Bill Text: OH HB432 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To prohibit automobile insurance policies that include uninsured and underinsured coverage from excluding coverage for family members solely on the basis of that relationship and from limiting or contradicting coverage requirements specified in law.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2012-01-31 - To Insurance [HB432 Detail]

Download: Ohio-2011-HB432-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 432

Representative Boyd 

Cosponsors: Representatives Murray, Foley, Okey, Weddington, Letson, O'Brien 

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A BILL

To amend section 3937.18 of the Revised Code to

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prohibit automobile insurance policies that

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include uninsured and underinsured coverage from

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excluding coverage for family members solely on

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the basis of that relationship and from limiting

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or contradicting coverage requirements specified

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in law.

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

Section 1. That section 3937.18 of the Revised Code be	8
amended to read as follows:	9

Sec. 3937.18.  (A) Any policy of insurance delivered or	10
issued for delivery in this state with respect to any motor	11
vehicle registered or principally garaged in this state that	12
insures against loss resulting from liability imposed by law for	13
bodily injury or death suffered by any person arising out of the	14
ownership, maintenance, or use of a motor vehicle, may, but is not	15
required to, include uninsured motorist coverage, underinsured	16
motorist coverage, or both uninsured and underinsured motorist	17
coverages.	18

Unless otherwise defined in the policy or any endorsement to	19
the policy, "motor vehicle," for purposes of the uninsured	20
motorist coverage, underinsured motorist coverage, or both	21
uninsured and underinsured motorist coverages, means a	22
self-propelled vehicle designed for use and principally used on	23
public roads, including an automobile, truck, semi-tractor,	24
motorcycle, and bus. "Motor vehicle" also includes a motor home,	25
provided the motor home is not stationary and is not being used as	26
a temporary or permanent residence or office. "Motor vehicle" does	27
not include a trolley, streetcar, trailer, railroad engine,	28
railroad car, motorized bicycle, golf cart, off-road recreational	29
vehicle, snowmobile, fork lift, aircraft, watercraft, construction	30
equipment, farm tractor or other vehicle designed and principally	31
used for agricultural purposes, mobile home, vehicle traveling on	32
treads or rails, or any similar vehicle.	33

(B) For purposes of any uninsured motorist coverage included	34
in a policy of insurance, an "uninsured motorist" is the owner or	35
operator of a motor vehicle if any of the following conditions	36
applies:	37

(1) There exists no bodily injury liability bond or insurance	38
policy covering the owner's or operator's liability to the	39
insured.	40

(2) The liability insurer denies coverage to the owner or	41
operator, or is or becomes the subject of insolvency proceedings	42
in any state.	43

(3) The identity of the owner or operator cannot be	44
determined, but independent corroborative evidence exists to prove	45
that the bodily injury, sickness, disease, or death of the insured	46
was proximately caused by the negligence or intentional actions of	47
the unidentified operator of the motor vehicle. For purposes of	48
division (B)(3) of this section, the testimony of any insured	49
seeking recovery from the insurer shall not constitute independent	50
corroborative evidence, unless the testimony is supported by	51
additional evidence.	52

(4) The owner or operator has diplomatic immunity.

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(5) The owner or operator has immunity under Chapter 2744. of	54
the Revised Code.	55

An "uninsured motorist" does not include the owner or	56
operator of a motor vehicle that is self-insured within the	57
meaning of the financial responsibility law of the state in which	58
the motor vehicle is registered.	59

(C) If underinsured motorist coverage is included in a policy	60
of insurance, the underinsured motorist coverage shall provide	61
protection for insureds thereunder for bodily injury, sickness, or	62
disease, including death, suffered by any insured under the	63
policy, where the limits of coverage available for payment to the	64
insured under all bodily injury liability bonds and insurance	65
policies covering persons liable to the insured are less than the	66
limits for the underinsured motorist coverage. Underinsured	67
motorist coverage in this state is not and shall not be excess	68
coverage to other applicable liability coverages, and shall only	69
provide the insured an amount of protection not greater than that	70
which would be available under the insured's uninsured motorist	71
coverage if the person or persons liable to the insured were	72
uninsured at the time of the accident. The policy limits of the	73
underinsured motorist coverage shall be reduced by those amounts	74
available for payment under all applicable bodily injury liability	75
bonds and insurance policies covering persons liable to the	76
insured.	77

