California-Specific RulesQuestion 69 of 158
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.UM is properly waived; the policy carries no UM coverage
b.UM is waived only for property damage; bodily injury UM remains
c.The waiver is ineffective; UM remains in force at the default statutory limits because the rejection was not in a signed writing
d.The producer is fined $1,000 per occurrence but the waiver itself is valid
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 §11580.2Practice all 158 questions free — no signup required.
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