"damages reduction" provision
A term used in connection with uninsured and underinsured motorists 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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