(i) A condition in which not enough Insurance is carried to cover the value of an exposure, (ii) Condition in which the amount of property Insurance is less than the applicable Coinsurance requirement, See Also: “Coinsurance.”
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A situation wherein the owner of a property or the person suffering a health condition does not have enough insurance to cover the value of the item or the health care costs.
Insurance Encyclopedia
Underinsured
Individual whose insurance policies do not cover all necessary health care services and he or she cannot pay the entire balance due.
Underinsured motorist insurance
Under Medicare Secondary Payer guidelines, this is described as an optional liability insurance available in some regions under which the policyholder’s level of protection against losses caused by another is extended to compensate for inadequate coverage in the other party’s policy.
Underinsured Motorist Provision
The coverage that applies when the motorist meets the law requirements for liability insurance but a judgment is in excess of these limits.
Underinsured motorists coverage
Coverage for the insured and passengers whenever the at-fault driver in an accident has auto liability insurance with lesser limits than the insured’s. This coverage lies atop uninsured motorists coverage or atop the at-fault driver’s low limit automobile liability insurance and provides the insured and passengers with protection equal (usually) to the insured’s own automobile liability cover.
Underinsured motorists coverage (Vehicle Insurance)
A type of automobile insurance coverage that pays if the driver is found to be liable cannot pay the full balance he is liable and his automobile insurance policy has paid out as much as it will pay. Under these circumstances, the insurer pays up to a predetermined limit for bodily injury damages.
Underlying
The amount of insurance or reinsurance on a risk (or occurrence) that applies to a loss before the next higher excess layer of insurance or reinsurance attaches.
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The amount of loss which attaches before the next higher excess layer of insurance or reinsurance attaches.
Underlying (Reinsurance)
The total amount of insurance or reinsurance for a particular risk that exists before the next level of insurance or reinsurance comes into place.
Underlying coverage
With respect to any given policy of excess insurance, the coverage in place on the same risk that will respond to loss before the excess policy is called on to pay any portion of the claim.
Underlying Insurance
(1) The original insurance as distinct from an excess insurance. (2) In excess of loss reinsurance the insurance that is below the layer of cover under consideration.