Every motor vehicle liability insurance policy delivered or issued for delivery in Pennsylvania must offer the option to purchase uninsured and underinsured motorist coverages, 75 Pa.C.S. Section 1731(a). If an insured purchases the UM/UIM coverage, the limits of coverage available for an insured is by default the sum of the limits of each motor vehicle as to which the injured person is an insured, as in 75 Pa.C.S. Section 1738(a). This is referred to as “stacking.” However, an insured purchasing UM/UIM coverage must be offered the opportunity to waive stacked limits in return for a reduced premium, 75 Pa.C.S. Section 1738(c). The waiver is effected by executing a statutorily prescribed written stacking rejection form, 75 Pa. C.S. Section 1738(d).
When a named insured purchases a new policy, the process is straightforward. The insurer advises the named insured of his right to waive stacking and provides him with the statutorily prescribed waiver form. If the named insured executes the form, stacking is waived.
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