Rhode Island Insurance Adjuster Exam

Who is typically covered under Underinsured Motorist Coverage?

1. The policyholder only

2. The policyholder and their household members

3. Only immediate family members

4. Only registered drivers in the household

The correct answer is: The policyholder and their household members

Underinsured Motorist Coverage is designed to protect individuals in the event of an accident with a driver who has insufficient insurance to cover the damages. The coverage typically extends not just to the policyholder, but also to their household members. This means that if an accident occurs and the policyholder or anyone residing at the same address is involved, they are covered under this provision. By including household members, the policy ensures that those living together in a shared home have access to financial protection in case of underinsured motorists. This arrangement provides broader security for families and enhances the insurance benefits for the policyholder, distinguishing it from coverage that might only apply to the policyholder alone or to a narrower group such as immediate family or registered drivers. Thus, the correct choice reflects the inclusive nature of this type of coverage.