Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage Quiz

**Quiz: Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage** 1. **What is the primary purpose of UM/UIM coverage?**\ a) To reduce insurance premiums.\ b) To provide compensation when the defendant's insurance is insufficient or nonexistent.\ c) To ensure faster claim...

**Quiz: Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage** 1. **What is the primary purpose of UM/UIM coverage?**\ a) To reduce insurance premiums.\ b) To provide compensation when the defendant's insurance is insufficient or nonexistent.\ c) To ensure faster claim processing.\ d) To cover legal fees for motor vehicle collisions. 2. **When does a UM claim typically arise?**\ a) When the defendant\'s insurance denies liability.\ b) When the defendant is underinsured.\ c) When the defendant\'s identity is unknown or the vehicle has no insurance.\ d) When liability coverage exceeds the damages. 3. **What is the key difference between UM and UIM coverage?**\ a) UM applies when the defendant has insurance; UIM applies when the defendant does not.\ b) UM applies when the defendant has no insurance; UIM applies when the defendant's insurance coverage is less than the plaintiff's policy limits.\ c) UM is only for bodily injuries; UIM is for both injuries and property damage.\ d) UM requires a signed waiver, while UIM does not. 4. **How can uninsured and underinsured motorist coverage be waived?**\ a) Verbally during the insurance purchase.\ b) By signing a document in the form required by the Insurance Code.\ c) Through a text message confirmation.\ d) By failing to make monthly payments. 5. **Which of the following is NOT covered under UM/UIM if the coverage is not waived?**\ a) A legally married spouse of the named insured.\ b) Relatives of the named insured living in the same household.\ c) A friend driving the insured vehicle.\ d) Heirs of the insured in wrongful death claims. 6. **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?**\ a) \$25,000 per person and \$50,000 per accident.\ b) \$50,000 per person and \$100,000 per accident.\ c) \$75,000 per person and \$150,000 per accident.\ d) \$100,000 per person and \$200,000 per accident. 7. **What is the \"anti-stacking\" rule in the context of UM/UIM coverage?**\ a) It allows combining multiple UM/UIM policies for a higher payout.\ b) It prohibits using multiple UM/UIM policies to exceed the highest limit available.\ c) It permits coverage stacking only if both policies have the same limits.\ d) It stacks coverage limits for accidents involving uninsured drivers only. 8. **In a scenario where a client is a passenger in a vehicle owned by someone else, when does UM/UIM coverage apply?**\ a) When the vehicle has UM/UIM coverage or the client has their own policy.\ b) Only when the client owns the vehicle.\ c) Only if the driver is at fault.\ d) When the client lives alone. 9. **If a client owns a vehicle but does not have insurance, can they use someone else's UM/UIM policy if they live together?**\ a) Yes, always.\ b) No, because owning an uninsured vehicle disqualifies them.\ c) Only if the other person is a relative.\ d) Yes, but only under certain conditions. 10. **Why is it important to ensure the medical records are strong enough to pursue a UM/UIM claim?**\ a) To avoid unnecessary legal fees.\ b) To demonstrate the need for higher compensation.\ c) To reduce the policy limits of the defendant.\ d) To waive the Insurance Code requirements.