AN ACT RELATING TO INSURANCE -- LIABILITY INSURANCE (Provides for mandatory uninsured motorist coverage.)

H7863

2026 -- H 7863
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LC005156
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO INSURANCE -- LIABILITY INSURANCE

Introduced By:
Representative Matthew S. Dawson

Date Introduced:
February 27, 2026

Referred To:
House Corporations
It is enacted by the General Assembly as follows:
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SECTION 1. Section 27-7-2.1 of the General Laws in Chapter 27-7 entitled "Liability
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Insurance" is hereby amended to read as follows:
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27-7-2.1. Uninsured motorist coverage.
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(a) No policy insuring against loss resulting from liability imposed by law for property
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damage caused by collision, bodily injury, or death suffered by any person arising out of the
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ownership, maintenance, or use of a motor vehicle shall be delivered or issued for delivery in this
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state with respect to any motor vehicle registered or principally garaged in this state unless coverage
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is provided in or supplemental to the policy, for bodily injury or death in limits set forth in each
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policy, but in no instance less than the limits set forth in § 31-47-2(13)(i)(A) under provisions
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approved by the insurance commissioner, for the protection of persons insured under the policy
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who are legally entitled to recover damages from owners or operators of uninsured motor vehicles
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and hit-and-run motor vehicles because of property damage, bodily injury, sickness, or disease,
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including death, resulting from that injury, sickness, or disease. The insurer shall provide uninsured
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motorist coverage in an amount equal to the insured’s bodily injury liability limits. The named
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insured shall have the option of selecting a limit in writing less than the bodily injury liability
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coverage, but in no event less than the limits set forth in § 31-47-2(13)(i)(A)
, unless the named
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insured is purchasing only the minimum coverage required by compulsory insurance provisions of
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the general laws, in which case the limit can be reduced to zero, but only after signing an advisory
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notice approved by the director of business regulation concerning the hazard of uninsured and

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underinsured motorists
. That coverage shall also apply in the case of a responsible party whose
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liability insurance carrier was insolvent at the time of the accident or became insolvent subsequent
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to the accident.
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(b)
Notwithstanding the provisions of subsection (a), the named insured shall have the
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option to reject, in writing, uninsured motorist coverage for loss resulting from damage to property.

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If the named insured has collision coverage for property damage to his or her vehicle, then no
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coverage for uninsured motorist property damage shall be required unless the insured at his or her
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option chooses to purchase that coverage.
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(c) For the purposes of this section:
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(1) “Policy insuring against loss” means a policy that provides primary coverage for the
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insured motor vehicle; and
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(2) “Property damage” means injury to or destruction of the insured vehicle, including its
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loss of use and any property, excluding business property, owned by the insured while contained
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in the insured vehicle.
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(d) After the selection of limits by the named insured
or the exercise of the right to reject
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that portion of the coverage that applies to property damage
, the insurer or any affiliated insurer
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shall be required to notify the policyholder, in any renewal, reinstatement, substitute, amended,
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altered, modified, transfer, or replacement policy, as to the availability of that coverage or optional
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limits. The insured may, subject to the limitations expressed in this chapter, make a written request
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for higher limits, newly added coverage, or coverage more extensive than that provided on a prior
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policy.
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(e) Property damage caused by collision shall be subject to a two hundred dollar ($200)
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deductible per claim unless otherwise agreed. Any claim submitted under the property damage
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portion of this section must include the name, address, and other means of identification to establish
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that the at-fault operator is without insurance. The rate for this coverage will be established as a
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percentage of the existing base collision insurance rate as utilized by the majority of companies, to
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be determined by the insurance commissioner.
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(f) Whenever, through subrogation, an insurance company or its insurance producer
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collects a casualty loss from a third party, that company or insurance producer shall, from the funds
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collected, first pay to the insured the deductible portion of the casualty loss less the prorated share
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of subrogation expense and only after this retain any funds in excess of the deductible portion of
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the recovery.
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(g) For the purposes of this section “uninsured motorist” shall include an underinsured
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motorist. An “underinsured motorist” is the owner or operator of a motor vehicle who carries

LC005156 - Page 2 of 4
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automobile liability insurance with coverage in an amount less than the limits or damages that
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persons insured pursuant to this section are legally entitled to recover because of bodily injury,
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sickness, or disease, including death, resulting from that injury, sickness, or disease.
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(h) A person entitled to recover damages pursuant to this section shall not be required to
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make a claim against or bring an action against the uninsured or underinsured tortfeasor as a
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prerequisite to recover damages from the insurer providing coverage pursuant to this section. In the
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event that the person entitled to recover against an underinsured motorist recovers from the insurer
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providing coverage pursuant to this section, that insurer shall be entitled to subrogation rights
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against the underinsured motorist and his or her insurance carrier. Release of the tortfeasor with the
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consent of the company providing the underinsured coverage shall not extinguish or bar the claim
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of the insured against the underinsurance carrier regardless of whether the claim has been
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liquidated.
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(i) Whenever an insured has paid two (2) or more separate premiums for uninsured
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motorists’ coverage in a single policy of insurance or under several policies with the same insurance
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company, the insured shall be permitted to collect up to the aggregate amount of coverage for all
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of the vehicles insured, regardless of any language in the policy to the contrary.
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SECTION 2. This act shall take effect on January 1, 2027, and shall apply prospectively to
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any new or renewed policy of insurance issued or renewed after January 1, 2027.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- LIABILITY INSURANCE
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This act would provide for mandatory uninsured motorist coverage.
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This act would take effect on January 1, 2027, and shall apply prospectively to any new or
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renewed policy of insurance issued or renewed after January 1, 2027.
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