§ 27-7-5-4 — "Uninsured motor vehicle" and "underinsured motor vehicle" defined; insurer's insolvency protection

(a) For the purpose of this chapter, the term
uninsured motor vehicle, subject to the terms and conditions of such
coverage, means a motor vehicle without liability insurance or a motor
vehicle not otherwise in compliance with the financial responsibility
requirements of IC 9-25 or any similar requirements applicable under
the law of another state, and includes an insured motor vehicle where
the liability insurer of the vehicle is unable to make payment with
respect to the legal liability of its insured within the limits specified in
IC 9-25-4-5 because of insolvency.
(b) For the purpose of this chapter, the term underinsured motor
vehicle, subject to the terms and conditions of such coverage, includes
an insured motor vehicle where the limits of coverage available for
payment to the insured under all bodily injury liability policies
covering persons liable to the insured are less than the limits for the
insured's underinsured motorist coverage at the time of the accident,
but does not include an uninsured motor vehicle as defined in
subsection (a).
(c) An insurer's insolvency protection applies only to accidents
occurring during a policy period in which its insured's uninsured
motorist coverage is in effect and where the liability insurer of the
tortfeasor becomes insolvent within two (2) years after such an
accident. However, nothing contained in this section shall be construed
to prevent any insurer from affording insolvency protection under terms
and conditions more favorable to its insured than is provided under this
section.
As added by Acts 1982, P.L.166, SEC.3. Amended by
P.L.391-1987(ss), SEC.2; P.L.2-1991, SEC.89; P.L.1-1992, SEC.152;
P.L.1-1993, SEC.204.