Strategies, Challenges, and Answers

Archives for February 2010

Caution: Watch Your “Step-Down”

“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...]

Rental Car Agencies Are Not Insurance Companies And Are Not Subject To The “Must Offer” Obligations Of NRS 687B.145 (2) And (3)

NRS 687B.145 (2) and (3) obligate “insurance companies transacting motor vehicle insurance” to offer its insureds Uninsured / Underinsured and Medical Payments coverage to its insureds in and amounts equal to the amount of liability coverage that the insured carries.  If there is no signed waiver on a form approved by the insurance commissioner, then that policy is deemed to carry UM/UIM and MP coverage.  See our blog post HERE for a discussion on this topic. So then the question came up: Is a … [Read more...]