As Reported by the House Insurance Committee 1
122nd General Assembly 4
Regular Session Sub. H. B. No. 261 5
1997-1998 6
REPRESENTATIVES HOTTINGER-BATCHELDER-BUCHY-GARCIA-HOUSEHOLDER- 8
TIBERI-VAN VYVEN-MASON-METELSKY-TAVARES-OLMAN-STAPLETON-HAINES 9
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A B I L L
To amend section 3937.18 of the Revised Code to 13
modify Ohio's Uninsured and Underinsured 14
Motorists Law by limiting the insured's right to 15
recover when the owner or operator of the 16
uninsured motor vehicle has an immunity; by 17
requiring independent corroborative evidence to 18
recover for injuries caused by an unidentified 19
motorist; and by making other modifications to 20
the scope of and coverage under the Uninsured and 21
Underinsured Motorists Law. 22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That section 3937.18 of the Revised Code be 26
amended to read as follows: 27
Sec. 3937.18. (A) No automobile liability or motor 36
vehicle liability policy of insurance insuring against loss 37
resulting from liability imposed by law for bodily injury or 38
death suffered by any person arising out of the ownership, 39
maintenance, or use of a motor vehicle shall be delivered or 40
issued for delivery in this state with respect to any motor 41
vehicle registered or principally garaged in this state unless 42
both of the following coverages are provided OFFERED to persons 43
insured under the policy for loss due to bodily injury or death 45
suffered by such persons INSUREDS: 46
(1) Uninsured motorist coverage, which shall be in an 48
amount of coverage equivalent to the automobile liability or 49
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motor vehicle liability coverage and shall provide protection for 50
bodily injury, SICKNESS, or DISEASE, INCLUDING death under 52
provisions approved by the superintendent of insurance, for the 53
protection of persons insured INSUREDS thereunder who are legally 54
entitled to recover damages from owners or operators of uninsured 56
motor vehicles because of bodily injury, sickness, or disease, 57
including death, suffered by any person insured under the policy. 58
For purposes of division (A)(1) of this section, a person 60
AN INSURED is legally entitled to recover damages if he THE 62
INSURED is able to prove the elements of his THE INSURED'S claim 64
that are necessary to recover damages from the owner or operator 66
of the uninsured motor vehicle. The fact that the owner or 67
operator of the uninsured motor vehicle has an immunity, whether 68
based upon a statute or the common law, UNDER CHAPTER 2744. OF 69
THE REVISED CODE OR A DIPLOMATIC IMMUNITY that could be raised as 70
a defense in an action brought against him THE OWNER OR OPERATOR 72
by the person insured under uninsured motorist coverage does not 73
affect the insured person's INSURED'S right to recover under his 74
uninsured motorist coverage. HOWEVER, ANY OTHER TYPE OF 77
STATUTORY OR COMMON LAW IMMUNITY THAT MAY BE A DEFENSE FOR THE 78
OWNER OR OPERATOR OF AN UNINSURED MOTOR VEHICLE SHALL ALSO BE A 79
DEFENSE TO AN ACTION BROUGHT BY THE INSURED TO RECOVER UNDER 80
UNINSURED MOTORIST COVERAGE. 82
(2) Underinsured motorist coverage, which shall be in an 84
amount of coverage equivalent to the automobile liability or 85
motor vehicle liability coverage and shall provide protection for 86
an insured INSUREDS THEREUNDER against loss for bodily injury, 87
sickness, or disease, including death, suffered by any person 89
insured under the policy, where the limits of coverage available 90
for payment to the insured under all bodily injury liability 91
bonds and insurance policies covering persons liable to the 92
insured are less than the limits for the insured's uninsured 93
