MLchartDataset catalogue

Limits reduction provision

Term · Insurance and risk management · MLC-T-INS-002024

An underinsured motorists provision under which the amount the at-fault driver's liability insurer paid is subtracted from the insured's UIM limit, so the UIM insurer pays only what remains of that limit. Because of this offset, UIM coverage pays nothing when the at-fault driver's limit equals or exceeds the UIM limit. It contrasts with a damages reduction provision, which subtracts the payment from the insured's total damages.

Table 1. Record
IdentifierMLC-T-INS-002024
FieldInsurance and risk management
SubjectPersonal Lines
Record as JSON 
{
  "id": "MLC-T-INS-002024",
  "term": "Limits reduction provision",
  "field": "Insurance and risk management",
  "definition": "An underinsured motorists provision under which the amount the at-fault driver's liability insurer paid is subtracted from the insured's UIM limit, so the UIM insurer pays only what remains of that limit. Because of this offset, UIM coverage pays nothing when the at-fault driver's limit equals or exceeds the UIM limit. It contrasts with a damages reduction provision, which subtracts the payment from the insured's total damages.",
  "subject": "Personal Lines",
  "url": "https://mlchart.com/terminology/insurance/limits-reduction-provision/"
}

Record 1,942 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.