UM & UIM coverage cannot exceed what limits?

UM & UIM coverage cannot exceed what limits?

• A. UM/UIM may exceed the policy's liability limits.
• B. UM/UIM is not included in the policy.
• C. UM/UIM shall be equal to but not exceed the stated limits.
• D. UM/UIM coverage cannot exceed the limits of liability specified in the policy ($30,000/$60,000/$25,000).

Answer: (D)

UM/UIM coverage is designed to protect you up to the same funding level as your own liability coverage. The policy sets a ceiling for what can be paid under these coverages, and that ceiling is the liability limit chosen in the policy. So if your policy shows limits like 30/60/25, the UM and UIM payments cannot exceed those amounts. This keeps the amount paid for uninsured or underinsured motorist losses within the same contractual funding as the liability coverage you purchased. The other choices imply protections beyond the policy’s liability limits, that UM/UIM wouldn’t be included at all, or that they must always be exactly equal in all cases, which isn’t how these limits operate.

UM/UIM coverage is designed to protect you up to the same funding level as your own liability coverage. The policy sets a ceiling for what can be paid under these coverages, and that ceiling is the liability limit chosen in the policy. So if your policy shows limits like 30/60/25, the UM and UIM payments cannot exceed those amounts. This keeps the amount paid for uninsured or underinsured motorist losses within the same contractual funding as the liability coverage you purchased. The other choices imply protections beyond the policy’s liability limits, that UM/UIM wouldn’t be included at all, or that they must always be exactly equal in all cases, which isn’t how these limits operate.