REPRESENTATIVES Calvert, Goodman, G. Smith, Schaffer, Faber, Olman, Fessler, Husted, Jolivette, Wolpert, Evans, Krupinski, Blasdel, DeWine, Stapleton, Schmidt, Hoops, Schuring, Clancy, Lendrum, Flowers, Hughes, Reidelbach, Seitz, Raga, Hollister, Roman, Niehaus, Hagan, Collier, Allen, Driehaus, Ogg, Otterman, Peterson, Young, Damschroder, Williams, Latta, Webster, Schneider, Kilbane, Metelsky, Gilb, Core, Carey, Rhine, Womer Benjamin, Sferra, Widowfield, Coates, Carmichael, Metzger, White, Flannery, Key, Distel, Salerno

To amend sections 3937.18, 3937.181, and 3937.182 of

1

the Revised Code to revise the Uninsured and

2

Underinsured Motorist Coverages Law.

3

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3937.18, 3937.181, and 3937.182 of	4
the Revised Code be amended to read as follows:	5

Sec. 3937.18.  (A) No automobile liability or motor vehicle	6
liabilityAny policy of insurance insuringdelivered or issued for	7
delivery in this state with respect to any motor vehicle	8
registered or principally garaged in this state that insures	9
against loss resulting from liability imposed by law for bodily	10
injury or death suffered by any person arising out of the	11
ownership, maintenance, or use of a motor vehicle shall be	12
delivered or issued for delivery in this state with respect to any	13
motor vehicle registered or principally garaged in this state	14
unless both of the following coverages are offered to persons	15
insured under the policy due to bodily injury or death suffered by	16
such insureds:	17

(1) Uninsured motorist coverage, which shall be in an amount	18
of coverage equivalent to the automobile liability or motor	19
vehicle liability coverage and shall provide protection for bodily	20
injury, sickness, or disease, including death under provisions	21
approved by the superintendent of insurance, for the protection of	22
insureds thereunder who are legally entitled to recover from	23
owners or operators of uninsured motor vehicles because of bodily	24
injury, sickness, or disease, including death, suffered by any	25
person insured under the policy.	26

For purposes of division (A)(1) of this section, an insured	27
is legally entitled to recover if the insured is able to prove the	28
elements of the insured's claim that are necessary to recover from	29
the owner or operator of the uninsured motor vehicle. The fact	30
that the owner or operator of the uninsured motor vehicle has an	31
immunity under Chapter 2744. of the Revised Code or a diplomatic	32
immunity that could be raised as a defense in an action brought	33
against the owner or operator by the insured does not affect the	34
insured's right to recover under uninsured motorist coverage.	35
However, any other type of statutory or common law immunity that	36
may be a defense for the owner or operator of an uninsured motor	37
vehicle shall also be a defense to an action brought by the	38
insured to recover under, may, but is not required to, include	39
uninsured motorist coverage, underinsured motorist coverage, or	40
both uninsured and underinsured motorist coverages.	41

Unless otherwise defined in the policy or any endorsement	42
to the policy, "motor vehicle," for purposes of the uninsured	43
motorist coverage, underinsured motorist coverage, or both	44
uninsured and underinsured motorist coverages, means a	45
self-propelled vehicle designed for use and principally used on	46
public roads, including an automobile, truck, semi-tractor,	47
motorcycle, and bus. "Motor vehicle" also includes a motor home,	48
provided the motor home is not stationary and is not being used as	49
a temporary or permanent residence or office. "Motor vehicle" does	50
not include a trolley, streetcar, trailer, railroad engine,	51
railroad car, motorized bicycle, golf cart, off-road recreational	52
vehicle, snowmobile, fork lift, aircraft, watercraft, construction	53
equipment, farm tractor or other vehicle designed and principally	54
used for agricultural purposes, mobile home, vehicle traveling on	55
treads or rails, or any similar vehicle.	56

(B) For purposes of any uninsured motorist coverage	57
included in a policy of insurance, an "uninsured motorist" is the	58
owner or operator of a motor vehicle if any of the following	59
conditions applies:	60

(1) There exists no bodily injury liability bond or	61
insurance policy covering the owner's or operator's liability to	62
the insured.	63

(2) The liability insurer denies coverage to the owner or	64
operator, or is or becomes the subject of insolvency proceedings	65
in any state.	66

(3) The identity of the owner or operator cannot be	67
determined, but independent corroborative evidence exists to prove	68
that the bodily injury, sickness, disease, or death of the insured	69
was proximately caused by the negligence or intentional actions of	70
the unidentified operator of the motor vehicle. For purposes of	71
division (B)(3) of this section, the testimony of any insured	72
seeking recovery from the insurer shall not constitute independent	73
corroborative evidence, unless the testimony is supported by	74
additional evidence.	75

(4) The owner or operator has diplomatic immunity.

