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House approves amendment to underinsured motorist law to limit policy stacking
Summary
Lawmakers adopted amendments to clarify that underinsured motorist coverage functions as secondary coverage rather than allowing stacking of multiple household policies; the amended House Bill 218 passed 69‑3 and moves to the Senate.
Representative Valentine moved amendments to House Bill 218 to address a stacking concern in underinsured/uninsured motorist coverage. The sponsor said the intent is to prevent multiple household policies from being stacked while preserving primary‑and‑secondary coverage where the at‑fault party’s policy pays first and the injured party’s coverage pays the remainder.
Valentine distributed an industry letter and a handout explaining primary versus secondary coverage and said insurers outlined in the handout could support HB218 as amended. Proponents argued the amendment restored prior law as it was intended and clarified that underinsured motorist coverage operates as a secondary source to the tortfeasor’s liability policy.
Opponents warned the change could raise consumer premiums; Representative Wilcox, citing a letter from the insurance commissioner, said stacking could increase premiums and that regulators and insurers were concerned. Supporters replied the amendment was narrowly tailored to avoid stacking while preserving coverage for injured motorists.
After questions and debate, the House adopted the amendment and passed HB218 as amended by a vote of 69 yes to 3 no. The measure will be referred to the Senate for further action.
