PAP Uninsured/Underinsured Motorists

Liability loss exposure

Any condition or situation that presents the possibility of a claim alleging legal responsibility of a person or business for injury or damage suffered by another party.

Minimum UM Limits

FR or compulsory insurance law limits required by the state in which the insured auto is principally garaged. Higher limits can be purchased for an additional premium.

Part C Insuring Agreement

Insurer agrees to pay compensatory damages that the insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury caused by an accident

Interpolicy Stacking

Involves two or more separate policies; the UIM policy limit of one policy is added to (stacked on) the UIM limit of the other policy.

UIM Coverage Triggers

Limits Trigger: When negligent driver's limits are below FR limits of applicable state. Damages Trigger: When negligent driver's limits are lower than injured party's damages.

Damages covered under Part C

Medical expenses. Rehabilitation expenses. Lost wages

Intrapolicy Stacking

Stacking within a single policy that covers more than one vehicle

Insureds under UM Coverage

Named insured and family members in a car or as pedestrians. Other persons in the covered auto. Any person legally entitled to damages because the first two types of insureds are injured

Qualified Uninsured Motor Vehicles

No BI liability insurance or bond at time of accident; applicable insurance is below FR limits; hit-and-run vehicles; vehicle whose responsible insurer becomes insolvent

Insurer's Right of Recover is Prejudiced

One of seven UM/UIM Exclusions

No Benefit to WC or Disability Benefits

One of seven UM/UIM Exclusions

Owned but Not Insured Vehicle

One of seven UM/UIM Exclusions

Owned vehicle with primary UM in Other Policy

One of seven UM/UIM Exclusions

Public or Livery Conveyance

One of seven UM/UIM Exclusions

Vehicle Used Without Being Entitled

One of seven UM/UIM Exclusions

Punitive Damages

One of seven UM/UIM Exclusions; coverage only applies to compensatory damages

Underinsured Motorists (UIM) Coverage

Pays when a negligent driver is insured for at least the minimum required FR limits but the policy's liability limits are insufficient to pay the insured's damages

Stacking

The application of two or more limits to a single auto accident

Governing UM/UIM Statute

The state in which the insured's vehicle is registered or principally garaged.