Question

If an insured has 100,000 of "unstacked" UM and 2 cars on the policy, how much is available under a UM claim?

1) 0
2) 100,000
3) 200,000
4) 300,000

Answer 1

With $100,000 of 'unstacked' UM and 2 cars on the policy, the total available under a UM claim is $100,000. 'Unstacked' means coverage does not increase with the number of vehicles.

Step-by-step explanation:

If an insured has 100,000 of 'unstacked' UM (Uninsured Motorist coverage) and 2 cars on the policy, the total amount available under a UM claim would still be $100,000. This is because 'unstacked' coverage means that the coverage limits do not increase based on the number of vehicles on the policy. The term 'unstacked' basically indicates that the coverage is limited to the policy amount regardless of the number of vehicles insured. Thus if a policyholder has unstacked UM coverage of $100,000, this is the maximum payout available per accident, regardless of the number of cars.