As Reported by House Insurance Committee 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
REPRESENTATIVES TIBERI-BUCHY-AUSTRIA-EVANS-JOLIVETTE 9
_________________________________________________________________ 11
A B I L L
To amend section 3937.18 of the Revised Code to 13
clarify a component of the definition of 14
automobile liability or motor vehicle liability
policy of insurance for purposes of the Uninsured 15
and Underinsured Motorist Law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 17
Section 1. That section 3937.18 of the Revised Code be 19
amended to read as follows: 20
Sec. 3937.18. (A) No automobile liability or motor 29
vehicle liability policy of insurance insuring against loss 30
resulting from liability imposed by law for bodily injury or 31
death suffered by any person arising out of the ownership, 32
maintenance, or use of a motor vehicle shall be delivered or 33
issued for delivery in this state with respect to any motor 34
vehicle registered or principally garaged in this state unless 35
both of the following coverages are offered to persons insured 37
under the policy for loss due to bodily injury or death suffered 38
by such insureds: 39
(1) Uninsured motorist coverage, which shall be in an 41
amount of coverage equivalent to the automobile liability or 42
motor vehicle liability coverage and shall provide protection for 43
bodily injury, sickness, or disease, including death under 45
provisions approved by the superintendent of insurance, for the 46
protection of insureds thereunder who are legally entitled to 47
recover damages from owners or operators of uninsured motor 49
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vehicles because of bodily injury, sickness, or disease, 50
including death, suffered by any person insured under the policy. 51
For purposes of division (A)(1) of this section, an insured 54
is legally entitled to recover damages if the insured is able to 56
prove the elements of the insured's claim that are necessary to 57
recover damages from the owner or operator of the uninsured motor 59
vehicle. The fact that the owner or operator of the uninsured 60
motor vehicle has an immunity under Chapter 2744. of the Revised 62
Code or a diplomatic immunity that could be raised as a defense 64
in an action brought against the owner or operator by the insured 67
does not affect the insured's right to recover under uninsured 69
motorist coverage. However, any other type of statutory or 71
common law immunity that may be a defense for the owner or 72
operator of an uninsured motor vehicle shall also be a defense to 74
an action brought by the insured to recover under uninsured
motorist coverage. 76
(2) Underinsured motorist coverage, which shall be in an 78
amount of coverage equivalent to the automobile liability or 79
motor vehicle liability coverage and shall provide protection for 80
insureds thereunder against loss for bodily injury, sickness, or 82
disease, including death, suffered by any person insured under 83
the policy, where the limits of coverage available for payment to 84
the insured under all bodily injury liability bonds and insurance 85
policies covering persons liable to the insured are less than the 86
limits for the insured's uninsured motorist coverage. 87
Underinsured motorist coverage is not and shall not be excess 88
insurance to other applicable liability coverages, and shall be 89
provided only to afford the insured an amount of protection not 90
greater than that which would be available under the insured's 91
uninsured motorist coverage if the person or persons liable were 92
uninsured at the time of the accident. The policy limits of the 93
underinsured motorist coverage shall be reduced by those amounts 94
available for payment under all applicable bodily injury 95
liability bonds and insurance policies covering persons liable to 96
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the insured. 97
(B) Coverages offered under division (A) of this section 99
shall be written for the same limits of liability. No change 100
shall be made in the limits of one of these coverages without an 101
equivalent change in the limits of the other coverage. 102
(C) A named insured or applicant may reject or accept both 106
coverages as offered under division (A) of this section, or may 108
alternatively select both such coverages in accordance with a 109
schedule of limits approved by the superintendent. The schedule 111
of limits approved by the superintendent may permit a named 112
insured or applicant to select uninsured and underinsured 113
motorists coverages with limits on such coverages that are less 114
than the limit of liability coverage provided by the automobile 115
liability or motor vehicle liability policy of insurance under 116
which the coverages are provided, but the limits shall be no less 117
than the limits set forth in section 4509.20 of the Revised Code 118
for bodily injury or death. A named insured's or applicant's 120
rejection of both coverages as offered under division (A) of this 121
section, or a named insured's or applicant's selection of such 122
coverages in accordance with the schedule of limits approved by 123
the superintendent, shall be in writing and shall be signed by 124
the named insured or applicant. A named insured's or applicant's 125
written, signed rejection of both coverages as offered under 126
division (A) of this section, or a named insured's or applicant's 128
written, signed selection of such coverages in accordance with
the schedule of limits approved by the superintendent, shall be 129
effective on the day signed, shall create a presumption of an 130
offer of coverages consistent with division (A) of this section, 131
and shall be binding on all other named insureds, insureds, or 132
applicants. 133
Unless a named insured or applicant requests such coverages 138
in writing, such coverages need not be provided in or made 139
supplemental to a policy renewal or replacement policy where a 141
named insured or applicant has rejected such coverages in 142
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connection with a policy previously issued to the named insured 144
or applicant by the same insurer. If a named insured or 145
applicant has selected such coverages in connection with a policy 147
previously issued to the named insured or applicant by the same 149
insurer, with limits in accordance with the schedule of limits
approved by the superintendent, such coverages need not be 151
provided with limits in excess of the limits of liability 152
previously issued for such coverages, unless a named insured or 156
applicant requests in writing higher limits of liability for such 158
coverages.
