IC 27-7-5
Chapter 5. Uninsured Motorist Coverage and Underinsured
Motorist 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Repealed
(Repealed by Acts 1982, P.L.166, SEC.6.)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Repealed
(Repealed by P.L.124-2009, SEC.4.)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; required
coverage; rejection; commercial policies
Sec. 2. (a) Except as provided in subsection (d), the insurer shall
make available, in each automobile liability or motor vehicle liability
policy of insurance which is delivered or issued for delivery in this
state with respect to any motor vehicle registered or principally
garaged in this state, insuring against loss resulting from liability
imposed by law for bodily injury or death suffered by any person and
for injury to or destruction of property to others arising from the
ownership, maintenance, or use of a motor vehicle, or in a
supplement to such a policy, the following types of coverage:
(1) in limits for bodily injury or death and for injury to or
destruction of property not less than those set forth in
IC 9-25-4-5 under policy provisions approved by the
commissioner of insurance, for the protection of persons
insured under the policy who are legally entitled to recover
damages from owners or operators of uninsured or underinsured
motor vehicles because of bodily injury, sickness or disease,
including death, and for the protection of persons insured under
the policy who are legally entitled to recover damages from
owners or operators of uninsured motor vehicles for injury to or
destruction of property resulting therefrom; or
(2) in limits for bodily injury or death not less than those set
forth in IC 9-25-4-5 under policy provisions approved by the
commissioner of insurance, for the protection of persons
insured under the policy provisions who are legally entitled to
recover damages from owners or operators of uninsured or
underinsured motor vehicles because of bodily injury, sickness
or disease, including death resulting therefrom.
The uninsured and underinsured motorist coverages must be
provided by insurers for either a single premium or for separate
premiums, in limits at least equal to the limits of liability specified
in the bodily injury liability provisions of an insured's policy, unless
such coverages have been rejected in writing by the insured.
However, underinsured motorist coverage must be made available in
limits of not less than fifty thousand dollars ($50,000). At the
insurer's option, the bodily injury liability provisions of the insured's
policy may be required to be equal to the insured's underinsured
motorist coverage. Insurers may not sell or provide underinsured
motorist coverage in an amount less than fifty thousand dollars
($50,000). Insurers must make underinsured motorist coverage
available to all existing policyholders on the date of the first renewal
of existing policies that occurs on or after January 1, 1995, and on
any policies newly issued or delivered on or after January 1, 1995.
Uninsured motorist coverage or underinsured motorist coverage may
be offered by an insurer in an amount exceeding the limits of liability
specified in the bodily injury and property damage liability
provisions of the insured's policy.
(b) A named insured of an automobile or motor vehicle liability
policy has the right, in writing, to:
(1) reject both the uninsured motorist coverage and the
underinsured motorist coverage provided for in this section; or
(2) reject either the uninsured motorist coverage alone or the
underinsured motorist coverage alone, if the insurer provides
the coverage not rejected separately from the coverage rejected.
A rejection of coverage under this subsection by a named insured is
a rejection on behalf of all other named insureds, all other insureds,
and all other persons entitled to coverage under the policy. No
insured may have uninsured motorist property damage liability
insurance coverage under this section unless the insured also has
uninsured motorist bodily injury liability insurance coverage under
this section. Following rejection of either or both uninsured motorist
coverage or underinsured motorist coverage, unless later requested
in writing, the insurer need not offer uninsured motorist coverage or
underinsured motorist coverage in or supplemental to a renewal or
replacement policy issued to the same insured by the same insurer or
a subsidiary or an affiliate of the originally issuing insurer. Renewals
of policies issued or delivered in this state which have undergone
interim policy endorsement or amendment do not constitute newly
issued or delivered policies for which the insurer is required to
provide 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 the
underinsured 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 coverage
described in subsection (a) in a commercial umbrella or excess
liability policy, including a commercial umbrella or excess liability
policy that is issued or delivered to a motor carrier (as defined in
IC 8-2.1-17-10) that is in compliance with the minimum levels of
financial responsibility set forth in 49 CFR Part 387.
