HOUSE BILL NO. 294

INTRODUCED BY B. LAWSON

A BILL FOR AN ACT ENTITLED: "AN ACT REQUIRING MOTOR VEHICLE INSURERS TO OFFER UNINSURED AND UNDERINSURED PROPERTY DAMAGE COVERAGE; PROVIDING THAT THE PURCHASE OF COLLISION COVERAGE MAY NOT BE MADE A PREREQUISITE TO THE PURCHASE OF UNINSURED OR UNDERINSURED PROPERTY DAMAGE COVERAGE; AND AMENDING SECTION 33-23-201, MCA."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 33-23-201, MCA, is amended to read:

"33-23-201. Motor vehicle liability policies to offer uninsured and underinsured motorist coverage -- rejection by insured. (1) (a) A motor vehicle liability policy insuring against loss resulting from liability imposed by law for bodily injury or death suffered by a person arising out of the ownership, maintenance, or use of a motor vehicle may not be delivered or issued for delivery in this state with respect to a motor vehicle registered and principally garaged in this state unless coverage is offered in the policy or supplemental to the policy, in limits for bodily injury or death set forth in 61-6-103, under provisions filed with and approved by the commissioner, for the protection of persons insured under the policy who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, disease, or death caused by an accident arising out of the operation or use of an uninsured motor vehicle. An uninsured motor vehicle is a land motor vehicle, the ownership, the maintenance, or the use of which is not insured or bonded for bodily injury liability at the time of the accident.

(b) Coverage must also be offered for property damage caused by an accident arising out of the operation or use of an uninsured or underinsured motor vehicle. The insured may not be required to purchase collision coverage as a prerequisite to the purchase of uninsured or underinsured property damage coverage. The insurer and insured may agree to a property damage deductible.

(2) The named insured may reject any type of coverage that must be offered under subsection (1). Unless the named insured requests the coverage , the coverage need not be offered in, or supplemental to, a renewal policy when the named insured rejected the coverage in connection with the policy previously issued by the insurer."

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