As Introduced 1
123rd General Assembly 4
Regular Session S. B. No. 267 5
1999-2000 6
SENATORS RAY-HOTTINGER 8
_________________________________________________________________ 10
A B I L L
To amend section 3937.18 of the Revised Code 12
relative to an insured's recovery under uninsured 13
and underinsured motorist coverage. 14
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 16
Section 1. That section 3937.18 of the Revised Code be 18
amended to read as follows: 19
Sec. 3937.18. (A) No automobile liability or motor 28
vehicle liability policy of insurance insuring against loss 29
resulting from liability imposed by law for bodily injury or 30
death suffered by any person arising out of the ownership, 31
maintenance, or use of a motor vehicle shall be delivered or 32
issued for delivery in this state with respect to any motor 33
vehicle registered or principally garaged in this state unless 34
both of the following coverages are offered to persons insured 36
under the policy for loss due to bodily injury or death suffered 37
by such insureds: 38
(1) Uninsured motorist coverage, which shall be in an 40
amount of coverage equivalent to the automobile liability or 41
motor vehicle liability coverage and shall provide protection for 42
bodily injury, sickness, or disease, including death under 44
provisions approved by the superintendent of insurance, for the 45
protection of insureds thereunder who are legally entitled to 46
recover damages from owners or operators of uninsured motor 48
vehicles because of bodily injury, sickness, or disease, 49
including death, suffered by any person insured under the policy. 50
For purposes of division (A)(1) of this section, an insured 53
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is legally entitled to recover damages if the insured is able to 55
prove the elements of the insured's claim that are necessary to 56
recover damages from the owner or operator of the uninsured motor 58
vehicle. The fact that the owner or operator of the uninsured 59
motor vehicle has an immunity under Chapter 2744. of the Revised 61
Code or a diplomatic immunity that could be raised as a defense 63
in an action brought against the owner or operator by the insured 66
does not affect the insured's right to recover under uninsured 68
motorist coverage. However, any other type of statutory or 70
common law immunity that may be a defense for the owner or 71
operator of an uninsured motor vehicle shall also be a defense to 73
an action brought by the insured to recover under uninsured
motorist coverage. 75
(2) Underinsured motorist coverage, which shall be in an 77
amount of coverage equivalent to the automobile liability or 78
motor vehicle liability coverage and shall provide protection for 79
insureds thereunder against loss for bodily injury, sickness, or 81
disease, including death, suffered by any person insured under 82
the policy, where the limits of coverage available for payment to 83
the insured under all bodily injury liability bonds and insurance 84
policies covering persons liable to the insured are less than the 85
limits for the insured's uninsured motorist coverage. 86
Underinsured motorist coverage is not and shall not be excess 87
insurance to other applicable liability coverages, and shall be 88
provided only to afford the insured an amount of protection not 89
greater than that which would be available under the insured's 90
uninsured motorist coverage if the person or persons liable were 91
uninsured at the time of the accident. The policy limits of the 92
underinsured motorist coverage shall be reduced by those amounts 93
available for payment under all applicable bodily injury 94
liability bonds and insurance policies covering persons liable to 95
the insured. 96
(B) Coverages offered under division (A) of this section 98
shall be written for the same limits of liability. No change 99
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shall be made in the limits of one of these coverages without an 100
equivalent change in the limits of the other coverage. 101
(C) A named insured or applicant may reject or accept both 105
coverages as offered under division (A) of this section, or may 107
alternatively select both such coverages in accordance with a 108
schedule of limits approved by the superintendent. The schedule 110
of limits approved by the superintendent may permit a named 111
insured or applicant to select uninsured and underinsured 112
motorists coverages with limits on such coverages that are less 113
than the limit of liability coverage provided by the automobile 114
liability or motor vehicle liability policy of insurance under 115
which the coverages are provided, but the limits shall be no less 116
than the limits set forth in section 4509.20 of the Revised Code 117
