Senate Bill No. 44
Introduced By holden
A Bill for an Act entitled: "An Act clarifying and limiting a motor vehicle liability insurer's liability under a policy; amending sections 33-23-203 and 33-23-204, MCA; and providing an immediate effective date and an applicability date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 33-23-203, MCA, is amended to read:
"33-23-203. Limitation of liability under motor vehicle liability policy. (1) Unless a motor vehicle liability policy
specifically provides otherwise, the limits of insurance coverage available under
any such each part of the policy , including
the limits of liability under uninsured motorist coverage, must be determined as follows, regardless of the number of motor
vehicles insured under the policy , OR, the number of policies issued by the same company covering the insured , or the
number of separate premiums paid, OR THE NUMBER OF SEPARATE PREMIUMS PAID:
limit limits of insurance coverage coverages available for any one accident is are the limit limits specified for each
coverage available under the policy insuring the motor vehicle involved in the accident;
no the motor vehicle insured under the policy is involved in the accident is not insured under a policy, the limit limits
of the insurance coverage coverages available for any one accident is are the highest limit limits of coverage the coverages
specified under one policy for any one motor vehicle insured under the that policy; and
(c) the limits of
coverage the coverages specified under one policy or under more than one policy issued by the same
company for each motor vehicle insured under the policy may not be added together to determine the limit limits of
insurance coverage coverages available under the policy or policies for any one accident.
(2) A motor vehicle liability policy may also provide for other reasonable limitations, exclusions, or reductions of coverage
which that are designed to prevent duplicate payments for the same element of loss or to prevent the adding together of
insurance coverage limits in one policy or from more than one policy issued by the same company.
REGARDLESS OF THE NUMBER OF MOTOR VEHICLES INSURED UNDER A POLICY OR OF THE
NUMBER OF POLICIES ISSUED BY THE SAME COMPANY COVERING AN INSURED, A COMPANY MAY NOT
CHARGE DUPLICATE PREMIUMS FOR COVERAGE FOR THE SAME ELEMENT OF LOSS AN INSURER THAT
CHARGES A PREMIUM FOR A SPECIFIED COVERAGE SHALL CLEARLY INFORM OR NOTIFY THE INSURED
IN WRITING OF THE LIMITS OF THE COVERAGE WITH RESPECT TO THE PREMIUM CHARGED AND
WHETHER THE COVERAGE FROM ONE POLICY OR MOTOR VEHICLE MAY BE ADDED TO THE COVERAGE
OF ANOTHER POLICY OR MOTOR VEHICLE. (3)(4) Nothing in this section is intended to create coverage for a motor vehicle that would otherwise be uninsured."
Section 2. Section 33-23-204, MCA, is amended to read:
"33-23-204. Definitions. As used in this part, the following definitions apply:
(1) "Motor vehicle" means
every a vehicle propelled by its own power and designed primarily to transport persons or
property upon the highways of the state. The term does not include a bicycle as defined in 61-1-123.
(2) "Motor vehicle liability policy" means
any a policy of automobile or motor vehicle insurance against liability now or
hereafter required under Title 61, chapter 6, parts 1 and 3, and all additional coverages included in or added to the policy by
rider, endorsement, or otherwise, whether or not required under Title 61, including, without limitation, uninsured,
underinsured, and medical payment coverages."
NEW SECTION. Section 3. Applicability. [This act] applies to all motor vehicle liability policies issued or renewed after [the effective date of this act].
NEW SECTION. Section 4. Effective date. [This act] is effective on passage and approval.