As Passed by the House 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-HARRIS- 9
HAINES-VAN VYVEN-AMSTUTZ-GRENDELL-CALVERT-OLMAN 10
_________________________________________________________________ 12
A B I L L
To amend section 3937.18 of the Revised Code to 14
clarify a component of the definition of 15
automobile liability or motor vehicle liability
policy of insurance for purposes of the Uninsured 16
and Underinsured Motorist Law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 18
Section 1. That section 3937.18 of the Revised Code be 20
amended to read as follows: 21
Sec. 3937.18. (A) No automobile liability or motor 30
vehicle liability policy of insurance insuring against loss 31
resulting from liability imposed by law for bodily injury or 32
death suffered by any person arising out of the ownership, 33
maintenance, or use of a motor vehicle shall be delivered or 34
issued for delivery in this state with respect to any motor 35
vehicle registered or principally garaged in this state unless 36
both of the following coverages are offered to persons insured 38
under the policy for loss due to bodily injury or death suffered 39
by such insureds: 40
(1) Uninsured motorist coverage, which shall be in an 42
amount of coverage equivalent to the automobile liability or 43
motor vehicle liability coverage and shall provide protection for 44
bodily injury, sickness, or disease, including death under 46
provisions approved by the superintendent of insurance, for the 47
protection of insureds thereunder who are legally entitled to 48
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recover damages from owners or operators of uninsured motor 50
vehicles because of bodily injury, sickness, or disease, 51
including death, suffered by any person insured under the policy. 52
For purposes of division (A)(1) of this section, an insured 55
is legally entitled to recover damages if the insured is able to 57
prove the elements of the insured's claim that are necessary to 58
recover damages from the owner or operator of the uninsured motor 60
vehicle. The fact that the owner or operator of the uninsured 61
motor vehicle has an immunity under Chapter 2744. of the Revised 63
Code or a diplomatic immunity that could be raised as a defense 65
in an action brought against the owner or operator by the insured 68
does not affect the insured's right to recover under uninsured 70
motorist coverage. However, any other type of statutory or 72
common law immunity that may be a defense for the owner or 73
operator of an uninsured motor vehicle shall also be a defense to 75
an action brought by the insured to recover under uninsured
motorist coverage. 77
(2) Underinsured motorist coverage, which shall be in an 79
amount of coverage equivalent to the automobile liability or 80
motor vehicle liability coverage and shall provide protection for 81
insureds thereunder against loss for bodily injury, sickness, or 83
disease, including death, suffered by any person insured under 84
the policy, where the limits of coverage available for payment to 85
the insured under all bodily injury liability bonds and insurance 86
policies covering persons liable to the insured are less than the 87
limits for the insured's uninsured motorist coverage. 88
Underinsured motorist coverage is not and shall not be excess 89
insurance to other applicable liability coverages, and shall be 90
provided only to afford the insured an amount of protection not 91
greater than that which would be available under the insured's 92
uninsured motorist coverage if the person or persons liable were 93
uninsured at the time of the accident. The policy limits of the 94
underinsured motorist coverage shall be reduced by those amounts 95
available for payment under all applicable bodily injury 96
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liability bonds and insurance policies covering persons liable to 97
the insured. 98
(B) Coverages offered under division (A) of this section 100
shall be written for the same limits of liability. No change 101
shall be made in the limits of one of these coverages without an 102
equivalent change in the limits of the other coverage. 103
(C) A named insured or applicant may reject or accept both 107
coverages as offered under division (A) of this section, or may 109
alternatively select both such coverages in accordance with a 110
schedule of limits approved by the superintendent. The schedule 112
of limits approved by the superintendent may permit a named 113
insured or applicant to select uninsured and underinsured 114
motorists coverages with limits on such coverages that are less 115
than the limit of liability coverage provided by the automobile 116
liability or motor vehicle liability policy of insurance under 117
which the coverages are provided, but the limits shall be no less 118
than the limits set forth in section 4509.20 of the Revised Code 119
for bodily injury or death. A named insured's or applicant's 121
rejection of both coverages as offered under division (A) of this 122
section, or a named insured's or applicant's selection of such 123
coverages in accordance with the schedule of limits approved by 124
the superintendent, shall be in writing and shall be signed by 125
the named insured or applicant. A named insured's or applicant's 126
written, signed rejection of both coverages as offered under 127
division (A) of this section, or a named insured's or applicant's 129
written, signed selection of such coverages in accordance with
the schedule of limits approved by the superintendent, shall be 130
effective on the day signed, shall create a presumption of an 131
offer of coverages consistent with division (A) of this section, 132
and shall be binding on all other named insureds, insureds, or 133
applicants. 134
Unless a named insured or applicant requests such coverages 139
in writing, such coverages need not be provided in or made 140
supplemental to a policy renewal or replacement policy where a 142
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named insured or applicant has rejected such coverages in 143
connection with a policy previously issued to the named insured 145
or applicant by the same insurer. If a named insured or 146
applicant has selected such coverages in connection with a policy 148
previously issued to the named insured or applicant by the same 150
insurer, with limits in accordance with the schedule of limits
approved by the superintendent, such coverages need not be 152
provided with limits in excess of the limits of liability 153
previously issued for such coverages, unless a named insured or 157
applicant requests in writing higher limits of liability for such 159
coverages.