for bodily injury or death. A named insured's or applicant's 119
rejection of both coverages as offered under division (A) of this 120
section, or a named insured's or applicant's selection of such 121
coverages in accordance with the schedule of limits approved by 122
the superintendent, shall be in writing and shall be signed by 123
the named insured or applicant. A named insured's or applicant's 124
written, signed rejection of both coverages as offered under 125
division (A) of this section, or a named insured's or applicant's 127
written, signed selection of such coverages in accordance with
the schedule of limits approved by the superintendent, shall be 128
effective on the day signed, shall create a presumption of an 129
offer of coverages consistent with division (A) of this section, 130
and shall be binding on all other named insureds, insureds, or 131
applicants. 132
Unless a named insured or applicant requests such coverages 137
in writing, such coverages need not be provided in or made 138
supplemental to a policy renewal or replacement policy where a 140
named insured or applicant has rejected such coverages in 141
connection with a policy previously issued to the named insured 143
or applicant by the same insurer. If a named insured or 144
applicant has selected such coverages in connection with a policy 146
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previously issued to the named insured or applicant by the same 148
insurer, with limits in accordance with the schedule of limits
approved by the superintendent, such coverages need not be 150
provided with limits in excess of the limits of liability 151
previously issued for such coverages, unless a named insured or 155
applicant requests in writing higher limits of liability for such 157
coverages.
(D) For the purpose of this section, a motor vehicle shall 160
be deemed uninsured in either of the following circumstances: 161
(1) The liability insurer denies coverage or is or becomes 164
the subject of insolvency proceedings in any jurisdiction; 165
(2) The identity of the owner and operator of the motor 167
vehicle cannot be determined, but independent corroborative 168
evidence exists to prove that the bodily injury, sickness, 169
disease, or death of the insured was proximately caused by the 170
negligence or intentional actions of the unidentified operator of 171
the motor vehicle. For purposes of this division, the testimony 172
of any insured seeking recovery from the insurer shall not 173
constitute independent corroborative evidence, unless the 174
testimony is supported by additional evidence. 175
(E) In the event of payment to any person under the 177
coverages offered under this section and subject to the terms and 180
conditions of such coverages, the insurer making such payment to 181
the extent thereof is entitled to the proceeds of any settlement 182
or judgment resulting from the exercise of any rights of recovery 183
of such person against any person or organization legally 184
responsible for the bodily injury or death for which such payment 185
is made, including any amount recoverable from an insurer which 186
is or becomes the subject of insolvency proceedings, through such 187
proceedings or in any other lawful manner. No insurer shall 188
attempt to recover any amount against the insured of an insurer 189
which is or becomes the subject of insolvency proceedings, to the 190
extent of those rights against such insurer which such insured 191
assigns to the paying insurer. 192
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(F) The coverages offered under this section shall not be 195
made subject to an exclusion or reduction in amount because of 196
any workers' compensation benefits payable as a result of the 197
same injury or death. 198
(G) Any automobile liability or motor vehicle liability 200
policy of insurance that includes coverages offered under 201
division (A) of this section or selected in accordance with 203
division (C) of this section may, without regard to any premiums 204
involved, include terms and conditions that preclude any and all 205
stacking of such coverages, including but not limited to: 206
(1) Interfamily stacking, which is the aggregating of the 208
limits of such coverages by the same person or two or more 209
persons, whether family members or not, who are not members of 210
the same household; 211
(2) Intrafamily stacking, which is the aggregating of the 213
limits of such coverages purchased by the same person or two or 214
more family members of the same household. 215
(H) Any automobile liability or motor vehicle liability 217
policy of insurance that includes coverages offered under 218
division (A) of this section or selected in accordance with 220
