130th Ohio General Assembly
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Sub. S. B. No. 97  As Reported by the Senate Insurance, Commerce and Labor Committee
As Reported by the Senate Insurance, Commerce and Labor Committee

124th General Assembly
Regular Session
2001-2002
Sub. S. B. No. 97


SENATORS Nein, Wachtmann, Mumper, White, DiDonato, Austria, Amstutz, Coughlin, Finan, Harris, Hottinger, Spada, Armbruster, Randy Gardner, Robert Gardner



A BILL
To amend sections 3937.18, 3937.181, and 3937.182 of1
the Revised Code to revise the Uninsured and2
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 of4
the Revised Code be amended to read as follows:5

       Sec. 3937.18.  (A) No automobile liability or motor vehicle6
liability Any policy of insurance insuring delivered or issued for7
delivery in this state with respect to any motor vehicle8
registered or principally garaged in this state that insures9
against loss resulting from liability imposed by law for bodily10
injury or death suffered by any person arising out of the11
ownership, maintenance, or use of a motor vehicle shall be12
delivered or issued for delivery in this state with respect to any13
motor vehicle registered or principally garaged in this state14
unless both of the following coverages are offered to persons15
insured under the policy due to bodily injury or death suffered by16
such insureds:17

       (1) Uninsured motorist coverage, which shall be in an amount18
of coverage equivalent to the automobile liability or motor19
vehicle liability coverage and shall provide protection for bodily20
injury, sickness, or disease, including death under provisions21
approved by the superintendent of insurance, for the protection of22
insureds thereunder who are legally entitled to recover from23
owners or operators of uninsured motor vehicles because of bodily24
injury, sickness, or disease, including death, suffered by any25
person insured under the policy.26

       For purposes of division (A)(1) of this section, an insured27
is legally entitled to recover if the insured is able to prove the28
elements of the insured's claim that are necessary to recover from29
the owner or operator of the uninsured motor vehicle. The fact30
that the owner or operator of the uninsured motor vehicle has an31
immunity under Chapter 2744. of the Revised Code or a diplomatic32
immunity that could be raised as a defense in an action brought33
against the owner or operator by the insured does not affect the34
insured's right to recover under uninsured motorist coverage. 35
However, any other type of statutory or common law immunity that36
may be a defense for the owner or operator of an uninsured motor37
vehicle shall also be a defense to an action brought by the38
insured to recover under, may, but is not required to, include39
uninsured motorist coverage, underinsured motorist coverage, or40
both uninsured and underinsured motorist coverages.41

        Unless otherwise defined in the policy or any endorsement42
to the policy, "motor vehicle," for purposes of the uninsured43
motorist coverage, underinsured motorist coverage, or uninsured44
and underinsured motorist coverages, means a self-propelled45
vehicle designed for use and principally used on public roads,46
including an automobile, truck, semi-tractor, motorcycle, and bus.47
"Motor vehicle" also includes a motor home, provided the motor48
home is not stationary and is not being used as a temporary or49
permanent residence or office. "Motor vehicle" does not include a50
trolley, streetcar, trailer, railroad engine, railroad car,51
motorized bicycle, golf cart, off-road recreational vehicle,52
snowmobile, fork lift, aircraft, watercraft, construction53
equipment, farm tractor or other vehicle designed and principally54
used for agricultural purposes, mobile home, vehicle traveling on55
treads or rails, or any similar vehicle.56

        (B) For purposes of any uninsured motorist coverage57
included in a policy of insurance, an "uninsured motorist" is the58
owner or operator of a motor vehicle if any of the following59
conditions applies:60

        (1) There exists no bodily injury liability bond or61
insurance policy covering the owner's or operator's liability to62
the insured.63

        (2) The liability insurer denies coverage to the owner or64
operator, or is or becomes the subject of insolvency proceedings65
in any state.66

        (3) The identity of the owner or operator cannot be67
determined, but independent corroborative evidence exists to prove68
that the bodily injury, sickness, disease, or death of the insured69
was proximately caused by the negligence or intentional actions of70
the unidentified operator of the motor vehicle. For purposes of71
division (B)(3) of this section, the testimony of any insured72
seeking recovery from the insurer shall not constitute independent73
corroborative evidence, unless the testimony is supported by74
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 or79
operator of a motor vehicle that is self-insured within the80
meaning of the financial responsibility law of the state in which81
the motor vehicle is registered.82