(e) A rejection under subsection (b) of uninsured motorist
coverage or underinsured motorist coverage in an underlying
commercial policy of insurance is also a rejection of uninsured
motorist coverage or underinsured motorist coverage in a commercial
umbrella or excess liability policy. As added by Acts 1982, P.L.166, SEC.1. Amended by
P.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 uninsured
motorist property damage coverage without any deductible amount
and may offer uninsured motorist property damage coverage with a
deductible of not more than the first three hundred dollars ($300.00)
of property damage caused by collision. However, any such
deductible amount for property damage shall be waived for damage
resulting from collision if the insured motor vehicle is legally parked
and unoccupied when involved in a motor vehicle accident for which
the insured is legally entitled to recover damages from an uninsured
motorist.
(b) Property damage losses recoverable under the provisions of
this chapter are limited to damages to the insured motor vehicle and
the personal property owned by the insured which is contained in the
insured motor vehicle and shall not include the loss of use of
damaged or destroyed property.
(c) Any claim for property damage submitted under an uninsured
motorist coverage must include the name and address of the at-fault
operator and any other information to establish the at-fault operator
is without motor vehicle liability insurance. There shall be no
liability imposed upon an insurer where the owner or operator of the
other 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 uninsured
motor vehicle, subject to the terms and conditions of such coverage,
means a motor vehicle without liability insurance or a motor vehicle
not otherwise in compliance with the financial responsibility
requirements of IC 9-25 or any similar requirements applicable under
the law of another state, and includes an insured motor vehicle where
the liability insurer of the vehicle is unable to make payment with
respect to the legal liability of its insured within the limits specified
in IC 9-25-4-5 because of insolvency.
(b) For the purpose of this chapter, the term underinsured motor
vehicle, 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 liability
policies covering persons liable to the insured are less than the limits
for the insured's underinsured motorist coverage at the time of the
accident, but does not include an uninsured motor vehicle as defined
in subsection (a).
(c) An insurer's insolvency protection applies only to accidents
occurring during a policy period in which its insured's uninsured
motorist coverage is in effect and where the liability insurer of the
tortfeasor becomes insolvent within two (2) years after such an
accident. However, nothing contained in this section shall be
construed to prevent any insurer from affording insolvency
protection under terms and conditions more favorable to its insured
than is provided under this section. As added by Acts 1982, P.L.166, SEC.3. Amended by
P.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 coverage
specified in this chapter may provide that the total limit of all
insurers' liability arising out of any one (1) accident shall not exceed
the highest limits under any one (1) policy applicable to the loss, but
in no event may coverage be less than the minimum set forth in
IC 9-25-4-5.
(b) When the coverage specified in this chapter is written to apply
to one (1) or more motor vehicles under a single automobile liability
policy, such coverage applies only to the operation of those motor
vehicles for which a specific uninsured or underinsured motorist
premium charge has been made and does not apply to the operation
of any motor vehicles insured under the policy or owned by the
named insured for which a premium charge has not been made.
(c) The maximum amount payable for bodily injury under
uninsured or underinsured motorist coverage is the lesser of:
(1) the difference between:
(A) the amount paid in damages to the insured by or for any
person or organization who may be liable for the insured's
bodily injury; and
(B) the per person limit of uninsured or underinsured
motorist 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 organization
liable for the insured's bodily injury. As added by Acts 1982, P.L.166, SEC.4. Amended by
P.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 coverage
specified in this chapter may also provide that payment to any person
of sums as damages under such coverage shall operate to subrogate
the insurer to any cause of action in tort which such person may have
against any other person or organization legally responsible for the
bodily injury or death, or property damage, because of which such
payment is made. The insurer shall be subrogated, to the extent of
such payment, to the proceeds of any settlement or judgment that
may later result from the exercise of any rights of recovery of such
person against any person or organization legally responsible for said
bodily injury or death, or property damage, for which payment is
made by the insurer. Such insurer may enforce such rights in its own
name 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 of
competent jurisdiction.