76

(5) The owner or operator has immunity under Chapter 2744.	77
of the Revised Code.	78

An "uninsured motorist" does not include the owner or	79
operator of a motor vehicle that is self-insured within the	80
meaning of the financial responsibility law of the state in which	81
the motor vehicle is registered.	82

(2) Underinsured(C) If underinsured motorist coverage,	83
which shall be in an amount of coverage equivalent tois included	84
in a policy of insurance, the automobile liability or motor	85
vehicle liabilityunderinsured motorist coverage and shall provide	86
protection for insureds thereunder for bodily injury, sickness, or	87
disease, including death, suffered by any person insured under the	88
policy, where the limits of coverage available for payment to the	89
insured under all bodily injury liability bonds and insurance	90
policies covering persons liable to the insured are less than the	91
limits for the insured's uninsuredunderinsured motorist coverage.	92
Underinsured motorist coverage in this state is not and shall not	93
be excess insurancecoverage to other applicable liability	94
coverages, and shall be provided only to affordprovide the	95
insured an amount of protection not greater than that which would	96
be available under the insured's uninsured motorist coverage if	97
the person or persons liable to the insured were uninsured at the	98
time of the accident. The policy limits of the underinsured	99
motorist coverage shall be reduced by those amounts available for	100
payment under all applicable bodily injury liability bonds and	101
insurance policies covering persons liable to the insured.	102

(B) Coverages offered under division (A) of this section	103
shall be written for the same limits of liability. No change	104
shall be made in the limits of one of these coverages without an	105
equivalent change in the limits of the other coverage.	106

(C) A named insured or applicant may reject or accept both	107
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	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	118
rejection of both coverages as offered under division (A) of this	119
section, or a named insured's or applicant's selection of such	120
coverages in accordance with the schedule of limits approved by	121
the superintendent, shall be in writing and shall be signed by the	122
named insured or applicant. A named insured's or applicant's	123
written, signed rejection of both coverages as offered under	124
division (A) of this section, or a named insured's or applicant's	125
written, signed selection of such coverages in accordance with the	126
schedule of limits approved by the superintendent, shall be	127
effective on the day signed, shall create a presumption of an	128
offer of coverages consistent with division (A) of this section,	129
and shall be binding on all other named insureds, insureds, or	130
applicants.	131

Unless a named insured or applicant requests such coverages	132
in writing, such coverages need not be provided in or made	133
supplemental to a policy renewal or a new or replacement policy	134
that provides continuing coverage to the named insured or	135
applicant where a named insured or applicant has rejected such	136
coverages in connection with a policy previously issued to the	137
named insured or applicant by the same insurer or affiliate of	138
that insurer. If a named insured or applicant has selected such	139
coverages in connection with a policy previously issued to the	140
named insured or applicant by the same insurer or affiliate of	141
that insurer, with limits in accordance with the schedule of	142
limits approved by the superintendent, such coverages need not be	143
provided with limits in excess of the limits of liability	144
previously issued for such coverages, unless a named insured or	145
applicant requests in writing higher limits of liability for such	146
coveragesFor purposes of underinsured motorist coverage, an	147
"underinsured motorist" does not include the owner or operator of	148
a motor vehicle that has applicable liability coverage in the	149
policy under which the underinsured motorist coverage is provided.	150

(D) For the purpose of this section, a motor vehicle shall be	151
deemed uninsured in either of the following circumstances:	152

(1) The liability insurer denies coverage or is or becomes	153
the subject of insolvency proceedings in any jurisdiction;	154

(2) The identity of the owner and operator of the motor	155
vehicle cannot be determined, but independent corroborative	156
evidence exists to prove that the bodily injury, sickness,	157
disease, or death of the insured was proximately caused by the	158
negligence or intentional actions of the unidentified operator of	159
the motor vehicle. For purposes of this division, the testimony	160
of any insured seeking recovery from the insurer shall not	161
constitute independent corroborative evidence, unless the	162
testimony is supported by additional evidenceWith respect to the	163
uninsured motorist coverage, underinsured motorist coverage, or	164
both uninsured and underinsured motorist coverages included in a	165
policy of insurance, an insured shall be required to prove all	166
elements of the insured's claim that are necessary to recover from	167
the owner or operator of the uninsured or underinsured motor	168
vehicle.	169