       (2) Underinsured (C) If underinsured motorist coverage,83
which shall be in an amount of coverage equivalent to is included84
in a policy of insurance, the automobile liability or motor85
vehicle liability underinsured motorist coverage and shall provide86
protection for insureds thereunder for bodily injury, sickness, or87
disease, including death, suffered by any person insured under the88
policy, where the limits of coverage available for payment to the89
insured under all bodily injury liability bonds and insurance90
policies covering persons liable to the insured are less than the91
limits for the insured's uninsured underinsured motorist coverage.92
Underinsured motorist coverage in this state is not and shall not93
be excess insurance coverage to other applicable liability94
coverages, and shall be provided only to afford provide the95
insured an amount of protection not greater than that which would96
be available under the insured's uninsured motorist coverage if97
the person or persons liable to the insured were uninsured at the98
time of the accident. The policy limits of the underinsured99
motorist coverage shall be reduced by those amounts available for100
payment under all applicable bodily injury liability bonds and101
insurance policies covering persons liable to the insured.102

       (B) Coverages offered under division (A) of this section103
shall be written for the same limits of liability. No change104
shall be made in the limits of one of these coverages without an105
equivalent change in the limits of the other coverage.106

       (C) A named insured or applicant may reject or accept both107
coverages as offered under division (A) of this section, or may108
alternatively select both such coverages in accordance with a109
schedule of limits approved by the superintendent. The schedule110
of limits approved by the superintendent may permit a named111
insured or applicant to select uninsured and underinsured112
motorists coverages with limits on such coverages that are less113
than the limit of liability coverage provided by the automobile114
liability or motor vehicle liability policy of insurance under115
which the coverages are provided, but the limits shall be no less116
than the limits set forth in section 4509.20 of the Revised Code117
for bodily injury or death. A named insured's or applicant's118
rejection of both coverages as offered under division (A) of this119
section, or a named insured's or applicant's selection of such120
coverages in accordance with the schedule of limits approved by121
the superintendent, shall be in writing and shall be signed by the122
named insured or applicant. A named insured's or applicant's123
written, signed rejection of both coverages as offered under124
division (A) of this section, or a named insured's or applicant's125
written, signed selection of such coverages in accordance with the126
schedule of limits approved by the superintendent, shall be127
effective on the day signed, shall create a presumption of an128
offer of coverages consistent with division (A) of this section,129
and shall be binding on all other named insureds, insureds, or130
applicants.131

       Unless a named insured or applicant requests such coverages132
in writing, such coverages need not be provided in or made133
supplemental to a policy renewal or a new or replacement policy134
that provides continuing coverage to the named insured or135
applicant where a named insured or applicant has rejected such136
coverages in connection with a policy previously issued to the137
named insured or applicant by the same insurer or affiliate of138
that insurer. If a named insured or applicant has selected such139
coverages in connection with a policy previously issued to the140
named insured or applicant by the same insurer or affiliate of141
that insurer, with limits in accordance with the schedule of142
limits approved by the superintendent, such coverages need not be143
provided with limits in excess of the limits of liability144
previously issued for such coverages, unless a named insured or145
applicant requests in writing higher limits of liability for such146
coverages For purposes of underinsured motorist coverage, an147
"underinsured motorist" does not include the owner or operator of148
a motor vehicle that has applicable liability coverage in the149
policy under which the underinsured motorist coverage is provided.150

       (D) For the purpose of this section, a motor vehicle shall be151
deemed uninsured in either of the following circumstances:152

       (1) The liability insurer denies coverage or is or becomes153
the subject of insolvency proceedings in any jurisdiction;154

       (2) The identity of the owner and operator of the motor155
vehicle cannot be determined, but independent corroborative156
evidence exists to prove that the bodily injury, sickness,157
disease, or death of the insured was proximately caused by the158
negligence or intentional actions of the unidentified operator of159
the motor vehicle. For purposes of this division, the testimony160
of any insured seeking recovery from the insurer shall not161
constitute independent corroborative evidence, unless the162
testimony is supported by additional evidence With respect to the163
uninsured motorist coverage, underinsured motorist coverage, or164
uninsured and underinsured motorist coverages included in a policy165
of insurance, an insured shall be required to prove all elements166
of the insured's claim that are necessary to recover from the167
owner or operator of the uninsured or underinsured motor vehicle.168

