Public Act 09-72 - Notification of Under-insured Motorist Conversion Coverage

Connecticut State Seal www.ct.gov/cid P.O. Box 816 Hartford, CT 06142-0816 An Equal Opportunity Employer STATE OF CONNECTICUT INSURANCE DEPARTMENT Bulletin PC-65 December 21, 2009 TO: ALL COMPANIES LICENSED TO WRITE AUTOMOBILE LIABILITY INSURANCE IN CONNECTICUT RE: PUBLIC ACT 09-72—NOTIFICATION OF UNDERINSURED MOTORIST CONVERSION COVERAGE ___________________________________________________________________ Introduction. Effective January 1, 2010, Public Act 09-72 requires an automobile insurer issuing a new automobile liability insurance policy to disclose to an insured at the time of sale or issuance the availability of, premium cost for, and description of underinsured motorist conversion coverage. The description must be made in a conspicuous manner with the Informed Consent Form required for uninsured motorist (“UM”) and underinsured motorist (“UIM”) coverage. The purchase of underinsured motorist conversion coverage would be in lieu of underinsured motorist coverage required under Conn. Gen. Stat. Section 38a-336. The Department previously issued guidance concerning the “Informed Consent Form” set forth in Bulletin PC-22 dated October 20, 19931 in connection with Connecticut’s “No-Fault” automobile legislation. This Bulletin is intended to provide updated guidance concerning the use and content of the “Informed Consent Form” for uninsured/underinsured motorist coverage and underinsured motorist conversion coverage pursuant to Public Act 09-72. The formats provided under Bulletin PC-22 that contain the Informed Consent Form and the election of Underinsured Motorist Conversion Coverage options and premiums would satisfy the requirements of Public Act 09-72. Uninsured/Underinsured Informed Consent Forms. Conn. Gen. Stat. Section 38a-336 requires each automobile insurer to provide UM/UIM coverage with bodily injury and death limits equal to the liability limits the insured purchased, unless the named insured requests in writing a lesser amount but not less than the limits specified in Conn. Gen. Stat. Section 14-112(a). Currently, Section 14-112(a) requires that an insured purchase coverage of at least $20,000 (for injury or death of one person) and $40,000 (for injury or death of more than one person in any accident). 1 Bulletin PC-22 dealing with the topic of “Informed Consent” in the No-Fault context was rescinded by Bulletin No. IC-15 dated December 15, 2000. For reference, a copy is attached to this Bulletin. Pursuant to Conn. Gen. Stat. Section 38a-336, any request for a lesser amount will not be effective unless the named insured signs an Informed Consent Form containing the following: • an explanation of uninsured and underinsured motorist insurance approved by the Commissioner; • a list of uninsured and underinsured motorist coverage options available from the insurer; and • the premium cost for each of the coverage options available from the insurer. The Informed Consent Form is required to contain the following statement in 12-point type: “WHEN YOU SIGN THIS FORM, YOU ARE CHOOSING A REDUCED PREMIUM, BUT YOU ARE ALSO CHOOSING NOT TO PURCHASE CERTAIN VALUABLE COVERAGE WHICH PROTECTS YOU AND YOUR FAMILY. IF YOU ARE UNCERTAIN ABOUT HOW THIS DECISION WILL AFFECT YOU, YOU SHOULD GET ADVICE FROM YOUR INSURANCE AGENT OR ANOTHER QUALIFIED ADVISER.” Formats for Informed Consent Disclosures. Attached is an approved format for the required Informed Consent Forms dealing with UM/UIM and UIM Conversion Coverage. You may use this format or develop your own version. If you develop your own form, you must use the texts of the description of coverage set forth on the attached unless