IC 27-7-5
    Chapter 5. Uninsured Motorist Coverage and UnderinsuredMotorist Coverage

IC 27-7-5-1
Repealed
    (Repealed by Acts 1982, P.L.166, SEC.6.)

IC 27-7-5-1.5
Repealed
    (Repealed by P.L.124-2009, SEC.4.)

IC 27-7-5-2
Uninsured and underinsured motorist coverage; requiredcoverage; rejection; commercial policies
    Sec. 2. (a) Except as provided in subsection (d), the insurer shallmake available, in each automobile liability or motor vehicle liabilitypolicy of insurance which is delivered or issued for delivery in thisstate with respect to any motor vehicle registered or principallygaraged in this state, insuring against loss resulting from liabilityimposed by law for bodily injury or death suffered by any person andfor injury to or destruction of property to others arising from theownership, maintenance, or use of a motor vehicle, or in asupplement to such a policy, the following types of coverage:
        (1) in limits for bodily injury or death and for injury to ordestruction of property not less than those set forth inIC 9-25-4-5 under policy provisions approved by thecommissioner of insurance, for the protection of personsinsured under the policy who are legally entitled to recoverdamages from owners or operators of uninsured or underinsuredmotor vehicles because of bodily injury, sickness or disease,including death, and for the protection of persons insured underthe policy who are legally entitled to recover damages fromowners or operators of uninsured motor vehicles for injury to ordestruction of property resulting therefrom; or
        (2) in limits for bodily injury or death not less than those setforth in IC 9-25-4-5 under policy provisions approved by thecommissioner of insurance, for the protection of personsinsured under the policy provisions who are legally entitled torecover damages from owners or operators of uninsured orunderinsured motor vehicles because of bodily injury, sicknessor disease, including death resulting therefrom.
The uninsured and underinsured motorist coverages must beprovided by insurers for either a single premium or for separatepremiums, in limits at least equal to the limits of liability specifiedin the bodily injury liability provisions of an insured's policy, unlesssuch coverages have been rejected in writing by the insured.However, underinsured motorist coverage must be made available inlimits of not less than fifty thousand dollars ($50,000). At theinsurer's option, the bodily injury liability provisions of the insured's

policy may be required to be equal to the insured's underinsuredmotorist coverage. Insurers may not sell or provide underinsuredmotorist coverage in an amount less than fifty thousand dollars($50,000). Insurers must make underinsured motorist coverageavailable to all existing policyholders on the date of the first renewalof existing policies that occurs on or after January 1, 1995, and onany policies newly issued or delivered on or after January 1, 1995.Uninsured motorist coverage or underinsured motorist coverage maybe offered by an insurer in an amount exceeding the limits of liabilityspecified in the bodily injury and property damage liabilityprovisions of the insured's policy.
    (b) A named insured of an automobile or motor vehicle liabilitypolicy has the right, in writing, to:
        (1) reject both the uninsured motorist coverage and theunderinsured motorist coverage provided for in this section; or
        (2) reject either the uninsured motorist coverage alone or theunderinsured motorist coverage alone, if the insurer providesthe coverage not rejected separately from the coverage rejected.
A rejection of coverage under this subsection by a named insured isa rejection on behalf of all other named insureds, all other insureds,and all other persons entitled to coverage under the policy. Noinsured may have uninsured motorist property damage liabilityinsurance coverage under this section unless the insured also hasuninsured motorist bodily injury liability insurance coverage underthis section. Following rejection of either or both uninsured motoristcoverage or underinsured motorist coverage, unless later requestedin writing, the insurer need not offer uninsured motorist coverage orunderinsured motorist coverage in or supplemental to a renewal orreplacement policy issued to the same insured by the same insurer ora subsidiary or an affiliate of the originally issuing insurer. Renewalsof policies issued or delivered in this state which have undergoneinterim policy endorsement or amendment do not constitute newlyissued or delivered policies for which the insurer is required toprovide the coverages described in this section.
    (c) A rejection under subsection (b) must specify:
        (1) that the named insured is rejecting:
            (A) the uninsured motorist coverage;
            (B) the underinsured motorist coverage; or
            (C) both the uninsured motorist coverage and theunderinsured motorist coverage;
        that would otherwise be provided under the policy; and
        (2) the date on which the rejection is effective.
    (d) An insurer is not required to make available the coveragedescribed in subsection (a) in a commercial umbrella or excessliability policy, including a commercial umbrella or excess liabilitypolicy that is issued or delivered to a motor carrier (as defined inIC 8-2.1-17-10) that is in compliance with the minimum levels offinancial responsibility set forth in 49 CFR Part 387.
    (e) A rejection under subsection (b) of uninsured motoristcoverage or underinsured motorist coverage in an underlying