       (E) In the event of payment to any person under the coverages169
offered under this section and subject to the terms and conditions170
of such coverages, the insurer making such payment to the extent171
thereof is entitled to the proceeds of any settlement or judgment172
resulting from the exercise of any rights of recovery of such173
person against any person or organization legally responsible for174
the bodily injury or death for which such payment is made,175
including any amount recoverable from an insurer which is or176
becomes the subject of insolvency proceedings, through such177
proceedings or in any other lawful manner. No insurer shall178
attempt to recover any amount against the insured of an insurer179
which is or becomes the subject of insolvency proceedings, to the180
extent of those rights against such insurer which such insured181
assigns to the paying insurer.182

       (F) The uninsured motorist coverage, underinsured motorist183
coverage, or uninsured and underinsured motorist coverages offered184
under this section included in a policy of insurance shall not be185
made subject to an exclusion or reduction in amount because of any186
workers' compensation benefits payable as a result of the same187
injury or death.188

       (G)(F) Any automobile liability or motor vehicle liability189
policy of insurance that includes uninsured motorist coverage,190
underinsured motorist coverage, or both uninsured and underinsured191
motorist coverages offered under division (A) of this section or192
selected in accordance with division (C) of this section may,193
without regard to any premiums involved, include terms and194
conditions that preclude any and all stacking of such coverages,195
including but not limited to:196

       (1) Interfamily stacking, which is the aggregating of the197
limits of such coverages by the same person or two or more198
persons, whether family members or not, who are not members of the199
same household;200

       (2) Intrafamily stacking, which is the aggregating of the201
limits of such coverages purchased by the same person or two or202
more family members of the same household.203

       (H)(G) Any automobile liability or motor vehicle liability204
policy of insurance that includes uninsured motorist coverage,205
underinsured motorist coverage, or both uninsured and underinsured206
motorist coverages offered under division (A) of this section or207
selected in accordance with division (C) of this section and that208
provides a limit of coverage for payment for of damages for bodily209
injury, including death, sustained by any one person in any one210
automobile accident, may, notwithstanding Chapter 2125. of the211
Revised Code, include terms and conditions to the effect that all212
claims resulting from or arising out of any one person's bodily213
injury, including death, shall collectively be subject to the214
limit of the policy applicable to bodily injury, including death,215
sustained by one person, and, for the purpose of such policy limit216
shall constitute a single claim. Any such policy limit shall be217
enforceable regardless of the number of insureds, claims made,218
vehicles or premiums shown in the declarations or policy, or219
vehicles involved in the accident.220

       (H) Any policy of insurance that includes uninsured motorist221
coverage, underinsured motorist coverage, or both uninsured and222
underinsured motorist coverages may include terms and conditions223
requiring that, so long as the insured has not prejudiced the224
insurer's subrogation rights, each claim or suit for uninsured225
motorist coverage, underinsured motorist coverage, or both226
uninsured and underinsured motorist coverages be made or brought227
within three years after the date of the accident causing the228
bodily injury, sickness, disease, or death, or within one year229
after the liability insurer for the owner or operator of the motor230
vehicle liable to the insured has become the subject of insolvency231
proceedings in any state, whichever is later.232

       (I) Nothing in this section shall prohibit the inclusion Any233
policy of insurance that includes uninsured motorist coverage,234
underinsured motorist coverage in any, or both uninsured and235
underinsured motorist coverage provided in compliance with this236
section.237

       (J) The coverages offered under division (A) of this section238
or selected in accordance with division (C) of this section may239
include terms and conditions that preclude coverage for bodily240
injury or death suffered by an insured under specified241
circumstances, including but not limited to any of the following242
circumstances:243

       (1) While the insured is operating or occupying a motor244
vehicle owned by, furnished to, or available for the regular use245
of a named insured, a spouse, or a resident relative of a named246
insured, if the motor vehicle is not specifically identified in247
the policy under which a claim is made, or is not a newly acquired248
or replacement motor vehicle covered under the terms of the policy249
under which the uninsured motorist coverage, underinsured motorist250
coverage, or uninsured and underinsured motorist coverages are251
provided;252

       (2) While the insured is operating or occupying a motor253
vehicle without a reasonable belief that the insured is entitled254
to do so, provided that under no circumstances will an insured255
whose license has been suspended, revoked, or never issued, be256
held to have a reasonable belief that the insured is entitled to257
operate a motor vehicle;258

       (3) When the bodily injury or death is caused by a motor259
vehicle operated by any person who is specifically excluded from260
coverage for bodily injury liability in the policy under which the261
uninsured motorist coverage, underinsured motorist coverage, or262
uninsured and underinsured motorist coverages are provided;263