For purposes of underinsured motorist coverage, an	78
"underinsured motorist" does not include the owner or operator of	79
a motor vehicle that has applicable liability coverage in the	80
policy under which the underinsured motorist coverage is provided.	81

(D) With respect to the uninsured motorist coverage,	82
underinsured motorist coverage, or both uninsured and underinsured	83
motorist coverages included in a policy of insurance, an insured	84
shall be required to prove all elements of the insured's claim	85
that are necessary to recover from the owner or operator of the	86
uninsured or underinsured motor vehicle.	87

(E) The uninsured motorist coverage, underinsured motorist	88
coverage, or both uninsured and underinsured motorist coverages	89
included in a policy of insurance shall not be subject to an	90
exclusion or reduction in amount because of any workers'	91
compensation benefits payable as a result of the same injury or	92
death.	93

(F) No policy of insurance that includes uninsured motorist	94
coverage, underinsured motorist coverage, or both uninsured and	95
underinsured motorist coverages shall exclude coverage for any	96
individual solely on the basis that the individual is a family	97
member of the owner or operator of the motor vehicle.	98

(G) Any policy of insurance that includes uninsured motorist	99
coverage, underinsured motorist coverage, or both uninsured and	100
underinsured motorist coverages may, without regard to any	101
premiums involved, include terms and conditions that preclude any	102
and all stacking of such coverages, including but not limited to:	103

(1) Interfamily stacking, which is the aggregating of the	104
limits of such coverages by the same person or two or more	105
persons, whether family members or not, who are not members of the	106
same household;	107

(2) Intrafamily stacking, which is the aggregating of the	108
limits of such coverages purchased by the same person or two or	109
more family members of the same household.	110

(G)(H) Any policy of insurance that includes uninsured	111
motorist coverage, underinsured motorist coverage, or both	112
uninsured and underinsured motorist coverages and that provides a	113
limit of coverage for payment of damages for bodily injury,	114
including death, sustained by any one person in any one automobile	115
accident, may, notwithstanding Chapter 2125. of the Revised Code,	116
include terms and conditions to the effect that all claims	117
resulting from or arising out of any one person's bodily injury,	118
including death, shall collectively be subject to the limit of the	119
policy applicable to bodily injury, including death, sustained by	120
one person, and, for the purpose of such policy limit shall	121
constitute a single claim. Any such policy limit shall be	122
enforceable regardless of the number of insureds, claims made,	123
vehicles or premiums shown in the declarations or policy, or	124
vehicles involved in the accident.	125

(H)(I) Any policy of insurance that includes uninsured	126
motorist coverage, underinsured motorist coverage, or both	127
uninsured and underinsured motorist coverages may include terms	128
and conditions requiring that, so long as the insured has not	129
prejudiced the insurer's subrogation rights, each claim or suit	130
for uninsured motorist coverage, underinsured motorist coverage,	131
or both uninsured and underinsured motorist coverages be made or	132
brought within three years after the date of the accident causing	133
the bodily injury, sickness, disease, or death, or within one year	134
after the liability insurer for the owner or operator of the motor	135
vehicle liable to the insured has become the subject of insolvency	136
proceedings in any state, whichever is later.	137

(I) Any(J) Except as otherwise provided in this section, any	138
policy of insurance that includes uninsured motorist coverage,	139
underinsured motorist coverage, or both uninsured and underinsured	140
motorist coverages may include terms and conditions that preclude	141
coverage for bodily injury or death suffered by an insured under	142
specified circumstances, including but not limited to any of the	143
following circumstances:	144

(1) While the insured is operating or occupying a motor	145
vehicle owned by, furnished to, or available for the regular use	146
of a named insured, a spouse, or a resident relative of a named	147
insured, if the motor vehicle is not specifically identified in	148
the policy under which a claim is made, or is not a newly acquired	149
or replacement motor vehicle covered under the terms of the policy	150
under which the uninsured motorist coverage, underinsured motorist	151
coverage, or both uninsured and underinsured motorist coverages	152
are provided;	153