motorist coverage. Underinsured motorist coverage is not and 94
shall not be excess insurance to other applicable liability 95
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coverages, and shall be provided only to afford the insured an 96
amount of protection not greater than that which would be 97
available under the insured's uninsured motorist coverage if the 98
person or persons liable were uninsured at the time of the 99
accident. The policy limits of the underinsured motorist 100
coverage shall be reduced by those amounts available for payment 101
under all applicable bodily injury liability bonds and insurance 102
policies covering persons liable to the insured. 103
(B) Coverages offered under division (A) of this section 105
shall be written for the same limits of liability. No change 106
shall be made in the limits of one of these coverages without an 107
equivalent change in the limits of the other coverage. 108
(C) The A named insured OR APPLICANT may only reject or 110
accept both coverages AS offered under division (A) of this 113
section. The named insured, OR may require the issuance of 115
ALTERNATIVELY SELECT BOTH such coverages for bodily injury or 118
death in accordance with a schedule of optional lesser amounts 119
LIMITS approved by the superintendent, that. THE SCHEDULE OF 120
LIMITS APPROVED BY THE SUPERINTENDENT MAY PERMIT A NAMED INSURED 121
OR APPLICANT TO SELECT UNINSURED AND UNDERINSURED MOTORISTS 122
COVERAGES WITH LIMITS ON SUCH COVERAGES THAT ARE LESS THAN THE 123
LIMIT ON LIABILITY COVERAGE PROVIDED BY THE AUTOMOBILE LIABILITY 124
OR MOTOR VEHICLE LIABILITY POLICY OF INSURANCE UNDER WHICH THE 125
COVERAGES ARE PROVIDED, BUT THE LIMITS shall be no less than the 127
limits set forth in section 4509.20 of the Revised Code for 128
bodily injury or death. Unless the A NAMED INSURED'S OR 129
APPLICANT'S REJECTION OF BOTH COVERAGES AS OFFERED UNDER DIVISION 130
(A) OF THIS SECTION, OR A NAMED INSURED'S OR APPLICANT'S 131
SELECTION OF SUCH COVERAGES IN ACCORDANCE WITH THE SCHEDULE OF 132
LIMITS APPROVED BY THE SUPERINTENDENT, SHALL BE IN WRITING AND 133
SHALL BE SIGNED BY THE NAMED INSURED OR APPLICANT. A NAMED 134
INSURED'S OR APPLICANT'S WRITTEN, SIGNED REJECTION OF BOTH 135
COVERAGES AS OFFERED UNDER DIVISION (A) OF THIS SECTION, OR A 136
NAMED INSURED'S OR APPLICANT'S WRITTEN, SIGNED SELECTION OF SUCH 137
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COVERAGES IN ACCORDANCE WITH THE SCHEDULE OF LIMITS APPROVED BY 138
THE SUPERINTENDENT, SHALL BE EFFECTIVE ON THE DAY SIGNED, SHALL 139
CREATE A PRESUMPTION OF AN OFFER OF COVERAGES CONSISTENT WITH 140
DIVISION (A) OF THIS SECTION, AND SHALL BE BINDING ON ALL OTHER 141
NAMED INSUREDS, INSUREDS, OR APPLICANTS. 142
UNLESS A named insured OR APPLICANT requests such coverages 147
in writing, such coverages need not be provided in or MADE 148
supplemental to a POLICY renewal OR REPLACEMENT policy where the 150
A named insured OR APPLICANT has rejected the SUCH coverages in 151
connection with a policy previously issued to him THE NAMED 153
INSURED OR APPLICANT by the same insurer. If the A named insured 154
OR APPLICANT has selected uninsured motorist coverage SUCH 156
COVERAGES in connection with a policy previously issued to him 157
THE NAMED INSURED OR APPLICANT by the same insurer, WITH LIMITS 158
IN ACCORDANCE WITH THE SCHEDULE OF LIMITS APPROVED BY THE 159
SUPERINTENDENT, such coverages offered under division (A) of this 160
section need not be provided WITH LIMITS in excess of the limits 161
of the liability previously issued for uninsured motorist 164
coverage SUCH COVERAGES, unless the A named insured OR APPLICANT 166
requests in writing higher limits of liability for such 167
coverages.
