The introduction of H7863 signifies a significant change in the insurance landscape of the state, ensuring that all drivers have a basic level of protection against uninsured motorists. This is particularly important, as it addresses the growing concern over hit-and-run incidents and financial burdens placed on victims of such accidents. This coverage must match the bodily injury liability limits set forth in state regulations, ensuring that the minimum level of protection is available to all insured individuals.
Summary
House Bill 7863 aims to amend the existing laws regarding liability insurance by providing mandatory uninsured motorist coverage for vehicles registered in the state. The bill specifies that no insurance policy may be issued in the state without including coverage for bodily injury or death caused by uninsured or hit-and-run motorists. This requirement is intended to protect drivers and passengers who are at risk of financial loss due to accidents involving drivers without sufficient insurance.
Contention
While supporters of the bill argue that it provides essential security for drivers and passengers, there may be concerns regarding potential increases in insurance premiums as insurers adjust to these new requirements. The bill allows the named insured to select lower limits than the bodily injury coverage, which could mitigate some of the cost increases. However, opponents might argue that mandating such coverage could place additional financial burdens on drivers, particularly those already struggling to afford insurance.
Implementation
Should the bill pass, it is slated to take effect on January 1, 2027, applying to all new or renewed policies issued after this date. This timeline should allow insurers ample time to adjust their policies and inform clients about the forthcoming changes to their coverage options.
Makes numerous technical corrections related to insurance, provides a definition for "cybersecurity insurance", and would repeal the chapter relating to reciprocal exchanges and interinsurers.
Makes numerous technical corrections related to insurance, provides a definition for "cybersecurity insurance", and would repeal the chapter relating to reciprocal exchanges and interinsurers.
Forbids a motor vehicle liability insurance carrier from considering the zip code of where an insured lives for purposes of calculating their policy premium.
Forbids a motor vehicle liability insurance carrier from considering the zip code of where an insured lives for purposes of calculating their policy premium.
References both the declaration and bylaws of a condominium association as possible sources of association insurance regulation for the condominiums and require additional insurance to protect unit owners, when necessary.
Provide to provide greater clarity in insurance claim settlements, the appraisal process and procedural safeguards to enhance consumer protections against bad faith practices by insurers.
Requires homeowner’s insurance providers to provide two months’ notice before increasing any policy more that 20%. Also caps rate increases for policy holders that are 65 years of age or older and meet certain income limits.