The purpose of this bulletin is to advise insurers regarding the offer of bodily injury and property damage uninsured/underinsured (UM/UIM) motorist coverage. Insurance Code §1952.105 (a) and (b) require the limits of liability for bodily injury and property damage be offered to an insured in the amounts desired by the insured, but not in amounts greater than the limits of liability specified in the liability provisions of the insured's policy.
UM/UIM bodily injury and UM/UIM property damage are separate coverages and insurers may not require the purchase of one coverage in order to obtain the other. Insureds must be given the option to purchase only UM/UIM bodily injury coverage, only UM/UIM property damage coverage, or both UM/UIM bodily injury and UM/UIM property damage coverages together.
Insurers' UM/UIM selection/rejection forms must provide for the selection/rejection of UM/UIM bodily injury and UM/UIM property damage separately as well as on a combined basis. While the selection/rejection forms are not required to be filed with TDI, insurers are expected to comply with Insurance Code, Chapter 1952, Subchapter C and be able to demonstrate compliance.
Insurers are encouraged to review their current business practices to ensure they are in compliance with Chapter 1952, Subchapter C.
Questions regarding this bulletin may be directed to Leslie Hurley, Manager, Personal Lines Division at 512-322-2266 or leslie.hurley@tdi.state.tx.us or to Mark Worman, Manager, Commercial Property & Casualty Division at 512-305-6711 or mark.worman@tdi.state.tx.us.
Mike Geeslin
Commissioner of Insurance