Auto InsuranceQuestion 25 of 215
California Underinsured Motorist (UIM) coverage applies when:
a.The insured's vehicle is damaged by hail
b.The insured has a single-car accident with no other driver involved
c.The at-fault driver has no insurance at all
d.The at-fault driver's liability limits are lower than the insured's UIM limits and have been exhausted by other claims
Explanation
California UIM coverage applies when the at-fault driver does carry liability insurance, but the limits are insufficient (lower than the insured's UIM limits) AND those liability limits have been exhausted by payment of judgments or settlements. The UIM coverage then pays the difference between the at-fault driver's limits and the insured's UIM limits, up to the policy's UIM amount. Uninsured driver = UM; underinsured = UIM.
Law Reference: ISO PAP, Part C — Underinsured MotoristsPractice all 215 questions free — no signup required.
Related questions on this topic
- California law requires drivers to carry which item in the vehicle as evidence of financial responsibility, ready to present on demand?
- Under Part A of the Personal Auto Policy, who qualifies as an 'insured' for liability purposes?
- Which of the following losses is specifically EXCLUDED under Part A Liability of the Personal Auto Policy?
- An insured drives her covered Honda to a dealer to test-drive a new SUV. While on the test drive she damages the SUV in a collision. Under the Personal Auto Policy, the SUV is best treated as:
- Following a covered collision repair, a California insured argues that her car is now worth less on resale than before the accident because of its accident history. With respect to first-party diminished value (the loss of resale value) claimed against the insured's own physical damage carrier, California generally:
- California considers a vehicle to be a 'total loss salvage vehicle' for title-branding purposes when:
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