the Department gives you prior approval for the use of alternative language. If you have questions concerning this Bulletin, please direct them to the Property/Casualty Division at: cid.pc@ct.gov or by phone to: (860) 297-3867 or (860) 297-3913. Insurance Commissioner's signature Thomas R. Sullivan Insurance Commissioner - 2 - INFORMED CONSENT FORM UNINSURED MOTORISTS COVERAGE Types of Coverage Uninsured Motorist (UM)/Underinsured Motorist (UIM) Coverage. Our law requires you to buy Uninsured Motorist (UM/UIM) coverage. Generally, this coverage only applies where the person who causes an accident is not an insured under your policy. Anyone injured in an accident may seek to recover damages from the person causing the loss. These losses include your medical bills, lost wages (past and future), as well as payment for disabilities, pain and suffering and loss of enjoyment of life’s activities. Normally, these damages would be paid by the other person’s insurance company. UM/UIM coverage protects you, your family and others in your car for injuries caused by someone who did not buy insurance. You have the right to choose the amount of coverage. It can be as low as $20,000 per person and $40,000 per accident, or as high as twice your policy’s bodily injury liability coverage limit. The amount of liability coverage you buy will govern the maximum amount of UM/UIM coverage you can buy. This coverage also includes standard Underinsured Motorist (UIM) coverage. It protects you where injuries are caused by someone whose insurance is not enough to pay your damages and is less than your UM/UIM limits. UIM coverage will pay your damages to fill in the difference between those limits. However, the protection available under standard UIM coverage is usually reduced by amounts paid by workers’ compensation, or by or on behalf of the person at-fault. Underinsured Motorist Conversion Coverage. Under our law, you can convert standard UIM coverage to UNDERINSURED MOTORIST CONVERSION (UIMC) COVERAGE. This coverage is not reduced by payments from any source. If your damages exceed the amount of the at fault person’s insurance, or other payments, your UIMC coverage will be available for damages not paid. Both standard (UIM) and conversion (UIMC) coverages only become available after the liability insurance of the at-fault person has been fully paid. Stacking Connecticut law does not provide for stacking of UM/UIM coverage. Stacking allows insureds to add together UM/UIM coverage under separate policies or, in multi-car policies, the insurance applicable to each car. With stacking, if you had two insured cars and you purchased $100,000 of UM/UIM coverage you received (and you paid for) $200,000 of protection. Under current law, the amount purchased ($100,000) is not multiplied by the number of cars insured. Also, your UM/UIM coverage is limited to the highest available limit under any of the policies that apply to the accident. If you are injured in a car you own, you are limited to the amount of coverage for that car. -3- -4- ELECTION OF COVERAGE BODILY INJURY LIABILITY LIMIT: $___________________ UNINSURED MOTORIST (UM/UIM) COVERAGE If you do not check a box below, your policy will be issued with standard UIM coverage (not Underinsured Motorist Conversion Coverage) with limits equal to your Bodily Injury Liability (BI) coverage limits. If you check more than one box, your policy will be issued with the highest level of coverage selected. SELECT ONE OPTION UNDER EITHER STANDARD UIM COVERAGE OR CONVERSION UIM COVERAGE. Do Not Check More Than One Box Below. UM WITH STANDARD UIM COVERAGE Limit Total Coverage Premium Double BI Limit $____________________ BI Limit $____________________ * Option $_________________ $____________________ * Option $_________________ $____________________ * Option $_________________ $____________________ * Minimum Limit $____________________ NOTE: An asterisk (*) preceding a box indicates a reduction in coverage below your Bodily Injury Liability limit. UM/UIM CONVERSION COVERAGE (UIMC) Do not check a box below if you have checked a box for one of the standard UIM coverages above. Limit Total Coverage Premium Double BI Limit $____________________ BI Limit $____________________ * Option $_________________ $____________________ * Option $_________________ $____________________ * Option $_________________ $____________________ * Minimum Limit $____________________ NOTE: An asterisk (*) preceding a box indicates a reduction in coverage below your Bodily Injury Liability limit. IF YOU HAVE CHECKED ONE OF THE BOXES PRECEDED BY AN ASTERISK (*), WHEN YOU SIGN THIS FORM, YOU ARE CHOOSING A REDUCED PREMIUM, BUT YOU ARE ALSO CHOOSING NOT TO PURCHASE CERTAIN VALUABLE COVERAGE WHICH PROTECTS YOU AND YOUR FAMILY. IF YOU ARE UNCERTAIN ABOUT HOW THIS DECISION WILL AFFECT YOU, YOU SHOULD GET ADVICE FROM YOUR INSURANCE AGENT OR ANOTHER QUALIFIED ADVISER. Coverage is generally described here. Only the policy provides a complete description of the coverages and their limitations. I understand that the coverage selection and limit choices indicated here will apply to all future policy renewals, continuations and changes unless I notify you otherwise in writing. Signature of Any Named Insured:______________________________________ Date:________________ - Insurance Department Bulletin PC-22 October 20, 1993 INSTRUCTIONS FOR CONfPANIES USrNG INFORJ\1ED CONSENT FORM Enclosed are two alternative fonnats for the "Informed Consent Form" to be used with all new and renewal automobile liability policies becoming effective On or after January I, 1994. You may choose to use one of these two formats or develop your own version. If you develop your own form vou must use the complete eleven paragraph text of the descriotion of Uninsured Motorist coverage unless we g;jve prior approval to alternate langualZe. The first format entitled "Informed Consent Form" combines both a "Notice To Insureds" .and the r~red disclosure and election fonn concerning uninsured motorist cover;o.ge. The Notice To Insureds contains general information about No-Fault's repeal and describes the options you provide insureds concerning repalations and medical payments coverages. l-he alternate - two piece format -simply provides a separate Notice To Insureds and an Informed Consent Form dealing juS! with uninsured motorist coverages. The combined substantive content is identicaL You must include the statutory warning relating to a selection reducing Uninsured Motorist coverage below the Bodily Injury Liability limit in at least 12 point type. You may computer produce this entire form. Space and print this form to make it legible and easy to use for the policyholder. Those portions of the forms designed to include specific information about coverage options should be completed w1th care. Under "Option{s} To Consider" is material to be included depending on the options your company wishes to offer If you offer basic and added reparations, but not medica! payments coverage, include only rhe "Optional Basic Or Added Reparations Benefits Coverage" material with a briefdescripti6n of the salient features of the coverage. You will notice certain material is enclosed by brackets, "{ }" Insert material here depending on your company's options. For example, if you offer only BRB/ARB then the{sl in "Options{ s} To Consider" would be omitted. In the "Election Of Coverage" secrion