S. B. No. 293 As Introduced

As Introduced

129th General Assembly

Regular Session

2011-2012

S. B. No. 293

Senator Seitz

Cosponsor: Senator Tavares

A BILL

To amend section 3937.18 and to enact section 3937.46

of the Revised Code to prohibit an automobile

insurer from enforcing an intrafamily exclusion in

an accident where a member of the family dies.

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

Section 1. That section 3937.18 be amended and section	5
3937.46 of the Revised Code be enacted to read as follows:	6

Sec. 3937.18. (A) Any policy of insurance delivered or	7
issued for delivery in this state with respect to any motor	8
vehicle registered or principally garaged in this state that	9
insures against loss resulting from liability imposed by law for	10
bodily injury or death suffered by any person arising out of the	11
ownership, maintenance, or use of a motor vehicle, may, but is not	12
required to, include uninsured motorist coverage, underinsured	13
motorist coverage, or both uninsured and underinsured motorist	14
coverages.	15

Unless otherwise defined in the policy or any endorsement to	16
the policy, "motor vehicle," for purposes of the uninsured	17
motorist coverage, underinsured motorist coverage, or both	18
uninsured and underinsured motorist coverages, means a	19
self-propelled vehicle designed for use and principally used on	20
public roads, including an automobile, truck, semi-tractor,	21
motorcycle, and bus. "Motor vehicle" also includes a motor home,	22
provided the motor home is not stationary and is not being used as	23
a temporary or permanent residence or office. "Motor vehicle" does	24
not include a trolley, streetcar, trailer, railroad engine,	25
railroad car, motorized bicycle, golf cart, off-road recreational	26
vehicle, snowmobile, fork lift, aircraft, watercraft, construction	27
equipment, farm tractor or other vehicle designed and principally	28
used for agricultural purposes, mobile home, vehicle traveling on	29
treads or rails, or any similar vehicle.	30

(B) For purposes of any uninsured motorist coverage included	31
in a policy of insurance, an "uninsured motorist" is the owner or	32
operator of a motor vehicle if any of the following conditions	33
applies:	34

(1) There exists no bodily injury liability bond or insurance	35
policy covering the owner's or operator's liability to the	36
insured.	37

(2) The liability insurer denies coverage to the owner or	38
operator, or is or becomes the subject of insolvency proceedings	39
in any state.	40

(3) The identity of the owner or operator cannot be	41
determined, but independent corroborative evidence exists to prove	42
that the bodily injury, sickness, disease, or death of the insured	43
was proximately caused by the negligence or intentional actions of	44
the unidentified operator of the motor vehicle. For purposes of	45
division (B)(3) of this section, the testimony of any insured	46
seeking recovery from the insurer shall not constitute independent	47
corroborative evidence, unless the testimony is supported by	48
additional evidence.	49

(4) The owner or operator has diplomatic immunity.

(5) The owner or operator has immunity under Chapter 2744. of	51
the Revised Code.	52

An "uninsured motorist" does not include the owner or	53
operator of a motor vehicle that is self-insured within the	54
meaning of the financial responsibility law of the state in which	55
the motor vehicle is registered.	56

(C) If underinsured motorist coverage is included in a policy	57
of insurance, the underinsured motorist coverage shall provide	58
protection for insureds thereunder for bodily injury, sickness, or	59
disease, including death, suffered by any insured under the	60
policy, where the limits of coverage available for payment to the	61
insured under all bodily injury liability bonds and insurance	62
policies covering persons liable to the insured are less than the	63
limits for the underinsured motorist coverage. Underinsured	64
motorist coverage in this state is not and shall not be excess	65
coverage to other applicable liability coverages, and shall only	66
provide the insured an amount of protection not greater than that	67
which would be available under the insured's uninsured motorist	68
coverage if the person or persons liable to the insured were	69
uninsured at the time of the accident. The policy limits of the	70
underinsured motorist coverage shall be reduced by those amounts	71
available for payment under all applicable bodily injury liability	72
bonds and insurance policies covering persons liable to the	73
insured.	74

