HB 364 -- Underinsured Motorist Insurance

Sponsor:  Clayton

This bill limits the ability of insurance companies to pay
policyholders less than their stated policy limits for
underinsured motorist coverage.  The bill does this with a
statement that an insurance company must pay a policyholder for
their injuries from an underinsured motorist up to the policy
limits.  Along with this statement, the bill prohibits the use
of set offs by an insurance company.  (A set off means the
insurance company reduces the amount it pays to a policyholder
by the amount the underinsured motorist or his or her insurance
company pays.)

In addition, the bill gives an insurance company no right of
subrogation here.  (Subrogation is where the insurance company
can sue the underinsured motorist or their insurance company for
the money they paid to their policyholder.)  Finally, the bill
prohibits an insurance company from requiring that the
policyholder receive its consent before the policyholder can
settle a claim with the underinsured motorist.