HB 659 -- Underinsured Motor Vehicle Coverage

Sponsor:  Burnett

This bill defines "underinsured motorist" as a party with motor
vehicle liability insurance coverage in an amount less than a
judgment recovered against the party for damages resulting from
injury due to a motor vehicle accident.  Every insurer will offer
underinsured motorist coverage for their insureds.  This coverage
will pay the additional amount of a judgment which exceeds the
liability policy limits of the at-fault driver.

An insurer has the right to settle or retain subrogation rights
on claims.  If the underinsured motorist's insurer refuses to
consent to settle the claim, then within 30 days after receipt of
the notice of the proposed settlement, the underinsured
motorist's insurer will pay the injured party the amount of the
written offer from the underinsured motorist's liability insurer.
Upon final resolution of the underinsured motorist's claim, the
underinsured motorist's insurer is entitled to seek subrogation
against the liability insurer to the extent of its limits of
liability insurance and the underinsured motorist for the amounts
paid to the injured party.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:20 pm