Under Uninsured Motorist Coverage, the insurance liability applies to which jurisdiction?

Under Uninsured Motorist Coverage, the liability applies to the greater of either jurisdiction involved in the accident. This means that the coverage considers the laws and limits of both jurisdictions where the accident occurred as well as where the insured resides.

This is important because it provides greater protection for the insured, ensuring they benefit from potentially higher limits or more favorable regulations that may exist in either jurisdiction. For example, if an accident occurs in a jurisdiction with higher uninsured motorist coverage limits, those limits would apply to the claim, thus offering the policyholder better financial support in the event of an accident with an uninsured driver.

The reasoning behind the other options is that they do not capture the dual nature of the coverage effectively. Limiting coverage to only the accident location or the insured's home jurisdiction would restrict the benefits unnecessarily. Similarly, indicating that only the insurer's jurisdiction applies overlooks the essential purpose of uninsured motorist coverage, which is to safeguard the insured in any applicable jurisdiction, prioritizing the most favorable terms.