Un/Underinsured Motorist policy limits

If a third-party claimant is uninsured or underinsured, you can set reserves and manage payments based on the established uninsured/underinsured coverages. To manage accounting for uninsured/underinsured motorists, you must:

  1. Designate the percentage of fault for all involved claimants.
  2. Identify the claimant(s) that are uninsured and/or underinsured.
  3. Add Uninsured/Underinsured Motorist exposure(s) to the applicable claimants.

Designate percentage of fault for all involved claimants

  1. Navigate to the Vehicles screen of the claim file.
  2. Select a vehicle from the vehicles list to open the Vehicle Details screen.
  3. Navigate to the Fault section and select Edit.
  4. Complete the Create Fault dialog box. See Add or edit fault information.
  5. Repeat steps 2-4 for each involved claimant. The percentage of fault for each involved vehicle will appear in the Fault column on the Vehicles screen.

Identify claimants as uninsured or underinsured

  1. Navigate to the Vehicles screen of the claim file.
  2. Select the vehicle from the vehicles list that is uninsured/underinsured. The Vehicle Details screen will open.
  3. Navigate to the Insurance Information section and select Edit.
  4. From the Un/Underinsured Motorist dropdown list, select Underinsured or Uninsured.
  5. Select Save.

Add Un/Underinsured Motorist exposure

  1. Navigate to the Exposures screen of the claim file.
  2. Select + Add Exposure.
  3. From the Select a Claimant or Involved Party dropdown list, select the claimant you’re adding the Un/Underinsured Motorist exposure to.
  4. Select the applicable coverages including Un/Underinsured Motorist.
  5. Select Add Exposure.

Un/Underinsured Motorist policy limits

The Un/Underinsured Motorist exposure has split limits, or limits split into different components of the exposure. The Un/Underinsured Motorist exposure is split into two L2 reserves: Bodily Injury and Property Damage. Bodily Injury and Property Damage each have their own established limit(s).

For example:

  • Bodily Injury can have two limits, such as:
    • A Per Person Limit, with an established limit of $100,000 per person.
    • A Per Occurrence Limit, with an established limit of $300,000 per occurrence.
  • Property Damage can have:
    • A Property Damage Limit of $100,000 per property damage.

Un/Underinsured Motorist policy limits appear at the top of the Exposure Accounting Summary screen. The Coverage Limits section for Un/Underinsured Motorist displays the split limits. See Figure 1 (below).

Figure 1: Coverage Limits on an Un/Underinsured Motorist exposure.

As shown in Figure 1, these split limits are Underinsured Bodily Injury, which is further separated into a Per Person Limit and a Per Occurrence Limit, and Underinsured Property Damage.

Within the Coverage Limits section in Figure 1, notice:

  1. The Coverage Limit(s) of the Underinsured Bodily Injury, include a Per Person Limit and a Per Occurrence Limit.
  2. The Remaining this Exposure section under Underinsured Bodily Injury coverage limits shows the amount remaining for the Underinsured Bodily Injury Per Person Limit. Notice the amount is less than the Coverage Limit, which indicates that a portion of the limit has been consumed. If you select the icon, a tooltip will open and display the amount currently consumed and the associated exposure IDs. As shown in Figure 2, the Coverage Limit for Bodily Injury Per Person Limit will only be consumed by one exposure.
    Figure 2: Tooltip displaying the amount of policy limit consumed and the exposure ID it’s consumed by. Of the $100,000 Per Person Limit, $1,500 has been consumed. The tooltip shows that the $1,500 has been consumed by E007.
  3. The Remaining Bodily Injury Per Occurrence Limit section under Underinsured Bodily Injury coverage limits shows the amount remaining for the Underinsured Bodily Injury Per Occurrence Limit. Notice the remaining amount is less than the Coverage Limit, which indicates that a portion of the limit has been consumed. If you select the icon, a tooltip will open and display the amount currently consumed and the associated exposure IDs. See Figure 1 or Figure 3.
    Figure 3: Tooltip displaying the amount of policy limit consumed and the associated exposure IDs. Of the $300,000 Per Occurrence Limit, $1,500 has been consumed. The tooltip shows that the $1,500 was consumed by one exposure ID, E007.
  4. The Coverage Limit(s) of the Underinsured Property Damage include only the Property Damage Limit.
  5. The Remaining Property Damage Limit section under Underinsured Property Damage shows the amount remaining for the Underinsured Property Damage Limit. Notice the remaining amount is equal to the established Property Damage Limit, which indicates that no portion of the limit has been consumed. If you select the icon, a tooltip will open and display the amount currently consumed and the associated exposure IDs. See Figure 4.
    Figure 4: Tooltip displaying the amount consumed and associated exposure IDs. Of the $100,000 Property Damage Limit, $0 has been consumed. The tooltip shows that no associated exposure ID has consumed a portion of the Property Damage Limit.