(b) An insurer providing underinsured motorist coverage does not
have 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 offer
of agreement or settlement between its insured and the
underinsured motorist; and
(B) includes a certification of the liability coverage limits of
the underinsured motorist; and
(2) the insurer fails to advance payment to the insured in an
amount equal to the amount provided for in the offer of
agreement or settlement within thirty (30) days after the insurer
receives the notice described in subdivision (1).
However, an insurer that, under the circumstances described in
subdivision (1), advances payment to the insured in an amount equal
to the amount provided for in the offer of agreement or settlement,
has full rights of subrogation as provided in its policy or endorsement
affording the underinsured motorist coverage.
(c) When an insurer makes payment under uninsured motorist
coverage or underinsured motorist coverage because of the
insolvency of an insolvent insurer (as defined in IC 27-6-8), the
paying insurer's rights of reimbursement and subrogation do not
include any rights of recovery against:
(1) the insured of the insolvent insurer; or
(2) the Indiana Insurance Guaranty Association created by
IC 27-6-8-5;
except that the paying insurer may recover from the insured of the
insolvent insurer that part of its payment that exceeds the limits of
liability 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.
IC 27-7-5
Chapter 5. Uninsured Motorist Coverage and Underinsured
Motorist 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; required
coverage; rejection; commercial policies
Sec. 2. (a) Except as provided in subsection (d), the insurer shall
make available, in each automobile liability or motor vehicle liability
policy of insurance which is delivered or issued for delivery in this
state with respect to any motor vehicle registered or principally
garaged in this state, insuring against loss resulting from liability
imposed by law for bodily injury or death suffered by any person and
for injury to or destruction of property to others arising from the
ownership, maintenance, or use of a motor vehicle, or in a
supplement to such a policy, the following types of coverage:
(1) in limits for bodily injury or death and for injury to or
destruction of property not less than those set forth in
IC 9-25-4-5 under policy provisions approved by the
commissioner of insurance, for the protection of persons
insured under the policy who are legally entitled to recover
damages from owners or operators of uninsured or underinsured
motor vehicles because of bodily injury, sickness or disease,
including death, and for the protection of persons insured under
the policy who are legally entitled to recover damages from
owners or operators of uninsured motor vehicles for injury to or
destruction of property resulting therefrom; or
(2) in limits for bodily injury or death not less than those set
forth in IC 9-25-4-5 under policy provisions approved by the
commissioner of insurance, for the protection of persons
insured under the policy provisions who are legally entitled to
recover damages from owners or operators of uninsured or
underinsured motor vehicles because of bodily injury, sickness
or disease, including death resulting therefrom.
The uninsured and underinsured motorist coverages must be
provided by insurers for either a single premium or for separate
premiums, in limits at least equal to the limits of liability specified
in the bodily injury liability provisions of an insured's policy, unless
such coverages have been rejected in writing by the insured.
However, underinsured motorist coverage must be made available in
limits of not less than fifty thousand dollars ($50,000). At the
insurer's option, the bodily injury liability provisions of the insured's
policy may be required to be equal to the insured's underinsured
motorist coverage. Insurers may not sell or provide underinsured
motorist coverage in an amount less than fifty thousand dollars
($50,000). Insurers must make underinsured motorist coverage
available to all existing policyholders on the date of the first renewal
of existing policies that occurs on or after January 1, 1995, and on
any policies newly issued or delivered on or after January 1, 1995.
Uninsured motorist coverage or underinsured motorist coverage may
be offered by an insurer in an amount exceeding the limits of liability
specified in the bodily injury and property damage liability
provisions of the insured's policy.
