SOA Fundamentals Of Actuarial Mathematics (FAM) Practice Test

Unidentified, Uninsured, Underinsured Motorists Protection is designed to cover you when the driver who hits you either has no insurance or not enough to pay for your losses, and also when the other vehicle cannot be identified (a hit-and-run). This coverage fills the gap left by other coverages by paying for your injuries and related losses up to your policy limits if the at-fault driver can’t fully compensate you. It may cover medical expenses, lost wages, and, in some states, non-economic damages like pain and suffering, for you and sometimes your passengers. The other coverages address different situations: third-party bodily injury pays for injuries you cause to others, not your own; medical payments or PIP covers your own medical costs regardless of fault but doesn’t cover the gap when the other driver lacks adequate insurance; collision covers damage to your own car from a crash, not injuries or uninsured motorist issues. So the coverage that specifically targets damage from unidentified, uninsured, or underinsured motorists is Unidentified, Uninsured, Underinsured Motorists Protection.