PLIllinoishard
An Illinois insured writes BI at $500,000/$1,000,000 and asks to keep UM at the statutory minimum of $25,000/$50,000 to save premium. Under 215 ILCS 5/143a, what must occur for this election to be valid?
ANothing — UM defaults to the statutory minimum automatically
BThe insurer must obtain IDOI approval before binding the lower UM
The insured must reject UM at higher limits in writing; absent a valid written rejection, UM equals the BI limits
DThe insured cannot select UM lower than BI under any circumstance
Why this is the answer
Section 143a requires UM to be written at the insured's BI limits whenever BI exceeds 25/50, unless the named insured rejects the higher UM in writing. The statutory minimum 25/50 UM is the floor and cannot be rejected, but selecting UM below BI requires a documented signed rejection. Without that writing, courts and IDOI reform the UM to match BI, exposing the carrier to claims it never intended to underwrite.
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