to recover damages from owners or operators of motor vehicles for
bodily injury, sickness, or disease, including death, or for property
damages resulting from the ownership, maintenance, or use of a motor
vehicle, an insurer that may be liable to satisfy part or all of the claim
under a policy subject to this chapter shall provide a statement, by a duly
authorized agent of the insurer, setting forth the names of the insurer and
insured , and the limits of liability coverage.
Sec. 2. EFFECTIVE DATE
This act shall take effect on passage and shall be incorporated into each contract of insurance which offers uninsured and underinsured motorist coverage entered into in this state on and after that date.
The Vermont General Assembly
115 State Street