(E) In the event of payment to any person under the coverages	170
offered under this section and subject to the terms and conditions	171
of such coverages, the insurer making such payment to the extent	172
thereof is entitled to the proceeds of any settlement or judgment	173
resulting from the exercise of any rights of recovery of such	174
person against any person or organization legally responsible for	175
the bodily injury or death for which such payment is made,	176
including any amount recoverable from an insurer which is or	177
becomes the subject of insolvency proceedings, through such	178
proceedings or in any other lawful manner. No insurer shall	179
attempt to recover any amount against the insured of an insurer	180
which is or becomes the subject of insolvency proceedings, to the	181
extent of those rights against such insurer which such insured	182
assigns to the paying insurer.	183

(F) The uninsured motorist coverage, underinsured motorist	184
coverage, or both uninsured and underinsured motorist coverages	185
offered under this sectionincluded in a policy of insurance shall	186
not be made subject to an exclusion or reduction in amount because	187
of any workers' compensation benefits payable as a result of the	188
same injury or death.	189

(G)(F) Any automobile liability or motor vehicle liability	190
policy of insurance that includes uninsured motorist coverage,	191
underinsured motorist coverage, or both uninsured and underinsured	192
motorist coverages offered under division (A) of this section or	193
selected in accordance with division (C) of this section may,	194
without regard to any premiums involved, include terms and	195
conditions that preclude any and all stacking of such coverages,	196
including but not limited to:	197

(1) Interfamily stacking, which is the aggregating of the	198
limits of such coverages by the same person or two or more	199
persons, whether family members or not, who are not members of the	200
same household;	201

(2) Intrafamily stacking, which is the aggregating of the	202
limits of such coverages purchased by the same person or two or	203
more family members of the same household.	204

(H)(G) Any automobile liability or motor vehicle liability	205
policy of insurance that includes uninsured motorist coverage,	206
underinsured motorist coverage, or both uninsured and underinsured	207
motorist coverages offered under division (A) of this section or	208
selected in accordance with division (C) of this section and that	209
provides a limit of coverage for payment forof damages for bodily	210
injury, including death, sustained by any one person in any one	211
automobile accident, may, notwithstanding Chapter 2125. of the	212
Revised Code, include terms and conditions to the effect that all	213
claims resulting from or arising out of any one person's bodily	214
injury, including death, shall collectively be subject to the	215
limit of the policy applicable to bodily injury, including death,	216
sustained by one person, and, for the purpose of such policy limit	217
shall constitute a single claim. Any such policy limit shall be	218
enforceable regardless of the number of insureds, claims made,	219
vehicles or premiums shown in the declarations or policy, or	220
vehicles involved in the accident.	221

(H) Any policy of insurance that includes uninsured motorist	222
coverage, underinsured motorist coverage, or both uninsured and	223
underinsured motorist coverages may include terms and conditions	224
requiring that, so long as the insured has not prejudiced the	225
insurer's subrogation rights, each claim or suit for uninsured	226
motorist coverage, underinsured motorist coverage, or both	227
uninsured and underinsured motorist coverages be made or brought	228
within three years after the date of the accident causing the	229
bodily injury, sickness, disease, or death, or within one year	230
after the liability insurer for the owner or operator of the motor	231
vehicle liable to the insured has become the subject of insolvency	232
proceedings in any state, whichever is later.	233

(I) Nothing in this section shall prohibit the inclusionAny	234
policy of insurance that includes uninsured motorist coverage,	235
underinsured motorist coverage in any, or both uninsured and	236
underinsured motorist coverage provided in compliance with this	237
section.	238

(J) The coverages offered under division (A) of this section	239
or selected in accordance with division (C) of this section may	240
include terms and conditions that preclude coverage for bodily	241
injury or death suffered by an insured under specified	242
circumstances, including but not limited to any of the following	243
circumstances:	244

(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	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 acquired	249
or replacement motor vehicle covered under the terms of the policy	250
under which the uninsured motorist coverage, underinsured motorist	251
coverage, or both uninsured and underinsured motorist coverages	252
are provided;	253

(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;	259

(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 the	262
uninsured motorist coverage, underinsured motorist coverage, or	263
both uninsured and underinsured motorist coverages are provided;	264