commercial policy of insurance is also a rejection of uninsuredmotorist coverage or underinsured motorist coverage in a commercialumbrella or excess liability policy.
As added by Acts 1982, P.L.166, SEC.1. Amended byP.L.391-1987(ss), SEC.1; P.L.5-1988, SEC.145; P.L.2-1991,SEC.88; P.L.1-1992, SEC.151; P.L.1-1993, SEC.203; P.L.130-1994,SEC.41; P.L.116-1994, SEC.56; P.L.233-1999, SEC.8;P.L.124-2009, SEC.1.

IC 27-7-5-3
Property damage coverage; authorization
    Sec. 3. (a) Insurers shall additionally offer to provide uninsuredmotorist property damage coverage without any deductible amountand may offer uninsured motorist property damage coverage with adeductible of not more than the first three hundred dollars ($300.00)of property damage caused by collision. However, any suchdeductible amount for property damage shall be waived for damageresulting from collision if the insured motor vehicle is legally parkedand unoccupied when involved in a motor vehicle accident for whichthe insured is legally entitled to recover damages from an uninsuredmotorist.
    (b) Property damage losses recoverable under the provisions ofthis chapter are limited to damages to the insured motor vehicle andthe personal property owned by the insured which is contained in theinsured motor vehicle and shall not include the loss of use ofdamaged or destroyed property.
    (c) Any claim for property damage submitted under an uninsuredmotorist coverage must include the name and address of the at-faultoperator and any other information to establish the at-fault operatoris without motor vehicle liability insurance. There shall be noliability imposed upon an insurer where the owner or operator of theother vehicle cannot be identified.
As added by Acts 1982, P.L.166, SEC.2. Amended by P.L.259-1983,SEC.5.

IC 27-7-5-4
"Uninsured motor vehicle" and "underinsured motor vehicle"defined; insurer's insolvency protection
    Sec. 4. (a) For the purpose of this chapter, the term uninsuredmotor vehicle, subject to the terms and conditions of such coverage,means a motor vehicle without liability insurance or a motor vehiclenot otherwise in compliance with the financial responsibilityrequirements of IC 9-25 or any similar requirements applicable underthe law of another state, and includes an insured motor vehicle wherethe liability insurer of the vehicle is unable to make payment withrespect to the legal liability of its insured within the limits specifiedin IC 9-25-4-5 because of insolvency.
    (b) For the purpose of this chapter, the term underinsured motorvehicle, subject to the terms and conditions of such coverage,includes an insured motor vehicle where the limits of coverage

available for payment to the insured under all bodily injury liabilitypolicies covering persons liable to the insured are less than the limitsfor the insured's underinsured motorist coverage at the time of theaccident, but does not include an uninsured motor vehicle as definedin subsection (a).
    (c) An insurer's insolvency protection applies only to accidentsoccurring during a policy period in which its insured's uninsuredmotorist coverage is in effect and where the liability insurer of thetortfeasor becomes insolvent within two (2) years after such anaccident. However, nothing contained in this section shall beconstrued to prevent any insurer from affording insolvencyprotection under terms and conditions more favorable to its insuredthan is provided under this section.
As added by Acts 1982, P.L.166, SEC.3. Amended byP.L.391-1987(ss), SEC.2; P.L.2-1991, SEC.89; P.L.1-1992,SEC.152; P.L.1-1993, SEC.204.

