Section 6.30 “Underinsured”

• Library: Insurance Practice 2015

Because there is no statutory definition of “underinsured,” the courts look to the policy for that definition. If the policy either does not define or does not clearly define “underinsured,” the policy is ambiguous and the court will look to lay persons’ “reasonable expectations” for the meaning of the term. When the policy provisions relating to “uninsured motor vehicle” also included “underinsured motor vehicle” and separate premiums had been paid for both “uninsured” and “underinsured” coverage, “a...