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

The insured must have collision coverage on the vehicle

Answer

The insured must report the accident within 24 hours to police

Answer

The insured must have uninsured motorist property damage coverage

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

Small claims court only

Answer

A panel of three licensed adjusters

Answer

The state Department of Motor Vehicles

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

To give the insured permission to select their own attorney

Answer

To require the insured to accept any settlement offer from the at-fault driver

Answer

To allow the UIM insurer to deny coverage if the insured rejects a reasonable settlement

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

The insured receives $75,000 from UIM after the $25,000 liability payment

Answer

The insured receives only $25,000 total from both coverages

Answer

The insured must choose between liability and UIM payments

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

Uninsured Motorist (UM) coverage

Answer

Medical Payments (MedPay) coverage

Answer

Personal Injury Protection (PIP) coverage

Question 6

When processing a UM/UIM claim, the adjuster must evaluate the at-fault driver's liability. Which standard does the adjuster typically apply?

Accepted Answer

The same negligence standard that would apply if the insured were suing the at-fault driver directly

Answer

A stricter standard than would apply in a third-party claim

Answer

An absolute liability standard regardless of driver conduct

Answer

A no-fault standard regardless of state law

Question 7

A passenger injured in a vehicle operated by an uninsured driver may seek UM benefits under which policy?

Accepted Answer

The passenger's own auto policy, if it extends UM coverage to the insured while occupying non-owned vehicles

Answer

Only the vehicle owner's policy, never the passenger's own policy

Answer

Only the state uninsured motorist fund

Answer

Only the driver's employer's policy