(a) CERTIFICATION. As used in this chapter, “motor vehicle liability policy” means an “owner's policy” or an “operator's policy” of liability insurance, certified as provided in § 27-19-712 as proof of financial responsibility for the future, and issued, except as otherwise provided in § 27-19-712 by an insurance carrier duly authorized to transact business in this state, to or for the benefit of the person named therein as insured.
(b) OWNER'S POLICY. The owner's policy of liability insurance shall:
(1) Designate by explicit description or by appropriate reference all vehicles with respect to which coverage is to be granted; and
(2) Insure the person named therein 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 the vehicle or vehicles within the United States or Canada, subject to limits exclusive of interest and costs, with respect to each vehicle, as follows: twenty-five thousand dollars ($25,000) because of bodily injury to or death of one (1) person in any one (1) accident and, subject to said limit for one (1) person; fifty thousand dollars ($50,000) because of bodily injury to or death of two (2) or more persons in any one (1) accident; and twenty-five thousand dollars ($25,000) because of injury to or destruction of property of others in any one (1) accident.
(c) OPERATOR'S POLICY. The operator's policy of liability insurance shall insure the person named as insured therein 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, the policy period, and the limits of liability, and shall contain an agreement or be endorsed that insurance is provided thereunder in accordance with the coverage defined in this subchapter as respects bodily injury and death or property damage, or both, and is subject to all the provisions of this subchapter.
(e) POLICY NEED NOT INSURE WORKERS' COMPENSATION, ETC. 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 such 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 therein:
(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 the 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, and if the settlement is made in good faith, the amount shall be deductible from the limits of liability specified in subdivision (b)(2) of this section; and
(4) The policy, the written application therefor, if any, and any rider or endorsement which does not conflict with the provisions of this subchapter 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 this excess or additional coverage shall not be subject to the provisions of this subchapter. 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 subchapter.
(i) PRORATION OF INSURANCE PERMITTED. Any motor vehicle liability policy may provide for the prorating of the insurance thereunder 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 (1) or more insurance carriers which policies together meet these requirements.
(k) BINDERS. Any binder issued pending the issuance of a motor vehicle liability policy shall be deemed to fulfill the requirements for a policy.
(l)(1) Extension of Coverage. Every motor vehicle liability insurance policy, every motor vehicle physical damage insurance policy, every motor vehicle uninsured and underinsured motorist insurance policy, and every motor vehicle insurance policy covering death or bodily injury insuring a motor vehicle licensed in this state or the occupants of the motor vehicle shall extend its liability, physical damage, uninsured and underinsured motorist, and death or bodily injury coverages to include any other motor vehicle, operated by the insured individual, and its occupants if the other motor vehicle is:
(A) Loaned by a duly licensed automobile dealer as a temporary substitute, with or without compensation, to the insured individual for use as a temporary substitute vehicle while the insured's vehicle is out of use because of a breakdown, repair, or servicing;
(B) Loaned by a duly licensed automobile dealer for use as a demonstrator vehicle; or
(C) Rented or leased from a rental company as defined in § 23-64-202 (d)(2)(C) .
(2) The extensions of liability, physical damage, uninsured and underinsured motorist, and death or bodily injury coverages under this subsection are primary to any insurance or self-insurance maintained by the duly licensed automobile dealer or rental company.
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