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S2633A
2026 -- S 2633 SUBSTITUTE A
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LC004827/SUB A
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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 -- UNINSURED MOTORIST
COVERAGE
Introduced By:
Senators Tikoian, and Ciccone
Date Introduced:
February 13, 2026
Referred To:
Senate Judiciary
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
or underinsured
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motor vehicles and hit-and-run motor vehicles because of property damage, bodily injury, sickness,
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or disease, including death, resulting from that injury, sickness, or disease. The insurer shall provide
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uninsured motorist coverage
and underinsured motorist bodily injury coverage
in an amount equal
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to the insured’s bodily injury liability limits. The named insured shall have the option of selecting
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a limit in writing less than the bodily injury liability coverage, but in no event less than the limits
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set forth in § 31-47-2(13)(i)(A), unless the named insured is purchasing only the minimum coverage
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required by compulsory insurance provisions of the general laws, in which case the limit can be
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reduced to zero, but only after signing an advisory notice approved by the director of business
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regulation concerning the hazard of uninsured and underinsured motorists. That coverage shall also
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apply in the case of a responsible party whose liability insurance carrier was insolvent at the time
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of the accident or became insolvent subsequent 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) An insurer shall offer for purchase underinsured motorist property damage coverage for
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private passenger automobiles. Underinsured motorist property damage coverage may be offered
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together with uninsured motorist property damage coverage. No insured shall be obligated to
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purchase underinsured motorist property damage coverage, but any insured without collision
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coverage shall have the option to reject underinsured motorist property damage coverage in writing.
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(c)
(d)
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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(3) “Underinsured motorist bodily injury” provides coverage when the owner or operator
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of a motor vehicle who carries automobile liability insurance with coverage in an amount less than
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the limits or damages that persons insured pursuant to this section are legally entitled to recover
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because of bodily injury, sickness, or disease, including death, resulting from that injury, sickness,
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or disease; and
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(4) “Underinsured motorist property damage” provides coverage when the owner or
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operator of a motor vehicle who carries automobile liability insurance with coverage in an amount
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less than the limits or damages that persons insured pursuant to this section are legally entitled to
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recover because of property damage
.
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(d)
(e)
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
LC004827/SUB A - Page 2 of 3
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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)
(f)
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)
(g)
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
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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 April 1, 2027.
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LC004827/SUB A - Page 3 of 3
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- LIABILITY INSURANCE -- UNINSURED MOTORIST
COVERAGE
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This act would add property damage to statutory underinsured motor coverage, rather than
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just uninsured motorist coverage, as it is presently.
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This act would take effect on April 1, 2027.
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