MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Insurance; Judiciary

By: Senator(s) Kirby

AN ACT TO AMEND SECTION 83-11-101, MISSISSIPPI CODE OF 1972, TO ELIMINATE STACKING OF UNINSURED MOTORIST POLICIES AND TO PROVIDE THAT THE INSURER IS OBLIGATED TO PURSUE RECOVERY FROM THIRD PARTIES WHO ARE LIABLE FOR PROPERTY DAMAGE, WITH FIRST RECOVERY AMOUNTS RETURNED TO THE INSURED; TO PROVIDE THAT A SIGNED FORM SHALL BE CONCLUSIVE PROOF THAT THE REJECTION OF UNINSURED MOTORIST COVERAGE OR SELECTION OF LESSER LIMITS WAS AN INFORMED AND BINDING DECISION ON ALL INSUREDS UNDER THE CONTRACT; TO AMEND SECTION 83-11-103, MISSISSIPPI CODE OF 1972, TO CLARIFY DEFINITIONS; 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 covering a private passenger motor vehicle or a commercial motor vehicle 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, either a private passenger motor vehicle or a commercial 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 any renewal policy where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer. If a named insured rejects the coverage or selects limits less than the bodily injury liability insurance limits of the policy, such rejection or selection of limits shall be made on a form provided by the insurer and signed by the named insured. This signed form shall be conclusive proof that the rejection of coverage or selection of limits was an informed, knowing and intelligent decision and shall be binding on all insureds under the contract.

(a) With respect to bodily injury to an insured at a time when such insured is not occupying any motor vehicle, the insurance on the vehicle under which the injured party is an insured which has the highest limits of uninsured motorist coverage may apply, and no other uninsured motorist coverage shall apply regardless of the number of vehicles insured under any one (1) policy or the number of policies under which the injured party shall be an insured. The limits of uninsured motorist coverage shall not be increased, aggregated or stacked because of multiple motor vehicles, whether covered under a single policy or multiple policies, and in no event shall the insured's total amount of recovery from any and all sources, including liability policies, bonds and uninsured motorist coverage, exceed the limits of uninsured motorist coverage applicable to the insured under this subsection.

(b) With respect to bodily injury to an insured while occupying a motor vehicle owned by such insured, only the limits of uninsured motorist coverage on the vehicle in which the insured was an occupant shall apply. The limits of uninsured motorist coverage shall not be increased, aggregated or stacked because of multiple motor vehicles, whether covered under a single policy or multiple policies, and in no event shall the insured's total amount of recovery from any and all sources, including liability policies, bonds and uninsured motorist coverage, exceed the limits of uninsured motorist coverage applicable to the insured under this subsection.

(c) With respect to bodily injury to an insured while occupying a motor vehicle not owned by the insured, the following priorities apply:

(i) The uninsured motorist coverage on the vehicle in which the insured was an occupant shall be the primary uninsured motorist coverage. The limits of uninsured motorist coverage on the vehicle in which the insured was an occupant shall not be increased, aggregated or stacked because of multiple motor vehicles, whether covered under a single policy or multiple policies;

(ii) The uninsured motorist coverage provided by a policy under which the insured is a named insured, or is a spouse or relative of the named insured residing in the named insured's household, may be applicable as excess coverage to the coverage described in subparagraph (i) of this paragraph (c) to the extent provided herein. If the insured is covered as a named insured or as a relative living in the same household with the named insured under more than one (1) policy, then only such policy with the highest limits of uninsured motorist coverage shall apply. The limits of uninsured motorist coverage shall not be increased, aggregated or stacked because of multiple vehicles, whether covered under a single policy or multiple policies. In no event shall the insured's total amount of recovery from all sources, including liability policies, bonds and uninsured motorist coverage, exceed the limit of uninsured motorist coverage applicable to the insured under this subsection.

(2) No automobile liability insurance policy or contract covering a private passenger motor vehicle or a commercial motor vehicle 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 any renewal policy where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer. If a named insured rejects the coverage or selects limits less than the property damage liability insurance limits of the policy, such rejection or selection of limits shall be made on a form provided by the insurer and signed by the named insured. This signed form shall be conclusive proof that the rejection of coverage or selection of limits was an informed, knowing and intelligent decision and shall be binding on all insureds under the contract.

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. It is the obligation of the insurer to pursue recovery from third parties who are liable for such property damage, with first recovery amounts (deductibles) returned to the insured.

(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. Section 83-11-103, Mississippi Code of 1972, is amended as follows:

83-11-103. As used in this article:

(a) The term "bodily injury" shall include death resulting from such injury.

(b) The term "insured" shall mean the named insured and, while resident of the same household, the spouse of any such named insured and relatives of either, while in a motor vehicle or otherwise, and any person who uses, with the consent, expressed or implied, of the named insured, the motor vehicle to which the policy applies, and a guest in such motor vehicle to which the policy applies, or the personal representative of any of the above. The definition of the term "insured" given in this section shall apply only to the uninsured motorist portion of the policy.

(c) The term "uninsured motor vehicle" shall mean:

(i) A motor vehicle, either a private passenger motor vehicle or a commercial motor vehicle, as to which there is no bodily injury liability insurance; or

(ii) A motor vehicle, either a private passenger motor vehicle or a commercial motor vehicle, as to which there is such insurance in existence, but the insurance company writing the same has legally denied coverage thereunder or is unable, because of being insolvent at the time of or becoming insolvent during the twelve (12) months following the accident, to make payment with respect to the legal liability of its insured; or

(iii) An insured motor vehicle, either a private passenger motor vehicle or a commercial motor vehicle, when the liability insurer of such vehicle has provided limits of bodily injury liability for its insured which are less than the limits applicable to the injured person provided under his uninsured motorist coverage; or

(iv) A motor vehicle, either a private passenger motor vehicle or a commercial motor vehicle, as to which there is no bond or deposit of cash or securities in lieu of such bodily injury and property damage liability insurance or other compliance with the state financial responsibility law, or where there is such bond or deposit of cash or securities, but such bond or deposit is less than the legal liability of the injuring party; or

(v) A motor vehicle, either a private passenger motor vehicle or a commercial motor vehicle, of which the owner or operator is unknown; provided that in order for the insured to recover under the endorsement where the owner or operator of any motor vehicle which causes bodily injury to the insured is unknown, actual physical contact must have occurred between the motor vehicle owned or operated by such unknown person and the person or property of the insured.

No vehicle shall be considered uninsured that is owned by the United States government or operated by any United States government employee and against which a claim may be made under the Federal Tort Claims Act, as amended. No vehicle shall be considered uninsured if a claim may be made under the Mississippi Tort Claims Act as a result of the wrongful or negligent operation of that vehicle.

SECTION 3. This act shall take effect and be in force from and after July 1, 1997.