(D) For the purpose of this section, a motor vehicle is 169
SHALL BE DEEMED uninsured if the IN EITHER OF THE FOLLOWING 170
CIRCUMSTANCES: 171
(1) THE liability insurer denies coverage or is or becomes 174
the subject of insolvency proceedings in any jurisdiction; 175
(2) THE IDENTITY OF THE OWNER AND OPERATOR OF THE MOTOR 177
VEHICLE CANNOT BE DETERMINED, BUT INDEPENDENT CORROBORATIVE 178
EVIDENCE EXISTS TO PROVE THAT THE BODILY INJURY, SICKNESS, 179
DISEASE, OR DEATH OF THE INSURED WAS PROXIMATELY CAUSED BY THE 180
NEGLIGENCE OR INTENTIONAL ACTIONS OF THE UNIDENTIFIED OPERATOR OF 181
THE MOTOR VEHICLE. FOR PURPOSES OF THIS DIVISION, THE TESTIMONY 182
OF ANY INSURED SEEKING RECOVERY FROM THE INSURER SHALL NOT 183
CONSTITUTE INDEPENDENT CORROBORATIVE EVIDENCE, UNLESS THE 184
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TESTIMONY IS SUPPORTED BY ADDITIONAL EVIDENCE. 185
(E) In the event of payment to any person under the 187
coverages required by OFFERED UNDER this section and subject to 188
the terms and conditions of such coverages, the insurer making 191
such payment to the extent thereof is entitled to the proceeds of 192
any settlement or judgment resulting from the exercise of any 193
rights of recovery of such person against any person or 194
organization legally responsible for the bodily injury or death 195
for which such payment is made, including any amount recoverable 196
from an insurer which is or becomes the subject of insolvency 197
proceedings, through such proceedings or in any other lawful 198
manner. No insurer shall attempt to recover any amount against 199
the insured of an insurer which is or becomes the subject of 200
insolvency proceedings, to the extent of his THOSE rights against 201
such insurer which such insured assigns to the paying insurer. 202
(F) The coverages required by OFFERED UNDER this section 204
shall not be made subject to an exclusion or reduction in amount 206
because of any workers' compensation benefits payable as a result 207
of the same injury or death. 208
(G) Any automobile liability or motor vehicle liability 210
policy of insurance that includes coverages offered under 211
division (A) of this section OR SELECTED IN ACCORDANCE WITH 213
DIVISION (C) OF THIS SECTION may, without regard to any premiums 214
involved, include terms and conditions that preclude any and all 215
stacking of such coverages, including but not limited to: 216
(1) Interfamily stacking, which is the aggregating of the 218
limits of such coverages by the same person or two or more 219
persons, whether family members or not, who are not members of 220
the same household; 221
(2) Intrafamily stacking, which is the aggregating of the 223
limits of such coverages purchased by the same person or two or 224
more family members of the same household. 225
(H) Any automobile liability or motor vehicle liability 227
policy of insurance that includes coverages offered under 228
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division (A) of this section OR SELECTED IN ACCORDANCE WITH 230
DIVISION (C) OF THIS SECTION and that provides a limit of 231
coverage for payment for damages for bodily injury, including 232
death, sustained by any one person in any one automobile 233
accident, may, notwithstanding Chapter 2125. of the Revised Code, 234
include terms and conditions to the effect that all claims 235
resulting from or arising out of any one person's bodily injury, 236
