What condition must be met for UIM endorsements to apply in a limits-trigger state?

In a limits-trigger state, the application of Underinsured Motorist (UIM) endorsements revolves around the concept that the negligent driver must have liability limits that are insufficient compared to the UIM coverage. This means that if the at-fault driver carries liability insurance with limits that are lower than what the injured party has under UIM coverage, then the UIM coverage can be activated to cover the difference in the damages suffered by the injured party.

For example, if the injured party has UIM coverage of $100,000, but the at-fault driver’s liability limits are only $25,000, the injured party can seek to collect the additional $75,000 from their own UIM coverage. Therefore, the presence of a disparity between the at-fault driver’s liability limits and the UIM coverage is what triggers the UIM endorsement, allowing the injured party to pursue additional compensation from their own policy.

The other options do not fulfill the primary requirement for UIM endorsements to be applicable in limits-trigger states. For instance, an uninsured driver would initiate uninsured motorist (UM) coverage, not UIM. Similarly, extensive damages or filing claims first do not determine the applicability of UIM coverage; rather, it’s specifically the inadequ