Personal Auto PolicyQuestion 11 of 474
An insured carrying $100,000/$300,000 UIM limits is injured by an at-fault driver carrying only $30,000/$60,000 in liability. The insured's own medical and wage loss exceeds $80,000. Under California UIM, what must occur before the insured can collect from her own UIM?
a.The insured must first obtain a superior court judgment against the at-fault driver for the full amount of her damages
b.The insured may collect the full $80,000 from her UIM immediately
c.The insured must first exhaust the at-fault driver's $30,000/$60,000 liability limits
d.The insured must first sue the State of California as a guarantor
Explanation
California UIM under Insurance Code §11580.2(p) is a 'difference in limits' coverage. The injured insured must first exhaust the at-fault driver's liability limits; UIM then pays the gap between the at-fault limits and the insured's own UIM limits, up to the actual loss. California is NOT an 'excess over' UIM state.
Law Reference: Cal. Ins. Code §11580.2(p)This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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