PLCaliforniamedium
A California policy lists three vehicles, each carrying 100/300 UM/UIM. The named insured is injured by an underinsured motorist while riding in the family Tesla. The insured argues she should collect $300,000 by 'stacking' UM/UIM across all three scheduled vehicles. Under Cal. Ins. Code § 11580.2(p), the insurer's correct response is:
Limit UM/UIM recovery to the 100/300 limit shown for the involved vehicle; statute generally prohibits stacking of limits across vehicles on the same policy
BPay the full $300,000 because California mandates inter-vehicle stacking of UM/UIM limits across all scheduled vehicles insured under a single multi-car policy
CPay $200,000 by stacking only the UM/UIM limits of the two passenger vehicles while excluding the third scheduled vehicle, a pickup truck, from the stacking calculation
DDefer the entire stacking dispute to mandatory arbitration under § 11580.2(f) without the insurer taking any coverage position on the stacking question itself
Why this is the answer
Cal. Ins. Code § 11580.2(p) provides that UM/UIM limits shown on the policy declarations apply 'per accident' regardless of the number of vehicles insured under the policy. The statute thus codifies an anti-stacking rule for both intra-policy and (by separate provisions) inter-policy UM/UIM. The insured here recovers the 100/300 limit on the involved vehicle, NOT $300,000. The statute also caps UIM recovery to the difference between the insured's UM/UIM limits and the tortfeasor's BI limits ('gap' approach), not a true 'excess-over' framework.
Studying for the California Personal Lines exam?
This question comes from our PL bank. Take a free practice test — no signup.