Question

Automobile liability policies issued in California include coverage to protect against uninsured motorists. This coverage: ?

1) may not be declined by the insured
2) Is included in the policy, but is not effective unless the policy is so endorsed and an additional premium is paid
3) must be included in the policy, but can be waived by supplemental agreement between the insurer and the insured
4) is optional and automatically included when the limit of liability for bodily injury is increased

Answer 1

The coverage for uninsured motorists in California must be included in any automobile liability policy, but it can be waived by the insured through a supplemental agreement with the insurer. So, option 3 is correct.

Step-by-step explanation:

In California, automobile liability policies must include coverage to protect against uninsured motorists. This coverage must be included in the policy, but it can be waived if the insured chooses to do so through a supplemental agreement with the insurer. Therefore, the correct option is 3) must be included in the policy, but can be waived by supplemental agreement between the insurer and the insured.

This allows policyholders to opt out of this coverage if they decide it is not necessary for their situation. It's important to understand this aspect of car insurance as it offers protection in cases where an at-fault party lacks insurance coverage to pay for damages caused. Automobile liability policies issued in California include coverage to protect against uninsured motorists. This coverage is mandatory and must be included in the policy. However, the insured and the insurer can agree to waive this coverage through a supplemental agreement.

For example, if the insured wants to remove the coverage for uninsured motorists, they can negotiate with the insurer to waive this coverage and make changes to the policy accordingly.