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Senate orders third reading of S.7 to bar MedPay subrogation, expand underinsured motorist recovery
Summary
The Senate ordered a third reading of S.7, a bill that would prevent insurers from deducting at-fault drivers' payments from a victim's underinsured motorist recovery and prohibit subrogation of MedPay benefits; the bill would take effect Jan. 1, 2026, for new policies.
The Senate on a voice vote ordered a third reading of S.7, a bill that would stop insurers from deducting what victims collect from at-fault drivers from their own underinsured motorist claims and would prohibit subrogation of MedPay benefits. The committee reporter said the bill would take effect Jan. 1, 2026, and apply only to policies issued after that date.
The bill’s committee reporter, identified in the record as the senator from Chittenden Central, framed S.7 as a response to testimony from a Vermonter seriously injured in a traffic crash. The senator said that the injured rider “collected $100,000 from the drunk driver's auto liability…
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