Identify the coverage that fills in the coverage gap that arises when the negligent party meets the financial responsibility law of the state, but the auto accident victim has losses in excess of the negligent driver's liability limit.
A)Stacking coverage
B)Supplementary motorist coverage
C)Nonfortuitous coverage
D)Underinsured motorist coverage
E)Uninsured motorist coverage

Question

Quizplus · Accepted Answer

Underinsured motorist coverage is designed to fill the gap when the at-fault driver's insurance is not sufficient to cover the damages or medical expenses of the accident victim. This coverage steps in when the other driver's liability limits are too low to cover all of the victim's costs.

Identify the Coverage That Fills in the Coverage Gap That