To repeal section 379.201, RSMo 1994, relating to motor vehicle liability insurance policies, and to enact in lieu thereof one new section relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI,

AS FOLLOWS:

Section A. Section 379.201, RSMo 1994, is repealed and one new section enacted in lieu thereof to be known as section 379.201, to read as follows:

379.201. 1. Every motor vehicle liability insurance policy issued or renewed after the effective date of this act and insuring a motor vehicle licensed in this state must extend its liability coverage to include any other motor vehicle operated by the insured individual, including any other vehicle owned by, leased to or loaned to the insured individual. No such policy may exclude coverage because of the existence of another motor vehicle liability insurance policy covering the same individual or because the same policy contains separate liability coverages for an individual on more than one vehicle. [if the other motor vehicle is loaned, with or without consideration, to the insured individual for demonstration purposes or as a replacement vehicle while the insured's vehicle is out of use because of breakdown, repair, or servicing and if the other motor vehicle is loaned by a person, firm, or corporation engaged in the business of selling, repairing, or servicing motor vehicles. Such extension of liability coverage must include coverage for damage to the loaned vehicle.]

2. A motor vehicle liability insurance policy shall exclude coverage on a pro-rata basis where the liability payments from multiple policies would exceed the damages caused by the insured individual.

3. Notwithstanding the provisions of chapter 303, RSMo, no owner or operator of more than one motor vehicle need obtain more than one motor vehicle liability insurance policy for the same time period.