Exclusion, reduction or limitation of certain coverage in motor vehicle insurance policies allowed; conditions; form and contents of disclosure. A policy of motor vehicle insurance covering a private passenger car may be delivered or issued for delivery in this state if it contains an exclusion, reduction or other limitation of coverage for the liability of any named insured for bodily injury to:
1. Another named insured; or
2. Any member of the household of a named insured,
Ê unless the named insured rejects the exclusion, reduction or other limitation of coverage after full disclosure of the limitation by the insurer on a form approved by the Commissioner. The form must be written in a manner which is easily understood, printed in at least 12-point type and contain the statement “I understand that this policy excludes, reduces and limits coverage for bodily injury to members of my family and other named insureds, including the following persons:” (followed by a list of the names of the family members and other named insureds whose coverage has been excluded, reduced or limited). The list of names must be handwritten by the insured and followed by his full signature. The disclosed exclusion, reduction or other limitation of coverage continues until the named insured notifies the insurer in writing of his desire to reject it. The insurer must disclose upon renewal of the policy that coverage has been excluded, reduced or limited and that the named insured has the right to reject the exclusion, reduction or limitation. The insurer must also disclose to the named insured upon renewal any additional motor vehicle coverages that the insurer sells. These disclosures must be written in a form easily understood and printed in at least 12-point type.
Last modified: February 27, 2006