       (4) While any employee, officer, director, partner, trustee,264
member, executor, administrator, or beneficiary of the named265
insured, or any relative of any such person, is operating or266
occupying a motor vehicle, unless the employee, officer, director,267
partner, trustee, member, executor, administrator, beneficiary, or268
relative is operating or occupying a motor vehicle for which269
uninsured motorist coverage, underinsured motorist coverage, or270
both uninsured and underinsured motorist coverages are provided in271
the policy;272

        (5) When the person actually suffering the bodily injury,273
sickness, disease, or death is not an insured under the policy.274

        (J) In the event of payment to any person under the275
uninsured motorist coverage, underinsured motorist coverage, or276
uninsured and underinsured motorist coverages, and subject to the277
terms and conditions of that coverage, the insurer making such278
payment is entitled, to the extent of the payment, to the proceeds279
of any settlement or judgment resulting from the exercise of any280
rights of recovery of that person against any person or281
organization legally responsible for the bodily injury or death282
for which the payment is made, including any amount recoverable283
from an insurer that is or becomes the subject of insolvency284
proceedings, through such proceedings or in any other lawful285
manner. No insurer shall attempt to recover any amount against286
the insured of an insurer that is or becomes the subject of287
insolvency proceedings, to the extent of those rights against the288
insurer that the insured assigns to the paying insurer.289

       (K) As used Nothing in this section, "uninsured motor290
vehicle" and "underinsured motor vehicle" do not include any of291
the following motor vehicles:292

       (1) A motor vehicle that has applicable liability coverage293
in the policy under which shall prohibit the uninsured and294
inclusion of underinsured motorist coverages are provided;295

       (2) A motor vehicle owned by a political subdivision, unless296
the operator of the motor vehicle has an immunity under Chapter297
2744. of the Revised Code that could be raised as a defense in an298
action brought against the operator by the insured;299

       (3) A motor vehicle self-insured within the meaning of the300
financial responsibility law of the state in which the motor301
vehicle is registered coverage in any uninsured motorist coverage302
included in a policy of insurance.303

       (L) As used in this section, "automobile liability or motor304
vehicle liability policy of insurance" means either of the305
following:306

       (1) Any policy of insurance that serves as proof of307
financial responsibility, as proof of financial responsibility is308
defined by division (K) of section 4509.01 of the Revised Code,309
for owners or operators of the motor vehicles specifically310
identified in the policy of insurance;311

       (2) Any umbrella liability policy of insurance written as312
excess over one or more policies described in division (L)(1) of313
this section The superintendent of insurance shall study the314
market availability of, and competition for, uninsured and315
underinsured motorist coverages in this state and shall, from time316
to time, prepare status reports containing the superintendent's317
findings and any recommendations. The first status report shall318
be prepared not later than two years after the effective date of319
this amendment. To assist in preparing these status reports, the320
superintendent may require insurers and rating organizations321
operating in this state to collect pertinent data and to submit322
that data to the superintendent.323

        The superintendent shall submit a copy of each status324
report to the governor, the speaker of the house of325
representatives, the president of the senate, and the chairpersons326
of the committees of the general assembly having primary327
jurisdiction over issues relating to automobile insurance.328

       Sec. 3937.181.  (A) No automobile liability or motor vehicle329
liability policy of insurance offering uninsured and underinsured330
motorist coverages under described in division (A) of section331
3937.18 of the Revised Code that includes uninsured motorist332
coverage, underinsured motorist coverage, or both uninsured and333
underinsured motorist coverages shall be delivered or issued for334
delivery unless coverage is also made available for damage to, or335
the destruction of, any automobile or motor vehicle specifically336
identified in the policy, for the protection of those persons337
insured under the policy who are legally entitled to recover for338
the damage to or destruction of any automobile or motor vehicle339
specifically identified in the policy from the owner or operator340
of an uninsured motor vehicle.341

       (B) The coverage made available under this section need not342
exceed the lesser of seventy-five hundred dollars or the amount343
otherwise available from the policy for damages to, or the344
destruction of, the automobile or motor vehicle. The coverage345
shall be subject to a maximum two-hundred-fifty-dollar deductible.346
The losses recoverable under this section shall be limited to347
recovery for that destruction of or damage to the automobile or348
motor vehicle specifically identified in the policy directly349
caused by an uninsured automobile or motor vehicle whose owner or350
operator has been identified.351

