2 Councilmember Muriel Bowser
5 A BILL
10 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
15 To amend the Compulsory/No-Fault Motor Vehicle Insurance Act of 1982 to require
16 action by an underinsured motorist insurer when liability insurance is exhausted.
18 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA,
19 That this act may be cited as the “Underinsured Motorist Carrier Fairness Amendment
20 Act of 2011.”
22 Sec. 2. The Compulsory/No-Fault Motor Vehicle Insurance Act of 1982 (D.C.
23 Law 4-155; D.C. Official Code § 31-2401 et seq.), is amended to read as follows:
24 (a) Section 7 (D.C. Official Code § 31-2406) is amended by adding a new
25 subsection (c-2) to read as follows:
26 “(c-2)(1) If an injured person receives a written offer from a motor vehicle
27 insurance liability insurer or that insurer’s authorized agent to settle a claim for bodily
28 injury or death, and the amount of the settlement offer, in combination with any other
29 settlements arising out of the same occurrence, would exhaust the bodily injury or death
30 limits of the applicable liability insurance policies, bonds, and securities, the injured
31 person shall send by certified mail, to any insurer that provides underinsured motorist
32 coverage for the bodily injury or death, a copy of the liability insurer’s written settlement
1 (2) Within 60 days after receipt of the notice required under subsection (g)(1) of
2 this section, the underinsured motorist insurer shall send to the injured person:
3 (A) written consent to acceptance of the settlement offer and to the
4 execution of releases; or
5 (B) written refusal to consent to acceptance of the settlement offer.
6 (3) Within 30 days after a refusal to consent to acceptance of a settlement offer
7 under subsection (c-2)(2)(B) of this section, the underinsured motorist insurer shall pay to
8 the injured person the amount of the settlement offer.
9 (4)(A) Payment as described in subsection (3) of this section shall preserve the
10 underinsured motorist insurer’s subrogation rights against the liability insurer and its
12 (B) Receipt by the injured person of the payment described in subsection (3) of
13 this section shall constitute the assignment, up to the amount of the payment, of any
14 recovery on behalf of the injured person that is subsequently paid from the applicable
15 liability insurance policies, bonds, and securities.
16 (5) The injured person may accept the liability insurer’s settlement offer and
17 execute releases in favor of the liability insurer and its insured without prejudice to any
18 claim the injured person may have against the underinsured motorist insurer:
19 (A) on receipt of written consent to acceptance of the settlement offer and
20 to the execution of releases; or
21 (B) if the underinsured motorist insurer has not met the requirements of
22 subsection (2) or subsection (3) of this section.”.
23 Sec. 3. Fiscal impact statement.
1 The Council adopts the fiscal impact statement in the Committee report as the
2 fiscal impact statement required by section 602(c)(3) of the District of Columbia Home
3 Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-
5 Sec. 4. Effective date
6 This act shall take effect following approval by the Mayor (or in the event of
7 veto by the Mayor, action by the Council to override the veto), a 30-day period of
8 congressional review as provided in Section 602(c)(1) of the District of Columbia
9 Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code §1-
10 206(c)(1)), and publication in the District of Columbia Register.