MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Insurance; Judiciary

By: Senator(s) Kirby

AN ACT TO REQUIRE ALL AUTOMOBILE LIABILITY INSURANCE INSURERS IN ALL POLICIES OR CONTRACTS ISSUED, DELIVERED OR RENEWED AFTER JANUARY 1, 1999, TO GIVE THE INSURED AN OPTION TO PURCHASE STACKABLE OR NON-STACKABLE UNINSURED MOTORIST BODILY INJURY AND PROPERTY DAMAGE COVERAGES; TO PROVIDE THAT PAYMENT OF THE POLICY PREMIUM, OR ANY PORTION THEREOF, BY AN INSURED SHALL BE CONCLUSIVE PROOF THAT THE INSURED WAS OFFERED THE OPTION TO PURCHASE STACKABLE OR NON-STACKABLE UNINSURED MOTORIST COVERAGE AND THAT THE INSURED MADE A KNOWING ELECTION TO PURCHASE THE COVERAGE DESIGNATED IN THE POLICY; AND FOR RELATED PURPOSES. 

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

SECTION 1. (1) All automobile liability insurance insurers in all policies or contracts issued, delivered or renewed after January 1, 1999, shall give the insured an option to purchase stackable or non-stackable uninsured motorist bodily injury and property damage coverages. Non-stackable uninsured motorist coverages shall be offered at a lesser premium rate than stackable uninsured motorist coverages.

(2) All automobile liability insurance policies or contracts issued, delivered or renewed after January 1, 1999, shall plainly state in the declaration page and at the beginning of the uninsured motorist coverage provisions that the policy is either stackable or non-stackable.

(3) The uninsured motorist coverages in stackable uninsured motorist policies shall add to or stack upon any other stackable uninsured motorist coverages that are applicable to the claim.

(4) Non-stackable uninsured motorist policies shall not be added to or stacked upon any other stackable or non-stackable uninsured motorist coverages. Only one (1) limit of coverage will be available from a non-stackable multi-vehicle policy no matter how many vehicles are insured.

(5) If an insured is entitled to non-stackable uninsured motorist coverage under more than one (1) policy, the maximum amount of non-stackable uninsured motorist coverage that the insured may recover shall not exceed the limit of coverage from the highest non-stackable policy applicable to the claim. If more than one (1) non-stackable policy applies, any payments made shall be prorated among all of the non-stackable policies that apply to the claim based upon applicable limits of coverage. The insurer against whom a claim is first asserted by an uninsured motorist claimant shall process and pay the claim as if wholly responsible. The paying insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and any reasonable costs of processing the claim.

(6) An insured cannot combine or aggregate non-stackable uninsured motorist coverage with any stackable uninsured motorist coverage that might be available. Where both stackable and non-stackable coverages apply to the same claim, the insured shall be entitled to the higher of (a) the limit of coverage from the highest limit non-stackable policy that applies to the claim; or (b) the aggregate sum of the limits of all stackable policies that apply to the claim. Any payments made shall be prorated among all policies that apply to the claim based upon applicable limits of coverage. The insurer against whom a claim is first asserted by an uninsured motorist claimant shall process and pay the claim as if wholly responsible. The paying insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and any reasonable costs of processing the claim.

(7) Payment of the automobile liability insurance policy premium, or any portion thereof, by an insured shall be conclusive proof that the insured was offered the option to purchase stackable or non-stackable uninsured motorist coverages and that the insured made a knowing election to purchase the type of uninsured motorist coverage designated in the policy for which all or part of the premium has been paid.

SECTION 2. This act shall take effect and be in force from and after July 1, 1998.