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DRAFT COMMITTEE PRINT 1
Committee of the Whole 2
May 5, 2026 3
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A BILL 6
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_____26-57_____ 8
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 11
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To amend the Compulsory/No-Fault Motor Vehicle Insurance Act of 1982 to increase the 16
mandatory minimum motor vehicle insurance requirements for property damage liability 17
and third-party liability coverage, to require insurers to provide enhanced underinsured 18
motor vehicle coverage under a passenger vehicle liability insurance policy, and to 19
increase the mandatory minimum motor vehicle insurance requirements for property 20
damage liability third-party liability, underinsured motor vehicle, and enhanced 21
underinsured motor vehicle coverage by a set increment beginning on January 1, 2037 22
and on January 1 every 10 years after January 1, 2037. 23
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COUMBIA, that this act 25
may be cited as the “Motor Vehicle Insurance Modernization Amendment Act of 2026”. 26
Sec. 2. Section 7 of the Compulsory/No-Fault Motor Vehicle Insurance Act of 1982, 27
effective September 18, 1982 (D.C. Law 4-155; D.C. Official Code § 31-2406), is amended as 28
follows: 29
(a) Subsection (a)(1)(D) is amended by striking the phrase “and (iii) uninsured motorist 30
protection.” and inserting the phrase “(iii) enhanced underinsured motorist protection or 31
underinsured motorist protection; and (iv) uninsured motorist protection.” in its place. 32
(b) Subsection (b) is amended by striking the phrase “$10,000 for property damage in any 33
1 accident” and inserting the phrase “$20,000 for property damage injured in any one accident” 34
in its place. 35
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(c) Subsection (c) is amended by striking the phrase “be $25,000 per person injured in 36
any 1 accident and $50,000 for all persons injured in any 1 accident” and inserting the phrase “be 37
$50,000 per person injured in any one accident and $100,000 for all persons injured in any one 38
accident” in its place. 39
(d) Subsection (c-1) is amended as follows: 40
(1) The last sentence of the subsection is amended to read as follows “Insurance 41
that includes only underinsured motor vehicle coverage, and not enhanced underinsured motor 42
vehicle coverage, may include terms and conditions that preclude stacking of underinsured motor 43
vehicle coverage.” 44
(d) Subsection (f) is amended as follows: 45
(1) Paragraph (2) is amended by striking the phrase “amounts of $25,000 per 46
person injured in any 1 accident, or $50,000 for all persons injured in any 1 accident, and 47
coverage for property damage in an amount of $5,000 for property damage in any 1 accident” 48
and inserting the phrase “amounts of $50,000 per person injured in any one accident, or 49
$100,000 for all persons injured in any one accident, and coverage for property damage in an 50
amount of $20,000 for property damage in any one accident” in its place. 51
(2) Paragraph (4) is amended by striking the phrase “in any 1 accident” both times 52
it appears and inserting the phrase “in any one accident” in its place. 53
(e) A new subsection (f-1) is added to read as follows: 54
“(f-1) Enhanced underinsured motorist protection. -- Enhanced underinsured motorist 55
protection is for the protection of an insured who is legally entitled to recover damages from the 56
owner or operator of an underinsured motor vehicle. 57
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“(1)(A) The limit of liability for an insurer that provides enhanced underinsured 58
motor vehicle coverage is the amount of that coverage without any reduction for the amount paid 59
to the insured, that exhausts any applicable liability insurance policies, bonds, and securities on 60
behalf of any person that may be held liable for the bodily injuries or death of the insured; and 61
“(B) A policy providing excess coverage may include enhanced 62
underinsured motor vehicle coverage, in an amount equal to but not greater than the excess 63
coverage in the policy. A policy that, as its primary purpose, provides coverage in excess of 64
other valid and collectible insurance or qualified self-insurance may include the enhanced 65
underinsured motor vehicle coverage. 66
“(2) Unless waived in accordance with this subsection, each insurer selling motor 67
vehicle insurance in the District with respect to any motor vehicle registered or principally 68
garaged in the District shall include coverage for enhanced underinsured motor vehicle 69
insurance. 70
“(A) The amount of enhanced underinsured motorist coverage provided 71
under a private passenger motor vehicle liability insurance policy shall not exceed the amount of 72
uninsured motorist coverage provided under the policy. 73
“(B) Such policy shall contain coverage for damages, subject to the policy 74
limits, that: 75
“(i) The insured is entitled to recover from the owner or operator of 76
an underinsured motor vehicle because of bodily injuries sustained in a motor vehicle accident 77
arising out of the ownership, maintenance, or use of the underinsured motor vehicle; and 78
“(ii) A survivor of the insured is entitled to recover from the owner 79
or operator of an underinsured motor vehicle because the insured died as the result of a motor 80
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vehicle accident arising out of the ownership, maintenance, or use of the underinsured motor 81
vehicle. 82
“(C) An insurer may exclude the following from the enhanced 83
