Podcast
Questions and Answers
What is the primary purpose of UM/UIM coverage?
What is the primary purpose of UM/UIM coverage?
When does a UM claim typically arise?
When does a UM claim typically arise?
What is the key difference between UM and UIM coverage?
What is the key difference between UM and UIM coverage?
How can uninsured and underinsured motorist coverage be waived?
How can uninsured and underinsured motorist coverage be waived?
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Which of the following is NOT covered under UM/UIM if the coverage is not waived?
Which of the following is NOT covered under UM/UIM if the coverage is not waived?
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What is the maximum potential recovery in a scenario where the defendant's policy limit is $25,000/$50,000 and the UM/UIM policy limit is $50,000/$100,000?
What is the maximum potential recovery in a scenario where the defendant's policy limit is $25,000/$50,000 and the UM/UIM policy limit is $50,000/$100,000?
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What is the "anti-stacking" rule in the context of UM/UIM coverage?
What is the "anti-stacking" rule in the context of UM/UIM coverage?
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In a scenario where a client is a passenger in a vehicle owned by someone else, when does UM/UIM coverage apply?
In a scenario where a client is a passenger in a vehicle owned by someone else, when does UM/UIM coverage apply?
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If a client owns a vehicle but does not have insurance, can they use someone else's UM/UIM policy if they live together?
If a client owns a vehicle but does not have insurance, can they use someone else's UM/UIM policy if they live together?
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Why is it important to ensure the medical records are strong enough to pursue a UM/UIM claim?
Why is it important to ensure the medical records are strong enough to pursue a UM/UIM claim?
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Study Notes
Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage
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UM/UIM coverage purpose: To provide compensation when the at-fault driver's insurance is insufficient or nonexistent.
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When UM claims arise: When the at-fault driver's insurance denies liability, when the driver is underinsured, when their identity is unknown or if they have no insurance.
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UM vs. UIM difference: UM applies when the at-fault driver has no insurance, while UIM applies when their insurance is less than the injured party's policy limits. UM covers bodily injury, while UIM covers both bodily injury and property damage.
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How UM/UIM coverage can be waived: By signing a document as required by the Insurance Code. Waivers should not be done verbally, through text or by failing to make monthly payments.
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What is NOT covered under UM/UIM (if not waived): Legally married spouses, relatives in the same household, and friends driving insured vehicles. Heirs of the insured in wrongful death claims are typically covered.
UM/UIM Policy Limit Scenario
- Policy Limit Example: If the at-fault driver's policy limit is $25,000/$50,000, the most you could recover from their insurance is $25,000 per person and $50,000 per accident.
Anti-Stacking Rule
- Anti-stacking rule: Prohibits using multiple UM/UIM policies to exceed the highest available limit.
Passenger Scenarios
- Passenger UM/UIM coverage: UM/UIM coverage applies if the vehicle has UM/UIM coverage, or if the passenger has their own policy. The driver's fault, or living situation is not the key to determining coverage.
Insurance Without Coverage Scenarios
- Uninsured vehicle and shared UM/UIM coverage: A person owning an uninsured vehicle cannot always use another person's UM/UIM policy, even if they live together. Conditions may apply for coverage in this situation, so it is important to check the legal requirements of the applicable area.
Importance of Medical Records
- Value of medical records: Strong medical records are critical to support UM/UIM claims, by supporting the need for higher compensation. Medical records prove the need for compensation and avoid unnecessary legal fees.
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