Senate Bill No. 266

Introduced By devlin

A Bill for an Act entitled: An Act establishing subrogation rights in motor vehicle liability policies; and amending section

33-23-203, MCA.

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 a 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:

(a)  the limit of insurance coverage available for any one accident is the limit specified for the motor vehicle involved in the accident;

(b)  if no motor vehicle insured under the policy is involved in the accident, the limit of insurance coverage available for any one accident is the highest limit of coverage specified for any one motor vehicle insured under the policy; and

(c)  the limits of coverage specified for each motor vehicle insured under the policy may not be added together to determine the limit of insurance coverage available under the policy for any one accident.

(2)  A motor vehicle liability policy may also provide for other reasonable limitations, exclusions, or reductions of coverage which, or subrogation clauses that are designed to prevent duplicate payments for the same element of loss under the motor vehicle liability policy or under another casualty policy that provides coverage for an injury that necessitates damages or benefit payments."

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