As indicated by the above figures, when you set reserves for the split limits, the remaining limits will update to display the amount remaining after reserves have been set or consumed.

  • If you set reserves for Uninsured/Underinsured BI (Bodily Injury), the set reserve amount will be subtracted from both the Per Person Limit and the Per Occurrence Limit, and the remaining balance will display in the Remaining this Exposure and Remaining Bodily Injury Per Occurrence Limit sections under Uninsured/Underinsured Bodily Injury under Coverage Limits.
  • If you set reserves for Uninsured/Underinsured PD (Property Damage), the set reserve amount will be subtracted from the Property Damage Limit and the remaining balance will display in the Remaining Property Damage Limit section under Uninsured/Underinsured Property Damage under Coverage Limits.
  • If you set reserves for Uninsured/Underinsured Loss of Use (Rental), the set reserve amount will be subtracted from the Property Damage Limit and the remaining balance will display in the Remaining Property Damage Limit section under Uninsured/Underinsured Property Damage under Coverage Limits.

Multiple un/underinsured motorists

If more than one claimant is uninsured, and the Un/Underinsured Motorist exposure is applied to each uninsured claimant, then:

  • Each exposure will have a separate Bodily Injury Per Person Limit coverage limit established for Uninsured Bodily Injury.
  • Each exposure will share the Bodily Injury Per Occurrence Limit coverage limit established for Uninsured Bodily Injury and Property Damage Limit coverage limit established for Uninsured Property Damage.

If more than one claimant is underinsured, and the Un/Underinsured Motorist exposure is applied to each underinsured claimant, then:

  • Each exposure will have a separate Bodily Injury Per Person Limit coverage limit established for Underinsured Bodily Injury.
  • Each exposure will share the Bodily Injury Per Occurrence Limit coverage limit established for Underinsured Bodily Injury and Property Damage Limit coverage limit established for Underinsured Property Damage.

If at least one claimant is uninsured and at least one claimant is underinsured, and the Un/Underinsured Motorist exposure is applied to each uninsured and underinsured claimant, then:

  • Each uninsured and each underinsured claimant will have a separate Bodily Injury Per Person Limit coverage limit established for either the Uninsured Bodily Injury coverage or Underinsured Bodily Injury coverage.
  • All uninsured claimants will share the Bodily Injury Per Occurrence Limit and Property Damage Limit coverage limits established for Uninsured Bodily Injury and Uninsured Property Damage.
  • All underinsured claimants will share the Bodily Injury Per Occurrence Limit and Property Damage Limit coverage limits established for Underinsured Bodily Injury and Underinsured Property Damage.

When you access an Un/Underinsured Motorist exposure on a claim that has both uninsured claimants and underinsured claimants, all uninsured and underinsured coverage limits will display. See Figure 5.

Figure 5: Un/Underinsured Motorist coverages when at least one claimant is uninsured and at least one claimant is underinsured.