Under 75 Pa.C.S. § 1731, what must an insurer do regarding uninsured and underinsured motorist (UM/UIM) coverage before a private passenger auto policy can be delivered or issued in Pennsylvania?
A. Offer both UM and UIM coverage to the applicant, though the applicant may reject either or both in writing
B. Automatically include both coverages at limits equal to the state minimum liability limits
C. Include UM coverage only, since UIM coverage is optional and need not be offered
D. Offer UM/UIM coverage only if the applicant specifically requests it in writing first
Source: 75 Pa.C.S. § 1731 (Availability, scope and amount of coverage)
Under 75 Pa.C.S. § 1731(c), which of the following is required for a named insured's rejection of uninsured motorist coverage to be valid?
A. The rejection may be given orally to the producer and later confirmed by the insurer's file notes
B. The rejection must be a signed, dated writing using the statutorily prescribed rejection language
C. The rejection must be printed on a form combined with the limited tort election notice
D. The rejection is valid only if countersigned by every listed driver on the policy
Source: 75 Pa.C.S. § 1731(c) (Availability, scope and amount of coverage)
An insurer in Pennsylvania uses a UM rejection form that omits the exact statutory rejection language set out in 75 Pa.C.S. § 1731(c). What is the legal effect of that rejection?
A. The rejection is still valid as long as the insured's intent to reject coverage is clear from context
B. The rejection is valid for one policy term only and must be redone at renewal
C. The rejection is void, and UM coverage is deemed to remain in force despite the signed form
D. The rejection becomes the producer's personal liability but does not affect the policy's validity
Source: 75 Pa.C.S. § 1731(c) (Availability, scope and amount of coverage)
Under 75 Pa.C.S. § 1734, if a named insured does not make a written election otherwise, what UM/UIM limits are conclusively presumed to apply relative to the policy's bodily injury liability limits?
A. UM/UIM limits equal to the Pennsylvania financial responsibility law minimums, regardless of the liability limits purchased
B. No UM/UIM coverage at all until the insured affirmatively requests a specific limit
C. UM/UIM limits set at half of the bodily injury liability limits carried on the policy
D. UM/UIM limits equal to the bodily injury liability limits carried on the policy
Source: 75 Pa.C.S. § 1734 (Request for lower or higher limits of coverage)
A Pennsylvania personal auto policyholder wants UM/UIM limits lower than the bodily injury liability limits shown on the same policy. Under 75 Pa.C.S. § 1734, how must that request be made?
A. By a written request from the named insured specifying the amount of coverage desired
B. By verbal instruction to the producer at the point of sale, which the producer notes in the file
C. It cannot be done; UM/UIM limits can never be set lower than the liability limits in Pennsylvania
D. By the insurer's unilateral decision based on the applicant's credit-based insurance score
Source: 75 Pa.C.S. § 1734 (Request for lower or higher limits of coverage)
