Read the full stored bill text
H7520A
2026 -- H 7520 SUBSTITUTE A
========
LC004854/SUB A
========
STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO INSURANCE -- LIABILITY INSURANCE -- UNINSURED MOTORIST
COVERAGE
Introduced By:
Representatives Corvese, J. Brien, DeSimone, Read, Azzinaro, Shanley,
and Noret
Date Introduced:
February 06, 2026
Referred To:
House Corporations
It is enacted by the General Assembly as follows:
1
SECTION 1. Section 27-7-2.1 of the General Laws in Chapter 27-7 entitled "Liability
2
Insurance" is hereby amended to read as follows:
3
27-7-2.1. Uninsured motorist coverage.
4
(a) No policy insuring against loss resulting from liability imposed by law for property
5
damage caused by collision, bodily injury, or death suffered by any person arising out of the
6
ownership, maintenance, or use of a motor vehicle shall be delivered or issued for delivery in this
7
state with respect to any motor vehicle registered or principally garaged in this state unless coverage
8
is provided in or supplemental to the policy, for bodily injury or death in limits set forth in each
9
policy, but in no instance less than the limits set forth in § 31-47-2(13)(i)(A) under provisions
10
approved by the insurance commissioner, for the protection of persons insured under the policy
11
who are legally entitled to recover damages from owners or operators of uninsured
or underinsured
12
motor vehicles and hit-and-run motor vehicles because of property damage, bodily injury, sickness,
13
or disease, including death, resulting from that injury, sickness, or disease. The insurer shall provide
14
uninsured motorist coverage
and underinsured motorist bodily injury coverage
in an amount equal
15
to the insured’s bodily injury liability limits. The named insured shall have the option of selecting
16
a limit in writing less than the bodily injury liability coverage, but in no event less than the limits
17
set forth in § 31-47-2(13)(i)(A), unless the named insured is purchasing only the minimum coverage
18
required by compulsory insurance provisions of the general laws, in which case the limit can be
1
reduced to zero, but only after signing an advisory notice approved by the director of business
2
regulation concerning the hazard of uninsured and underinsured motorists. That coverage shall also
3
apply in the case of a responsible party whose liability insurance carrier was insolvent at the time
4
of the accident or became insolvent subsequent to the accident.
5
(b) Notwithstanding the provisions of subsection (a), the named insured shall have the
6
option to reject, in writing, uninsured motorist coverage for loss resulting from damage to property.
7
If the named insured has collision coverage for property damage to his or her vehicle, then no
8
coverage for uninsured motorist property damage shall be required unless the insured at his or her
9
option chooses to purchase that coverage.
10
(c) An insurer shall offer for purchase underinsured motorist property damage coverage for
11
private passenger automobiles. Underinsured motorist property damage coverage may be offered
12
together with uninsured motorist property damage coverage. No insured shall be obligated to
13
purchase underinsured motorist property damage coverage, but any insured without collision
14
coverage shall have the option to reject underinsured motorist property damage coverage in writing.
15
(c)
(d)
For the purposes of this section:
16
(1) “Policy insuring against loss” means a policy that provides primary coverage for the
17
insured motor vehicle;
and
18
(2) “Property damage” means injury to or destruction of the insured vehicle, including its
19
loss of use and any property, excluding business property, owned by the insured while contained
20
in the insured vehicle
;
21
(3) “Underinsured motorist bodily injury” provides coverage when the owner or operator
22
of a motor vehicle who carries automobile liability insurance with coverage in an amount less than
23
the limits or damages that persons insured pursuant to this section are legally entitled to recover
24
because of bodily injury, sickness, or disease, including death, resulting from that injury, sickness,
25
or disease; and
26
(4) “Underinsured motorist property damage” provides coverage when the owner or
27
operator of a motor vehicle who carries automobile liability insurance with coverage in an amount
28
less than the limits or damages that persons insured pursuant to this section are legally entitled to
29
recover because of property damage
.
30
(d)
(e)
After the selection of limits by the named insured or the exercise of the right to reject
31
that portion of the coverage that applies to property damage, the insurer or any affiliated insurer
32
shall be required to notify the policyholder, in any renewal, reinstatement, substitute, amended,
33
altered, modified, transfer, or replacement policy, as to the availability of that coverage or optional
34
limits. The insured may, subject to the limitations expressed in this chapter, make a written request
LC004854/SUB A - Page 2 of 4
1
for higher limits, newly added coverage, or coverage more extensive than that provided on a prior
2
policy.
3
(e)
(f)
Property damage caused by collision shall be subject to a two hundred dollar ($200)
4
deductible per claim unless otherwise agreed. Any claim submitted under the property damage
5
portion of this section must include the name, address, and other means of identification to establish
6
that the at-fault operator is without insurance. The rate for this coverage will be established as a
7
percentage of the existing base collision insurance rate as utilized by the majority of companies, to
8
be determined by the insurance commissioner.
9
(f)
(g)
Whenever, through subrogation, an insurance company or its insurance producer
10
collects a casualty loss from a third party, that company or insurance producer shall, from the funds
11
collected, first pay to the insured the deductible portion of the casualty loss less the prorated share
12
of subrogation expense and only after this retain any funds in excess of the deductible portion of
13
the recovery.
14
(g) For the purposes of this section “uninsured motorist” shall include an underinsured
15
motorist. An “underinsured motorist” is the owner or operator of a motor vehicle who carries
16
automobile liability insurance with coverage in an amount less than the limits or damages that
17
persons insured pursuant to this section are legally entitled to recover because of bodily injury,
18
sickness, or disease, including death, resulting from that injury, sickness, or disease.
19
(h) A person entitled to recover damages pursuant to this section shall not be required to
20
make a claim against or bring an action against the uninsured or underinsured tortfeasor as a
21
prerequisite to recover damages from the insurer providing coverage pursuant to this section. In the
22
event that the person entitled to recover against an underinsured motorist recovers from the insurer
23
providing coverage pursuant to this section, that insurer shall be entitled to subrogation rights
24
against the underinsured motorist and his or her insurance carrier. Release of the tortfeasor with the
25
consent of the company providing the underinsured coverage shall not extinguish or bar the claim
26
of the insured against the underinsurance carrier regardless of whether the claim has been
27
liquidated.
28
(i) Whenever an insured has paid two (2) or more separate premiums for uninsured
29
motorists’ coverage in a single policy of insurance or under several policies with the same insurance
30
company, the insured shall be permitted to collect up to the aggregate amount of coverage for all
31
of the vehicles insured, regardless of any language in the policy to the contrary.
32
SECTION 2. This act shall take effect on April 1, 2027.
========
LC004854/SUB A
========
LC004854/SUB A - Page 3 of 4
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- LIABILITY INSURANCE -- UNINSURED MOTORIST
COVERAGE
***
1
This act would add property damage to statutory underinsured motor coverage, rather than
2
just uninsured motorist coverage, as it is presently.
3
This act would take effect on April 1, 2027.
========
LC004854/SUB A
========
LC004854/SUB A - Page 4 of 4