The state of Virginia is requiring all carriers to make updates to uninsured motorist (UM) options for commercial auto policies.

The current version of UM coverage will be renamed alternative UM coverage, and a new broader version, UM coverage, will be introduced as the new default. The new broader version of UM coverage will offer up to the insured’s full amount of UM bodily injury and/or property damage insurance in addition to limits provided from the at-fault party’s insurance. Alternative UM coverage, just like the current UM coverage, is reduced by the amount paid by the at-fault party’s insurance.

The increased coverage afforded by the new broader UM will have an increased premium. Customers wishing to opt out of the new broader UM for the alternative UM coverage will be required to sign a coverage selection form.

We plan to implement this change in two phases.

First phase:

• Renewal policies with effective dates starting July 1 and new business with a “Rate as of Date” of April 16 will receive the new broader UM coverage without the added premium impact. To avoid confusion, we will not send an updated policyholder notice or UM coverage selection form to these policyholders until their 2024 renewal.

Second phase*:

• Renewals with effective dates starting in the third quarter of this year will automatically default to the new broader UM coverage, and policyholders will receive updated policyholder notices. Policyholders who select alternative UM coverage will need to sign and return a coverage selection form.
• New business policies with effective dates beginning in the third quarter of this year will have the option to select alternative UM coverage. If alternative coverage is selected, the policyholder will be required to sign and return the coverage selection form.

The coverage selection form requirements will follow current workflow processes.

*The timing of the second phase is dependent on implementation of rate and system changes. We will keep you updated as more information becomes available.