Senate committee hears bill to change underinsured motorist and med-pay rules

The Judiciary Committee heard testimony on S.7 on auto insurance reforms that would change how underinsured motorist (UIM) benefits and medical‑payment (med‑pay) benefits are applied after crashes.

Proponents told the committee the bill would let policyholders use the full value of the UIM coverage they bought even when the at‑fault driver’s payment does not fully cover the injured person’s damages, and would prohibit insurers from seeking repayment (subrogation) of small, optional med‑pay payments. "This bill would require insurance companies to pay their policyholders what the policyholder expects to receive from that insurance company based on the premiums that they're buying," said Adam Negrassing, representing the Vermont Association For Justice.

Why it matters: committee members and witnesses said the change mainly affects catastrophic crashes — those that produce very large medical bills or permanent disability. Kristen Ross, president of the Vermont Association For Justice, described cases in which victims with severe…