Uninsured and Underinsured Motorists Coverage and Technology Solutions Discussed in New ACE Progress Report

ACE Risk Management®, ACE's industry-leading U.S.-based retail primary casualty division, and law firm Cozen O'Connor, released a white paper discussing the challenges facing national and multinational organizations when managing their Uninsured/Underinsured (UM/UIM) motorist coverage.

The paper details the responsibilities assumed by risk managers of large national and multinational organizations and provides a close look at primary commercial automobile insurance programs. In particular, the paper argues that insureds need certainty in their auto liability coverage and superior service and execution at policy issuance as well as when handling a claim. The paper also discusses the kinds of insurance available, election or rejection of UM/UIM coverages, and challenges associated with documentation of these elections that varies from state to state.

The co-authors of "Uninsured Motorist and Underinsured Motorist Coverage" are Gary Kramer, Vice President, ACE Risk Management; J. Scott Sanpietro, Senior Vice President and General Counsel, ACE Risk Management; and James R. Potts, Esquire, Member of Cozen O'Connor.

"There are complicated rules and requirements for the offer and sale of UM/UIM coverage in all fifty states and the District of Columbia," said Mr. Kramer.

"Most large national and multinational organizations manage their primary risk using loss-sensitive insurance programs. Making appropriate UM/UIM coverage election decisions and documenting them correctly can have a significant financial impact on their risk management programs."

Mr. Potts added, "Today, risk managers are more sophisticated. They are working diligently to protect the organization and manage risk as cost effectively as possible, but the process for meeting state requirements is daunting."

Recognizing the complexity and importance of the UM/UIM election process, ACE Risk Management is developing a web-based alternative for faster and more accurate completion of the UM/UIM election forms.

"This paper highlights the challenges faced by insureds to record their UM/UIM decisions and discusses ARM's technology solution for organizations that would like to streamline the election process," said Matt Merna, Division President of ACE Risk Management.

The authors' commentary is part of ACE Progress ReportsSM, a collection of white papers, articles, and executive reports on current and emerging risk management issues, and it was produced in conjunction with the Information Law Group.

To access the report, please visit: www.acegroup.com/us/progressreports. The material presented in the report is not intended to provide legal or other expert advice. It is presented as information only. Readers should consult legal counsel or other experts, as applicable, with any questions they may have. About Cozen O'Connor Cozen O'Connor L.L.P. is a large U.S. law firm based in Philadelphia, PA. The firm was ranked 99th on the American Law 100 survey in 2011, and handles virtually every area of law related to business, including tax law, intellectual property, labor and employment, environmental law, corporate and securities law, real estate, bankruptcy and creditors' rights, and many others. The firm also has practices in family law and immigration law. About ACE Group: ACE USA is the U.S.-based retail operating division of the ACE Group, and is rated A+ (Superior) by A.M. Best Company and AA- (Very Strong) by Standard & Poor's. ACE USA, through its underwriting companies, provides insurance products and services throughout the U.S. Additional information on ACE USA and its products and services can be found at www.aceusa.com. The ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the S&P 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acegroup.com.