(b) A named insured of an automobile or motor vehicle liability
policy has the right, in writing, to:
(1) reject both the uninsured motorist coverage and the
underinsured motorist coverage provided for in this section; or
(2) reject either the uninsured motorist coverage alone or the
underinsured motorist coverage alone, if the insurer provides
the coverage not rejected separately from the coverage rejected.
A rejection of coverage under this subsection by a named insured is
a rejection on behalf of all other named insureds, all other insureds,
and all other persons entitled to coverage under the policy. No
insured may have uninsured motorist property damage liability
insurance coverage under this section unless the insured also has
uninsured motorist bodily injury liability insurance coverage under
this section. Following rejection of either or both uninsured motorist
coverage or underinsured motorist coverage, unless later requested
in writing, the insurer need not offer uninsured motorist coverage or
underinsured motorist coverage in or supplemental to a renewal or
replacement policy issued to the same insured by the same insurer or
a subsidiary or an affiliate of the originally issuing insurer. Renewals
of policies issued or delivered in this state which have undergone
interim policy endorsement or amendment do not constitute newly
issued or delivered policies for which the insurer is required to
provide 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 the
underinsured 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 coverage
described in subsection (a) in a commercial umbrella or excess
liability policy, including a commercial umbrella or excess liability
policy that is issued or delivered to a motor carrier (as defined in
IC 8-2.1-17-10) that is in compliance with the minimum levels of
financial responsibility set forth in 49 CFR Part 387.
(e) A rejection under subsection (b) of uninsured motorist
coverage or underinsured motorist coverage in an underlying
commercial policy of insurance is also a rejection of uninsured
motorist coverage or underinsured motorist coverage in a commercial
umbrella or excess liability policy. As added by Acts 1982, P.L.166, SEC.1. Amended by
P.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 uninsured
motorist property damage coverage without any deductible amount
and may offer uninsured motorist property damage coverage with a
deductible of not more than the first three hundred dollars ($300.00)
of property damage caused by collision. However, any such
deductible amount for property damage shall be waived for damage
resulting from collision if the insured motor vehicle is legally parked
and unoccupied when involved in a motor vehicle accident for which
the insured is legally entitled to recover damages from an uninsured
motorist.
(b) Property damage losses recoverable under the provisions of
this chapter are limited to damages to the insured motor vehicle and
the personal property owned by the insured which is contained in the
insured motor vehicle and shall not include the loss of use of
damaged or destroyed property.
(c) Any claim for property damage submitted under an uninsured
motorist coverage must include the name and address of the at-fault
operator and any other information to establish the at-fault operator
is without motor vehicle liability insurance. There shall be no
liability imposed upon an insurer where the owner or operator of the
other 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 uninsured
motor vehicle, subject to the terms and conditions of such coverage,
means a motor vehicle without liability insurance or a motor vehicle
not otherwise in compliance with the financial responsibility
requirements of IC 9-25 or any similar requirements applicable under
the law of another state, and includes an insured motor vehicle where
the liability insurer of the vehicle is unable to make payment with
respect to the legal liability of its insured within the limits specified
in IC 9-25-4-5 because of insolvency.
(b) For the purpose of this chapter, the term underinsured motor
vehicle, 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 liability
policies covering persons liable to the insured are less than the limits
for the insured's underinsured motorist coverage at the time of the
accident, but does not include an uninsured motor vehicle as defined
in subsection (a).
(c) An insurer's insolvency protection applies only to accidents
occurring during a policy period in which its insured's uninsured
motorist coverage is in effect and where the liability insurer of the
tortfeasor becomes insolvent within two (2) years after such an
accident. However, nothing contained in this section shall be
construed to prevent any insurer from affording insolvency
protection under terms and conditions more favorable to its insured
than is provided under this section. As added by Acts 1982, P.L.166, SEC.3. Amended by
P.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 coverage
specified in this chapter may provide that the total limit of all
insurers' liability arising out of any one (1) accident shall not exceed
the highest limits under any one (1) policy applicable to the loss, but
in no event may coverage be less than the minimum set forth in
IC 9-25-4-5.