underinsured motor vehicle coverage benefits: 84
“(i) The named insured or a family member of the named insured 85
who resides in the named insured’s household for an injury that occurs when the named insured 86
or family member is occupying or is struck as a pedestrian by an underinsured motor vehicle that 87
is owned by the named insured or an immediate family member of the named insured who 88
resides in the named insured’s household; and 89
“(ii) The named insured, a family member of the named insured 90
who resides in the named insured’s household, and any other individual who has other applicable 91
motor vehicle insurance for an injury that occurs when the named insured, family member, or 92
other individual is occupying or is stuck as a pedestrian by the insured motor vehicle while the 93
motor vehicle is operated or used by an individual who is excluded from coverage under District 94
law. 95
“(3) If the first named insured does not wish to obtain the enhanced underinsured 96
motorist coverage under this section, the first named insured shall make an affirmative written 97
statement waiving the coverage. 98
“(A) A waiver made under this subsection is not effective unless, before 99
the waiver, the insurer gives the first named insured written notice of the nature, extent, benefit, 100
and cost of the level of the enhanced underinsured motorist coverage being waived. 101
“(B) A waiver made under this subsection shall be made on a form that the 102
Commissioner requires. The form: 103
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“(i) May be part of the insurance contract; 104
“(ii) Shall clearly explain that if the first named insured chooses to 105
waive enhanced underinsured motorist coverage, the first named insured shall have the option to 106
select traditional underinsured motorist coverage or no underinsured motorist coverage; and 107
“(iii) Shall clearly and concisely explain in at least 12-point 108
boldface type: 109
“(I) The nature, extent, benefit, and cost of the level of the 110
enhanced underinsured motorist coverage that would be provided under the policy if not waived 111
by the first named insured; 112
“(II) That a failure of the first named insured to make a 113
waiver requires the insurer to provide enhanced underinsured motorist coverage; 114
“(III) That the insurer may not refuse to underwrite a 115
person because the person refuses to waive the enhanced underinsured motorist coverage under 116
this subsection; and 117
“(IV) That a waiver made under this subsection must be an 118
affirmative written waiver. 119
“(4) If the first named insured does not make an affirmative written statement 120
waiving the enhanced underinsured motorist coverage, the insurer shall provide the coverage 121
under this section.” 122
“(5) Unless the first named insured affirmatively makes a change in writing, the 123
election to obtain enhanced underinsured motorist coverage applies to all subsequent renewals of 124
coverage and to all other policies or endorsements that extend, change, supersede, or replace an 125
existing private passenger motor vehicle insurance policy issued to the first named insured.” 126
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“(6) A provision in a passenger motor vehicle liability insurance policy issued on 127
or after the applicability date of the Motor Vehicle Insurance Modernization Amendment Act of 128
2026, passed on 1st reading on May 5, 2026 (Engrossed version of Bill 26-57),, about coverage 129
for damages sustained by the insured as a result of the operation of an underinsured motor 130
vehicle that requires a dispute between the insured and the insurer to be submitted to binding 131
arbitration is prohibited. 132
“(7) Subsection (f-1)(5) and (6) of this section shall apply to persons who are 133
insurers and the insured under this subsection.”. 134
(f) New subsections (i) and (j) are added to read as follows: 135
“(i) Beginning on January 1, 2037, and on January 1 every 10 years after January 1, 2037, 136
the amounts provided in subsections (c) and (f) of this section shall increase as follows: 137
“(1) The amount per person injured in any one accident shall increase by $5,000; 138
“(2) The amount for all persons injured in any one accident shall increase by 139
$10,000; and 140
“(3) The amount of coverage for property damage in any one accident shall 141
increase by $2,000. 142
“(4) The amounts described in paragraphs (1), (2) and (3) of this subsection shall 143
apply to causes of action arising between January 1 on the year of the increase and December 31 144
of that year prior to the next increase. 145
“(j) The Commissioner shall publish notice of any increase under subsection (i) of this 146
section on the Department’s website and in the District of Columbia Register at least 2 months 147
prior to the effective date of any such increase. 148
Sec. 3. Applicability 149
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This act shall apply as of October 1, 2027. 150
Sec. 4. Fiscal impact statement. 151
The Council adopts the fiscal impact statement in the committee report as the fiscal 152
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 153
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 154
Sec. 5. Effective date. 155
This act shall take effect following approval by the Mayor (or in the event of veto by the 156
Mayor, action by the Council to override the veto), a 30-day period of Congressional review as 157
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 158
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 159
Columbia Register. 160
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