MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Insurance

By: Representative Stevens

AN ACT TO AMEND SECTION 83-11-101, MISSISSIPPI CODE OF 1972, TO REVISE METHODS BY WHICH AN INSURED MAY REJECT OR SELECT CERTAIN UNINSURED MOTORIST COVERAGE; AND FOR RELATED PURPOSES. 

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

SECTION 1. Section 83-11-101, Mississippi Code of 1972, is amended as follows:

83-11-101. (1) No automobile liability insurance policy or contract shall be issued or delivered after January 1, 1967, unless it contains an endorsement or provisions undertaking to pay the insured all sums which he shall be legally entitled to recover as damages for bodily injury or death from the owner or operator of an uninsured motor vehicle, within limits which shall be no less than those set forth in the Mississippi Motor Vehicle Safety Responsibility Law, as amended, under provisions approved by the Commissioner of Insurance; however, at the option of the insured, the uninsured motorist limits may be increased to limits not to exceed those provided in the policy of bodily injury liability insurance of the insured or such lesser limits as the insured elects to carry over the minimum requirement set forth by this section. The coverage herein required shall not be applicable where any insured named in the policy shall reject the coverage in writing and provided further, that unless the named insured requests such coverage in writing, such coverage need not be provided in or supplemental to any other policy which amends, renews, extends, changes, supersedes, reinstates or replaces an existing policy with the same bodily injury liability limits where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer. When an insured has initially selected limits of uninsured motorist coverage lower than his bodily injury liability limits, higher limits of uninsured motorist coverage need not be provided in or supplemental to any other policy which amends, renews, extends, changes, supersedes, reinstates or replaces an existing policy with the same bodily injury liability limits unless an insured requests higher uninsured motorist coverage in writing.

The rejection or selection of lower limits shall be made on a form mandated by the Commissioner of Insurance. The form shall state that the coverage is equal to bodily injury liability limits unless lower limits are requested or the coverage is rejected. The heading of the form shall be in twelve-point bold type and shall state: "You are electing not to purchase certain valuable coverage which protects you and your family or you are purchasing uninsured motorist limits less than your bodily injury liability limits when you sign this form. Please read carefully." If this form is signed by a named insured, it will be conclusive proof that there was an informed, knowing rejection of coverage or election of lower limits on behalf of all insureds and shall be binding on all insureds.

(2) No automobile liability insurance policy or contract shall be issued or delivered after January 1, 1980, unless it contains an endorsement or provisions undertaking to pay the insured all sums which he shall be legally entitled to recover as damages for property damage from the owner or operator of an uninsured motor vehicle, within limits which shall be no less than those set forth in the Mississippi Motor Vehicle Safety Responsibility Law, as amended, under provisions approved by the Commissioner of Insurance; however, at the option of the insured, the uninsured motorist limits may be increased to limits not to exceed those provided in the policy of property damage liability insurance of the insured or such lesser limits as the insured elects to carry over the minimum requirement set forth by this section. The coverage herein required shall not be applicable where any insured named in the policy shall reject the coverage in writing and provided further, that unless the named insured requests such coverage in writing, such coverage need not be provided in or supplemental to any other policy which amends, renews, extends, changes, supersedes, reinstates or replaces an existing policy with the same property damage liability limits where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer. When an insured has initially selected limits of uninsured motorist coverage lower than his property damage liability limits, higher limits of uninsured motorist coverage need not be provided in or supplemental to any other policy which amends, renews, extends, changes, supersedes, reinstates or replaces an existing policy with the same property damage liability limits unless an insured requests higher uninsured motorist coverage in writing.

The rejection or selection of lower limits shall be made on a form mandated by the Commissioner of Insurance. The form shall state that the coverage is equal to property damage liability limits unless lower limits are requested or the coverage is rejected. The heading of the form shall be in twelve-point bold type and shall state: "You are electing not to purchase certain valuable coverage which protects you and your family or you are purchasing uninsured motorist limits less than your property damage liability limits when you sign this form. Please read carefully." If this form is signed by a named insured, it will be conclusive proof that there was an informed, knowing rejection of coverage or election of lower limits on behalf of all insureds and shall be binding on all insureds.

The property damage provision may provide an exclusion for the first Two Hundred Dollars ($200.00) of such property damage; however, the uninsured motorist provision need not insure any liability for property damage, for which loss the policyholder has been compensated by insurance or otherwise.

(3) The insured may reject the property damage liability insurance coverage required by subsection (2) and retain the bodily injury liability insurance coverage required by subsection (1), but if the insured rejects the bodily injury liability coverage he may not retain the property damage liability coverage. No insured may have property damage liability insurance coverage under this section unless he also has bodily injury liability insurance coverage under this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 1997.