you will note "withlwithcut"within brackets. YOll may decide to include or nO[ include a coverage where the insured has failed to select or reject the coverage. This does no! violate our prohibition against roll-ons as long as the insured had that coverage or its equivalent in the previous policy. You are req'l!ired to show the premium associated with each coverage option presented to the insureq. In the "Election Of Coverage" section only include the option or options you will offer. You will note that our fonn is set up to show three variations. The first is for companies offering only BRB/ARB. The second is for companies offering only Med Pay and the third' is for companies offering both BRB/ARB and Med Pay. Obviously, if your company offers neither BRB/ARB nor Med Pay you would not include this material on yourfofm and you must delete the last sentence im the second paragraph under the ca'ptiori "Repeal GfNo Fault" in the "Notice To Insureds". Companies are not precluded from offering other types of optional coverage, but the roll-on restriction may apply. The limits and premium information required to be disclosed concerning Uninsured Motorist options is driven by the bodily injury liability coverage in existence or applied for. You must show standard and conversion underinsured motorist limits and associated prerruums:·~ 1) equal to twice the insured's chosen bodily injury liability limit, 2) equal to the insured's chosen bodily injury liability limit, 3) buy-down options available based upon your filed underwriting guidelines, including the company's or statutory minimum limit. You only need to show figures for the type of coverage applied for - either split limi ts or combined single limits. You are required to show the actual limits, for example 100,000/300,000, and the premiums associated with those limits. Be sure to include instructions to the insured regarding returning the signed form. Ifyou have any questions concerning these forms, please contact G@8rg8 WI:1H'1r;R~IH'laA,­ Cel:i'As8! at (203) 29'1-3855. - 1>~.j... CaSUO/{'y Dtv'. (?,,~) .JCi? ~:)8b ~ INFORMED CONSENT FORM' NOTICE TO INSUREDS The AutGmobile Insurance Refonn Act, Public Law 93-297 is effective January 1, 1994. It affects your cro£erage in several ways. You should read this notice carefully make your selections and {place return instructions here}. . REPEAL OF NO FAULT Beginning January 1, 1994, new or renewed policies are not required to include BasiG. Reparations Benefits (ERB). BRB provided up to $5,000 for medical expenses and lo~t wages caused by auto accidents. You may have other coverage provided by your employer, or by health or disability insurance. If you don't, you shouJdconsider providing for BRB type protection. Otherwise, you may bear the cost yourself Your options to provide for such losses are shown below. Of course, if someone else is responsible for your losses 'you may seek recovery from that person. .­ OPTTON{S} TO CONSIDER Those who need the coverage no longer required should consider the following options. You should review your existing coverages and employee benefits to avoid duplicating benefits. OPTlONAL BASIC ORADDgD REPARATIONS BgNEFITS COVERAGE You may choose to buy Basic (BRB)'or Added (ARB) Reparations Benefits coverage to help cover your medical bills and lost wages from auto accidents. {Insert your own descri prion of coverage here} OPTIONAL MEDICAL PAYMENTS Cl\-fED PAY) COVERAGE You may choose to buy Medical Payments coverage to help cover your medical bills from auto accidents.. {Insert your own description of coverage here} UNINSURED MOTORIST COVERAGE Types of coverage Our law requires you to buy uninsured motorist (UMlUIM) coverage. Generally, this coverage only applie~ where the person who causes an accident is not an insured under your policy. Anyone injured in an accident may seek to recover damages from the person causing the loss. These losses incJu'de your medical bills, lost wages (past and future), as well as payment for disabilities, !"'lil'l and suffering and loss of enjoyment of life's activities. Normally, these damages would be paid by the other person's insurance company. UMJUIM coverage protects you, your family and others in your car for injuries caused by someone who did not buy insurance. You have the right to choose the amount of coverage. It can be as low as $20, 000 p~r person and $40,000 per accident, or as high as twice your policy's bodily injury liability coverage. The arnoun[ of liability coverage you buy will govern the maximum amount of lft,.1!UIM coverage you can buy. This coverage· alsoi~clUdes standard Und~ri~sured Motorist (tJIM) co~erage. It protects you where injuries are caused by someone whose insurance is not enough to pay your damages and is less than your UMIUIM limits. UIM coverage will pay your damages to fill in the difference between tho~e limits. However, the protection available under standard UlM coverage is usually reduced by amounts paid by worker's compensation, or by or on behalf of the person at fault. Under our new Jaw, you can convert standard VIM coverage to UNDERlNSURED MOTORlST CONVERSION (UTh1C) coverage. This coverage is not reduced by payments from any source. If your damages exceed the amount of the at fault person's insurance, or other payments,your UTMC coverage will be available for damages not paid. ~ Both standard (UThrf) and conversion (DIMC) coverages only become available after the liability insurance of the at fault person has been fully paid. Stacking To make a wise decision as to the amount ofUMJUlM coverage to buy, you need to understand "stacking!'. Stacking allowed insureds to add together UMfUIM coverage under separate poli~ or, in multi-car policies, the insurance applicable to each car.. Unl~ss you agreed to non-stacked coverage, all policies in effect before January 1,1994 provide for stacking. Policies issued or renewed beginning in 1994 will no longer provide for stacking. With stacking, if you had two insured cars and you purchased $100,000 ofUMIUIM coverage. you received (and you paid for) $200,000 of protection. Under the new law the purchased amount ($100,000) would not be multiplied by the number of cars insured. Also, your UMIUIM coverage will be limited to the highest available limit under any of the policies that apply to the accident. If you are injured in a car you own you are limited to the amount of coverage for that car. ·~ ELECTION OF COVERAGE POLICY NUMBER _ BODILY INJ1JRY LIABILITY LTh'1lT --------- A. OPTIONAL RRB COVERAGE If you do not check a box in this section and sign below your policy will be issued/renewed {withlwjthout BRB or ARB} coverage- BRB Coverage BRB Premium . $5,000 I I OR ARB Coverage ARB Premium {Limit} . I I SELECT ONE' o I WISli.I.G BUY OPTIONAL BRB COVERAGE AT THE PREMIUM SHOWN ABOVE. o I WISH TO BUY OPTIONAL ARB COVERAGE AT THE PR.£l\UUM SHOWN ABOVE. o I DO NOT WISH TO BUY OPTIONAL BRB OR ARB COVERAGE. ADDITIONAL LIMITS MA Y BE AVAILABLE, CHECK WITH YOUR AGENT OR ANOTHER QUALIFIED ADVISOR. OR if Med Pay is to be olTered A. OPTION'!' L MED FA Y COVERAGE If you do not check a box in this section anti sign below your policy will be issued/renewed (wilhlwithout} Mcd Pay coverage- MED PA Y Coverage MED PA Y Premium {Limit} I I SELECT ONE o I WISH TO .... BUY OPTIONAL MED PAY COVERAGE AT THE PREi\lIUi\1 SHOWN ABOVE. D· I DOi'iO"T WISH TO BUY 1"IED PAY COVERAGE. OR If both 8RB and Med Pav are offered' SELECf ONLY ONE FROM A. ORB. BELOW If you check more than one bOI under A•.or B. below your policy will be issued/renewed . with the highest level of coverage selected. !fyou do not check a box under A. or B. below your policy will be issued/renewed {with/wit~out BRB or ARB}. . A. OPTTON.