CA AB862

Authorizes insurers to offer separately rated "nonsetoff" underinsured motorist policies where the maximum insurer liability equals the coverage limit without subtracting amounts paid by the at-fault driver's insurance.

Requires insurers electing to offer nonsetoff policies to notify insureds in writing using a specified form that explains the differences between setoff and nonsetoff coverage options and directs consumers to contact their agent for premium information.

Maintains the requirement that total recovery from both uninsured motorist coverage and at-fault party payments cannot exceed the sum of all economic and noneconomic losses sustained by the insured.

Finds and declares that providing consumers with additional underinsured motorist coverage options serves the public interest.