CAIA Uninsured and Underinsured Motorist Claims

Question 1

When an insured is injured by a hit-and-run driver, under which coverage would they typically file a claim with their own insurer?

Accepted Answer

Uninsured motorist (UM) coverage

Answer

Collision coverage

Answer

Medical payments coverage

Answer

Comprehensive coverage

Question 2

What is the primary difference between Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage?

Accepted Answer

UM applies when the at-fault driver has no liability insurance; UIM applies when the at-fault driver's limits are insufficient to cover damages

Answer

UM covers property damage only; UIM covers bodily injury only

Answer

UM is mandatory in all states; UIM is optional in all states

Answer

UM pays first-party claims; UIM pays third-party claims

Question 3

In most states, before an insured can collect UIM benefits, they must first:

Accepted Answer

Exhaust or settle the at-fault driver's liability policy limits

Answer

File a lawsuit against their own insurer

Answer

Obtain a police report confirming the other driver's fault

Answer

Submit to an independent medical examination

Question 4

An insured has UIM limits of $100,000. The at-fault driver had liability limits of $25,000 which were paid in full. The insured's total damages are $80,000. How much can the insured recover from their UIM coverage (assuming an offset state)?

Accepted Answer

$55,000

Answer

$80,000

Answer

$100,000

Answer

$25,000

Question 5

Which of the following is a typical requirement before an insured settles with a third-party liability insurer for less than the full claim value in a UIM case?

Accepted Answer

The insured must notify and obtain consent from their own UIM insurer

Answer

The insured must first exhaust all medical payments coverage

Answer

The insured must submit a sworn proof of loss to the at-fault driver's insurer

Answer

The insured must have the vehicle repaired before settlement

Question 6

Which statement about UM property damage (UMPD) coverage is correct?

Accepted Answer

UMPD covers damage to the insured's vehicle caused by an uninsured motorist and may have a deductible

Answer

UMPD is mandatory in all 50 states

Answer

UMPD has no deductible in any state

Answer

UMPD always pays replacement value regardless of vehicle age

Question 7

What does 'stacking' refer to in the context of UM/UIM coverage?

Accepted Answer

Combining UM/UIM limits from multiple vehicles or policies to increase the total available coverage

Answer

Adding collision and comprehensive to a UM/UIM policy

Answer

Applying UM limits from the at-fault driver's insurer and the insured's insurer simultaneously

Answer

Using medical payments coverage before UM/UIM coverage