A California Assembly committee is considering a bill that would eliminate the authority of the insurer to deduct the amount paid to the insured by or for any person or organization that may be held legally liable for the injury from its maximum liability.
According to the bill text, existing law prohibits a policy of bodily injury liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle from being issued or delivered in this state to the owner or operator of a motor vehicle — unless the policy contains a provision with specified coverage limits insuring the insured, the insured’s heirs, or legal representative for all sums within the limits that he is legally entitled to recover as damages for bodily injury or wrongful death from the owner or operator of an uninsured motor vehicle.
The law also prohibits the maximum liability of an insurer providing underinsured motorist coverage for bodily injury to the insured caused by one or more vehicles from exceeding the insured’s underinsured motorist coverage limits, minus the amount paid to the insured by or for any person or organization that may be held legally liable for the injury.
AB 1063 would eliminate the authority of the insurer to deduct the amount paid to the insured by or for any person or organization that may be held legally liable for the injury from its maximum liability in those circumstances.
Topics California
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