§ 27-7-5-2 — Uninsured and underinsured motorist coverage; required coverage; rejection; exemptions; umbrella policies

(a) Except as provided in subsections (d), (f),
and (h), the insurer shall make available, in each automobile liability
or motor vehicle liability policy of insurance which is delivered or
issued for delivery in this state with respect to any motor vehicle
registered or principally garaged in this state, insuring against loss
resulting from liability imposed by law for bodily injury or death
suffered by any person and for injury to or destruction of property to
others arising from the ownership, maintenance, or use of a motor
vehicle, or in a supplement to such a policy, the following types of
coverage:
(1) in limits for bodily injury or death and for injury to or
destruction of property not less than those set forth in IC 9-25-4-5
under policy provisions approved by the commissioner of
insurance, for the protection of persons insured under the policy
who are legally entitled to recover damages from owners or
operators of uninsured or underinsured motor vehicles because of
bodily injury, sickness or disease, including death, and for the
protection of persons insured under the policy who are legally
entitled to recover damages from owners or operators of
uninsured motor vehicles for injury to or destruction of property
resulting therefrom; or
(2) in limits for bodily injury or death not less than those set forth
in IC 9-25-4-5 under policy provisions approved by the
commissioner of insurance, for the protection of persons insured
under the policy provisions who are legally entitled to recover
damages from owners or operators of uninsured or underinsured
motor vehicles because of bodily injury, sickness or disease,
including death resulting therefrom.
The uninsured and underinsured motorist coverages must be provided
by insurers for either a single premium or for separate premiums, in
limits at least equal to the limits of liability specified in the bodily
injury liability provisions of an insured's policy, unless such coverages
have been rejected in writing by the insured. However, underinsured
motorist coverage must be made available in limits of not less than fifty
thousand dollars ($50,000). At the insurer's option, the bodily injury
liability provisions of the insured's policy may be required to be equal
to the insured's underinsured motorist coverage. Insurers may not sell
or provide underinsured motorist coverage in an amount less than fifty
thousand dollars ($50,000). Insurers must make underinsured motorist
coverage available to all existing policyholders on the date of the first
renewal of existing policies that occurs on or after January 1, 1995, and
on any policies newly issued or delivered on or after January 1, 1995.
Uninsured motorist coverage or underinsured motorist coverage may
be offered by an insurer in an amount exceeding the limits of liability
specified in the bodily injury and property damage liability provisions
of the insured's policy.
(b) A named insured of an automobile or motor vehicle liability
policy has the right, in writing, to:
(1) reject both the uninsured motorist coverage and the
underinsured motorist coverage provided for in this section; or
(2) reject either the uninsured motorist coverage alone or the
underinsured motorist coverage alone, if the insurer provides the
coverage not rejected separately from the coverage rejected.
A rejection of coverage under this subsection by a named insured is a
rejection on behalf of all other named insureds, all other insureds, and
all other persons entitled to coverage under the policy. No insured may
have uninsured motorist property damage liability insurance coverage
under this section unless the insured also has uninsured motorist bodily
injury liability insurance coverage under this section. Following
rejection of either or both uninsured motorist coverage or underinsured
motorist coverage, unless later requested in writing, the insurer need
not offer uninsured motorist coverage or underinsured motorist
coverage in or supplemental to a renewal or replacement policy issued
to the same insured by the same insurer or a subsidiary or an affiliate
of the originally issuing insurer. Renewals of policies issued or
delivered in this state which have undergone interim policy
endorsement or amendment do not constitute newly issued or delivered
policies for which the insurer is required to provide the coverages
described in this section.
(c) A rejection under subsection (b) must specify:
(1) that the named insured is rejecting:
(A) the uninsured motorist coverage;
(B) the underinsured motorist coverage; or
(C) both the uninsured motorist coverage and the underinsured
motorist coverage;
that would otherwise be provided under the policy; and
(2) the date on which the rejection is effective.
(d) The following apply to the coverage described in subsection (a)
in connection with a commercial umbrella or excess liability policy,
including a commercial umbrella or excess liability policy that is issued
or delivered to a motor carrier (as defined in IC 8-2.1-17-10) that is in
compliance with the minimum levels of financial responsibility set
forth in 49 CFR Part 387:
(1) An insurer is not required to make available in a commercial
umbrella or excess liability policy the coverage described in
subsection (a).
(2) An insurer that, through a rider or an endorsement, reduces or
removes from a commercial umbrella or excess liability policy the
coverage described in subsection (a) shall:
(A) through the United States mail; or
(B) by electronic means;
provide to the named insured written notice of the reduction or
removal.
(3) An insurer that makes available in a commercial umbrella or
excess liability policy the coverage described in subsection (a):
(A) may make available the coverage in limits determined by
the insurer; and
(B) is not required to make available the coverage in limits
equal to the limits specified in the commercial umbrella or
excess liability policy.
(e) A rejection under subsection (b) of uninsured motorist coverage
or underinsured motorist coverage in an underlying commercial policy
of insurance is also a rejection of uninsured motorist coverage or
underinsured motorist coverage in a commercial umbrella or excess
liability policy.
(f) An insurer is not required to make available the coverage
described in subsection (a) in connection with coverage that:
(1) is related to or included in a commercial policy of property
and casualty insurance described in Class 2 or Class 3 of IC 27-1-5-1; and
(2) covers a loss related to a motor vehicle:
(A) of which the insured is not the owner; and
(B) that is used:
(i) by the insured or an agent of the insured; and
(ii) for purposes authorized by the insured.
(g) For purposes of subsection (f), "owner" means:
(1) a person who holds the legal title to a motor vehicle;
(2) a person who rents or leases a motor vehicle and has exclusive
use of the motor vehicle for more than thirty (30) days;
(3) the conditional vendee or lessee under an agreement for the
conditional sale or lease of a motor vehicle; or
(4) the mortgagor under an agreement for the conditional sale or
lease of a motor vehicle under which the mortgagor has:
(A) the right to purchase; and
(B) an immediate right of possession of;
the motor vehicle upon the performance of the conditions stated
in the agreement.
(h) The following apply to the coverage described in subsection (a)
in relation to a personal umbrella or excess liability policy:
(1) An insurer is not required to make available the coverage
described in subsection (a) under a personal umbrella or excess
liability policy.
(2) An insurer that reduces or removes, through a rider or an
endorsement, coverage described in subsection (a) under a
personal umbrella or excess liability policy shall:
(A) through the United States mail; or
(B) by electronic means;
provide to the named insured written notice of the reduction or
removal.
(3) An insurer that makes available the coverage described in
subsection (a) under a personal umbrella or excess liability
policy:
(A) may make available the coverage in limits determined by
the insurer; and
(B) is not required to make available the coverage in limits
equal to the limits specified in the personal umbrella or excess
liability policy.
(4) A rejection under subsection (b) of uninsured motorist
coverage or underinsured motorist coverage in an underlying
personal policy of insurance is also a rejection of uninsured
motorist coverage or underinsured motorist coverage in a personal
umbrella or excess liability policy.
As added by Acts 1982, P.L.166, SEC.1. Amended by
P.L.391-1987(ss), SEC.1; P.L.5-1988, SEC.145; P.L.2-1991, SEC.88;
P.L.1-1992, SEC.151; P.L.1-1993, SEC.203; P.L.130-1994, SEC.41;
P.L.116-1994, SEC.56; P.L.233-1999, SEC.8; P.L.124-2009, SEC.1;
P.L.116-2011, SEC.2; P.L.125-2012, SEC.403; P.L.148-2013, SEC.1;
P.L.208-2018, SEC.9; P.L.130-2020, SEC.13.