(2) While the insured is operating or occupying a motor	154
vehicle without a reasonable belief that the insured is entitled	155
to do so, provided that under no circumstances will an insured	156
whose license has been suspended, revoked, or never issued, be	157
held to have a reasonable belief that the insured is entitled to	158
operate a motor vehicle;	159

(3) When the bodily injury or death is caused by a motor	160
vehicle operated by any person who is specifically excluded from	161
coverage for bodily injury liability in the policy under which the	162
uninsured motorist coverage, underinsured motorist coverage, or	163
both uninsured and underinsured motorist coverages are provided;	164

(4) While any employee, officer, director, partner, trustee,	165
member, executor, administrator, or beneficiary of the named	166
insured, or any relative of any such person, is operating or	167
occupying a motor vehicle, unless the employee, officer, director,	168
partner, trustee, member, executor, administrator, beneficiary, or	169
relative is operating or occupying a motor vehicle for which	170
uninsured motorist coverage, underinsured motorist coverage, or	171
both uninsured and underinsured motorist coverages are provided in	172
the policy;	173

(5) When the person actually suffering the bodily injury,	174
sickness, disease, or death is not an insured under the policy.	175

(J) In(K) No policy of insurance that includes uninsured	176
motorist coverage, underinsured motorist coverage, or both	177
uninsured and underinsured motorist coverages shall include terms	178
and conditions that contradict or limit the provisions of this	179
section.	180

(L) In the event of payment to any person under the uninsured	181
motorist coverage, underinsured motorist coverage, or both	182
uninsured and underinsured motorist coverages, and subject to the	183
terms and conditions of that coverage, the insurer making such	184
payment is entitled, to the extent of the payment, to the proceeds	185
of any settlement or judgment resulting from the exercise of any	186
rights of recovery of that person against any person or	187
organization legally responsible for the bodily injury or death	188
for which the payment is made, including any amount recoverable	189
from an insurer that is or becomes the subject of insolvency	190
proceedings, through such proceedings or in any other lawful	191
manner. No insurer shall attempt to recover any amount against the	192
insured of an insurer that is or becomes the subject of insolvency	193
proceedings, to the extent of those rights against the insurer	194
that the insured assigns to the paying insurer.	195

(K)(M) Nothing in this section shall prohibit the inclusion	196
of underinsured motorist coverage in any uninsured motorist	197
coverage included in a policy of insurance.	198

(L)(N) The superintendent of insurance shall study the market	199
availability of, and competition for, uninsured and underinsured	200
motorist coverages in this state and shall, from time to time,	201
prepare status reports containing the superintendent's findings	202
and any recommendations. The first status report shall be prepared	203
not later than two years after the effective date of this	204
amendmentOctober 31, 2001. To assist in preparing these status	205
reports, the superintendent may require insurers and rating	206
organizations operating in this state to collect pertinent data	207
and to submit that data to the superintendent.	208

The superintendent shall submit a copy of each status report	209
to the governor, the speaker of the house of representatives, the	210
president of the senate, and the chairpersons of the committees of	211
the general assembly having primary jurisdiction over issues	212
relating to automobile insurance.	213

Section 2. That existing section 3937.18 of the Revised Code	214
is hereby repealed.	215

Section 3.  It is the intent of the General Assembly in	216
amending divisions (J) and (K) of section 3937.18 of the Revised	217
Code as those divisions appear in this act to supersede the effect	218
of the holding of the Ohio Supreme Court in Snyder v. American	219
Family Insurance Company (2007), 114 Ohio St. 3d 239, 2007 Ohio	220
4004. The General Assembly further declares its intent that	221
division (I) of section 3937.18 of the Revised Code, relettered	222
division (J) in this act, does not make the other provisions of	223
section 3937.18 of the Revised Code merely advisory, but rather	224
that division permits terms and conditions that do not limit or	225
contradict the other provisions of the section.	226