California-Specific RulesQuestion 69 of 474
A California personal auto applicant tells the producer over the phone that she does not want uninsured-motorist (UM) coverage. The producer issues the policy without UM. Under §11580.2, what is the legal effect?
a.The waiver is ineffective; UM remains in force at the default statutory limits because the rejection was not in a signed writing
b.UM bodily injury is waived by the oral statement, but uninsured motorist property damage stays on the policy until a separate written rejection is signed
c.UM is properly waived; the policy carries no UM coverage
d.The waiver is valid, and the producer's only exposure is a Department of Insurance administrative penalty of $5,000 for each act under §790.035
Explanation
Insurance Code §11580.2 requires that any rejection of UM, or any selection of UM limits below the bodily-injury liability limits (up to 30/60), be made in a signed writing meeting statutory form requirements. An oral rejection is ineffective. UM therefore remains in force at the default limits, and the insurer remains on the risk until a compliant written waiver is on file.
Law Reference: Cal. Ins. Code §11580.2This 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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