-\L 8RB COVERAGE BRE ,Coverage 8RB Premium S5,DOC I 1 ARB Co\'era!!,e ARB Premium {Limit} " ~ 1 _ SELECT IF YOU WISH TO BUY OPTIONAL BRB ORARBCOVERAGE D 1 WISH TO BUY OPTIONAL BRB COVERAGE AT THE PREMIUM SHOWN ABOVE. D· I WISH TO BUY OPTIONAL ARB COVERAGE ATTHE PREMIUM SHOWN ABOVE. ADDITIONAL LIMITS MAY BE AVAILABLE, CHECK WITH YOUR AGENT OR ANOTHER QUALIFIED ADVISOR. . B. OPTIONAL MED PA Y COVERAGE l'r1ED PA Y Coverage MED PA Y Premium {Limit} J I SELECT IF YOU WISH TO BUY OPTIONAL MED PA Y COVERAGE DO NOT CHECK THIS BOX IF YOU HAVE CHECKED THE BOX: FOR OPTIONAL BRB OR ARI3 COVERAGE ABOVE. D rWISH TO BUY OPTIONAL MED PA Y COVERAGE AT THE PREl\1lUl\1SHOWN AllOVE. SELECT IF-YOU DO NOT WISH TO fiUY EITHER OPTIONAL fiRS/ARB COVERAGE OR OPTIONAL ,\IED P.-\ Y COVERAGE. D J DO i'iOT WISH TO BUY ANY OFTHE COVERAGES DESCRIBED ABOVE. H.ICI UNrNSURED MOTORIST ((TMlUIM) COVERAGE , ,~j Ifyou do·not check a box below your policy will be issued/renewed with standard DIM coverage (not Conver3ion UIMC covel"2ge) with limit! equal to your Bodily Injury Liability (Bn coverage. If you c1ieck more than ODe box Jour policy will be issued/renewed with the higbest level of coverage selected. SELECT ONE OPTION UNDER EITHER STANDARD UlM COVERAGE OR CONVERSION UlMC COVERAGE. DO NOT CHECK MORE THAN ONE BOX BELOW. UM WITH STANDARD UIM COVERA.GE· Total Coverage Premium D {Double SI Limit}· I J NOTE: o {BI Limit} I I An asterisk (*) preceding a box indicates a reduction in coverage below your Bodily Injury Liability limit ·0 {Options based I r upon your filed ·0 [ I undenvrrtIri'g guidelines} -0 II *D {Statulory or I I company minimum limit} TIM CONVERSION UIMC COVERAGE Do not check a Box below if }'OU ha'.:e checked a Box for one of the standard UIM cO\'erage~ abovc o {Double B1 Limit} Total Coverage Premium I I D {BI Limit} I I NOTE; An asterisk (-) prcceding a box indicatcs a reduction in coyerage bclow your Bodily 1nju/")' Liability limit *0 {Options based I ) upon your filed -0 j I undenvriting ·0 guidelines} I ] ·D {Staturory or· I ) company minimum limit} IF YOU HAVE CHECKED ONE OF THE BOXES PRECEDED BY AN ASTERISK (*), WHEN YOU SIGN THIS FORM, YOU ARECHOOSING A REDUCED PREMIUI'Yt;"BUT YOU ARE ALSO CHOOSING NOT TO PURCHASE CERTAIN VALUABLE: COVERAGE WHICH PROTECTS YOU AND YOUR FA/\:I1LY. IF YOU ARE UNCERTAIN AIlOUT HOW THIS DECISION WILL AFFECT YOU, YOU SHOULD GET ADVICE FROM YOUR INSURANCE AGENT OR ANOTHER QUALIFIED ADVISOR.. (Signature of Any Named Insured) Date NOTICE TO INSUREDS The Automobile Insurance Reform Act, Public Law 93-297 is effective January 1, 1994. It affects your coverage in several ways. You should read this notice carefully, make your selections an~ {place return instructions here}. . REPEAL OF NO FAULT Beginning January 1, 1994, new or renewed policies are not required to include Basic Reparations Benefits (BRB). BRB provided up to $5,000 for medical expenses and lost wages caused by auto accidents. You may have other coverage proy;ded by your empJoyer, or by health or disability insurance. If you don't, you should consider prm.iding for BRB type protection. Otherwise, you may bear the cost yourself. Your options to provide for such losses are shown below. Of course, if someone else is responsible for your losses you may seek recovery from that person. OPTIONfS} If) CONSIDER Thosewho need the coverage no longer required should consider the following options. You should review your existing coverages and employee benefits to avoid duplicating benefits. OPTIONAL BASTC OR ADDED REPARATIONS BENEFITS COVERAGE You may choose to buy Basic (BRB) or Added (ARB) Reparations Benefits coverage to help cover your medical bills and lost wages fi-omauto accidents. {Insert your own descriptionof coverage here} OPTIONAL MEDICAL PA YMENTS (!