Ohio Governor Signs Underinsured Motorist Reforms into Law

Stability in Ohio’s auto insurance market is just three months away, according to the American Insurance Association (AIA). On July 31, Ohio Gov. Bob Taft signed into law SB 97, which will bring badly needed reforms to the state’s uninsured/ underinsured motorist (UM/UIM) statute. The bill, which was actively supported by a coalition of businesses, consumers and trade associations, will take effect in 90 days.

SB 97 eliminates the statutorily mandated offering of UM/UIM insurance coverage in Ohio, making it consistent with the way all other coverages are offered to consumers in the state. It also retains provisions of the statute previously enacted by the Ohio General Assembly that define this type of coverage. The bill provides an allowable exclusion from coverage under an employer’s insurance policy when the employee is not acting within the scope of his or her employment, and provides for a three-year time period within which policyholders may make claims under their UM/UIM insurance coverage.

Bipartisan majorities in both houses of the Ohio General Assembly passed SB 97 overwhelmingly earlier this year. The measure passed the Ohio House of Representatives in June by a vote of 94-4, after passing the Senate in May by a vote of 24-8.

In light of the bill becoming law, AIA stressed how important it remains for consumers to protect themselves against negligent drivers and urged Ohio agents and companies to educate their customers about how valuable UM/UIM coverage can be in protecting themselves, their families and their employees.

Topics Ohio