(b) When the coverage specified in this chapter is written to apply
to one (1) or more motor vehicles under a single automobile liability
policy, such coverage applies only to the operation of those motor
vehicles for which a specific uninsured or underinsured motorist
premium charge has been made and does not apply to the operation
of any motor vehicles insured under the policy or owned by the
named insured for which a premium charge has not been made.
(c) The maximum amount payable for bodily injury under
uninsured or underinsured motorist coverage is the lesser of:
(1) the difference between:
(A) the amount paid in damages to the insured by or for any
person or organization who may be liable for the insured's
bodily injury; and
(B) the per person limit of uninsured or underinsured
motorist 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 organization
liable for the insured's bodily injury. As added by Acts 1982, P.L.166, SEC.4. Amended by
P.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 coverage
specified in this chapter may also provide that payment to any person
of sums as damages under such coverage shall operate to subrogate
the insurer to any cause of action in tort which such person may have
against any other person or organization legally responsible for the
bodily injury or death, or property damage, because of which such
payment is made. The insurer shall be subrogated, to the extent of
such payment, to the proceeds of any settlement or judgment that
may later result from the exercise of any rights of recovery of such
person against any person or organization legally responsible for said
bodily injury or death, or property damage, for which payment is
made by the insurer. Such insurer may enforce such rights in its own
name 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 of
competent jurisdiction.
(b) An insurer providing underinsured motorist coverage does not
have 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 offer
of agreement or settlement between its insured and the
underinsured motorist; and
(B) includes a certification of the liability coverage limits of
the underinsured motorist; and
(2) the insurer fails to advance payment to the insured in an
amount equal to the amount provided for in the offer of
agreement or settlement within thirty (30) days after the insurer
receives the notice described in subdivision (1).
However, an insurer that, under the circumstances described in
subdivision (1), advances payment to the insured in an amount equal
to the amount provided for in the offer of agreement or settlement,
has full rights of subrogation as provided in its policy or endorsement
affording the underinsured motorist coverage.
(c) When an insurer makes payment under uninsured motorist
coverage or underinsured motorist coverage because of the
insolvency of an insolvent insurer (as defined in IC 27-6-8), the
paying insurer's rights of reimbursement and subrogation do not
include any rights of recovery against:
(1) the insured of the insolvent insurer; or
(2) the Indiana Insurance Guaranty Association created by
IC 27-6-8-5;
except that the paying insurer may recover from the insured of the
insolvent insurer that part of its payment that exceeds the limits of
liability 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.
IC 27-7-5
Chapter 5. Uninsured Motorist Coverage and Underinsured
Motorist 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; required
coverage; rejection; commercial policies
Sec. 2. (a) Except as provided in subsection (d), the insurer shall
make available, in each automobile liability or motor vehicle liability
policy of insurance which is delivered or issued for delivery in this
state with respect to any motor vehicle registered or principally
garaged in this state, insuring against loss resulting from liability
imposed by law for bodily injury or death suffered by any person and
for injury to or destruction of property to others arising from the
ownership, maintenance, or use of a motor vehicle, or in a
supplement to such a policy, the following types of coverage:
(1) in limits for bodily injury or death and for injury to or
destruction of property not less than those set forth in
IC 9-25-4-5 under policy provisions approved by the
commissioner of insurance, for the protection of persons
insured under the policy who are legally entitled to recover
damages from owners or operators of uninsured or underinsured
motor vehicles because of bodily injury, sickness or disease,
including death, and for the protection of persons insured under
the policy who are legally entitled to recover damages from
owners or operators of uninsured motor vehicles for injury to or
destruction of property resulting therefrom; or
(2) in limits for bodily injury or death not less than those set
forth in IC 9-25-4-5 under policy provisions approved by the
commissioner of insurance, for the protection of persons
insured under the policy provisions who are legally entitled to
recover damages from owners or operators of uninsured or
underinsured motor vehicles because of bodily injury, sickness
or disease, including death resulting therefrom.