(4) While any employee, officer, director, partner, trustee,	265
member, executor, administrator, or beneficiary of the named	266
insured, or any relative of any such person, is operating or	267
occupying a motor vehicle, unless the employee, officer, director,	268
partner, trustee, member, executor, administrator, beneficiary, or	269
relative is operating or occupying a motor vehicle for which	270
uninsured motorist coverage, underinsured motorist coverage, or	271
both uninsured and underinsured motorist coverages are provided in	272
the policy;	273

(5) When the person actually suffering the bodily injury,	274
sickness, disease, or death is not an insured under the policy.	275

(J) In the event of payment to any person under the	276
uninsured motorist coverage, underinsured motorist coverage, or	277
both uninsured and underinsured motorist coverages, and subject to	278
the terms and conditions of that coverage, the insurer making such	279
payment is entitled, to the extent of the payment, to the proceeds	280
of any settlement or judgment resulting from the exercise of any	281
rights of recovery of that person against any person or	282
organization legally responsible for the bodily injury or death	283
for which the payment is made, including any amount recoverable	284
from an insurer that is or becomes the subject of insolvency	285
proceedings, through such proceedings or in any other lawful	286
manner. No insurer shall attempt to recover any amount against	287
the insured of an insurer that is or becomes the subject of	288
insolvency proceedings, to the extent of those rights against the	289
insurer that the insured assigns to the paying insurer.	290

(K) As usedNothing in this section, "uninsured motor	291
vehicle" and "underinsured motor vehicle" do not include any of	292
the following motor vehicles:	293

(1) A motor vehicle that has applicable liability coverage	294
in the policy under whichshall prohibit the uninsured and	295
inclusion of underinsured motorist coverages are provided;	296

(2) A motor vehicle owned by a political subdivision, unless	297
the operator of the motor vehicle has an immunity under Chapter	298
2744. of the Revised Code that could be raised as a defense in an	299
action brought against the operator by the insured;	300

(3) A motor vehicle self-insured within the meaning of the	301
financial responsibility law of the state in which the motor	302
vehicle is registeredcoverage in any uninsured motorist coverage	303
included in a policy of insurance.	304

(L) As used in this section, "automobile liability or motor	305
vehicle liability policy of insurance" means either of the	306
following:	307

(1) Any policy of insurance that serves as proof of	308
financial responsibility, as proof of financial responsibility is	309
defined by division (K) of section 4509.01 of the Revised Code,	310
for owners or operators of the motor vehicles specifically	311
identified in the policy of insurance;	312

(2) Any umbrella liability policy of insurance written as	313
excess over one or more policies described in division (L)(1) of	314
this sectionThe superintendent of insurance shall study the	315
market availability of, and competition for, uninsured and	316
underinsured motorist coverages in this state and shall, from time	317
to time, prepare status reports containing the superintendent's	318
findings and any recommendations. The first status report shall	319
be prepared not later than two years after the effective date of	320
this amendment. To assist in preparing these status reports, the	321
superintendent may require insurers and rating organizations	322
operating in this state to collect pertinent data and to submit	323
that data to the superintendent.	324

The superintendent shall submit a copy of each status	325
report to the governor, the speaker of the house of	326
representatives, the president of the senate, and the chairpersons	327
of the committees of the general assembly having primary	328
jurisdiction over issues relating to automobile insurance.	329

Sec. 3937.181.  (A) No automobile liability or motor vehicle	330
liability policy of insurance offering uninsured and underinsured	331
motorist coverages underdescribed in division (A) of section	332
3937.18 of the Revised Code that includes uninsured motorist	333
coverage, underinsured motorist coverage, or both uninsured and	334
underinsured motorist coverages shall be delivered or issued for	335
delivery unless coverage is also made available for damage to, or	336
the destruction of, any automobile or motor vehicle specifically	337
identified in the policy, for the protection of those persons	338
insured under the policy who are legally entitled to recover for	339
the damage to or destruction of any automobile or motor vehicle	340
specifically identified in the policy from the owner or operator	341
of an uninsured motor vehicle.	342

(B) The coverage made available under this section need not	343
exceed the lesser of seventy-five hundred dollars or the amount	344
otherwise available from the policy for damages to, or the	345
destruction of, the automobile or motor vehicle. The coverage	346
shall be subject to a maximum two-hundred-fifty-dollar deductible.	347
The losses recoverable under this section shall be limited to	348
recovery for that destruction of or damage to the automobile or	349
motor vehicle specifically identified in the policy directly	350
caused by an uninsured automobile or motor vehicle whose owner or	351
operator has been identified.	352

(C) If an insured has a policy containing collision coverage	353
covering damages caused by an uninsured automobile or motor	354
vehicle, the insured's insurer need not make coverage available	355
under this section.	356

