PLIllinoismedium
An Illinois insured purchases bodily injury liability limits of $100,000/$300,000. Under 215 ILCS 5/143a-2, what must the insurer do regarding underinsured motorist (UIM) coverage?
AAutomatically include UIM at $25,000/$50,000 with no option to change
BRefuse to write UIM above $50,000/$100,000
Offer UIM at limits equal to the bodily injury limits, which the insured may reject in writing or reduce to the statutory minimum
DRequire UIM at twice the bodily injury limits
Why this is the answer
Section 143a-2 requires that when a private passenger auto policy is written with BI limits exceeding 25/50, the insurer must offer UIM at limits equal to the BI limits. The insured may accept those matching limits, select lower UIM (down to the 25/50 statutory minimum), or reject UIM in writing. Without a valid written rejection, UIM defaults to the BI limits. Producers should document the selection on the application.
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