The uninsured and underinsured motorist coverages must be
provided by insurers for either a single premium or for separate
premiums, in limits at least equal to the limits of liability specified
in the bodily injury liability provisions of an insured's policy, unless
such coverages have been rejected in writing by the insured.
However, underinsured motorist coverage must be made available in
limits of not less than fifty thousand dollars ($50,000). At the
insurer's option, the bodily injury liability provisions of the insured's
policy may be required to be equal to the insured's underinsured
motorist coverage. Insurers may not sell or provide underinsured
motorist coverage in an amount less than fifty thousand dollars
($50,000). Insurers must make underinsured motorist coverage
available to all existing policyholders on the date of the first renewal
of existing policies that occurs on or after January 1, 1995, and on
any policies newly issued or delivered on or after January 1, 1995.
Uninsured motorist coverage or underinsured motorist coverage may
be offered by an insurer in an amount exceeding the limits of liability
specified in the bodily injury and property damage liability
provisions of the insured's policy.
(b) A named insured of an automobile or motor vehicle liability
policy has the right, in writing, to:
(1) reject both the uninsured motorist coverage and the
underinsured motorist coverage provided for in this section; or
(2) reject either the uninsured motorist coverage alone or the
underinsured motorist coverage alone, if the insurer provides
the coverage not rejected separately from the coverage rejected.
A rejection of coverage under this subsection by a named insured is
a rejection on behalf of all other named insureds, all other insureds,
and all other persons entitled to coverage under the policy. No
insured may have uninsured motorist property damage liability
insurance coverage under this section unless the insured also has
uninsured motorist bodily injury liability insurance coverage under
this section. Following rejection of either or both uninsured motorist
coverage or underinsured motorist coverage, unless later requested
in writing, the insurer need not offer uninsured motorist coverage or
underinsured motorist coverage in or supplemental to a renewal or
replacement policy issued to the same insured by the same insurer or
a subsidiary or an affiliate of the originally issuing insurer. Renewals
of policies issued or delivered in this state which have undergone
interim policy endorsement or amendment do not constitute newly
issued or delivered policies for which the insurer is required to
provide 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 the
underinsured 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 coverage
described in subsection (a) in a commercial umbrella or excess
liability policy, including a commercial umbrella or excess liability
policy that is issued or delivered to a motor carrier (as defined in
IC 8-2.1-17-10) that is in compliance with the minimum levels of
financial responsibility set forth in 49 CFR Part 387.
(e) A rejection under subsection (b) of uninsured motorist
coverage or underinsured motorist coverage in an underlying
commercial policy of insurance is also a rejection of uninsured
motorist coverage or underinsured motorist coverage in a commercial
umbrella or excess liability policy. As added by Acts 1982, P.L.166, SEC.1. Amended by
P.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 uninsured
motorist property damage coverage without any deductible amount
and may offer uninsured motorist property damage coverage with a
deductible of not more than the first three hundred dollars ($300.00)
of property damage caused by collision. However, any such
deductible amount for property damage shall be waived for damage
resulting from collision if the insured motor vehicle is legally parked
and unoccupied when involved in a motor vehicle accident for which
the insured is legally entitled to recover damages from an uninsured
motorist.
(b) Property damage losses recoverable under the provisions of
this chapter are limited to damages to the insured motor vehicle and
the personal property owned by the insured which is contained in the
insured motor vehicle and shall not include the loss of use of
damaged or destroyed property.
