What it does
CA 21 09 provides uninsured and underinsured motorists coverage on commercial auto policies in Texas: it pays damages that insureds are legally entitled to recover from owners or operators of uninsured or underinsured motor vehicles. Texas Insurance Code section 1952.101 defines the coverage as protecting insureds for "bodily injury, sickness, disease, or death, or property damage" and requires limits of at least those prescribed by the state's Motor Vehicle Safety Responsibility Act (Transportation Code chapter 601).
Texas requirements
- An insurer may not issue an auto liability policy in Texas unless UM/UIM coverage is provided in or supplemental to the policy.
- The coverage does not apply if any named insured rejects it in writing.
Who needs it
Every Texas commercial auto account, unless the insured deliberately rejects the coverage in writing.
Quoting and selling notes
- Keep the signed rejection or selection form with the file; without a written rejection the coverage is part of the policy.
- Discuss limits and property damage UM; for fleets with valuable vehicles the property damage component can matter.
- Texas personal injury protection is a separate requirement (CA 22 64).
