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Introduced by Representative Morley of Barton

Referred to Committee on


Subject:  Motor vehicles; financial responsibility and insurance; insurance against uninsured motorists

Statement of purpose:  This bill proposes to provide insurers with the ability to offer umbrella policies with or without uninsured motorist coverage.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  23 V.S.A. § 941 is amended to read:


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(b)  Though an insurer must offer coverage for the liability described in subsection (a) of this section in excess or umbrella insurance policies, for that coverage to take effect or remain in effect in those policies, the insured must affirmatively accept the coverage.

(b)(c)  Every policy insuring against liability arising out of the ownership, maintenance or use of any motor vehicle shall provide insurance against loss resulting from the liability imposed by law for damages because of bodily injury or death of any person within this state or elsewhere in the United States and Canada.

(c)(d)  The coverages under subsections (a) and (b) of this section for new or renewed policies shall be not less than $50,000.00 for one person and $100,000.00 for two or more persons killed or injured.  If the limits of liability coverage in the policy are greater than $50,000.00 for one person and $100,000.00 for two or more persons injured or killed, the limits of uninsured motorist insurance shall be the same, unless the policyholder otherwise directs.

(d)(e)  For the purpose of this subchapter an "uninsured motor vehicle" includes an insured other motor vehicle where:

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(e)(f)  If payment is made under uninsured motorist coverage, and subject to the terms of that coverage, to the extent of that payment, the insurer is entitled to the proceeds of any settlement or recovery from any person legally responsible for the damage or personal injury, as to which the payment was made, and to amounts recoverable from the assets of an insolvent insurer of such person.  However, if the injured party settles or recovers against any person, any reimbursement due to an insurer under this section shall be reduced by deducting a fair portion of all reasonable expenses of recovery incurred in effecting the settlement or recovery.  The expenses of recovery shall be apportioned between the parties as their interests appear at the time of the settlement or recovery.

(f)(g)  For the purpose of this subchapter, a motor vehicle is underinsured to the extent that:

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(g)(h)  Within 30 days of receipt of a written request by a person reasonably claiming the right to recover damages after an accident involving 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.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont