By Robert P. Middleton, The Middleton Agency, Pawtucket, R. I.
From AA&B March 1957
It seems to me that the "Uninsured Motorists" (Family Protection) coverage recently introduced has a number of pitfalls of which we agents should beware. The solution appears obvious to me, although I have not heard it or seen it in print.
One of my reactions is that we are sure to have repercussions because of the insured being under the impression that his coverage also applies to property damage. We have frequent experiences of this nature when our Rhode Island policyholders become involved in accidents with Massachusetts "compulsory" insured cars. This misunderstanding appears inevitable, as we all know human nature well enough to know that our cautions at the time of attachment are too easily (but no less certainly) forgotten.
One of the most obvious situations where the agent will be "on the spot" is when one of his insureds must attempt to prove the liability of the uninsured motorist. I can visualize numerous occasions where our insured will refute all evidence that he could possibly be at fault. Or maybe the circumstances will indicate only a partial payment because of contributory negligence. I can readily see the spot on which poor "Mr. Agent" will be in such cases.
Next is the situation where our good policyholder chooses a time when he has four or five other persons with him to have a really bad accident with the bodily injury total going far about the "per accident" limit. In Rhode Island, any total amount over $10,000 would not be covered. (R.I. Financial Responsibility Law is 5/10.)
The solution, in my opinion, is to use this coverage as a good reason to increase the policyholder's Medical Payments coverage and thus avoid practically al of the foregoing problems. Almost all of our insureds carry at least $500 per-person limits anyway, at an annual premium of $6. He can increase this to $5,000 for another $7 instead of the $6 premium for the Uninsured Motorists coverage. The additional value from the extra dollar appears obvious. I think it safe to assume no greater difference in other states and territories limits are other than 5/10.
I find that the public is now fairly well educated to the Medical Payments coverage. Surely there can be no possibility here of his assuming that he ahs property damage coverage. Under this method there is no "per accident" limitation. This will also solve the situation where injuries are extensive and also where no other car is involved. There is no question of liability involved regardless of the circumstances.
The non-car owner would benefit by the higher limits of his host's coverage and, if good-will is a factor, there is no chance for misunderstandings when the question of liability enters the picture.
The fact that self-insurers, government-owned vehicles and cars owned by other members of the same family are not covered by the Uninsured Motorist plan is another mark against it and in favor of the Medical Payments coverage. The man covered by Medical payments eliminates, also, the Uninsured Motorists requirement of a report to police within 24 hours after the accident and a sworn statement to the company within 30 days.
We frequently have the situation where the insured's child (or any other person) may accidentally fall out a door while the car is in motion. Injuries could be extensive but not be covered under the Uninsured Motorists plan.
While the increased Medical Payments coverage cannot possibly eliminate all the trouble spots, it appears to come a great deal closer than the Uninsured Motorists coverage to doing the job. As far as I have been able to determine, the only disadvantage is the fact that loss of earnings would not be covered. Also, the two-car family would find it a little more expensive, but it seems the advantages far outweigh the disadvantages.
Robert P. Middleton entered the insurance business in 1941 as an agent for the Metropolitan Life Insurance Company. He became an agent for the Northwestern Mutual Life Insurance Company in 1944. Since 1948 he has concentrated on general insurance lines and now operates the Middleton Agency in a suburban shopping district of Pawtucket, Rhode Island.
