"damages reduction" provision
A term used in connection with uninsured and underinsured motorists
(UM/UIM) coverage to refer to limit of insurance provisions that
apply (in some states) to set out how UM/UIM coverage is affected
by the existence of other types of coverage (e.g., auto medical
payments, workers compensation) that may apply as well. Under damages
reduction, any amount payable for damages under the coverage is
reduced by all sums paid under another type of coverage, as specified
in the applicable UM/UIM endorsement.
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