Insurance Law Commons^™

Exposing "Illusory" Underinsured Motorist Coverage, Greg Munro

Faculty Journal Articles & Other Writings

This article addresses auto insurers that use the "narrow" Underinsured Motorist Vehicle definition and couples it with a "reducing clause." The article discusses the conflict between what the declarations page promises and the UIM benefit the policy will actually pay and argues that the definition and reducing clause violate the consumer's expectations and defeat the very purpose of UIM coverage causing an injustice to the insured who has been prudent enough to purchase UIM coverage to guard against the tortfeasor who carries minimum limits. The article urges attorneys to persuade the courts in Montana to invalidate the narrow definition and …