(c) Any claim for property damage submitted under an uninsured
motorist coverage must include the name and address of the at-fault
operator and any other information to establish the at-fault operator
is without motor vehicle liability insurance. There shall be no
liability imposed upon an insurer where the owner or operator of the
other 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 uninsured
motor vehicle, subject to the terms and conditions of such coverage,
means a motor vehicle without liability insurance or a motor vehicle
not otherwise in compliance with the financial responsibility
requirements of IC 9-25 or any similar requirements applicable under
the law of another state, and includes an insured motor vehicle where
the liability insurer of the vehicle is unable to make payment with
respect to the legal liability of its insured within the limits specified
in IC 9-25-4-5 because of insolvency.
(b) For the purpose of this chapter, the term underinsured motor
vehicle, 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 liability
policies covering persons liable to the insured are less than the limits
for the insured's underinsured motorist coverage at the time of the
accident, but does not include an uninsured motor vehicle as defined
in subsection (a).
(c) An insurer's insolvency protection applies only to accidents
occurring during a policy period in which its insured's uninsured
motorist coverage is in effect and where the liability insurer of the
tortfeasor becomes insolvent within two (2) years after such an
accident. However, nothing contained in this section shall be
construed to prevent any insurer from affording insolvency
protection under terms and conditions more favorable to its insured
than is provided under this section. As added by Acts 1982, P.L.166, SEC.3. Amended by
P.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 coverage
specified in this chapter may provide that the total limit of all
insurers' liability arising out of any one (1) accident shall not exceed
the highest limits under any one (1) policy applicable to the loss, but
in no event may coverage be less than the minimum set forth in
IC 9-25-4-5.
(b) When the coverage specified in this chapter is written to apply
to one (1) or more motor vehicles under a single automobile liability
policy, such coverage applies only to the operation of those motor
vehicles for which a specific uninsured or underinsured motorist
premium charge has been made and does not apply to the operation
of any motor vehicles insured under the policy or owned by the
named insured for which a premium charge has not been made.
(c) The maximum amount payable for bodily injury under
uninsured or underinsured motorist coverage is the lesser of:
(1) the difference between:
(A) the amount paid in damages to the insured by or for any
person or organization who may be liable for the insured's
bodily injury; and
(B) the per person limit of uninsured or underinsured
motorist 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 organization
liable for the insured's bodily injury. As added by Acts 1982, P.L.166, SEC.4. Amended by
P.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 coverage
specified in this chapter may also provide that payment to any person
of sums as damages under such coverage shall operate to subrogate
the insurer to any cause of action in tort which such person may have
against any other person or organization legally responsible for the
bodily injury or death, or property damage, because of which such
payment is made. The insurer shall be subrogated, to the extent of
such payment, to the proceeds of any settlement or judgment that
may later result from the exercise of any rights of recovery of such
person against any person or organization legally responsible for said
bodily injury or death, or property damage, for which payment is
made by the insurer. Such insurer may enforce such rights in its own
name 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 of
competent jurisdiction.
(b) An insurer providing underinsured motorist coverage does not
have 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 offer
of agreement or settlement between its insured and the
underinsured motorist; and
(B) includes a certification of the liability coverage limits of
the underinsured motorist; and
(2) the insurer fails to advance payment to the insured in an
amount equal to the amount provided for in the offer of
agreement or settlement within thirty (30) days after the insurer
receives the notice described in subdivision (1).
However, an insurer that, under the circumstances described in
subdivision (1), advances payment to the insured in an amount equal
to the amount provided for in the offer of agreement or settlement,
has full rights of subrogation as provided in its policy or endorsement
affording the underinsured motorist coverage.
(c) When an insurer makes payment under uninsured motorist
coverage or underinsured motorist coverage because of the
insolvency of an insolvent insurer (as defined in IC 27-6-8), the
paying insurer's rights of reimbursement and subrogation do not
include any rights of recovery against:
(1) the insured of the insolvent insurer; or
(2) the Indiana Insurance Guaranty Association created by
IC 27-6-8-5;
except that the paying insurer may recover from the insured of the
insolvent insurer that part of its payment that exceeds the limits of
liability 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.
