Uninsured motorist insurance; liability insurer relieved of costs of defending owner in claim. (HB93)
Introduced By
Del. Terry Kilgore (R-Gate City)
Progress
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Introduced |
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Passed Committee |
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Passed House |
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Passed Senate |
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Signed by Governor |
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Became Law |
Description
Uninsured motorist insurance coverage. Permits a liability insurer to be relieved of the costs of defending the owner or operator in a claim involving property damage or bodily injury, including death, if the liability insurer makes an irrevocable written offer to pay the limits of its policy and notifies any insurer providing underinsured motorist coverage with respect to the claim. The liability insurer retains the duty to defend its insured. If underinsured motorist coverage is provided by more than one insurer, the cost to defend shall be assumed in the same order of priority as applies to payments of underinsured benefits. View Full Text »
Outcome
Bill Has Passed
View Bill's History
Comments
A gift to the insurance companies?
Not at all. THIS IS VERY GOOD FOR INJURED PARTIES. This would prevent the current situation where a low coverage primary insurer tenders its limits, but is stuck defending the case for, in effect, the UIM carrier who has no incentive to settle a case and instead often does not even participate in the case until very close to, or at, trial.
So what you are saying is that injured parties of uninsured motorists will get compensation sooner than they do now?
That would be true in many instances...as it stands now, the UIM carrier gets a free ride with the other carrier defends the case, and has every incentive to keep its fist closed until very shortly before trial, then settle at the last minute.
Thank you for clarifying. It sounds like a good bill then.