Amends existing law to establish provisions regarding underinsured motor vehicle coverage.

This proposed legislation would eliminate the problem of phantom insurance and reduced payments for benefits paid by others. The legislation provides that when a citizen purchases motor vehicle underinsurance coverage, the purchaser receives the stated benefit provided on the declarations page. This prevents an insurance company that receives a premium for underinsured coverage from taking credit for benefits paid by other insurance companies. It further limits the benefits recoverable to the purchaser's actual losses or the amount of coverage purchased, whichever is less.