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| SPONSOR: | Payne | DATE TYPED: | 02/17/01 | HB | |||
| SHORT TITLE: | Uninsured Motorist Insurance Coverage | SB | 230 | ||||
| ANALYST: | Wilson | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY01 | FY02 | FY01 | FY02 | ||
| NFI | |||||
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
Public Regulation Commission (PRC)
SUMMARY
Synopsis of Bill
SB 230 allows coverage for punitive damages to be excluded from uninsured motorist coverage.
Significant Issues
Currently uninsured motorist coverage protects an insured against damage caused by an uninsured motorist. The PRC claims that if the insured's insurance company is required to pay for punitive damages rather than the individual who caused the damages, it will cause insurance premiums to rise. In addition, the individual who incurred the punitive damages will not be punished.
On the other hand, if SB 230 passes, an insured may not be able to collect punitive damages from the uninsured motorist.
ADMINISTRATIVE IMPLICATIONS
Automobile insurers will have to refile coverage forms.
DUPLICATION
HB 695 (Except for the short title)
POSSIBLE QUESTIONS
If SB 230 passes, would the consumer have a choice about whether or not to elect to be insured for punitive damages under uninsured motorist coverage, or would the insurance companies be able to simply not offer it?
DW/ar