TITLE 31
Motor and Other vehicles
CHAPTER 31-32
Proof of Financial Responsibility for the Future
SECTION 31-32-24
§ 31-32-24 "Motor vehicle liability
policy" defined.
(a) Certification. "Motor vehicle liability policy" as the term is used
in this chapter means an "owner's policy" or an "operator's policy" of
liability insurance, certified as provided in § 31-32-21 or 31-32-22 as
proof of financial responsibility for the future, and issued, except as
otherwise provided in § 31-32-22, by an insurance carrier duly authorized
to transact business in this state, to or for the benefit of the person named
in it as insured.
(b) Owner's policy. The owner's policy of liability
insurance:
(1) Shall designate by explicit description or by appropriate
reference 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 implied
permission of the named insured, against loss from the liability imposed by law
for damages arising out of the ownership, maintenance, or use of that vehicle
or vehicles within the United States of America or the Dominion of Canada,
subject to limits exclusive of interest and costs, with respect to each
vehicle, as follows:
(i) Twenty-five thousand dollars ($25,000) because of bodily
injury to or death of one person in any one accident; and
(ii) Subject to the limit for one person, fifty thousand
dollars ($50,000) because of bodily injury to or death of two (2) or more
persons in any one accident; and
(iii) Twenty-five thousand dollars ($25,000) because of
injury to or destruction of property of others in any one accident or
seventy-five thousand dollars ($75,000) combined single limit.
(c) Operator's policy. The operator's policy of
liability insurance shall insure the person named as insured in it against loss
from the liability imposed upon him or her by law for damages arising out of
the use by him or her of any motor vehicle not owned by him or her, within the
same territorial limits and subject to the same limits of liability as are set
forth above with respect to an owner's policy of liability insurance.
(d) Required statements in policies. The motor vehicle
liability policy shall state the name and address of the named insured, the
coverage afforded by the policy, the premium charged for that coverage, the
policy period, and the limits of liability, and shall contain an agreement or
be endorsed that insurance is provided under the policy in accordance with the
coverage defined in this chapter as respects bodily injury and death or
property damage, or both, and is subject to all the provisions of this chapter.
(e) Policy need not insure under workers' compensation law
or employees. The motor vehicle liability policy need not insure any
liability under any workers' compensation law nor any liability on account of
bodily injury to or death of an employee of the insured while engaged in the
employment other than domestic of the insured, or while engaged in the
operation, maintenance, or repair of any vehicle, nor any liability for damage
to property owned by, rented to, in charge of, or transported by the insured.
(f) Provisions incorporated in policy. Every motor
vehicle liability policy shall be subject to the following provisions which
need not be contained in it:
(1) The liability of the insurance carrier with respect to
the insurance required by this chapter shall become absolute whenever injury or
damage covered by the motor vehicle liability policy occurs; the policy may not
be cancelled or annulled as to the liability by any agreement between the
insurance 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 of
the policy shall defeat or void the policy.
(2) The satisfaction by the insured of a judgment for an
injury or damage shall not be a condition precedent to the right or duty of the
insurance carrier to make payment on account of the injury or damage.
(3) The insurance carrier shall have the right to settle any
claim covered by the policy. If the settlement is made in good faith, the
amount of it shall be deductible from the limits of liability specified in
subsection (b)(2) of this section.
(4) The policy, the written application for it, if any, and
any rider or endorsement which does not conflict with the provisions of this
chapter, shall constitute the entire contract between the parties.
(g) Excess or additional coverage. Any policy which
grants the coverage required for a motor vehicle liability policy may also
grant any lawful coverage in excess of or in addition to the coverage specified
for a motor vehicle liability policy, and the excess or additional coverage
shall not be subject to the provisions of this chapter. With respect to a
policy which grants the excess or additional coverage, the term "motor vehicle
liability policy" shall apply only to that part of the coverage which is
required by this section.
(h) Reimbursement provision permitted. Any motor
vehicle liability policy may provide that the insured shall reimburse the
insurance carrier for any payment the insurance carrier would not have been
obligated to make under the terms of the policy except for the provisions of
this chapter.
(i) Proration of insurance permitted. Any motor
vehicle liability policy may provide for the prorating of the insurance it
provides with other valid and collectible insurance.
(j) Multiple policies. The requirements for a motor
vehicle liability policy may be fulfilled by the policies of one or more
insurance carriers which policies together meet the requirements.
(k) Binders. Any binder issued pending the issuance of
a motor vehicle liability policy shall be deemed to fulfill the requirements
for such a policy.
History of Section.
(P.L. 1952, ch. 3002, § 21; G.L. 1956, §§ 31-32-33
31-32-40; P.L. 1962, ch. 204, § 2; G.L. 1956, § 31-32-24; P.L. 1968,
ch. 7, § 2; P.L. 1976, ch. 314, § 1; P.L. 1991, ch. 167, §
3.)
