When can you reject UM insurance, who may reject UM insurance, and what persons are bound by the rejection of UM insurance?

When can you reject UM insurance, who may reject UM insurance, and what persons are bound by the rejection of UM insurance?

UM coverage can be rejected or lower limits can be selected by any insured named in the policy. If there is no rejection or lower limits obtained by the insurer, the policy will be interpreted to include UM coverage in an amount equal to the bodily injury liability limits. Coleman v. Florida Insurance Guaranty Ass'n, Inc., 517 So.2d 686 (Fla. 1988). To effectively reject UM insurance under the current version of the law in Florida, rejection of UM coverage or lower limits must be made IN WRITING. F.S. 627.727(1). Be careful to understand and read your policy if it is offered by anyone other than an "insurer" (e.g. employer). The statutory obligation to offer UM coverage applies only to "insurers." Lipof v. Florida Power & Light Co., 596 So.2d 1005 (Fla. 1992) (employer who arranged for insurance coverage on employee's vehicle not "insurer" under statutory obligation to offer UM coverage). In this day and age, employers looking to cut costs may reject UM coverage on policies for employees; even if the original policy included UM coverage, the employee may have rejected or lowered the limits in a renewal policy.

Unless you ask for a copy of your policy, and make the necessary adjustments for yourself and family, you may be left bearing the costs if you are involved in an accident with an uninsured motorist. Did you know that only "an insured named in the policy" may reject the uninsured motorist coverage or select lower limits on behalf of all insureds under the policy? The language "on behalf of all insureds" suggests that the named insured cannot accept UM coverage for some insureds and reject the same coverage for other insureds. Varro v. Federated Mutual Insurance Co., 854 So.2d 726 (Fla. 2d DCA 2003). Also, be mindful that only an agent of a named insured has the authority to reject UM coverage or select lower limits on behalf of the insured. Therefore, the spouse of the named insured may properly reject such coverage. Acquesta v. Industrial Fire & Casualty Co., 467 So.2d 284 (Fla. 1985). Also an insurance broker, if considered the agent of the insured, has the authority to sign a binding rejection of UM coverage on behalf of the insured. Empire Fire & Marine Insurance Co. v. Koven, 402 So.2d 1352 (Fla. 4th DCA 1981); See also Byron v. Travelers Indemnity Co. of Illinois, 601 So.2d 1330 (Fla. 2d DCA 1992) (corporate insured's authorized representative may reject UM coverage on behalf of insured by directing agent to execute necessary forms). Don't let the insurance coverage tell you have rejected UM insurance when in fact you haven't because the insurer's own agent forgot to include UM coverage when they issued your police. An insurance agent, as agent of the insurer, can only bind the carrier but does not have the authority to reject coverage for the insured. See Lumbermens Mutual Casualty Co. v. Savigliano by & through Savigliano, 422 So.2d 29 (Fla. 4th DCA 1982); Nationwide Mutual Insurance Co. v. Mason, 218 So.2d 185 (Fla. 4th DCA 1969). It is very important that you do not let the insurance carrier trick you when have been involved in an accident into thinking you have rejected UM coverage! An experienced Palm Beach County accident attorney will make sure the sneaky insurance companies do not illegally deny your claim.