This law requires insured individuals to be informed about their right to waive stacked underinsured motorist coverage limits by signing a specific written form. The form must be signed and dated by the first named insured to be valid, and rejecting this coverage can reduce premiums. Additionally, the law establishes an Assigned Risk Plan to ensure that drivers unable to obtain insurance through standard channels can still secure coverage through a fair, shared system.
The waiver form informs insured individuals that they can reject stacked limits of underinsured motorist coverage, potentially reducing their premiums if they choose to do so.
The first named insured on the policy must sign and date the waiver form for it to be valid.
The Assigned Risk Plan is a system that ensures drivers who cannot obtain insurance through normal methods can still get coverage through a fair, shared program among insurers.
Yes, rejecting the stacked limits of underinsured motorist coverage can lead to lower premiums, but it also means accepting reduced coverage limits.