MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Insurance; Judiciary

By: Senator(s) Kirby, Nunnelee, White (29th)

AN ACT TO LIMIT RECOVERY IN CERTAIN CIRCUMSTANCES BY INDIVIDUALS WHO WERE NOT COVERED BY MOTOR VEHICLE LIABILITY INSURANCE AT THE TIME OF AN ACCIDENT AS AGAINST INDIVIDUALS WHO WERE COVERED BY MOTOR VEHICLE LIABILITY INSURANCE AT THE TIME OF AN ACCIDENT; TO AMEND SECTION 83-11-101, MISSISSIPPI CODE OF 1972, TO DECREASE THE MAXIMUM AMOUNT OF PROPERTY DAMAGE WHICH MAY BE EXCLUDED FROM UNINSURED MOTORIST COVERAGE; AND FOR RELATED PURPOSES. 

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

SECTION 1. (1) Notwithstanding any provision of law to the contrary, in any action in which damages are sought by a claimant, who was not covered by liability insurance at the time of the accident, against a defendant, who was covered by liability insurance at the time of the accident, for any property damage or bodily injury arising out of the claimant's and defendant's operation of motor vehicles, the claimant's recovery shall be limited to the reimbursement of the claimant's actual property damage and bodily injury, including medical expense, and the claimant shall not be awarded any punitive damages.

(2) For purposes of this section, the term "claimant" shall include only those claimants which: (a) were not in compliance with the Motor Vehicle Safety-Responsibility Law, Section 63-15-1 et seq., Mississippi Code of 1972, at the time of the accident; and (b) were determined to be at fault for the damages incurred.

SECTION 2. 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 any renewal policy where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer.

(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 any renewal policy where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer.

The property damage provision may provide an exclusion for the first Fifty Dollars ($50.00) 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 3. This act shall take effect and be in force from and after July 1, 1998.