NOW: insurance coverage;
public transportation
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Committee on Transportation |
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Committee on Financial Institutions and Insurance |
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Caucus and COW |
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As Passed the House |
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Requires political subdivisions operating motor vehicles for public transportation to carry uninsured/underinsured motorist (UM/UIM) coverage.
UM/UIM (uninsured/underinsured motorist) policies are mutually exclusive. UM/UIM coverage only applies to bodily injury and does not apply to property damage. The damage to the vehicle would have to be covered under the insured’s comprehensive and collision coverage. In addition, UM/UIM coverage follows the insured irrespective of whether or not the accident occurred in a vehicle, while liability coverage follows the vehicle.
UM (uninsured) coverage follows the insured, independent of the location of the insured. The insured and his/her household members are covered not only when occupying the insured’s vehicle, but also when in another vehicle, on foot, on a bicycle or sitting in front of a house.
UIM coverage serves as a source of indemnification when a negligent motorist is inadequately insured for damages that result from an accident. A.R.S. 20-259.01 states that members of the public injured in an accident who have purchased UM/UIM coverage are entitled to coverage as if the uninsured or underinsured at-fault driver was insured in the amount of the UM/UIM policy limit.