Vermont S 7: An act relating to social service integration with Vermont's health care system

Bill Text

BILLAS INTRODUCED AND PASSED BY SENATE S.7
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S.7
Introduced by Senator Hashim
Referred to Committee on Judiciary
Date: January 14, 2025
Subject: Insurance; automobile; underinsured motorist coverage; medical
payments coverage
Statement of purpose of bill as introduced: This bill proposes to amend
Vermont law as it pertains to automobile insurance. Specifically, the bill
prohibits an insurer from deducting from the underinsurance motorist coverage
available to a policyholder any payments received by the policyholder through
the at-fault driver’s liability insurance policy. It also limits an insurer’s
subrogation rights with respect to medical payments coverage.
An act relating to automobile insurance
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 23 V.S.A. § 941 is amended to read:
§ 941. INSURANCE AGAINST UNINSURED, UNDERINSURED, OR
UNKNOWN MOTORISTS
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BILLAS INTRODUCED AND PASSED BY SENATE S.7
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(f) For the purpose of this subchapter, a motor vehicle is underinsured to
the extent that:
(1) the liability insurance limits applicable at the time of the crash are
less than the limits of the uninsured motorist coverage applicable to the insured
damages that a person insured pursuant to this section is legally entitled to
recover because of injury or death; or
(2) the available liability insurance has been reduced by payments to
others injured in the crash to an amount less than the limits of the uninsured
motorist coverage applicable to the insured damages that a person insured
pursuant to this section is legally entitled to recover because of injury or death.
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(h) Payments made to an injured party under the liability insurance policy
of the person legally responsible for the damage or personal injury shall not be
deducted from the underinsured motorist coverage otherwise available to the
injured party.
Sec. 2. 8 V.S.A. § 4203(4) is amended to read:
(4) Payment of any judicial judgment or claim by the insured for any of
the company’s liability under the policy shall not bar the insured from any
action or right of action against the company. In case of payment of loss or
expense under the policy, the company shall be subrogated to all rights of the
insured against any party, as respects such loss or expense, to the amount of
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such payment, and the insured shall execute all papers required and shall
cooperate with the company to secure to the company such rights. However,
the right of subrogation against any third party shall not exist or be claimed in
favor of the insurer who has paid or reimbursed, to or for the benefit of the
insured, medical costs payable pursuant to medical payments coverage.
Sec. 3. EFFECTIVE DATE; APPLICATION
This act shall take effect on passage and shall apply to all automobile
insurance policies offered, issued, or renewed on or after January 1, 2026.
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