For purposes of underinsured motorist coverage, an	75
"underinsured motorist" does not include the owner or operator of	76
a motor vehicle that has applicable liability coverage in the	77
policy under which the underinsured motorist coverage is provided.	78

(D) With respect to the uninsured motorist coverage,	79
underinsured motorist coverage, or both uninsured and underinsured	80
motorist coverages included in a policy of insurance, an insured	81
shall be required to prove all elements of the insured's claim	82
that are necessary to recover from the owner or operator of the	83
uninsured or underinsured motor vehicle.	84

(E) The uninsured motorist coverage, underinsured motorist	85
coverage, or both uninsured and underinsured motorist coverages	86
included in a policy of insurance shall not be subject to an	87
exclusion or reduction in amount because of any workers'	88
compensation benefits payable as a result of the same injury or	89
death.	90

(F) Any policy of insurance that includes uninsured motorist	91
coverage, underinsured motorist coverage, or both uninsured and	92
underinsured motorist coverages may, without regard to any	93
premiums involved, include terms and conditions that preclude any	94
and all stacking of such coverages, including but not limited to:	95

(1) Interfamily stacking, which is the aggregating of the	96
limits of such coverages by the same person or two or more	97
persons, whether family members or not, who are not members of the	98
same household;	99

(2) Intrafamily stacking, which is the aggregating of the	100
limits of such coverages purchased by the same person or two or	101
more family members of the same household.	102

(G) Any policy of insurance that includes uninsured motorist	103
coverage, underinsured motorist coverage, or both uninsured and	104
underinsured motorist coverages and that provides a limit of	105
coverage for payment of damages for bodily injury, including	106
death, sustained by any one person in any one automobile accident,	107
may, notwithstanding Chapter 2125. of the Revised Code, include	108
terms and conditions to the effect that all claims resulting from	109
or arising out of any one person's bodily injury, including death,	110
shall collectively be subject to the limit of the policy	111
applicable to bodily injury, including death, sustained by one	112
person, and, for the purpose of such policy limit shall constitute	113
a single claim. Any such policy limit shall be enforceable	114
regardless of the number of insureds, claims made, vehicles or	115
premiums shown in the declarations or policy, or vehicles involved	116
in the accident.	117

(H) Any policy of insurance that includes uninsured motorist	118
coverage, underinsured motorist coverage, or both uninsured and	119
underinsured motorist coverages may include terms and conditions	120
requiring that, so long as the insured has not prejudiced the	121
insurer's subrogation rights, each claim or suit for uninsured	122
motorist coverage, underinsured motorist coverage, or both	123
uninsured and underinsured motorist coverages be made or brought	124
within three years after the date of the accident causing the	125
bodily injury, sickness, disease, or death, or within one year	126
after the liability insurer for the owner or operator of the motor	127
vehicle liable to the insured has become the subject of insolvency	128
proceedings in any state, whichever is later.	129

(I) Any policy of insurance that includes uninsured motorist	130
coverage, underinsured motorist coverage, or both uninsured and	131
underinsured motorist coverages may, subject to section 3937.46 of	132
the Revised Code, include terms and conditions that preclude	133
coverage for bodily injury or death suffered by an insured under	134
specified circumstances, including but not limited to any of the	135
following circumstances:	136

(1) While the insured is operating or occupying a motor	137
vehicle owned by, furnished to, or available for the regular use	138
of a named insured, a spouse, or a resident relative of a named	139
insured, if the motor vehicle is not specifically identified in	140
the policy under which a claim is made, or is not a newly acquired	141
or replacement motor vehicle covered under the terms of the policy	142
under which the uninsured motorist coverage, underinsured motorist	143
coverage, or both uninsured and underinsured motorist coverages	144
are provided;	145

