PLIllinoismedium

An Illinois insured carries 100/300 UIM. He is injured by an at-fault driver carrying 25/50 BI liability. The insured recovers the at-fault driver's $25,000 BI limit. The insured's UIM coverage will pay up to how much?

Q: An Illinois insured carries 100/300 UIM. He is injured by an at-fault driver carrying 25/50 BI liability. The insured recovers the at-fault driver's $25,000 BI limit. The insured's UIM coverage will pay up to how much?

$75,000 — Illinois UIM under 215 ILCS 5/143a-2 operates on an offset (difference-of-limits) basis. The insured's UIM limit ($100,000 per person) is reduced by the amount recovered from the at-fault driver's BI liability ($25,000). The UIM coverage then pays up to the remaining $75,000 for compensable damages exceeding the tortfeasor's $25,000, subject to proof of damages and the offset.

$75,000

B$0 — UIM is exhausted once the tortfeasor's limits are recovered

C$25,000

D$100,000

Why this is the answer

Illinois UIM under 215 ILCS 5/143a-2 operates on an offset (difference-of-limits) basis. The insured's UIM limit ($100,000 per person) is reduced by the amount recovered from the at-fault driver's BI liability ($25,000). The UIM coverage then pays up to the remaining $75,000 for compensable damages exceeding the tortfeasor's $25,000, subject to proof of damages and the offset.

Studying for the Illinois Personal Lines exam?

This question comes from our PL bank. Take a free practice test — no signup.

Free PL practice test Personal Lines exam guide