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"limits reduction" provision

A limits reduction provision is used in connection with uninsured and underinsured motorists (UM/UIM) coverage referring to limit of insurance provisions that 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.

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Under limits reduction, the limit of insurance under UM/UIM is reduced by payments from other types of insurance, as specified in the applicable UM/UIM endorsement.


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Related Terms

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