PLMAhard
A Massachusetts insured carries 100/300 BI and has elected 100/300 underinsured motorist coverage under c. 175 §113L. He sustains $250,000 in covered injuries (Tort Threshold met by a fractured femur) from an at-fault driver with 25/50 BI and recovers the $25,000 per-person BI limit. What is the maximum UIM amount payable from his own carrier?
A$100,000 — UIM stacks on top of the BI recovery
B$225,000 — UIM fills the gap between BI recovery and total damages
C$0 — because the insured already recovered the at-fault driver's BI limits
$75,000 — the $100,000 UIM limit is reduced by the $25,000 BI limit
Why this is the answer
M.G.L. c. 175 §113L(2) makes elected underinsured motorist coverage available only to the extent the insured's limits exceed the at-fault driver's bodily injury limits. With $100,000 UIM and a $25,000 BI limit, the carrier pays a maximum of $75,000 UIM. The remaining $150,000 of the insured's $250,000 damages is uninsured and recoverable only directly from the at-fault driver, often uncollectible.
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