(D) For the purpose of this section, a motor vehicle shall 161
be deemed uninsured in either of the following circumstances: 162
(1) The liability insurer denies coverage or is or becomes 165
the subject of insolvency proceedings in any jurisdiction; 166
(2) The identity of the owner and operator of the motor 168
vehicle cannot be determined, but independent corroborative 169
evidence exists to prove that the bodily injury, sickness, 170
disease, or death of the insured was proximately caused by the 171
negligence or intentional actions of the unidentified operator of 172
the motor vehicle. For purposes of this division, the testimony 173
of any insured seeking recovery from the insurer shall not 174
constitute independent corroborative evidence, unless the 175
testimony is supported by additional evidence. 176
(E) In the event of payment to any person under the 178
coverages offered under this section and subject to the terms and 181
conditions of such coverages, the insurer making such payment to 182
the extent thereof is entitled to the proceeds of any settlement 183
or judgment resulting from the exercise of any rights of recovery 184
of such person against any person or organization legally 185
responsible for the bodily injury or death for which such payment 186
is made, including any amount recoverable from an insurer which 187
is or becomes the subject of insolvency proceedings, through such 188
proceedings or in any other lawful manner. No insurer shall 189
attempt to recover any amount against the insured of an insurer 190
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which is or becomes the subject of insolvency proceedings, to the 191
extent of those rights against such insurer which such insured 192
assigns to the paying insurer. 193
(F) The coverages offered under this section shall not be 196
made subject to an exclusion or reduction in amount because of 197
any workers' compensation benefits payable as a result of the 198
same injury or death. 199
(G) Any automobile liability or motor vehicle liability 201
policy of insurance that includes coverages offered under 202
division (A) of this section or selected in accordance with 204
division (C) of this section may, without regard to any premiums 205
involved, include terms and conditions that preclude any and all 206
stacking of such coverages, including but not limited to: 207
(1) Interfamily stacking, which is the aggregating of the 209
limits of such coverages by the same person or two or more 210
persons, whether family members or not, who are not members of 211
the same household; 212
(2) Intrafamily stacking, which is the aggregating of the 214
limits of such coverages purchased by the same person or two or 215
more family members of the same household. 216
(H) Any automobile liability or motor vehicle liability 218
policy of insurance that includes coverages offered under 219
division (A) of this section or selected in accordance with 221
division (C) of this section and that provides a limit of 222
coverage for payment for damages for bodily injury, including 223
death, sustained by any one person in any one automobile 224
accident, may, notwithstanding Chapter 2125. of the Revised Code, 225
include terms and conditions to the effect that all claims 226
resulting from or arising out of any one person's bodily injury, 227
including death, shall collectively be subject to the limit of 228
the policy applicable to bodily injury, including death, 229
sustained by one person, and, for the purpose of such policy 230
limit shall constitute a single claim. Any such policy limit 231
shall be enforceable regardless of the number of insureds, claims 232
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made, vehicles or premiums shown in the declarations or policy, 233
or vehicles involved in the accident. 234
(I) Nothing in this section shall prohibit the inclusion 236
of underinsured motorist coverage in any uninsured motorist 237
coverage provided in compliance with this section. 238
(J) The coverages offered under division (A) of this 240
section or selected in accordance with division (C) of this 241
section may include terms and conditions that preclude coverage 242
for bodily injury or death suffered by an insured under any of 243
the following circumstances:
(1) While the insured is operating or occupying a motor 245
vehicle owned by, furnished to, or available for the regular use 246
of a named insured, a spouse, or a resident relative of a named 248
insured, if the motor vehicle is not specifically identified in 249
the policy under which a claim is made, or is not a newly 250
acquired or replacement motor vehicle covered under the terms of 251
the policy under which the uninsured and underinsured motorist 252
coverages are provided;
(2) While the insured is operating or occupying a motor 254
vehicle without a reasonable belief that the insured is entitled 255
to do so, provided that under no circumstances will an insured 256
whose license has been suspended, revoked, or never issued, be 257
held to have a reasonable belief that the insured is entitled to 258
operate a motor vehicle;
(3) When the bodily injury or death is caused by a motor 260
vehicle operated by any person who is specifically excluded from 261
coverage for bodily injury liability in the policy under which 262
the uninsured and underinsured motorist coverages are provided. 263
(K) As used in this section, "uninsured motor vehicle" and 265
"underinsured motor vehicle" do not include any of the following 267
motor vehicles:
(1) A motor vehicle that has applicable liability coverage 270
in the policy under which the uninsured and underinsured motorist 271
coverages are provided; 272
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(2) A motor vehicle owned by, furnished to, or available 274
for the regular use of a named insured, a spouse, or a resident 275
relative of a named insured; 276
(3) A motor vehicle owned by a political subdivision, 278
unless the operator of the motor vehicle has an immunity under 280
Chapter 2744. of the Revised Code that could be raised as a 281
defense in an action brought against the operator by the insured; 282
(4) A motor vehicle self-insured within the meaning of the 284
financial responsibility law of the state in which the motor 285
vehicle is registered.
(L) As used in this section, "automobile liability or 287
motor vehicle liability policy of insurance" means either of the 288
following:
(1) Any policy of insurance that serves as proof of 290
financial responsibility, as proof of financial responsibility is 291
defined by division (K) of section 4509.01 of the Revised Code, 292
for owners or operators of the motor vehicles specifically 294
identified in the policy of insurance;
(2) Any umbrella liability policy of insurance WRITTEN AS 296
EXCESS OVER ONE OR MORE POLICIES DESCRIBED IN DIVISION (L)(1) OF 297
THIS SECTION.
Section 2. That existing section 3937.18 of the Revised 299
Code is hereby repealed. 300