CAIA Uninsured and Underinsured Motorist Claims 2

Question 1

An adjuster receives a UM bodily injury claim involving a hit-and-run where no physical contact occurred. In many states, what additional requirement must the insured meet to qualify for UM benefits?

Accepted Answer

There must be corroborating evidence or an independent witness to the accident

Answer

Many states require independent corroboration of the hit-and-run incident (such as a witness, police report evidence, or physical evidence) to prevent fraudulent phantom vehicle claims.

Question 2

When the insured's own insurer disputes liability in a UM/UIM claim, many states allow the parties to resolve the dispute through:

Accepted Answer

Arbitration, as required by the insurance policy or state statute

Answer

UM/UIM policies commonly contain arbitration clauses, and many states mandate arbitration as the dispute resolution mechanism for coverage and liability disagreements between the insured and their own carrier.

Question 3

What is the primary purpose of the 'consent to settle' clause in a UIM policy?

Accepted Answer

To protect the UIM insurer's potential subrogation rights against the at-fault party

Answer

The consent-to-settle clause requires the UIM insurer's approval before settling with the tortfeasor so the insurer can preserve its right to pursue subrogation against the at-fault party after paying UIM benefits.

Question 4

In a 'non-offset' or 'add-on' UIM state, how are UIM benefits calculated when the at-fault driver's limits are $25,000 and the insured's UIM limit is $100,000?

Accepted Answer

The insured can receive up to $100,000 from UIM regardless of the liability payment received

Answer

In an add-on (non-offset) state, UIM limits are not reduced by the liability payment received, so the insured could collect up to $100,000 in UIM benefits in addition to the $25,000 from the at-fault driver (subject to total damages).

Question 5

Which coverage applies when the insured is struck by a driver who has liability insurance, but those limits are less than the insured's damages?

Accepted Answer

Underinsured Motorist (UIM) coverage

Answer

Underinsured motorist (UIM) coverage applies when the at-fault driver carries liability insurance but those limits are insufficient to fully compensate the injured insured for their losses.

(CAIA) Certified Automotive Insurance Adjuster Practice Test

(CAIA) Certified Automotive Insurance Adjuster Practice Test

CAIA Uninsured and Underinsured Motorist Claims 2