       (C) If an insured has a policy containing collision coverage352
covering damages caused by an uninsured automobile or motor353
vehicle, the insured's insurer need not make coverage available354
under this section.355

       (D) An insurer making payments to an insured under the356
coverage offered under division (A) of this section shall be357
entitled, to the extent of those payments and subject to the terms358
and conditions of the coverage, to the proceeds of any settlement359
or judgment resulting from the exercise of any rights of recovery360
by the insured against the person or organization legally361
responsible for the injury or destruction of the property,362
including any amounts recoverable from an insurer that is or363
becomes the subject of insolvency proceedings, through such364
proceedings or in any other lawful manner. No insurer shall365
attempt to recover any amount against from the insured of an366
insurer that is or becomes the subject of insolvency proceedings,367
to the extent of his those rights against such the insurer which368
such that the insured assigns to the paying insurer.369

       Sec. 3937.182.  (A) As used in this section, "policy"370
includes an endorsement.371

       (B) No policy of automobile or motor vehicle insurance that372
is covered by sections 3937.01 to 3937.17 of the Revised Code,373
including, but not limited to, the uninsured motorist coverage,374
underinsured motorist coverage, or uninsured and underinsured375
motorists motorist coverages included in such a policy as required376
authorized by section 3937.18 of the Revised Code, and that is377
issued by an insurance company licensed to do business in this378
state, and no other policy of casualty or liability insurance that379
is covered by sections 3937.01 to 3937.17 of the Revised Code and380
that is so issued, shall provide coverage for judgments or claims381
against an insured for punitive or exemplary damages.382

       (C) This section applies only to policies of automobile,383
motor vehicle, or other casualty or liability insurance as384
described in division (B) of this section that are issued or385
renewed on or after the effective date of this section.386

       Section 2. That existing sections 3937.18, 3937.181, and387
3937.182 of the Revised Code are hereby repealed.388

       Section 3. In enacting this act, it is the intent of the389
General Assembly to do all of the following:390

       (A) Protect and preserve stable markets and reasonable rates391
for automobile insurance for Ohio consumers;392

       (B) Express the public policy of the state to:393

       (1) Eliminate any requirement of the mandatory offer of394
uninsured motorist coverage, underinsured motorist coverage, or395
both uninsured and underinsured motorist coverages;396

       (2) Eliminate the possibility of uninsured motorist397
coverage, underinsured motorist coverage, or both uninsured and398
underinsured motorist coverages being implied as a matter of law399
in any insurance policy;400

       (3) Provide statutory authority for the inclusion of401
exclusionary or limiting provisions in uninsured motorist402
coverage, underinsured motorist coverage, or both uninsured and403
underinsured motorist coverages;404

       (4) Eliminate any requirement of a written offer, selection,405
or rejection form for uninsured motorist coverage, underinsured406
motorist coverage, and uninsured and underinsured motorist407
coverages from any transaction for an insurance policy;408

       (5) Ensure that a mandatory offer of uninsured motorist409
coverage, underinsured motorist coverage, or both uninsured and410
underinsured motorist coverages not be construed to be required by411
the provisions of section 3937.181 of the Revised Code, as amended412
by this act, that make uninsured motorist property damage coverage413
available under limited conditions.414

       (C) Provide statutory authority for provisions limiting the415
time period within which an insured may make a claim under416
uninsured motorist coverage, underinsured motorist coverage, or417
both uninsured and underinsured motorist coverages to three years418
after the date of the accident causing the injury;419

       (D) To supersede the holdings of the Ohio Supreme Court in420
those cases previously superseded by Am. Sub. S.B. 20 of the 120th421
General Assembly, Am. Sub. H.B. 261 of the 122nd General Assembly,422
S.B. 57 of the 123rd General Assembly, and Sub. S.B. 267 of the423
123rd General Assembly;424

       (E) To supersede the holdings of the Ohio Supreme Court in425
Linko v. Indemnity Ins. Co. of N. America (2000), 90 Ohio St. 3d426
445, Scott-Pontzer v. Liberty Mut. Fire Ins. Co. (1999), 85 Ohio427
St. 3d 660, Schumacher v. Kreiner (2000), 88 Ohio St. 3d 358,428
Sexton v. State Farm Mut. Auto. Ins. Co. (1982), 69 Ohio St. 2d429
431, Gyori v. Johnston Coca-Cola Bottling Group, Inc. (1996), 76430
Ohio St. 3d 565, and their progeny.431

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