IC 27-7-5-5
Limitations on coverage
    Sec. 5. (a) The policy or endorsement affording coveragespecified in this chapter may provide that the total limit of allinsurers' liability arising out of any one (1) accident shall not exceedthe highest limits under any one (1) policy applicable to the loss, butin no event may coverage be less than the minimum set forth inIC 9-25-4-5.
    (b) When the coverage specified in this chapter is written to applyto one (1) or more motor vehicles under a single automobile liabilitypolicy, such coverage applies only to the operation of those motorvehicles for which a specific uninsured or underinsured motoristpremium charge has been made and does not apply to the operationof any motor vehicles insured under the policy or owned by thenamed insured for which a premium charge has not been made.
    (c) The maximum amount payable for bodily injury underuninsured or underinsured motorist coverage is the lesser of:
        (1) the difference between:
            (A) the amount paid in damages to the insured by or for anyperson or organization who may be liable for the insured'sbodily injury; and
            (B) the per person limit of uninsured or underinsuredmotorist coverage provided in the insured's policy; or
        (2) the difference between:
            (A) the total amount of damages incurred by the insured; and
            (B) the amount paid by or for any person or organizationliable for the insured's bodily injury.
As added by Acts 1982, P.L.166, SEC.4. Amended byP.L.391-1987(ss), SEC.3; P.L.2-1991, SEC.90; P.L.1-1992,SEC.153; P.L.1-1993, SEC.205.

IC 27-7-5-6
Subrogation    Sec. 6. (a) The policy or endorsement affording the coveragespecified in this chapter may also provide that payment to any personof sums as damages under such coverage shall operate to subrogatethe insurer to any cause of action in tort which such person may haveagainst any other person or organization legally responsible for thebodily injury or death, or property damage, because of which suchpayment is made. The insurer shall be subrogated, to the extent ofsuch payment, to the proceeds of any settlement or judgment thatmay later result from the exercise of any rights of recovery of suchperson against any person or organization legally responsible for saidbodily injury or death, or property damage, for which payment ismade by the insurer. Such insurer may enforce such rights in its ownname or in the name of the person to whom payment has been made,as in their interest may appear, by proper action in any court ofcompetent jurisdiction.
    (b) An insurer providing underinsured motorist coverage does nothave a right of subrogation against an underinsured motorist if:
        (1) the insurer has been provided with a written notice that:
            (A) informs the insurer of the existence of a bona fide offerof agreement or settlement between its insured and theunderinsured motorist; and
            (B) includes a certification of the liability coverage limits ofthe underinsured motorist; and
        (2) the insurer fails to advance payment to the insured in anamount equal to the amount provided for in the offer ofagreement or settlement within thirty (30) days after the insurerreceives the notice described in subdivision (1).
However, an insurer that, under the circumstances described insubdivision (1), advances payment to the insured in an amount equalto the amount provided for in the offer of agreement or settlement,has full rights of subrogation as provided in its policy or endorsementaffording the underinsured motorist coverage.
    (c) When an insurer makes payment under uninsured motoristcoverage or underinsured motorist coverage because of theinsolvency of an insolvent insurer (as defined in IC 27-6-8), thepaying insurer's rights of reimbursement and subrogation do notinclude any rights of recovery against:
        (1) the insured of the insolvent insurer; or
        (2) the Indiana Insurance Guaranty Association created byIC 27-6-8-5;
except that the paying insurer may recover from the insured of theinsolvent insurer that part of its payment that exceeds the limits ofliability of the policy of the insolvent insurer.
As added by Acts 1982, P.L.166, SEC.5. Amended by P.L.121-1990,SEC.7.