division (C) of this section and that provides a limit of 221
coverage for payment for damages for bodily injury, including 222
death, sustained by any one person in any one automobile 223
accident, may, notwithstanding Chapter 2125. of the Revised Code, 224
include terms and conditions to the effect that all claims 225
resulting from or arising out of any one person's bodily injury, 226
including death, shall collectively be subject to the limit of 227
the policy applicable to bodily injury, including death, 228
sustained by one person, and, for the purpose of such policy 229
limit shall constitute a single claim. Any such policy limit 230
shall be enforceable regardless of the number of insureds, claims 231
made, vehicles or premiums shown in the declarations or policy, 232
or vehicles involved in the accident. 233
(I) Nothing in this section shall prohibit the inclusion 235
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of underinsured motorist coverage in any uninsured motorist 236
coverage provided in compliance with this section. 237
(J) The coverages offered under division (A) of this 239
section or selected in accordance with division (C) of this 240
section may include terms and conditions that preclude coverage 241
for bodily injury or death suffered by an insured under any of 242
the following circumstances:
(1) While the insured is operating or occupying a motor 244
vehicle owned by, furnished to, or available for the regular use 245
of a named insured, a spouse, or a resident relative of a named 247
insured, if the motor vehicle is not specifically identified in 248
the policy under which a claim is made, or is not a newly 249
acquired or replacement motor vehicle covered under the terms of 250
the policy under which the uninsured and underinsured motorist 251
coverages are provided;
(2) While the insured is operating or occupying a motor 253
vehicle without a reasonable belief that the insured is entitled 254
to do so, provided that under no circumstances will an insured 255
whose license has been suspended, revoked, or never issued, be 256
held to have a reasonable belief that the insured is entitled to 257
operate a motor vehicle;
(3) When the bodily injury or death is caused by a motor 259
vehicle operated by any person who is specifically excluded from 260
coverage for bodily injury liability in the policy under which 261
the uninsured and underinsured motorist coverages are provided. 262
(K) As used in this section, "uninsured motor vehicle" and 264
"underinsured motor vehicle" do not include any of the following 266
motor vehicles:
(1) A motor vehicle that has applicable liability coverage 269
in the policy under which the uninsured and underinsured motorist 270
coverages are provided; 271
(2) A motor vehicle owned by, furnished to, or available 273
for the regular use of a named insured, a spouse, or a resident 274
relative of a named insured; 275
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(3) A motor vehicle owned by a political subdivision, 277
unless the operator of the motor vehicle has an immunity under 279
Chapter 2744. of the Revised Code that could be raised as a 280
defense in an action brought against the operator by the insured; 281
(4) A motor vehicle self-insured within the meaning of the 283
financial responsibility law of the state in which the motor 284
vehicle is registered.
(L) As used in this section, "automobile liability or 286
motor vehicle liability policy of insurance" means either of the 287
following:
(1) Any policy of insurance that serves as proof of 289
financial responsibility, as proof of financial responsibility is 290
defined by division (K) of section 4509.01 of the Revised Code, 291
for owners or operators of the motor vehicles specifically 293
identified in the policy of insurance;
(2) Any umbrella liability policy of insurance written as 295
excess over one or more policies described in division (L)(1) of 296
this section.
Section 2. That existing section 3937.18 of the Revised 298
Code is hereby repealed. 299
Section 3. It is the intent of the General Assembly in 301
amending division (A) of section 3937.18 of the Revised Code to 302
supersede the holdings of the Ohio Supreme Court in Sexton v. 303
State Farm Mut. Auto. Ins. Co. (1982), 69 Ohio St.2d 431, and 306
Moore v. State Auto. Mut. Ins. Co. (2000), 88 Ohio St.3d 27, that 308
automobile and motor vehicle liability policies of insurance that 309
are issued in this state and are required to provide uninsured 311
and underinsured motorist coverage may not limit the recovery of 312
a person suffering a loss due to the actions of an uninsured or 313
underinsured motorist to those circumstances in which the person 314
seeking recovery has suffered a physical loss. 315