PLNJmedium
Under N.J.S.A. 17:28-1.1, what action is required for a New Jersey personal auto insured to carry UM/UIM limits lower than the policy's bodily injury liability limits?
ANo action is needed — UM/UIM defaults to the statutory minimum regardless of the policy's bodily injury liability limits
BDOBI approval is required for each policy before lower UM/UIM limits take effect
CThe insured must purchase a separate umbrella policy to carry lower UM/UIM limits
The named insured must reject matching UM/UIM limits in writing; otherwise UM/UIM equals BI
Why this is the answer
N.J.S.A. 17:28-1.1 mandates UM/UIM at limits equal to BI liability unless the named insured rejects matching limits in writing. The signed rejection conclusively documents the insured's election and must be retained in the producer's file. Without a written rejection, courts reform the policy to provide UM/UIM at the BI limits.
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