“Step-Down” provisions in insurance policies are becoming more and more common.  When I speak about a “Step-Down” provision, I am talking about policy language that purports to reduce a higher policy limit to the amount of the Financial Responsibility limit allowed by state law.From an underwriting standpoint, “Step-Down” provisions make sense.  Let’s say a carrier wants to “Step-Down” the liability coverage for drivers who are permitted users of the vehicle but are not rated drivers on the … [Read more...]