(D) For the purpose of this section, a motor vehicle shall 162
be deemed uninsured in either of the following circumstances: 163
(1) The liability insurer denies coverage or is or becomes 166
the subject of insolvency proceedings in any jurisdiction; 167
(2) The identity of the owner and operator of the motor 169
vehicle cannot be determined, but independent corroborative 170
evidence exists to prove that the bodily injury, sickness, 171
disease, or death of the insured was proximately caused by the 172
negligence or intentional actions of the unidentified operator of 173
the motor vehicle. For purposes of this division, the testimony 174
of any insured seeking recovery from the insurer shall not 175
constitute independent corroborative evidence, unless the 176
testimony is supported by additional evidence. 177
(E) In the event of payment to any person under the 179
coverages offered under this section and subject to the terms and 182
conditions of such coverages, the insurer making such payment to 183
the extent thereof is entitled to the proceeds of any settlement 184
or judgment resulting from the exercise of any rights of recovery 185
of such person against any person or organization legally 186
responsible for the bodily injury or death for which such payment 187
is made, including any amount recoverable from an insurer which 188
is or becomes the subject of insolvency proceedings, through such 189
proceedings or in any other lawful manner. No insurer shall 190
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attempt to recover any amount against the insured of an insurer 191
which is or becomes the subject of insolvency proceedings, to the 192
extent of those rights against such insurer which such insured 193
assigns to the paying insurer. 194
(F) The coverages offered under this section shall not be 197
made subject to an exclusion or reduction in amount because of 198
any workers' compensation benefits payable as a result of the 199
same injury or death. 200
(G) Any automobile liability or motor vehicle liability 202
policy of insurance that includes coverages offered under 203
division (A) of this section or selected in accordance with 205
division (C) of this section may, without regard to any premiums 206
involved, include terms and conditions that preclude any and all 207
stacking of such coverages, including but not limited to: 208
(1) Interfamily stacking, which is the aggregating of the 210
limits of such coverages by the same person or two or more 211
persons, whether family members or not, who are not members of 212
the same household; 213
(2) Intrafamily stacking, which is the aggregating of the 215
limits of such coverages purchased by the same person or two or 216
more family members of the same household. 217
(H) Any automobile liability or motor vehicle liability 219
policy of insurance that includes coverages offered under 220
division (A) of this section or selected in accordance with 222
division (C) of this section and that provides a limit of 223
coverage for payment for damages for bodily injury, including 224
death, sustained by any one person in any one automobile 225
accident, may, notwithstanding Chapter 2125. of the Revised Code, 226
include terms and conditions to the effect that all claims 227
resulting from or arising out of any one person's bodily injury, 228
including death, shall collectively be subject to the limit of 229
the policy applicable to bodily injury, including death, 230
sustained by one person, and, for the purpose of such policy 231
limit shall constitute a single claim. Any such policy limit 232
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shall be enforceable regardless of the number of insureds, claims 233
made, vehicles or premiums shown in the declarations or policy, 234
or vehicles involved in the accident. 235
(I) Nothing in this section shall prohibit the inclusion 237
of underinsured motorist coverage in any uninsured motorist 238
coverage provided in compliance with this section. 239
(J) The coverages offered under division (A) of this 241
section or selected in accordance with division (C) of this 242
section may include terms and conditions that preclude coverage 243
for bodily injury or death suffered by an insured under any of 244
the following circumstances:
(1) While the insured is operating or occupying a motor 246
vehicle owned by, furnished to, or available for the regular use 247
of a named insured, a spouse, or a resident relative of a named 249
insured, if the motor vehicle is not specifically identified in 250
the policy under which a claim is made, or is not a newly 251
acquired or replacement motor vehicle covered under the terms of 252
the policy under which the uninsured and underinsured motorist 253
coverages are provided;
(2) While the insured is operating or occupying a motor 255
vehicle without a reasonable belief that the insured is entitled 256
to do so, provided that under no circumstances will an insured 257
whose license has been suspended, revoked, or never issued, be 258
held to have a reasonable belief that the insured is entitled to 259
operate a motor vehicle;
(3) When the bodily injury or death is caused by a motor 261
vehicle operated by any person who is specifically excluded from 262
coverage for bodily injury liability in the policy under which 263
the uninsured and underinsured motorist coverages are provided. 264
(K) As used in this section, "uninsured motor vehicle" and 266
"underinsured motor vehicle" do not include any of the following 268
motor vehicles:
(1) A motor vehicle that has applicable liability coverage 271
in the policy under which the uninsured and underinsured motorist 272
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coverages are provided; 273
(2) A motor vehicle owned by, furnished to, or available 275
for the regular use of a named insured, a spouse, or a resident 276
relative of a named insured; 277
(3) A motor vehicle owned by a political subdivision, 279
unless the operator of the motor vehicle has an immunity under 281
Chapter 2744. of the Revised Code that could be raised as a 282
defense in an action brought against the operator by the insured; 283
(4) A motor vehicle self-insured within the meaning of the 285
financial responsibility law of the state in which the motor 286
vehicle is registered.
(L) As used in this section, "automobile liability or 288
motor vehicle liability policy of insurance" means either of the 289
following:
(1) Any policy of insurance that serves as proof of 291
financial responsibility, as proof of financial responsibility is 292
defined by division (K) of section 4509.01 of the Revised Code, 293
for owners or operators of the motor vehicles specifically 295
identified in the policy of insurance;
(2) Any umbrella liability policy of insurance WRITTEN AS 297
EXCESS OVER ONE OR MORE POLICIES DESCRIBED IN DIVISION (L)(1) OF 298
THIS SECTION.
Section 2. That existing section 3937.18 of the Revised 300
Code is hereby repealed. 301