\tED PAY) COVERAGE You may choose to buy Medical Payments coverage to help cover your medical bills from auto accidents. {Insert your own description ofcoverage here} UNINSURED MOTORIST COVERA.GE This Act also makes important changes in Uninsured Motorist coverage. Refer. to the Informed Omsent Form enclosed. ELECTION OF COVER-\GE POLICY NUMBER _ A. OPTIONAL BRBCOVER~GE If you do not check a hox in this section alll] ,ign helow you r policy will he issued/rcncwed {with/without BRB or ARB fcoycragc. BRB Co"cra~e BRB Premium $5,000 I I ARB Coyera"c ,. ARB Prcmium {Limit} I , -. , ~. SELECT ONE D I WISH TO BUY OPTIONAL BRB COVERAGE AT THE PREMIUM SHOWN ABOVE. D I WISH TO BUY OPTIONAL ARB COVERAGE AT THE PREMIUM SHOWN ABOVE. D I DO NOT WISH TO BUY OPTIONAL BRB OR ARB COVERAGE. ADDITIONAL LIMITS MAY BE AVAIL~BLE, CHECK WITH YOUR AGENT OR ANOTHER QUALIFIED ADVISOR. OR if Med Pav is to be offered A. OPTIONAL MED PAY COVERAGE If you do not check a box in this section and sign below your policy will be issued/renewed (with/without} Med Pay cOHr~ MED PAY Coverage MED PA Y Premium {Limit} 'I, I SELECT ONE D I WISH TO BUY OPTIONAL MED PAY COVERAGE AT THE PREMIUM SHOWN ABOVE. D I DO NOTWISH TO BUY MED PAY COVERAGE. OR If both BRB and Med Pay are offered SELECT ONLY ONE FROM A. OR B. BELOW If you check' more than one box under A. or B. below your policy will be issued/renewed with the highest level of coverage selected. If you do not check a box under A. or B. below your policy will be issued/renewed {with/without BRB or ARB}. A. OPTION. (L BRB COVERAGE BRB CO\'Cra~c BRI3 Premium 55,000 I j ARB Co\'Cra~c ARB PremiulIl {Limit} 1 I _.. r ~ SELECT IF YOU WISH TO BUY OPTIONAL BRB OR ARB COVERAGE D I WISH TO BUY OPTIONAL BRB COVERAGE AT THE PREMIUM SHOWN ABOVE. D I WISH TO BUY OPTIONAL ARB COVERAGE AT THE PREMfUM SHOWN ABOVE. ADDITIONAL LIMITS MAYBE AVAILABLE, CH,ECK WITH YOURAGENT OR ANOTHER QUALIFIED ADVISOR. B. OPTIONAL ]\fED PA Y COVERAGE MED PAY Coverage MED PAY Premium . {Limit} I I SELECT IF YOU WISH TO BUY OPTIONAL MED FAY COVERAGE. DO NOT CHrtK THIS BOX IF YOU HAVE CHECKED THE BOX FOR OPTIONAL BR.B\)RARB COVERAGE ABOVE. D I WISH TO BUY OPTIONAL MED PAY COVERAGE AT THE PREMWM SHOWN ABOVE. SELECT IF YOU DO NOT WISH TO BUY EITHER OPTIONAL BRB/ARB COVERAGE OR o OPTIONAL MED PA Y COVERAGE.. I DO NOT WISH TO BUY ANY OF THE COVERAGES DESCRIBED ABOVE. (Signature of Any Named Insured) Date "~'" INFORMED CONSENT FORM UNINSURED MOTORIST COVERAGE Types of coverage Our law requires you to buy uninsured motorist (UMIUIM) coverage. Generally, this coverage only applies where the person who causes an accident is not an insured under your policy. Anyone injured in an accident may seek to recover damages from the person causing the loss. These losses include your medical bills, lost wages (past and future), as well as payment for disabilities, pain and suffering and loss ofenjoyment of life's activities. Nonnally, these darr.ages would be paid by the other person's insurance company. lJtvfJU1M . coverage protects you, your family and others in your car for injuries caused by someone who did not buy insurance. You have the right to choose the amount of coverage. It can be as low as $20,000 per person and $40,OOO~ accident, or as high as twice your policy's bodily injury liability cover'!,ge. The