(2) While the insured is operating or occupying a motor	146
vehicle without a reasonable belief that the insured is entitled	147
to do so, provided that under no circumstances will an insured	148
whose license has been suspended, revoked, or never issued, be	149
held to have a reasonable belief that the insured is entitled to	150
operate a motor vehicle;	151

(3) When the bodily injury or death is caused by a motor	152
vehicle operated by any person who is specifically excluded from	153
coverage for bodily injury liability in the policy under which the	154
uninsured motorist coverage, underinsured motorist coverage, or	155
both uninsured and underinsured motorist coverages are provided;	156

(4) While any employee, officer, director, partner, trustee,	157
member, executor, administrator, or beneficiary of the named	158
insured, or any relative of any such person, is operating or	159
occupying a motor vehicle, unless the employee, officer, director,	160
partner, trustee, member, executor, administrator, beneficiary, or	161
relative is operating or occupying a motor vehicle for which	162
uninsured motorist coverage, underinsured motorist coverage, or	163
both uninsured and underinsured motorist coverages are provided in	164
the policy;	165

(5) When the person actually suffering the bodily injury,	166
sickness, disease, or death is not an insured under the policy.	167

(J) In the event of payment to any person under the uninsured	168
motorist coverage, underinsured motorist coverage, or both	169
uninsured and underinsured motorist coverages, and subject to the	170
terms and conditions of that coverage, the insurer making such	171
payment is entitled, to the extent of the payment, to the proceeds	172
of any settlement or judgment resulting from the exercise of any	173
rights of recovery of that person against any person or	174
organization legally responsible for the bodily injury or death	175
for which the payment is made, including any amount recoverable	176
from an insurer that is or becomes the subject of insolvency	177
proceedings, through such proceedings or in any other lawful	178
manner. No insurer shall attempt to recover any amount against the	179
insured of an insurer that is or becomes the subject of insolvency	180
proceedings, to the extent of those rights against the insurer	181
that the insured assigns to the paying insurer.	182

(K) Nothing in this section shall prohibit the inclusion of	183
underinsured motorist coverage in any uninsured motorist coverage	184
included in a policy of insurance.	185

(L) The superintendent of insurance shall study the market	186
availability of, and competition for, uninsured and underinsured	187
motorist coverages in this state and shall, from time to time,	188
prepare status reports containing the superintendent's findings	189
and any recommendations. The first status report shall be prepared	190
not later than two years after ~~the effective date of this~~	191
~~amendment~~October 31, 2001. To assist in preparing these status	192
reports, the superintendent may require insurers and rating	193
organizations operating in this state to collect pertinent data	194
and to submit that data to the superintendent.	195

The superintendent shall submit a copy of each status report	196
to the governor, the speaker of the house of representatives, the	197
president of the senate, and the chairpersons of the committees of	198
the general assembly having primary jurisdiction over issues	199
relating to automobile insurance.	200

Sec. 3937.46. (A) Regarding an insured person covered under	201
a policy of automobile insurance, division (B) of this section	202
shall only apply to coverage of automobile accidents in which both	203
of the following conditions apply:	204

(1) The insured person is not at fault.

205

(2) The insured person, the spouse of the insured person, or	206
a relative of the insured person has died as a proximate result of	207
the accident in question.	208

(B) An intrafamily exclusion in an automobile insurance	209
policy shall not apply or be enforced by an insurer with regard to	210
a person who has died as a proximate cause of an accident that	211
meets both the criteria set forth in division (A) of this section.	212

213

(1) "Intrafamily exclusion" means any provision included in	214
an automobile insurance policy that enables an insurer to preclude	215
coverage of bodily injury or death for a spouse, a resident	216
relative, or other relative of a covered individual, including any	217
such provision related to uninsured motorist coverage or	218
underinsured motorist coverage included in a policy under division	219
(I) of section 3937.18 of the Revised Code.	220

(2) "Automobile insurance policy" has the same meaning as in	221
section 3937.30 of the Revised Code.	222

Section 2. That existing section 3937.18 of the Revised Code	223
is hereby repealed.	224