including death, shall collectively be subject to the limit of 237
the policy applicable to bodily injury, including death, 238
sustained by one person, and, for the purpose of such policy 239
limit shall constitute a single claim. Any such policy limit 240
shall be enforceable regardless of the number of insureds, claims 241
made, vehicles or premiums shown in the declarations or policy, 242
or vehicles involved in the accident. 243
(I) Nothing in this section shall prohibit the inclusion 245
of underinsured motorist coverage in any uninsured motorist 246
coverage provided in compliance with this section. 247
(J) THE COVERAGES OFFERED UNDER DIVISION (A) OF THIS 249
SECTION OR SELECTED IN ACCORDANCE WITH DIVISION (C) OF THIS 250
SECTION MAY INCLUDE TERMS AND CONDITIONS THAT PRECLUDE COVERAGE 251
FOR BODILY INJURY OR DEATH SUFFERED BY AN INSURED UNDER ANY OF 252
THE FOLLOWING CIRCUMSTANCES:
(1) WHILE THE INSURED IS OPERATING OR OCCUPYING A MOTOR 254
VEHICLE OWNED BY, FURNISHED TO, OR AVAILABLE FOR THE REGULAR USE 255
OF A NAMED INSURED, A SPOUSE, OR A RESIDENT RELATIVE OF A NAMED 257
INSURED, IF THE MOTOR VEHICLE IS NOT SPECIFICALLY IDENTIFIED IN 258
THE POLICY UNDER WHICH A CLAIM IS MADE, OR IS NOT A NEWLY 259
ACQUIRED OR REPLACEMENT MOTOR VEHICLE COVERED UNDER THE TERMS OF 260
THE POLICY UNDER WHICH THE UNINSURED AND UNDERINSURED MOTORIST 261
COVERAGES ARE PROVIDED;
(2) WHILE THE INSURED IS OPERATING OR OCCUPYING A MOTOR 263
VEHICLE WITHOUT A REASONABLE BELIEF THAT THE INSURED IS ENTITLED 264
TO DO SO, PROVIDED THAT UNDER NO CIRCUMSTANCES WILL AN INSURED 265
WHOSE LICENSE HAS BEEN SUSPENDED, REVOKED, OR NEVER ISSUED, BE 266
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HELD TO HAVE A REASONABLE BELIEF THAT THE INSURED IS ENTITLED TO 267
OPERATE A MOTOR VEHICLE;
(3) WHEN THE BODILY INJURY OR DEATH IS CAUSED BY A MOTOR 269
VEHICLE OPERATED BY ANY PERSON WHO IS SPECIFICALLY EXCLUDED FROM 270
COVERAGE FOR BODILY INJURY LIABILITY IN THE POLICY UNDER WHICH 271
THE UNINSURED AND UNDERINSURED MOTORIST COVERAGES ARE PROVIDED. 272
(K) AS USED IN THIS SECTION, "UNINSURED MOTOR VEHICLE" AND 274
"UNDERINSURED MOTOR VEHICLE" DO NOT INCLUDE ANY OF THE FOLLOWING 276
MOTOR VEHICLES:
(1) A MOTOR VEHICLE THAT HAS APPLICABLE LIABILITY COVERAGE 279
IN THE POLICY UNDER WHICH THE UNINSURED AND UNDERINSURED MOTORIST 280
COVERAGES ARE PROVIDED; 281
(2) A MOTOR VEHICLE OWNED BY, FURNISHED TO, OR AVAILABLE 283
FOR THE REGULAR USE OF A NAMED INSURED, A SPOUSE, OR A RESIDENT 284
RELATIVE OF A NAMED INSURED; 285
(3) A MOTOR VEHICLE OWNED BY A POLITICAL SUBDIVISION, 287
UNLESS THE OPERATOR OF THE MOTOR VEHICLE HAS AN IMMUNITY UNDER 289
CHAPTER 2744. OF THE REVISED CODE THAT COULD BE RAISED AS A 290
DEFENSE IN AN ACTION BROUGHT AGAINST THE OPERATOR BY THE INSURED; 291
(4) A MOTOR VEHICLE SELF-INSURED WITHIN THE MEANING OF THE 293
FINANCIAL RESPONSIBILITY LAW OF THE STATE IN WHICH THE MOTOR 294
VEHICLE IS REGISTERED;
(L) AS USED IN THIS SECTION, "AUTOMOBILE LIABILITY OR 296
MOTOR VEHICLE LIABILITY POLICY OF INSURANCE" MEANS EITHER OF THE 297
FOLLOWING:
(1) ANY POLICY OF INSURANCE THAT SERVES AS PROOF OF 299
FINANCIAL RESPONSIBILITY, AS PROOF OF FINANCIAL RESPONSIBILITY IS 300
DEFINED BY DIVISION (K) OF SECTION 4509.01 OF THE REVISED CODE, 301
FOR OWNERS OR OPERATORS OF THE MOTOR VEHICLES SPECIFICALLY 302
IDENTIFIED IN THE POLICY OF INSURANCE;
(2) ANY UMBRELLA LIABILITY POLICY OF INSURANCE. 304
Section 2. That existing section 3937.18 of the Revised 306
Code is hereby repealed. 307