amount of liability coverage you buy will govern the maximum amount of UMlUlJvf coverage you can buy. This coverage also includes standard Underinsured Motorist (UlM) coverage. It protects you where injuries are caused by someone whose insurance is not enough to pay your damages and is less than your UMlUIM: limits. UIM coverage will pay your damages to fill in the difference between those limits. However, the protection available under standard U1M coverage is usually reduced by amounts paid by worker's compensation, or by or on behalfofthe person at fault. Under our new law, you can convert standard UTh1 coverage to UNDERlNSURED MOTORIST CONVERSION (UiMC) coverage. This coverage is not reduced by payments from any source. If your damages exceed the amount of the at fault person's insurance, or other payments, your UIMC coverage will be available for damages not paid. Both standard (ULM) and conversion (UIMC) coverages only become available after the liability insurance ofthe at fault person has been fully paid. St:1cking To make a wise decision as to the amount ofUMIUIM coverage to buy; you need (0 understand "stacking". Stacking allowed insureds to add together UMlUIM coverage under separate policies or, in multi-car policies, the insurance applicable to each car. Unless you agreed to non-stacked coverage, all policies in effect before January I, 1994 provide for S}acking. Policies issued or renewed beginning in. 1994 will no longer provide for stacking. With stacking, ifyoli had two insured cars and you purchased $100,000 ofUMIUIM coverage you received (and you paid for) $200,000 of protection. Under the new law the purchased amount ($100,000) would not be multiplied by the number of cars insured. Also, your l.RvflUIM coverage will be limited to the highest available limit under any of the policies that apply to the accident. If you are injured in a car you own you are limited to the amount of coverage for that car. a.:......,a.:..'-ll'-'l" VI' '-V'" I.;J&'-"'""''-IL..I POLICY NUMBER _ BODILY INJlJRY LIABILITY LIMIT __'-- _ UNINSURED MOTORIST CUMfUIM) COVERAGE If you do not cheek a bOI below your policy will be issued/renewed with standard VIM coverage (not Conversion UIMC coverage) with limits equal to your Bodil~ Injuf!' Liability (BI) coverage limits. If you check more than ODe box Jour policy will be issued/renewed with the highest level of coverage selected. . SELECT ONE OPTION UNDER EITHER STANDARD VIM COVERAGE OR CONVERSION UfMC COVERAGE. no NOT CHECK MORE THAN ONE BOX BELOW. UM WITH STANDARD UTM COVERAGE Total Coverage Premium o {Double 81 Limit} I " o {BI Limit} 1_ _ NOTE: An asterisk (-) preceding a box indicates a reduction in coverage bclow Jour Bodily Injury Liability limit -0 {Option"sljised 1__­ upon your filed -0 1__­ underwri ti ng guidelines} -0 -0 {Statutory or 1"--- ...... company minimum limit} ­ UM CONVERSION UTMC COVERAGE Do not check a Box below if you have chccked a Box for one of the ~tanllanJ VIM co\'cragcs above Toral Coverage Premium o {Double Sf Limit} I) I o {Sf Limit} I I NOTE: An as[crisk (-) prcceding a hox indicates a reduction in Co\'erage below Jour Bodily Injury Liabilit)" limit -0 {Options pased I I -0 upon your filed I ) -0 underwriting guideli nes} I 1 -0 {Statutory or 1__­ company minimum limi!} ... IF YO(f HAVE CHECKED ONE OF THE BOXES PRECEDED BY AN ASTERISK ("'), WHEN YOU SIGN THIS FOR1\tI, YOU ARE CHOOSING A REDUCED PREMIUM, I3UT YOU ARE ALSO CHOOSING NOT TO PURCHASE CERTAIN VALUAI3LE COVERAGE WHICH PROTECTS YOU AND YOUR FAMILY. IF YOU ARE UNCERTAIN ABOUT HOW THIS DECISION WILL AFFECT YOU, YOU SHOULD GET ADVICE FROM YOUR INSURANCE AGENT OR ANOTHER QUALIFIED ADVISOR. (Sign:lture of Any Named Insured) Dale