§ 31-32-24 - "Motor vehicle liability policy" defined.
SECTION 31-32-24
§ 31-32-24 "Motor vehicle liabilitypolicy" defined. – (a) Certification. "Motor vehicle liability policy" as the term is usedin this chapter means an "owner's policy" or an "operator's policy" ofliability insurance, certified as provided in § 31-32-21 or 31-32-22 asproof of financial responsibility for the future, and issued, except asotherwise provided in § 31-32-22, by an insurance carrier duly authorizedto transact business in this state, to or for the benefit of the person namedin it as insured.
(b) Owner's policy. The owner's policy of liabilityinsurance:
(1) Shall designate by explicit description or by appropriatereference all vehicles with respect to which coverage is to be granted by it;and
(2) Shall insure the person named in it and any other person,as insured, using any vehicle or vehicles with the express or impliedpermission of the named insured, against loss from the liability imposed by lawfor damages arising out of the ownership, maintenance, or use of that vehicleor vehicles within the United States of America or the Dominion of Canada,subject to limits exclusive of interest and costs, with respect to eachvehicle, as follows:
(i) Twenty-five thousand dollars ($25,000) because of bodilyinjury to or death of one person in any one accident; and
(ii) Subject to the limit for one person, fifty thousanddollars ($50,000) because of bodily injury to or death of two (2) or morepersons in any one accident; and
(iii) Twenty-five thousand dollars ($25,000) because ofinjury to or destruction of property of others in any one accident orseventy-five thousand dollars ($75,000) combined single limit.
(c) Operator's policy. The operator's policy ofliability insurance shall insure the person named as insured in it against lossfrom the liability imposed upon him or her by law for damages arising out ofthe use by him or her of any motor vehicle not owned by him or her, within thesame territorial limits and subject to the same limits of liability as are setforth above with respect to an owner's policy of liability insurance.
(d) Required statements in policies. The motor vehicleliability policy shall state the name and address of the named insured, thecoverage afforded by the policy, the premium charged for that coverage, thepolicy period, and the limits of liability, and shall contain an agreement orbe endorsed that insurance is provided under the policy in accordance with thecoverage defined in this chapter as respects bodily injury and death orproperty damage, or both, and is subject to all the provisions of this chapter.
(e) Policy need not insure under workers' compensation lawor employees. The motor vehicle liability policy need not insure anyliability under any workers' compensation law nor any liability on account ofbodily injury to or death of an employee of the insured while engaged in theemployment other than domestic of the insured, or while engaged in theoperation, maintenance, or repair of any vehicle, nor any liability for damageto property owned by, rented to, in charge of, or transported by the insured.
(f) Provisions incorporated in policy. Every motorvehicle liability policy shall be subject to the following provisions whichneed not be contained in it:
(1) The liability of the insurance carrier with respect tothe insurance required by this chapter shall become absolute whenever injury ordamage covered by the motor vehicle liability policy occurs; the policy may notbe cancelled or annulled as to the liability by any agreement between theinsurance carrier and the insured after the occurrence of the injury or damage;no statement made by the insured or on his or her behalf and no violation ofthe policy shall defeat or void the policy.
(2) The satisfaction by the insured of a judgment for aninjury or damage shall not be a condition precedent to the right or duty of theinsurance carrier to make payment on account of the injury or damage.
(3) The insurance carrier shall have the right to settle anyclaim covered by the policy. If the settlement is made in good faith, theamount of it shall be deductible from the limits of liability specified insubsection (b)(2) of this section.
(4) The policy, the written application for it, if any, andany rider or endorsement which does not conflict with the provisions of thischapter, shall constitute the entire contract between the parties.
(g) Excess or additional coverage. Any policy whichgrants the coverage required for a motor vehicle liability policy may alsogrant any lawful coverage in excess of or in addition to the coverage specifiedfor a motor vehicle liability policy, and the excess or additional coverageshall not be subject to the provisions of this chapter. With respect to apolicy which grants the excess or additional coverage, the term "motor vehicleliability policy" shall apply only to that part of the coverage which isrequired by this section.
(h) Reimbursement provision permitted. Any motorvehicle liability policy may provide that the insured shall reimburse theinsurance carrier for any payment the insurance carrier would not have beenobligated to make under the terms of the policy except for the provisions ofthis chapter.
(i) Proration of insurance permitted. Any motorvehicle liability policy may provide for the prorating of the insurance itprovides with other valid and collectible insurance.
(j) Multiple policies. The requirements for a motorvehicle liability policy may be fulfilled by the policies of one or moreinsurance carriers which policies together meet the requirements.
(k) Binders. Any binder issued pending the issuance ofa motor vehicle liability policy shall be deemed to fulfill the requirementsfor such a policy.