As Passed by the Senate 1 123rd General Assembly 4 Regular Session S. B. No. 57 5 1999-2000 6 SENATORS HOTTINGER-RAY-NEIN-GARDNER-WACHTMANN-MUMPER-SPADA-WHITE 8 _________________________________________________________________ 10 A B I L L To amend section 3937.18 of the Revised Code to 12 clarify a component of the definition of 13 automobile liability or motor vehicle liability policy of insurance for purposes of the Uninsured 14 and Underinsured Motorist Law. 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 2 including death, suffered by any person insured under the policy. 50 For purposes of division (A)(1) of this section, an insured 53 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 3 (B) Coverages offered under division (A) of this section 98 shall be written for the same limits of liability. No change 99 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 4 or applicant by the same insurer. If a named insured or 144 applicant has selected such coverages in connection with a policy 146 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 5 extent of those rights against such insurer which such insured 191 assigns to the paying insurer. 192 (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 6 or vehicles involved in the accident. 233 (I) Nothing in this section shall prohibit the inclusion 235 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 7 for the regular use of a named insured, a spouse, or a resident 274 relative of a named insured; 275 (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