Purpose

Prohibits automobile insurance companies from denying liability to individuals by unilaterally determining that medical conditions affected the insured’s driving ability.

Background

Historically, insurers have been able to deny liability for accidents when their at-fault insured subsequently have discovered preexisting medical conditions that were unknown at the time the policy was issued. Recently, there is evidence that insurance companies may be willing to deny liability solely based on claims that the insured had an unknown preexisting medical condition that affects the policyholder’s ability to operate a motor vehicle. Not-at-fault drivers are unable to collect from their own insurance companies because the accidents are not covered under uninsured or underinsured areas of their policies, and are left to their own devices to pay for damages.

The Strike everything amendment to S.B. 1502 prohibits automobile insurance companies from denying liability due to medical conditions that affect the insured’s driving ability without reasonable investigations and medical examinations.

According to the JLBC, there is no fiscal impact to the general fund associated with the strike everything amendment to S.B. 1502.

Provisions

1. Prohibits automobile insurance companies from unilaterally claiming immunity from liability without adequate investigations and medical examinations.

2. Provides for a general effective date.

TM/ac