(D) An insurer making payments to an insured under the	357
coverage offered under division (A) of this section shall be	358
entitled, to the extent of those payments and subject to the terms	359
and conditions of the coverage, to the proceeds of any settlement	360
or judgment resulting from the exercise of any rights of recovery	361
by the insured against the person or organization legally	362
responsible for the injury or destruction of the property,	363
including any amounts recoverable from an insurer that is or	364
becomes the subject of insolvency proceedings, through such	365
proceedings or in any other lawful manner. No insurer shall	366
attempt to recover any amount againstfrom the insured of an	367
insurer that is or becomes the subject of insolvency proceedings,	368
to the extent of histhose rights against suchthe insurer which	369
suchthat the insured assigns to the paying insurer.	370

Sec. 3937.182.  (A) As used in this section, "policy"	371
includes an endorsement.	372

(B) No policy of automobile or motor vehicle insurance that	373
is covered by sections 3937.01 to 3937.17 of the Revised Code,	374
including, but not limited to, the uninsured motorist coverage,	375
underinsured motorist coverage, or both uninsured and underinsured	376
motoristsmotorist coverages included in such a policy as required	377
authorized by section 3937.18 of the Revised Code, and that is	378
issued by an insurance company licensed to do business in this	379
state, and no other policy of casualty or liability insurance that	380
is covered by sections 3937.01 to 3937.17 of the Revised Code and	381
that is so issued, shall provide coverage for judgments or claims	382
against an insured for punitive or exemplary damages.	383

(C) This section applies only to policies of automobile,	384
motor vehicle, or other casualty or liability insurance as	385
described in division (B) of this section that are issued or	386
renewed on or after the effective date of this section.	387

Section 2. That existing sections 3937.18, 3937.181, and	388
3937.182 of the Revised Code are hereby repealed.	389

Section 3. In enacting this act, it is the intent of the	390
General Assembly to do all of the following:	391

(A) Protect and preserve stable markets and reasonable rates	392
for automobile insurance for Ohio consumers;	393

(B) Express the public policy of the state to:

394

(1) Eliminate any requirement of the mandatory offer of	395
uninsured motorist coverage, underinsured motorist coverage, or	396
both uninsured and underinsured motorist coverages;	397

(2) Eliminate the possibility of uninsured motorist	398
coverage, underinsured motorist coverage, or both uninsured and	399
underinsured motorist coverages being implied as a matter of law	400
in any insurance policy;	401

(3) Provide statutory authority for the inclusion of	402
exclusionary or limiting provisions in uninsured motorist	403
coverage, underinsured motorist coverage, or both uninsured and	404
underinsured motorist coverages;	405

(4) Eliminate any requirement of a written offer, selection,	406
or rejection form for uninsured motorist coverage, underinsured	407
motorist coverage, or both uninsured and underinsured motorist	408
coverages from any transaction for an insurance policy;	409

(5) Ensure that a mandatory offer of uninsured motorist	410
coverage, underinsured motorist coverage, or both uninsured and	411
underinsured motorist coverages not be construed to be required by	412
the provisions of section 3937.181 of the Revised Code, as amended	413
by this act, that make uninsured motorist property damage coverage	414
available under limited conditions.	415

(C) Provide statutory authority for provisions limiting the	416
time period within which an insured may make a claim under	417
uninsured motorist coverage, underinsured motorist coverage, or	418
both uninsured and underinsured motorist coverages to three years	419
after the date of the accident causing the injury;	420

(D) To supersede the holdings of the Ohio Supreme Court in	421
those cases previously superseded by Am. Sub. S.B. 20 of the 120th	422
General Assembly, Am. Sub. H.B. 261 of the 122nd General Assembly,	423
S.B. 57 of the 123rd General Assembly, and Sub. S.B. 267 of the	424
123rd General Assembly;	425

(E) To supersede the holdings of the Ohio Supreme Court in	426
Linko v. Indemnity Ins. Co. of N. America (2000), 90 Ohio St. 3d	427
445, Scott-Pontzer v. Liberty Mut. Fire Ins. Co. (1999), 85 Ohio	428
St. 3d 660, Schumacher v. Kreiner (2000), 88 Ohio St. 3d 358,	429
Sexton v. State Farm Mut. Auto. Ins. Co. (1982), 69 Ohio St. 2d	430
431, Gyori v. Johnston Coca-Cola Bottling Group, Inc. (1996), 76	431
Ohio St. 3d 565, and their progeny.	432